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Different Types of Businesses of Food and Beverage Industry

University: Regent College London

  • Unit No: 6
  • Level: Undergraduate/College
  • Pages: 15 / Words 3660
  • Paper Type: Assignment
  • Course Code: H/616/1793
  • Downloads: 98

INTRODUCTION

Food is a basic necessity of human life. It helps people to survive in entire lifespan. The food industry is expanded into a wide area. It covers various other sectors like hotels, restaurants, catering services, etc. also, the hospitality industry is closely related to this as it provides different types of services. Thus, they have to properly manage operations so that high-quality food can be served. The type of operations differs according to the size and nature of the industry. This report will show different styles of food and beverage outlets, rating systems, etc. also, it will discuss current and future trends affecting the food business along with the professional skills required in it. moreover, it describes legal requirements and marketing done by them. At last, factors that affect consumer decisions will be shown.

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TASK 1

P1 Explore different types of businesses within the food and beverage industry

In hospitality sector, there are different types of trends of food style. It is because each industry has their own way of performing operations. The size of business depends on its nature. each to them are interrelated and can provide similar services. Its types are explained below:-

Sector

Description

Advantage

Disadvantage

Example

Hotels

Wide variety of services are provided like food, accommodation, resort, etc.

It provides large opportunity of career development (Wood, 2018)

In this there the pay of people is very low.

Hilton hotel operating all around the world.

Full service restaurants

It contains branded and non branded outlets. They provide services like home delivery.

A person can learn a lot of skills and knowledge in this sector.

The working hours are not fixed. Generally, there are long working hours.

McDonald’s

Branded Restaurants

They are different from fast food outlets as it provides lunch and dinner facilities.

It provides vast opportunities to build career in different sector.

There are long working hours.

Tim

Hortons

Theme parks

They are developed for entertainment purpose. In this rides, games, etc. are there to enjoy.

It has sociable working hours

There is lack of career development

Imagica

Fine dinning

They are family style restaurants having formal atmosphere.

Standards working hours

Low wages

 

Casual dinning

These restaurant serves moderate pricing food in usual atmosphere.

Better atmosphere to work

Not proper working hours

 

Bars and pubs

They are like café.

Less work pressure.

Non flexible working hours

CCD

Street food stalls

These are local street food stalls located at particular place.

Very low profit margin

Harsh atmosphere to work.

 

Coffee shops

They can be branded or non branded coffee shops.

Good atmosphere to work

Less growth opportunities

Starbucks

Gastro pubs

Both bar and restaurant that serves high end food and drinks

High benefits

Harsh environment to deal with customers

F bar and lounge

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

In hospitality sector there are various types of grading system which are used to select the best one. It helps in giving grades in different sectors on basis of their services and products offered. The systems are based on national and international standards (Couto and et.al., 2017). By this, it becomes easy to identify which company is famous for what type of service. systems are defined as :

Scores on the doors- It is UK basic grading system through which restaurant food safety results are displayed. Here, government officials compare results with standards and then give rating. It is a 6 tier scheme. It is only applicable in UK and neighbouring countries.

AA rosettes- They are awards given by hotel and restaurant inspectors. It is based on some criteria. For this various type of services are evaluated and then each one is given one to five star according to results. This is only followed in UK.

Michelin stars- They are stars used by red Michelin guide to grade restaurant on their quality. It was developed in 1930 and consists of only three stars. One denotes very good, two for excellent cooking and three means exceptional cuisine (Gluck and Soltan, 2017). The ratings are updated every year.

Hotel stars – This is a basic rating system in which a hotel is given rating according to services. generally, ratings are from one to five. One means very poor and five refers to excellent. The rating is given by people or customers on hotel website. with help of this, it becomes easy to determine which hotel is best. It is followed both at national and international level.

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

In recent time, hospitality is been affected to a great extent. This is due to emerging trends that has enabled in creating some restrictions on it (Patiar and et.al., 2017). There has been a many change in trends of food style and their operations in hospitality sector. These trends are impacting on them in either positive or negative way. Due to this, business in food and beverage industry is affected. The trends are described below :-

Street food- in present era, street food industry is boosting at high level. this is because to change in lifestyle of society. Now, people lifestyle has become fast. They want quick and healthy food to fulfil their needs. Also, today’s younger generation are highly attracted towards street food. This is the main reason why companies are developing variety of food items. They have effectively segregated the market and identified people needs. It has enabled them to develop product for each market. In the future it is expected that street food will be a common part of individual life. Companies will focus on improving food quality and making it healthier.

Robot waiters- Technology will play a significant role in operations of hospitality sector. The integration of AI with machines will help in reducing employee involvement. It will enhance the service quality (Min, Swanger and Gursoy,, 2016). The services will be delivered in quick time and in effective way. The example can be seen in evolution of robot waiters in hospitality sector. Robots will be used by business in waitering services. The order will be recorded in their memory. It will be sent into system of restaurant from where it is processed.

