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Nelson College London

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Managing Food and Beverage Operations

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Contents
Introduction......................................................................................................................................7

L01 Explore the food and beverage industry including different styles of food and beverage
service outlets, rating systems and current industry trends.............................................................8

P1 Explore different types of business within the food and beverage industry, profiling a
chosen business within each area of the industry........................................................................8

P2 Explain different rating systems used for the food and beverage industry nationally and
internationally............................................................................................................................10

P3 Discuss the current and future trends affecting food and beverage businesses....................11

LO2 Demonstrate professional food and beverage service standards in a real working
environment...................................................................................................................................12

P4 Demonstrate professional food and beverage 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

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:..............................................................................................................13

D2 Analyse the implications of failing to meet the professional food and beverage legal and
regulatory requirements upon the overall operational performance:.........................................14

LO3 Compare the ways that different and food and beverage operations use technology to
improve operational efficiency......................................................................................................17

P6 Compare and contrast different operational and marketing technology for a range of
different types of food and beverage business...........................................................................17

M3 Evaluate how digital technology enhances business performance for a range of different
types of food and beverage businesses to meet business objectives:.........................................17

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P7 Investigate the factors that influence the consumers’ decision on which food and beverage
outlets they choose.....................................................................................................................19

P8 Analyze strategies used in a range of food and beverage outlets to attract and build a loyal
customer base.............................................................................................................................20

M4 Evaluate the effectiveness of strategies used in a range of food and beverage outlets to
attract and build a loyal customer base......................................................................................20

D3 Critically evaluates the impact of digital technology on both the operations of food and
beverage businesses and the significant influence it has upon consumer buying behavior:......21

Conclusion.....................................................................................................................................27

Bibliography..................................................................................................................................28

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Introduction
Food and beverage hospitality industry is one of the biggest industries in worldwide. It plays a
very important role in a countries domestic arena. This industry is very favorable to many people
who want to join in the hospitality sector. It includes pubs, restaurants, coffees, lounges, fast
food etc. This kind of business target local and international all kind of customers. With this
business, one country can know other country’s tradition; a friendly environment can create by
this.

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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. In the world there are different types of
food and beverage businesses are famous. Now I’ am going to explain some of the popular
business with their advantages and disadvantages which is given below:

SL. Sector Description Advantages Disadvantage Example


s Employer

1 The It is a Calabasas, They have a They possess By staff


Cheesecake California based powerful a mere
Factory restaurant appearance international
company. They in nearly all appearance.
manage 210 whole states of USA
service restaurants.
2 Accor It is a Paris, France Their They are By staff
Hotels based hospitality presence is struggling in
company. It is the perfect online
biggest hotel group according to business.
in the earth. their
segments.
3 KFC It is a Louisville, They are the They have a Several
Kentucky based 2nd best in high
company. It holds fast food employee
the number 2 rank based turnover.
restaurant chain in restaurant.
the world.

4 Kimpton It is a San They care a Their growth By staff


Hotels & Francisco,California lot about opportunity is
Restaurant based restaurant their limited,
s and hotel. It is one cusotmers especially
of the biggest chain and internationally
boutique hotel employees, .
their
environemen

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t is extremely
friendly.
5 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 perception
in different market they possess
segments. limited market
share.
6 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.

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: Every country is sincere about food safety. They have their own food expert
authority who research and investigate all the process of making the food. After their
investigation they give rating.

Food standard agency: In UK it is under non-ministerial government department. To follow the


correct standard there is a strategic way.

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Alcohol rating: In different countries, there is different demand for different alcohol. To maintain
alcoholic product and percentage every country follows a specific rule. Food and Beverage
Company always tests their drinks and give ratings before giving it to 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:

 Changing customer preferences: Customer appreciate the bold flavor and the foreign
flavor most of the times. Customer’s choice do not remain same, it vary time to time. New
flavors and tests attract them most of the time. High quality product, home delivery,
attractive packaging they prefer.
 Mergers and acquisition: In the market, many companies have existing food and
beverage. To get leading position in the market they will produce healthy and tasty
product. To get engaged with customer this process help. To develop a product according
to present market demand the company has to do a lot of research.
 Food safety: It was found that 61% Americans are certain about the food supply in a
research. So food safety is one of the major issue in that case.
 Digital transformation: Customer want their product at a time in and stores at the present
age. Amazon has taken some steps to fulfill customers demand. Customer use their device
to order their choice from home. Within shortest time, delivery is provided at their
neighboring locations.
 Food sustainability and corporate responsibility: Every customer desire to know the
rate or method of delivery expectations and productivity.

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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
A major issue is in hospitality sector food and beverage.to get exceptional environment and food
People visit a hotel or restaurant.in food and beverage organization there some of the efforts
needed.

