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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..........................10

P4. Demonstrate professional food and beverage management skills within a food and beverage
Organization..................................................................................................................................12

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......................................................................................................................................13

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

Bibliography..................................................................................................................................23
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 Abstract:
Operations of food and beverage industries isn’t much different from the other industries. But
there are certain differences that must be addressed carefully. Within the industry, there are
different types of business and each of them require their own strategies. The industry must
provide high quality service that are more efficient than the competitors. The rating systems can
help in informing the consumers about a business’ high ratings which will attract them. Besides,
the industry must change with the current and upcoming trends in order to survive. In keeping
this business up and successful, the management must fulfill its responsibilities with efficient
skills. Achievement of success can be facilitated by using technology in the industry’s
operational and marketing functions. So, there is actually a chain of events and conditions for the
operations of food and beverages to run perfectly toward the goal.
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 Introduction:
Hospitality industry is a growing industry that has a rapid progression. It positively influences
the world economy now more than ever and will continue to do so as it’s constantly reaching
new heights. The success of this industry lies in its ability to provide high quality services. This
industry is made up of numerous subindustries. Food and beverage industry is one of the most
important subindustry of hospitality industry as its contribution is highly recognizable
[ CITATION ERS19 \l 1033 ]. This industry walks on its path of success by ensuring high
quality services. The industry isn’t the only party that is concerned about maintaining its quality,
certain organizations contribute to make sure that quality is given a priority. That’s why there are
rating systems to determine whether the business organization provides decent food and
beverages or not. Besides the rating system, there are certain standards that these industries are
forced to maintain to stay in operation. All in all, providing top grade service is as beneficial for
the industry as it is for the consumers.
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 Factsheet 1 14

P1. Explore different types of business within the food and beverage
industry, profiling a chosen business within each area of the
industry
Food and beverage industry include different types of business enterprises within itself. Each
have their own distinctive features and characteristics. They all have played important role in
enriching this industry. Hotels, restaurants, catering service, cultural food services etc. can be
categorized under food and beverage industry. Facility services like fitness and spa services,
theme parks, golf club etc. are also a major part of this industry. They all offer different types of
services to the customers, making it a rather versatile industry which is catering to a lot of
customer needs.

Some of these business enterprises are discussed below.

Hotel Services:

Hotels provide residence, food and other guest services for a price. There are lots of hotels in the
UK, some of which are running the business on international grounds. UK is host to some of the
most luxurious hotels as well. The contribution of this business is among the very top. ‘The
Hilton’ hotel in the UK is one of the most luxurious five-star hotel chains that’s been providing
first-rate hotel services to its customers. Besides its lodging service, it offers fitness centre, pools,
free internet connection, dining place etc. It has everything that a customer wants and more.
Their top-notch service has enabled them to find success for years. The advantages of this hotel
include beautiful high-class decoration, its spacious rooms, brilliant staff response and service
etc. On the other hand, this hotel is quite expensive and mainly targets the customers residing in
the upper class of the society.

Restaurant Services:

The Hilton’s service isn’t limited to hotel services. This hotel chain boasts multiple fantastic
restaurants to serve its guests and just about anyone who wants to dine in there [ CITATION
Hil19 \l 1033 ]. Their foods are greatly favoured by its customers. There is a wide range of foods
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 available there so there is food for everyone. They maintain high standard in their foods so there
is no compromise in quality. Being a part of a luxurious hotel, this restaurant is just as
magnificent. Guests of The Hilton hotel doesn’t have to stroll far for foods, they can just do that
in the hotel’s environment and eat the most delicious foods. However, they are very expensive as
if to match with the hotel itself.

Fast Food:

The Hilton Hotel serves the customers and therefore, it tries to cope with the ongoing trends.
Since fast foods are a popular choice of food, the hotel keeps them in its restaurant’s menu so
that customers can choose to eat them if they like it. Their fast foods are of high-quality unlike
the local ones. So, customers can get top-rate fast foods which are delicious at the same time.
Besides fast foods, this hotel serves various beverages for its customers. In fact, it boasts a really
beautiful bar filled with different kinds of drinks both alcoholic and non-alcoholic [ CITATION
Hil19 \l 1033 ]. Some fast foods, however, might seem too expensive and their taste might not be
up to the mark.

Catering Services:

The Hilton Hotel provides magnificent catering services [ CITATION Hil191 \l 1033 ]. Be it a
big corporate event, wedding or comparatively smaller parties, customers can count on Hilton’s
catering service to take care of them all. The hotel has a good number of huge meeting rooms,
ballrooms and banquet facilities to host the enjoyable occasions. The catering menu includes a
wide variety of foods. Customers can sit tight and relax as Hilton’s catering service does the job.
However, Hilton isn’t the best catering service provider. There are some options that are far
cheaper and more efficient.