App based service- it refers to mobile or web applications that are used by companies in providing their services. In this third parties collaborate with restaurant and fast food chains to deliver their services. Through this, customers can order online and food will be delivered at home. They do not have to travel or go to that place. In addition many other activities are bee done. It includes catering services, event management, etc. it has resulted in attracting large number of people. This has led to growth and development in different markets. For example – in India Zomato is a platform from where customers can order food from any restaurant and it will be delivered.

In the coming years, it is expected that food and beverage industry will be highly affected by change in technological or taste and preference of customers. by using various software and applications their operational efficiency will be enhanced. In future hospitality and food industry will be dependent on each other growth (Seyitoglu, 2017). Any fluctuation in one will directly impact the other.

TASK 2

P4 Demonstrate professional food and beverage management skills

A person should possess appropriate skills in order to build a successful career in food industry. without proper skills, it will be difficult to manage food and beverage operations. apart from this, it helps in identifying what particular skills are required to be gained. There are some skills required in managing food and beverage operations in McDonald’s that is as follows :-

Communication – This is most important professional skill that is required. A person should be able to properly communicate with each other. he or she must be having ability to listen properly and share ideas or thoughts. In McDonald’s working is done with customers, staff, managers, etc. so everyone has to be communicated in different way. also, person should be expert in native language and know 2-3 other languages as well (Giritlioglu, Jones and Avcikurt, 2014). Furthermore, it is required to work in team and customer service.

Safety – the second essential skill that is required in it. here, a person should know about various techniques and tools of safety. He or she should have knowledge about how food must be kept safe and what procedure is followed. McDonald’s is highly concerned with safety measures as provide high quality of food to their customers. thus, individual must have vast knowledge about various food safety control and measures.

Customer service – As name depicts a person must have skill about interacting with customers. they are some professional skills that is required in food operations. he or she should possess proper etiquettes and ethics on how to deal with them (Restaurant and food service skills. 2018). They must be having knowledge about how to behave and treat customers. he or she should welcome customer in proper way. with this customer relations are built and developed.

Ability to learn quickly- a person must be must have a good grasping power so that new things and skills are learned quickly (Omar, Adaha and Kamri, 2017). This is because food industry is an area where there are many functions and operations performed. It varies from cooking food to cleaning it. thus, candidate in McDonald’s have to perform two or more operations at one time. Besides this, there is no training provided for every work that is done.

Flexibility – a person must be flexible enough so that it ca work in various areas. he or she should be able to handle and manage operations and assign work in case of emergency. Furthermore, he or she must be able to work in any shift.

Food knowledge- this skill is specially required in McDonalds’. The person must possess knowledge about different types of food and ingredients that are used in preparing it. also, it helps in dealing with customers and providing them detail and information about different products of company.

Hence, it is evaluated that acquiring and possessing these professional skills in McDonald’s enables a person to build a successful career in food and beverage industry (Sacks and et.al., 2018). it is necessary to possess above skills so that food operations can be managed in effective way.

P5 Explain the legal requirements and regulatory standards that food and beverage service outlets must comply with

There are certain laws and regulations set up by government and international agencies related to food safety and security. They have set some standards and guideline which has to be followed and implemented by food outlets. This restricts them to provide healthy food to people. Also, they are bounded to follow standards. Besides this, it ensures that customer get high quality food and service equally (Manzardo and et.al., 2016). The legislation framework may vary in different countries. the standards provide a base for companies to develop their own policies which is as follows:-

Food and safety regulations- they are basic norms which is followed by set by international agencies. It consists of policies and procedures that is imposed on food and beverage company. It shows ways handling of food, its selling, etc. in this many other aspects are included as well like food safety for meat, dairy products, etc. they are base through which food industry operations are monitored and controlled.

Read also:
Customer Service Operations of Hilton Group

Food safety compliance- it is developed by FDA that consists of laws and policies related to safety of food processed in manufacturing, distribution, supply chain, etc. they are followed by organization to ensure safety of food and ingredients (Green and et.al., 2015). Food process is described in it which enable organization to execute it.

TASK 3

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

In food and beverage industry technology is used for marketing as well as in operations. this is done so that goals and objectives are achieved in effective way. it also helps in increasing efficiency and productivity of company. basically, in two areas technology is used which are discussed below –

Operational- it refers to internal and external operation of company. there are many activities related like supply chain, order taking and processing, delivering, etc. (Patiar and et.al., 2017) the use technology in operations in different from marketing as it is complex procedure. Also, tools and equipment’s used are of high level. Here, method of implementation of technology is differs according to services.

Marketing – Here, technology in used only for specific purpose. Company have to advertise their products and services so that people can be attracted. Now, companies are using digital marketing and social media platforms. They have developed their own website, blogs, etc. to advertise their products.

