UK Food and Beverage Market

Executive Summary

In this report, at first a secondary research is to be executed in the UK for its Food and Beverage industry to determine the opportunities and threats or issues present and the way they are able to influence local business owner planning to open a restaurant in the sector. In the process, the explanation of different business types present in the food and beverage market by profiling the selected business in the industry in each case is presented. Later, examination of various rating system implemented for rating food and drinks in the food industry within nations as well as internationally is to be executed for identifying which are to be keep in mind to open new business in the UK. The way present as well as future trends are influencing food and beverage business for accomplishing its objectives are discussed and analysed. The ways various types of food and beverage business have adapted with current as well as future trends are also critically analysed. Further, illustration of management skills required in professional food and beverage industry within a restaurant is mentioned. Lastly, the legal requirements for restaurant are discussed and the value and importance of legal requirements in overall business performance is analysed. In this report, at the second part the way the food and beverage industry is using technology and the benefit of customer motivation and positive behaviour in the industry within the UK is to be explored. For this purpose, the different operational as well as marketing technologies used for different ranges of food and beverage business are to be compared. The factors that influence decision of the consumer on food and beverage outlets are also to be discussed. The strategies implemented in food and beverage outlets for attracting consumers are to be analysed. Lastly, the effect of digital technology on food and beverage industry operation and consumer buying behaviour is to be critically analysed.

Assignment 1

1. Introduction

The companies involved in Food and Beverage industry are involved to process raw food material into eatable condition and pack or serve them for distribution to consumers. In this report, secondary research of Food and Beverage industry in the UK is to be established to determine the opportunities and threats or issues present and the way they are able to influence local business owner planning to open a restaurant in the sector.

2. Explanation of different business types present in the food and beverage market by profiling the selected business in the industry

The different types of the business present in the food and beverage industry in the UK are as follows:

Restaurants: Restaurants are referred to the place formed by the business owners in the industry where people are allowed to sit and enjoy their meals which are prepared on the same premises. The restaurant business in the mentioned industry offers various nature of cuisines like French, Thai, Italian and others as per their menu and customers preference by providing a twist to the dishes on their own (Ghobadi et al. 2018). In the UK, one of the businesses in this type of profile is Restaurant Nathan Outlaw located in Cornwall which exclusively serves seafood to the customers (nathan-outlaw.com, 2019).

Fast Food Outlets and take away counters: The Fast Food outlet or counters are those nature of business in which they provide quick services and food to the customers at cheaper prices which can be taken with them or can be enjoyed eating buy sitting in the premises of the outlets (Hillier‐Brown et al. 2017). In the UK, Mc Donalds is one of the Fast Food outlets which provides food to the customers that can be taken or enjoyed by sitting in their premises (www.mcdonalds.com, 2019).

Special Bars and Hotels: These natures of businesses are often seen to vary in quality as well as in size. It is evident as for instance, a wine bar may offer different range of antipasto and cheese plates along with wine whereas Pub menus would offer well-priced foods with alcohol as well as non-alcoholic drinks (Oltean and Gabor, 2016). In the UK, The Phoenix is one of the pubs that offered alcoholic drinks to customers (www.phoenixcavendishsquare.co.uk, 2019).

Catering: The Catering business provides food services to remote places and individuals on previous demands. They also supply food on different occasions such as parties, wedding and others on the supply of fares (Kaur, 2017). The PenniBlack Catering Services is one of the catering businesses in the UK who serves different nature of the food on demand to the customers as well as in occasions on the supply of fare (www.penniblack.co.uk, 2019).

Food Manufacturing: The food manufacturing business in the industry includes setting up of production kitchen or factories for food preparation to sell specialised food offering in wholesale trade (Garrone et al. 2016). Freshtime UK Limited is in the food manufacturing business where they produce ready to eat vegetables and salad products to be bought by consumers in supermarkets (freshtime.co.uk, 2019).