Fitness & Spa Facilities:

The Hilton Hotel provides a decent fitness and spa facilities. The gym has all the modern
instrument as well as a spacious room for the guests to exercise freely. The spa treatment room is
decorated beautifully and relevantly. The spa therapists are highly trained and efficient so
customers are promised extreme comfort and relaxation [ CITATION The191 \l 1033 ]. One
disadvantage is that not all the branches of the Hilton Hotel includes spa facility.
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 Golf Club:

Hilton resort owns a lot of golf courses designed for its club members. The elegant golf courses
are made with international standards. Anyone wants to golf here will have their utmost
satisfaction in playing golf as every equipment is available. To be a member Hilton golf clubs, it
requires a hefty price.

Factsheet 2 14
P2. Explain different rating systems used for the food and beverage
industry nationally and internationally
The rating systems carry a lot of importance as they determine the quality of a food and beverage
industry. High rating refers to first-rate quality which will be popular in consumers. Low ratings
refer to the industry’s inability to provide acceptable quality of products and services. These
products will be rejected by most consumers.

There are different types of rating systems. They are stated and explained briefly below:

Michelin Star Rating System:

Michelin Star is actually a widely accepted and one of the most popular restaurant rating system.
The ratings can be found on Michelin Guide, an annually published guide book featuring
restaurants. Michelin Stars are provided after carefully inspecting a restaurant by the
professionals. Their rating stars range from 1 to 3 stars, each with their own meaning. 1 star
means the restaurant is good. Getting the 1 star is quite the achievement because Michelin Star
rating system is really a picky one. 2 stars refers to excellent cooking. The ultimate 3 stars are
given to the best restaurants [ CITATION Vac18 \l 1033 ].

Scores on the Doors:

It is a food hygiene rating. Having this rating means the food place is regularly under inspection
and their hygiene is maintained. This is a government rating system of the UK that tells whether
the restaurant or the takeaways maintain the hygiene or not.

AA Rosettes:
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 Introduced in the 1912, this is a smart system of classifying hotels and rating restaurants. AA’s
own inspectors inspect the services provided by various hotels and restaurants and classify them
accordingly. The lowest score is one and the highest is five. Depending on the service quality,
hotels and restaurants receive their scores and these scores inform the customers about the
quality and standard of service that they can expect from certain hotels or restaurants
[ CITATION The192 \l 1033 ].

Star Ratings:

It is the most commonly used rating system that can be found all over the world. These are given
by professional and casual reviewers based on their judgement and evaluation of the restaurant’s
services. The highest rating ranges from five to ten which depends on the reviewer. Other
customers can choose their choice of places to eat based on these star ratings. These star ratings
aren’t, however, exclusive to restaurant ratings only. This system can be used to rate just about
anything.

TripAdvisor Rating System:

TripAdvisor is one of the most popular review sites, notable for its travel guides. It includes
almost every travelling locations along with hotels, restaurants etc. TripAdvisor rates the hotels,
restaurants and even the travelling locations it reviews. Their ratings greatly influence customers
choice, as it was found in a research.
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 Factsheet 3 313
14
P3. Discuss the current and future trends affecting food and
beverage business
The current and future trends heavily affect food and beverage business. Customer’s choice and
taste are subject to changes. Trends are introduced every now and then. Food and beverage
business must evolve with the trends to walk the path of success. Customers follow trends so
businesses must plan out strategies to match those trends. If a business fails to cope up with the
current trends, they are sure to fail. While following the trends, businesses must also anticipate
future trends in order to prepare to tackle shifts in the future.

Here are some of the current and future trends that affect food and beverage business:

Street Foods: Street foods are extremely popular among citizens and visitors of a country.
People often go to different countries to try their authentic street foods. The popularity of street
foods can be traced to its easy made, convenience eating along with lots of versatility.

Veganism: A lot of people are ditching meats and resorting to vegan foods as they are thought to
be healthier and takes off pressure from animals. This is affecting the economy of meat-based
industries.

Home Delivery: Home delivery services like Uber Eats, Food panda are extremely popular these
days. People love the idea of having the restaurant-made foods delivered to their own home.

Authenticity: Authentic foods collected from different parts of the world has high demand. In
the future with more advanced storage facilities, people will be able to eat authentic foods from
on corner of the earth which is collected from another.

