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Types of Businesses in Food & Beverage Industry | Required Management Skills

4335Downloads1 I Published: 15 Nov ,2019

Introduction

Food and beverages industry includes various types of business which provide services related to the processing, packaging and delivering of food to customers. In consists of businesses such as hotels, restaurants, catering services, theme parks, cafes and many more. McDonald is an American fast food company headquartered in California, United States and maintains a range of franchise store throughout the world. It deals in offering product related to food and beverages such as burger, French fries, coffee, desserts etc. are few of them (Davis and et. al., 2018). This report elaborates about various types of businesses within food & beverage industry as well as management skills required within such companies. Further it talks about legal standards that food outlet must follow. It also describes about factors that influence consumer decision for selecting a restaurant and strategies to build loyal customer base.

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Task 1

P1. Type of businesses within food and beverage industry

Food & beverages industry refers to the sector that includes various types of companies that are involve in processing of raw food material into eatables, its packaging and distributing them. It includes prepared as well as packaged food, alcoholic and non alcoholic beverages or any product which is meant for human consumption (Dopson and Hayes, 2015). Food & beverage industry include various types business that can be better understood using following table:

SNO.

Sector

Description

Advantages

Disadvantages

Example Employer

1

Hotel

Hotel industry includes certain type of institutions that provide accommodations, lodge, meal and other services to tourist or travellers. It provide services like accommodation, food services, special featured room, leisure & amenities, business meeting centres etc.

It provide various promotional opportunity based on performance.

Customers demand always rises related to services this sometimes may affect the performance of individual.

Hilton Hotels & Resorts was founded by Conrad Hilton and it now offer services in 85 countries.

https://www3.hilton.com/en/index.html

2

Fast Food restaurants

It refers to a type of restaurants that prepare & sale quickly made and ready to eat food at their premises with minimum table services (Leabman and Brewer, 2015). Fast food restaurants provide services like serving food, beverages and variety of snacks.

It involve interaction with people belongs to different culture that help in developing inter-personal skill

Income of an individual is relatively low as compare to fine dine restaurants.

MC Donald's is an American fast food company which is founded by Richard and Maurice McDonald in California, united State and is operate its business in over 100 nation.

https://corporate.mcdonalds.com/corpmcd.html

3

Hospital catering services

It refers to the type of companies that offer nutritious and healthy food to patient as well as staff working within hospital (Bujisic, Hutchinson and Bilgihan, 2014). It provide services like processed and cooked food as per the demand of hospitals.

It provide an regular income opportunity to individual working in it as these services are not seasonal or event specific.

Growth opportunity is minimal as these business always perform similar operation and doesn't involve diversification

OCS is international business which offer catering services to hospital worldwide and is formed by Frederick William Goodliffe.

https://www.ocs.com/uk/services/catering/hospital-and-healthcare-catering/

4

Theme parks

Theme park refers to the large outdoor area in which buildings, landscaping and attractions are based on specific theme (Ahmed and et. al., 2015). It provide various services such as games, event, food, entertainment, musical concert etc.

It involves staff members to work in a dynamic and diversify environment that develop interpersonal skill that further support in future growth.

This business involve high work pressure during specific occasion.

Disneyland is a theme park which is situated at Anaheim, California and is established by Walt Disney.

https://disneyland.disney.go.com/

5

Restaurants

It refers to the businesses that prepare as well as serve food and drink to its customers. Restaurants generally offer food at its premises but some of them provide an option of take-out and food delivery services. It provide services like lunch, dinner, alcoholic and non-alcoholic beverages, food delivery, take away services and many more.

Main advantage of working in a restaurant is it help in developing team oriented skills which help further career enhancement.

It require staff member to work for extra hours during festive seasons.

Jimmy John's Franchise, LLC is a restaurant which is headquartered in Champaign, Illinois and now operates in around 2800 location throughout world. It was founded by Jimmy John Liautaud.

https://www.jimmyjohns.com/

 

Task 2

P4. Professional food and beverage management skills within a food & beverage organisation

Management of Food & Beverages business includes forecasting the food material required and managing them as per the demand of customers in order to keep them satisfied. Managers of Food & Beverages business are responsible for administrating the availability of stock and finance of the company (Rezitis and Kalantzi, 2016). Main responsibility of a F&B manager is to purchase stock, prepare a budget, design and update their menu, provide training to staff members, ensure quality of customer services etc. In order to perform these operations, it is very essential for the managers of McDonald's to have certain professional and management skill. These are explained below:

Leadership skill:-Being a professional at Food & Beverages company, a manager is responsible for handling a team of cooks and waiters. So in order to manage them properly, a manager must have leadership skill that support them in motivating them toward providing quality services. The managers of McDonald's must have an ability to inspire and guide its team for serving its customers effectively by complying with all health & safety related standards.