3. Examination of various rating system implemented for rating food and drinks in the food industry within nations as well as internationally

The rating of beverages and food is important as the rates inform the customers about the standards and value of the foods (Reilly et al. 2018). In the UK Food and Beverage industry, Food Hygiene Rating System (FHRS) is used in England, Wales and Northern Ireland and in Scotland the Food Hygiene Information Scheme (FHIS) is used to rate hygiene of the food. According to FHRS, the foods or beverages that are rated 5 are hygienic with very good standards, 4 are hygiene and good, 3 are generally satisfactory and meet hygienic standards, 2 are those which require some improvement and 1 are those that require major improvement (www.food.gov.uk, 2018). Thus, the business with higher number in food and drinks industry is regarded to be providing high-quality hygienic food to the consumers. (Refer to Appendix 1) In international context, the Michelin Stars are rating system that is used under the Michelin guide to provide grade to the restaurant regarding the quality of food and drinks. One star signifies very good standard restaurant, two stars indicate excellent cooking, three start means exception cuisine that is worth for a special journey (guide.michelin.com, 2019). This indicates that number of stars a restaurant gets in the food and drinks industry it means they are severing increasing range of quality food. (Refer to Appendix 2)

4. Discussing and analysing the way present as well as future trends are influencing food and beverage business for accomplishing its objectives

The current trends in the UK Food and Beverage industry show that more consumers are trying to be adventurous which means they are wishing to try new and innovative flavours that would offer them multisensory experience (www.foodmanufacture.co.uk, 2019). The information means that currently food businesses are required to develop new flavours and innovative food items that are never been tasted or experienced by the consumers to provide them with better sensory experience compared to the existing foods. This has influenced the food and drinks business to execute different experiments with new flavours and food ingredients to produce new and improved quality food products and beverages that satisfies the adventurous senses of the consumers to meet their business objectives of providing quality and satisfactory food to consumers to attract them for incurring profit (www.bdo.co.uk, 2018). It is required as without fulfilling the needs the consumers the business would be unable to meet one of the key aspects of their objectives that is to make consumers remain attracted to them. The other trends in food and drinks industry include consumers wishing to have food that can be consumed while they are travelling and the products to be hygienic, sustainable as well as ensure healthiness (www.foodmanufacture.co.uk, 2019). This has influenced the businesses in the food and drinks industry to be concerned to add less artificial and more natural ingredients in food products, develop new methods to ensure the longevity of products, include less unhealthy substances in food and others to meet their business objectives. The future trends in food and beverage industry indicate that the consumers are wishing to have products and services being directly delivered to them for lowering their wastage of time spend to personally access food and beverage products and services (www.fdf.org.uk, 2019). This has influenced the food and beverage businesses to develop products and services and deliver them at the doorstep of consumers by using different technologies to meet their objectives in business.

5. Critically analysing the ways various types of food and beverage business have adapted with current as well as future trends

In relation to the current trends of the food industry, where the consumers are wishing to be adventurous the restaurant business has adapted to serve existing foods and beverages in new styles to make them look innovative in nature. Moreover, the trend has influences the restaurant to produce new food ranges and cuisines for satisfying the consumers in meeting their business objectives (www.bdo.co.uk, 2018). However, the other current trend where the consumers are wishing to have food on the go and have sustainable and healthy products with hygienic services has made restaurant and catering business to improve their food preparation and way of food distribution along with packaging to meet their business objectives (www.fdf.org.uk, 2019). In contrast this, the future trends where the consumers wish to food and beverage products and services at their doorstep has influenced restaurant, catering and fast food outlets business to get adapted to arrange home-delivery of foods as well as food delivery to different locations mentioned by consumers. This is made by them based on the received orders through the internet and over phone (www.fdf.org.uk, 2019).