Operational

Marketing

In includes operations like stock trading, costings sheets, etc.

It includes CRM and loyalty systems, e mails, etc.

The operational manager can use this technology

Marketing manager, employees and customers can use it.

It helps in managing operations in proper way.

It helps in marketing of products and services

Both helps in growth and development of business. by using them services are delivered quickly and feedback taken from customers. with operational there is effective handling of functions. The complex tasks are done in easier way and goals are attained in time. In marketing data and information is collected and analysed to identify change in taste and preference of customers.

TASK 4

P7 Investigate the factors that influence the consumers’ decision

In hospitality sector it is very necessary to gain satisfaction of customers so that they can be retained. This helps in building a loyal customer base and competing in market. Consumers are very sensitive. Their buying behaviour influences constantly due to change in certain factors. it forces them to select proper and appropriate restaurant to fulfil their needs (Patiar and et.al., 2017). therefore, different strategies are developed in order to attract consumers. The factors are described below :-

Brand name – this is first factor that consumer considers before selecting a restaurant. Brand name reflects company image and its goodwill in the market. it plays a vital role in influencing consumer decision. many people prefer to go in reputed restaurant. This is because they are ensured about food quality, hygiene, services, etc. developing a better brand image in mind of people will be beneficial in attracting them.

Variety of products- Here, consumer analyse the variety of products that are available. Generally, in food and beverage industry each fast food outlet provides specific product. So, people need to analyse whether their needs will be fulfilled or not. If outlets provide more variety of products it is easy for people to select it. so, any change or development of new product will influence consumer decision.

Reputation- it is a factor that depicts outlet brand equity in the market. it reflects beliefs and opinions and what stakeholders thinks or view that outlet (Min, Swanger and Gursoy,, 2016). A good reputation shows consumer trust your brand and feel comfortable to buy products or services. therefore, any change in reputation influences consumer decision.

Pricing – It is most important factor that influences consumer buying behaviour. Here, consumer analyse and compares price of different restaurant so that cheap one is selected. Moreover, decision is based on purchasing power of consumer. If they are having enough power then they will choose reputed restaurant. Any fluctuations in prices will influence consumer decision. our experts provide the best teaching assistant level 2 coursework help for students.

Thus, it can be stated that the consumer decision is influence due to change in several factors. they have to evaluate different elements to select an outlet. It has forced consumer to evaluate food outlets on certain factors before making final decision.

P8 Analyse strategies used by food and beverage outlets to attract and build a loyal customer base

Every organization needs to develop strategies so that it can attract large number of customers. also, it is essential to do so for continuous growth and development. Moreover, business needs to sustain for long term in industry (Seyitoglu, 2017). For this a loyal customer base has to be developed. The strategies need to modified according to market condition. Furthermore, they differ as per target market and size and nature. Other than this, in food and beverage industry the customer base is small so it is difficult to retain it. this can be only done by building loyal one. The various strategies developed and implemented by food outlets are as follows :-

Seasonal offers – this strategy is commonly followed by every food and beverage outlet. In this they offer discounts in festive seasons so that more people can be attracted. It helps in building a large customer base in different markets. Also, people are always attracted to those outlets that provide and offer discounts. It creates a positive image in their mind.

Offering discounts- It is also a popular strategy in which food outlets provide offers to their customers so that loyalty can be gained. This is done through various methods such as membership, coupons, free delivery, etc. it is useful tactic to enter in new market. Here, advertising is done to create awareness among people about offers. Once a customer is engaged with outlet then trust can be gained.

Happy hours- this is a new concept initiated by food outlets in attracting customers. in this they set a particular time in which products and services are available at very low price (Giritlioglu, Jones and Avcikurt, 2014). It is useful to build loyal customer base. Moreover, customers avail happy hours to fulfil their needs. In this way company can gain their trust. The offer is advertised on social media and other sources.

Offering combos- Food outlets focus on offering combos to so that it is affordable to people to buy it. they do this every week and set price accordingly. With it effective meals can be provided to them.

Loyalty system – in order to encourage customers reward system can be implemented. Here, they are be given points on basis of visits or bill of items. Thus, providing benefits or discounts on loyalty card will be beneficial in attracting people.

CONCLUSION

This report concluded that there are different styles and types of food and beverage operations. it depends on size and nature of industry. the law followed in food industry are Food and safety regulations, Food safety compliance, etc. Management professional skills required are Communication, Safety, Customer service, ability to learn quickly, etc. The future trends like robot waiters, street food, etc. will impact on operations of food and beverage industry. Consumer decision in selection of restaurant is influenced by many factors such as brand name, pricing, variety of products, etc. there are different strategies followed by food and beverage outlets in order to build loyal customers base. They are seasonal offers, offering discounts, etc.

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