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Communicational skill:-In food & beverages related company, management has to interact with several customers that belong to different culture and in order to satisfy them with its services good communicational skill is very essential (Somuyiwa and Adebayo, 2014). Therefore, the managers of McDonald's must have good communicational skills so that they interact with customers in more appropriate manner.

Customer servicing skill:-Being a professional at food & beverages company it is very essential for a manager to have an ability to satisfy its customer by providing service as per their expectation. As being friendly to customers help them in wining the heart of guest which is a first step to keep them satisfy. Manager of McDonald's must have a skill to severe its customer better and most satisfactory services that help them in retaining the client for long period of time.

P5. Legal requirement and regulatory standard that food & beverage service outlets must comply with reference to maintenance and cleaning of equipments

Companies that deals in food & beverages sector have to comply with certain laws and regulations related to safety as well as distribution of food to its customer (Denkenberger and Pearce, 2014). These companies are required to meet certain standards and legal requirement that are fixed by government in order to perform their operation effectively without any legal compliances. One of the important act that each food & beverage company must comply with is “ The Food Safety Modernization Act (FSMA)”. This law focuses on improving the nation's food safety system with an aim to prevent food-borne illnesses by keeping food safer to eat despite of place where it produce. This involve certain standards that must be fulfil for keeping food hygienic and healthy to eat. As hygiene is one of the major consideration that must be ensure by food & beverage services company in its regular practices. They must keep their equipments and tools clean that are used for processing of food in order to meet criteria of this law. Following are certain factors that must be consider within food & beverage outlets related to maintenance and cleaning of equipments as per the legal standards:-

  • Cleaning:-Equipments and tools used for cooking as well as serving must be kept clean as per the standards fixed by industry. According to the guidelines, all the junk must be removed from these tools properly as it will help in preventing food from bacteria. These tools must be clean with a detergents that are approved in industrial standards.
  • Sterilizing/ Disinfecting:-As per the cleaning standard fixed by the Food & beverages industry the utensils must be cleaned by chemical sanitizers after being washed by detergent (Bakalis, Knoerzer and Fryer, 2015). This help in ensuring that the germs will not remain in equipments that may become a part of food served in future.
  • Tools life span:-Management of food & beverages businesses must keep on inspecting the equipments that are used for the processing and serving of food. As broken equipments may harm or injured the customers. Apart from this when the tools are used in excess then it may get a permanent stain over these equipments which sometimes may causes germs over that area which in turn can affect the food.

Task 3

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

Food & beverages industry is one of the fastest growing and highly competitive sector which always attract people to bring innovation as well as new technology in marketplace in order to remain competitive (Hill and Hill, 2017). These technologies help in serving customers that better satisfy their need. Apart from this use of technologies help manager in improving and controlling the quality of services, managing stocks effectively and enhance the speed of sorting the goods. This support in enhancing services offered by company. Following table describe about the various tools that may be used by businesses in Food & Beverages industry

Technology

Hotel

Restaurants

Payment technology(Operation management)

For simplifying their management operations hotels generally offer an options to its customers for making their payment digitally using various technologies. It includes online banking, use of credit or debit card etc. by swiping up at its terminal.

As compare to hotels various types of restaurants are still taking cash over their services instead of online payment.

Websites (marketing technology)

Hotels generally maintain their websites where they keep on updating their information related to price, new offers etc. in order to market their brand. Apart from this for marketing their services hotel also place certain pictures over their website to attract customers (Haniff and Halim, 2014). This help them in making its customer inform about the services that hotel offers which influence the choice of customers to a large extent.

In contrast of hotel, restaurants doesn't maintain their own website rather they use social media sites to place their advertisement in order to grab attention of customers. Therefore, instead of creating their own website restaurants generally uses other's website for placing their pop up advertisement which gains the attention of visitors.

Task 4

P7. Factor which influence consumers' decision for selecting food and beverage outlets

Food & Beverages is one of the most competitive industry which includes several players that brings on innovative approaches to attract and satisfy customers. So in order to deal with such competition and remain competitive in market place Mcdonald's must analyse the factors that can affect the choice of customer regarding selection of restaurants (Hall and Cousins, 2015). It support them in analysing the area that area required to improve by them for attracting and fully satisfying customers which in turn will enhance the profit generated by company. Following are factors that influence choice of customers:

Food quality:-It is one of the most essential factor that influence the choice of customer regarding selection of a restaurant as customer will be agree to pay any cost if the quality of food is high. Therefore, MacDonald must put more emphases toward the quality of its food in ordered to attract and retain customers for long period of time.