Food and beverage service in the hotel:

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

 Coffee shop
 Restaurant
 Room service
 Bar
 Lounge

Leadership skills: For a perfect business a perfect manager is needed.Food and beverage
quality, manage customers, manage employees ect they have to manage.

Organizational skills: There are many plan and math is required to perform in food and
beverage company this skill is needed.to maintain suppliers, work schedule, foods, beverage,
costs, pricing etc they must have Organizational skills.very crucial are Organizational skills.

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

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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:
Establish a business in any country is not easy. There are rules and regulations have to follow. If
this regulations are not maintain well there are consequences. They are given below:

Food and beverage law USA

Legal issues in food safety: Food adulteration, food poor quality is not safe for customers so
food safety is the basic work of food and beverage law.

Consumer product safety commission (CPSC): For consumer product safety and for people do
not get unreasonable injury or death, this agency work. To protect consumers they are ready.they
have worked superbly in the past 30 years.

Department of health and human service (HHS): To protect the health of Americans, this
department’s main work. For those especially who need it the most they also provide essential
services.

Food and drug administration: FDA is an agency that below the command of HHS but their
work is very efficient. For human safety the food and drug administration (FDA) works.

Food labeling policies: It gives the authority to labeling a product and introduce to the market.
For food labeling aspect, this is guide federal. They will have to face bigger

Issues, it contains imprisonment, or a big amount of penalty if any company does not follow law
and order.

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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:
There will be problems many problems so business is for brave heart people. Problems can be
bigger than we ever thought, but with solution, they just needed to found. In the world to protect
customer’s health there food and beverage law, if those are not followed, as they should there are
bad consequences. In the whole business operational performance there some other
consequences let’s see what they are:

Reputation: The biggest asset of a company is reputation. Reputation can be earned with time
but there are too many chances for you to lose it, Your restaurant will of course impact on its
reputation for any issue regarding. It will lose competitive advantage and other competitors will
than take the advantage if the company fail to maintain regulation for food and beverage law.

Lose customers: For customers to visit your restaurant there will not be any reason. Therefore,
you can lose most of your customers only the loyal ones may remain with you. Losing customers
mean losing the business. The main key to run a business is customer,

Get marked by the law agency: It will be marked by the law agencies, as FDA If your
restaurant did not maintain law. They can cease your license, send you to court, and make to face
consequences.

Losing business: You may lose your business because of not following the rules and
regulations. So, restaurants 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?
Storage Temperatures Depends on the Product or food
When you brought the
ingredients to your house, note
where these were stored and

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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 Outcome 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
Company of this (fines,
imprisonment, loss of

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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:
In the market, there are different types of food and beverage businesses. Lot of thing related with
a business. One of the biggest processes of business is marketing. Very important now a day is
marketing. Food and beverage hospitality business need effective marketing. There are four
forces of marketing operations and technology. They are given below:

Brand: Globally reached missions and trustworthiness.

Authenticity: Concentrate on single or individual customers

Efficiency: It means global and standardized data.

Innovation: This is general or local data.

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

Flow-through Sortation: To get maximum return companies are trying their best.

Numerous operations were taken under to go throw arrangement system and make the chore
simpler; Companies are retaining beverage and food stocked.

Equipment Innovation: A must thing for progress is Equipment innovation. For less time
consuming, work easy, less costly there must be.

New Era of Voice Technology: The future is fully automated because this is the new era of
technology. Voice technology is emerging .Now machines are automatic they just need to start
and command. Use of motion sensor is increasing also.

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Increase in AVG Technology: Highly used worldwide is AVG technology. It works like
vehicle that will move your product one place to another. It can carry heavy instrument very
easily, it makes work easier. They are mainly visible or in big warehouses in port areas.

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P7 Investigate the factors that influence the consumers’ decision on which food and
beverage outlets they choose
There is many more reason to visit there but normally people think about restaurant from
starvation. To visit a restaurant feeling hungry is not the only reason; change the environment, to
offer someone a dinner, to have some special moment etc. can be. A food from restaurant is more
delicious from our homemaking food. It gives a different experience and tastes every restaurant
you go.

Monetary Factors: People do not want to visit a restaurant when they do not have enough
money this is a fact. According to their buying according to their buying capacity, people visit
restaurant. People like restaurants in their buying capacity.

Mental Factors: Mental Factors are like, food quality, status of the hotel, product necessity etc.
People will do everything to cheer up their mind when the have money

Spiritual Factors: There are boundaries of eating habit in some religion. In Hindu religion you
can’t eat cow meat and in Islam you can’t eat pork, Christianity there is no such boundaries.
These are spiritual factors. What a person believes and have faith on it depends. Those kinds of
factors change the completely purchasing habit of a customer.