App Based Service: App based services in food industry is gaining popularity. People enjoy the
convenience of having the whole menu available in their apps and they can order them whenever
they want easily.
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 Robot Waiters: Robot waiters eliminate the need for human interactions. They are less likely to
make errors and remain more professional. But its gaining popularity is mostly because of its
tech-savviness.

Healthy Eating: People are getting much more conscious about their health. They are rejecting
unhealthy foods more often. Restaurants would be beneficial by keeping healthy options in their
menu.

Touch-Screen Technology: In the future, touch screens will be available in almost everywhere.
So will restaurants as it does in many already. People will be able to scroll through menus and
select their orders at the touch of their fingertips.
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 P4. Demonstrate professional food and beverage management skills
within a food and beverage Organization
Lack of proper management of a food and beverage organization can lead to its downfall. In this
competitive era, proper and efficient management is fundamental in ensuring victory. So,
professional food and beverage management skills are essential within a food and beverage
organization. These skills will make sure that the quality of services is maintained. The
operations of the business will run flawlessly thanks to the management skills of the manager.
Besides, the proper implementation of the skills will ensure customer satisfaction, build up
strong relationships and earn loyal customers [ CITATION Dav14 \l 1033 ].

Some of the management skills within a food and beverage organization are as follows:

Strategic Planning: Nothing really runs well without a proper strategic planning to guide it.
Plans will help the food and beverage industry to attain its goal of satisfying its customers and
earning profits.

Effective Communication: Being clear, open and consistent in communication with the guests
and the staff will definitely bring out brilliant results. Through this means, managers can give
clear orders to the staff and listen to customers feedbacks. These feedbacks can be used in
improving the services [ CITATION Cor19 \l 1033 ].

Organizational Skills: Organizational skills will ensure that everything is organized within the
food and beverage industry. As a result, there would be no time wasted in finding things or
setting stuff up.

Leadership Skills: Ability to be authoritative and make the subordinate listen as well as leading
them toward the goal is a great skill and a must-have in a manager of a food and beverage
organization.

Time Management: The manager must be well equipped to manage times. This way, customers
will be able to order and be served foods in time, resulting in their increased satisfaction.
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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.
Food and beverage service outlets must comply with some legal requirements and regulatory
standards. This is to ensure that the customers are always getting quality products and services
and aren’t getting fed with the unhygienic, unhealthy stuff. Every business must follow the law
and there are certain laws made especially for food and beverage industries. Being unable to
comply with them will result in punishment.

The legal requirements and regulatory standards that food and beverage service outlets must
comply with are as follows:

 Food and beverages industries must be licensed and follow the Company Act 1999 before
and during its operations.
 Under the Food Safety Act 1990, food cannot be dangerous to health or cause potential
damage to the consumer [ CITATION Rog17 \l 1033 ]. It must be 100% safe.
 According to the EU White Paper on Food Safety, every food and feed must be traceable
to its ingredients. This is to ensure that industries do not use hidden harmful ingredients.
 Employees of the food industries must be given their full rights and be allowed to enjoy
their rights according to the Employment Rights Act 1996.
 Wastes produced by the food and beverages industries must be effectively managed to
prevent them from harming the environment according to the Waste Management
Regulations 1996 Act.
 Hygiene in both the restaurant premises and the kitchen must be maintained properly in
order to promote healthier environment.
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 Factsheet 4 14
P6 Compare and contrast different operational and marketing
technology for a range of different types of food and beverage
businesses
Among the functions of business management, operational and marketing technology are two of
the most importance ones.

The comparison and contrast of these two are discussed below:

Operational Technologies:

Operational technologies refer to the technologies used in the operation of the business, in this
case food and beverage business. They are stated below:

 Ordering from Suppliers: The industry requires supplies to produce its products. These
products must be bought from the suppliers. Modern technology allows these orders to be
made online at the touch of a click.
 Monitoring of Equipment: There are many devices available now to monitor the
temperature, state, age of products. This helps greatly in storing.
 Payment Technology: The world has stepped into an era where cash isn’t the only form
of payment. There are multiple ways of making payments. Customers can pay through
their debit or credit cards or even their bitcoins.
 Nutritional/Allergen Information: It has become quite easy to find out the nutritional
and allergen information from the internet or using measurement devices. This makes it
convenience to share correct information to the interested users. This is useful in healthy
food industries.
 Cost Sheet: Using computers, cost sheets can be prepared with more speed and less
errors. They can be stored for as long as one wishes or can be edited at any time with no
complication involved.
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  Personnel Records: Recording information about the staff has never been easier. Their
information is categorized individually so any info like their age or their salary can be

Factsheet 5 15
found out at the push of a button.