Environment within outlet:-Atmosphere, physical ambience, behaviour of staff members etc. all are the major factor that help in satisfying the customers which further influence their choice over other restaurant. McDonald's have the culture of self services which sometime may restrict the customers to visit outlet. So in order to influence their choice McDonald's must try to improve its culture by providing table service to its customers.

Location of outlet:-Place at which the outlet is located also affect the choice of customers to select a restaurant. If it is not at prime location and may be present at a place which is harder to visit or external view is not appealing then it may restrict the customer to visit the outlet. So McDonald's must try to setup its outlet at a Porsche location which attract customers to visit their stores.

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P8. Strategies used by food outlets to attract and build loyal customer base

Restaurants and food outlets is one of the fastest growing sectors that always tries to bring new method of serving customers for increasing the customer base (ATTRACT MORE CUSTOMERS TO YOUR RESTAURANT, 2018). This has bring huge competition in marketplace so in order to cope up with situation it is very essential for food & beverage outlets to formulate certain strategies that help in developing loyal customer base. As failure in satisfying customer may directly affect the existence of company within market place. So in order to remain competitive in market and creating a broader loyal customer base following are certain strategies that may can be used by food & beverage outlets:

Offer discounts:-By providing discount coupons over meal help a restaurant to attract customer and influencing them to try services offered by a restaurant (Green and et. al., 2017). Under this strategy food outlets may offer discount coupon over first meal that customer can use over second visit to get food for free or price deduction up-to certain limit. This help in influencing customers to visit the outlets in order to avail the opportunity.

Embrace big events:-A restaurant can organise events or some game show at the time on some special day as well as festival such as new year, Christmas, valentines day, friendship day etc. This help them in attracting the customers and satisfying them with services in order to achieve their loyalty. As by satisfying customer with these event restaurants may get an opportunity to influence customer to revisits the outlets.

Use loyalty & reward:-Food outlets must keep record of some loyal customers or regular visitor and this information can be used in developing a healthy relation with them. For instance, restaurants can send birthday or festival greetings to them and they can also arrange some contest in order to provide them gifts or reward. This help in keeping customer happy and stay connected with the restaurants.

Conclusion

From the above report it can be concluded that food & beverages industry is one of the fastest growing sector which brings several technologies to remain competitive in market place and offer better services to customers. But in order to deal with changing demand and competition it is very essential for food & beverage services outlets to identify the factors that influence the choice of customers in selecting a company over another. This further support in formulating strategies that help in attracting customers toward its outlet.

References

Books & Journal

  • Davis, B. and et. al., 2018. Food and beverage management. Routledge.
  • Dopson, L. R. and Hayes, D. K., 2015. Food and beverage cost control. John Wiley & Sons.
  • Leabman, M. A. and Brewer, G. S., DvineWave Inc, 2015. Wireless electrical temperature regulator for food and beverages. U.S. Patent Application 13/960,560.
  • Bujisic, M., Hutchinson, J. and Bilgihan, A., 2014. The application of revenue management in beverage operations. Journal of foodservice business research. 17(4). pp.336-352.
  • Ahmed, M. and et. al., 2015. Food production and service in UK hospitals. International journal of health care quality assurance. 28(1). pp.40-54.
  • Rezitis, A. N. and Kalantzi, M. A., 2016. Investigating technical efficiency and its determinants by data envelopment analysis: An application in the Greek food and beverages manufacturing industry. Agribusiness. 32(2). pp.254-271.
  • Somuyiwa, A. O. and Adebayo, I. T., 2014. Empirical Study Of The Effect Of Reverse Logistics Objectives On Economic Performance Of Food And Beverages Companies in Nigeria. International Review of Management and Business Research. 3(3). p.1484.
  • Denkenberger, D. and Pearce, J. M., 2014. Feeding everyone no matter what: managing food security after global catastrophe. Academic Press.
  • Bakalis, S., Knoerzer, K. and Fryer, P. J. eds., 2015. Modeling food processing operations. Elsevier.
  • Hill, A. and Hill, T., 2017. Essential operations management. Macmillan International Higher Education.
  • Haniff, S. B. M. and Halim, M. S. B. A., 2014. MARKETING CAPABILITIES AND PERFORMANCE OF SMEs IN FOOD AND BEVERAGES INDUSTRY IN MALAYSIA. International Journal of Academic Research. 6(1).
  • Hall, R. and Cousins, B., 2015. Commercial farming and agribusiness in South Africa and their changing roles in Africa’s agro-food system. Paper delivered on, pp.20-21.
  • Green, J. M. and et. al., 2017. Research priorities for managing the impacts and dependencies of business upon food, energy, water and the environment. Sustainability Science. 12(2). pp.319-331.
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