Meal Forms: Meal Forms is focusing on food, the form of food can determine the customer.
When someone thinking for chicken wings he will think about KFC once. Because KFC mainly
serve fried chicken. People want to go where the best he can get and every restaurant want to
sereve the best food what is their meal forms.

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P8 Analyze 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
Nowadays food and beverage companies are popular to the customers. Here are some types of
ways that can be used to build a loyal customer base:

Upholding Moral Value: What you have promised, deliver it. People have learn this from your
advertisement, your posters, banners, pictures of your food that’s why they will come to your
restaurant. The same and best quality that is possible for you, deliver it to them.

Improve earliest period customer package: Sometimes manager can offer a deduction on the
price, or offer some extra to customer so they come again. When someone is first time in your
restaurant, this is very useful specially. Give them something that they were not expecting.

Client maintenance: A vital key is handling client. They need to get well treatment form the
restaurant because Clients are sensitive. Customer will set a brand image and positive thinking
by your managing client skill.

Become complex in the native civic: Restaurants can arrange some playing ground for
customers so they can enjoy another thing beside your food. In some kind of occasion, you can
give some discount on your food. They will enjoy you service and will remember it for a .long
time

Upselling Methods: In choosing their products or services, sometimes customers get confused.
To make him a better choice the restaurant employee or in choosing their products or services.

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D3 Critically evaluates the impact of digital technology on both the operations of food and
beverage businesses and the significant influence it has upon consumer buying behavior:
Nowadays, it is not possible to fool customers these days. Because of internet, everything is in
front of customer. All are under digital marketing like youtube, boosting, facebook marketing
some other social media etc.

They are affecting consumer behavior, let us see:

Product price: Customer: can learn the real price of products by researching in the marketing.
From their home, they can judge the food and decide they will take it or not. They are making
choice from the product price point of view.

Product review: In online every product’s review is available. Therefore, the product good or
bad everyone can decide or judge. When maximum review is bad, still everyone will know
where not to go. The customers will spend some time in your restaurant when it is good.
Nowadays customers are taking decisions from online product review.

Internet shopping experience: Changing customers buying behavior by shopping in internet


experience. When customer see a product and like they become ready to pay foe that just seeing
the picture of that.

Consumer trust: Nowadays consumers are not trusting online products now. You interact with
the seller you know the store addressing offline store. You do not know anything it can be a
spam, can be hacker who is trying to reach in online store. The digital market for these issues is
influencing customers.

Information satisfaction: When consumers going to visit the store live, they desire to collect
information about the store. They can get good or bad reviews of your store. Nowadays they do
not need help to use or run the product, because YouTube help them. There is everything online,
you can get.

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Your Choice of
Branded Coffee Bar Café/Restaurant 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/ Menus Yes


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

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Samsung Pay and
similar applications
Product Display
Are products
displayed in a logical Yes Yes No
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 5/10 5/10 5/10
Purchase items near
the till?
Do members of staff
up-sell?
Posters/
Advertisements
Are there posters No Yes No
and advertisements?
What are they
promoting?
8/10 5/10 6/10
Are they appealing
and likely to
succeed?
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

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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 8/10 2/10 3/10
promoting
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
business, during your
visit?
Website/Advertising
Before, or after, your
visit, go to the Yes No Yes
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,
location, menus, 9/10 2/10 9/10
prices, etc.)?
Do they advertise
their business in any
other way?
D3
How might the

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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

One of the biggest industries in the whole world is food and beverage hospitality industry. This
business is very profitable. 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, they looking for restaurant.
This business requires heavy investment; it has to create a brand value in customer’s mind.
People watch product review, product information, price, facility characteristics and then justify
if that product or services for him/her or not, from Facebook. An amazing industry for people for
their relaxation and crating some memories is Food and Beverage Company.

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Association, N. R. (May 24, 2012). Principles of Food and Beverage Management. London:
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Baweja, B. D. (2001). Food and Beverage ( F & B - Management Technology) with Revenue
Management. Chennai.

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.

Comen, T. (2006 ). Case Studies in the Management of Food & Beverage Operations. American
Hotel & Lodging Assn: Educational Institute,.

Goyal, R. C. (2009). Research Methodology for Health Professionals. Delhi: Informia


Publications.

Hill, B. K. (2009). Career Opportunities in the Food and Beverage Industry. Ferguson.

Michael M. Coltman, M. G. ( Aug 28, 2000). Hospitality Management Accounting. Wiley:


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Pizam, e. b. (2005). International Encyclopedia of Hospitality Management. Oxford: Elsevier


Publication.

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