Marketing Technologies:
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With the inclusion of technology, Marketing has reached a new height. It can reach more
potential customers now more effectively. It has become cheaper as well while the effectiveness
has improved.

Here are some of the Marketing Technologies:

 CRM System: Customer Relationship Management system helps in maintaining

customer relationship as well as managing their valuable data. Using a CRM software,
business organizations can reduce errors and increase accuracy and efficiency. Giant food
industries like McDonald’s, KFC uses CRM system in managing its customers.
 Social Media: Social Media allows the easiest and most effective way to reach to the
customers. They can be used to promote the food and beverage industry and form
communication. Every successful food industry uses social media marketing.
 Websites: Websites allow the business to inform the customers more about their services
and products. Utilizing technology, products can be promoted and communication can be
formed. Pizza Hut uses their website to do its marketing much like other business
organizations.
 E-mail: E-mail is a free way of marketing. Product info, discounts etc. can be sent
through e-mails in seconds.
 E-Brochures: Brochures on the internet will find its way to the interested customers and
bring customers to their premises. Hotels utilize this technology the most.
 Loyalty Systems: Loyalty system is maintained to reward the regular customers and
satisfy them more, keeping a profitable relationship on the process. Giant industries like
Walmart uses this system.
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 P7 Investigate the factors that influence the consumers’ decision on
which food and beverage outlets they choose:
There are many factors that influence the consumers’ decision on which food and beverage
outlets they choose:

Need of Consumer: Need is the most basic and the primary factor the drives a consumer to go
for a food or beverage. He would settle for the one that gives him the most satisfaction and
mitigates his needs the most successful way. For example, the consumer might crave Coca-Cola
and he would be satisfied by only the Coca-Cola brand’s coke.

Pricing: Consumers make purchase decisions based on their ability to spend. So, the consumer
would go for the food and beverage outlet that fits his budget the most and avoid pricier ones
altogether.

Service Time: Consumers expect quick and efficient service. They don’t like waiting. So, if the
service time does not fit the consumer’s standard, he would seek a different outlet.

Offers and Discounts: The demand for certain products increase if there are offers and
discounts. They most definitely influence a consumer’s decision.

Quality of Service: Obviously, consumers expect the best quality in the food and beverage
products they want. The more is the quality, the more they’ll want them.

Hygiene Rating: Hygiene rating informs the consumer about the hygiene standard of the outlet.
Consumers prefer outlets that have higher ratings because they were qualified to receive it
because of their effective hygiene maintenance.

Location: The location of the outlet influences consumer’s purchase decision. Consumers are
more likely to choose the outlets that are in convenient locations.
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 P8 Analyze strategies used in a range of food and beverage outlets to
attract and build a loyal customer base:
Food and beverage outlets must resort to special strategies in order to survive amongst the rising
competitors. These strategies will enable them to not only be successful but also to dominate the
market and get loyal customers.

Market Research: Researching the market informs the business about the ongoing trends, taste
of customers along with the needs and preferences etc. Valuable info’s can be collected from the
market. These info’s can later be used to influence the customer’s tastes or provide quality
services to gain their satisfaction.

Product Selection: Carefully selected products that are highly in trend, that are surefire in the
minds of the consumers will help in attracting and building a loyal customer base.

Menu Design: Attractive menu that includes the most delicious foods will definitely attract
consumers.

Professionalism in Staff: Staff’s etiquette and manners along with the skills must be utilized in
serving the customers.

Promotional Offers and Discounts: Promotional offers and discounts will attract otherwise
uninterested customers.

Loyalty Cards: Loyalty cards are designed to reward the existing regular customers who will be
influenced to feel important and therefore, be more loyal to the business and bring new
customers.
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 Conclusion:
The food and beverage industry will remain ever growing. Its growth can be facilitated by
technology, proper management, efficient marketing etc. Innovative ideas and strategies will
increase the possibility of success, which is of course, by ensuring customer satisfaction. The
operations of this industry will remain operational as long as it is managed properly. Ensuring
this condition actually depends on various factors and these factors are quite essential in
confirming the operations of this industry and therefore, the overall favourable outcome.
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1990
[Accessed 19 11 2019].

Rohlander, D., 2014. Management Skills. 1st ed. Indianapolis: Alpha.

The AA, 2019. Ratings and awards. [Online]

Available at: https://www.theaa.com/hotel-services/ratings-and-awards
[Accessed 19 11 2019].
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 The Hilton, 2019. HEALTH CLUB AND SPA. [Online]
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