6. Illustrating professional food and beverage management skills in a restaurant

The professional food and beverage management skills required in a restaurant to be held by the manager include excellent verbal and written communication, being proactive, enjoy problem-solving, have good inventory and leadership skills (Training, 2019). For instance, in The Ledbury which is restaurant with two Michelin stars in 2018 saw that the manager Bret Graham uses excellent communication skill to communicate instructions to each chef regarding the way food is to be prepared. Moreover, the person is also proactive in nature which is evident as the person analyses to determine the cuisines to be ordered in bulk in busy times in restaurant and accordingly remains the resources prepared so that the cuisines may be served on demand in time to the customers under all condition. The person is also able to solve problems immediately to ensure his restaurants provide best quality food to the customers (www.theledbury.com, 2019). (Refer To Appendix 3)

7. Discussing the legal requirements for a restaurant

In the UK, the restaurants require to abide by the Food and Safety Hygiene (England) Regulation 2013 to operate in England. The regulation is seen to impose different requirements to be fulfilled by the restaurant operators regarding cleaning and management of food equipment and practice of food preparation. This is to ensure safe food is provided by the business for human consumption and the requirements mentioned for food hygiene in EC Regulations 852/2004 and 853/2004 are properly abided (www.legislation.gov.uk, 2013). The regulation is to be abided by the restaurants to legally operate in the UK. The Food Safety Act 1990 provides different criteria to be fulfilled by restaurants so that hygienic and improved quality foods are provided to the consumers that are made by cleaned and hygienic equipment (www.legislation.gov.uk, 1990). Thus, the law is required to be abided by restaurant trying to operate in the UK to ensure their business does not experience negative legal actions due to violation of the mentioned laws. In reference to maintenance and cleaning of equipment, the restaurants in the UK require abiding by the hygiene requirements for food equipments mentioned in the European Standard BS EN 1672-2 (www.hse.gov.uk, 2019). This is to ensure safe preparation of food as well as effective management of hygiene in the place with proper management of food manufacturing and producing equipments.

8. Analysing value and importance of legal requirements in overall business performance

The legal and regulatory requirements regarding food safety and hygiene are important to be met by the businesses in the food and beverage industries to ensure they follow proper guidelines in manufacturing healthy and hygienic foods for the consumers (Demeritt et al. 2015). This is going to improve the overall performance of the businesses as they would be able to implement proper techniques of food preparation that ensure promotion of health of the consumers. Moreover, abiding by food regulation is required by the business in the industry to attract new and existing customers (Khalid, 2016). This is because businesses abiding by regulations ensure the customers feel safe in consuming food from them making the consumers prefer them more to avail food to meet their hunger. The activities, in turn, improve the overall performance of the businesses as they are able to avail increased consumers in the process which offers them to incur more investment and profit through operation. The violation of Food and Safety Hygiene (England) Regulation 2013 and/or Food Safety Act 1990 by food and beverage business in the UK leads them to get their licence cancelled and prohibition to perform their business in the country (www.legislation.gov.uk, 1990; www.legislation.gov.uk, 2013). This is because violation of food laws threatens the health of the public which leads the government to implementing such actions to safeguard the public. Thus, failing to meet legal requirements regarding food makes the businesses lose their operational efficiency in the market.

9. Conclusion

The above discussion informs that different business in the food and beverage industry includes restaurant, special hotel, catering and others. The Food Hygiene Rating System (FHRS) and Food Hygiene Information Scheme (FHIS) are local rating system and Michelin Star is international rating system used in food and beverage industry. The Food and Safety Hygiene (England) Regulation 2013 and/or Food Safety Act 1990 are to be abided by to ensure safe food is provided to customers and the businesses maintain the food preparation equipments clean and well-managed to be used for hygienic food preparation.

Assignment 2

1. Introduction

Food and Beverage industry is seen to have an effective role in creating economic opportunity as it is universally required by all to ensure health and life. The industry is involved with multiple levels of society where people are selling, transforming and growing goods in different ways to provide and distribute them to the consumers. In this report, the way the food and beverage industry is using technology and the benefit of customer motivation and positive behaviour in the industry within the UK is to be explored.

2. Comparing different operational as well as marketing technologies used for different ranges of food and beverage business

In food manufacturing business, the Flow-Through sortation system is used as a form of operational technology in the inventory and logistics management of produced goods. In this process, the system after food products are manufactured store and retrieve them with the help of automated vehicles and robotic depalletizing and palletizing to ensure flexibility, scalability and modularity in their transportation (Samanian and Mohebbi, 2016). Thus, using this technology saves time as well as improves efficiency in quicker replenishment of manufactured products. In contrast to this, the managers in the food manufacturing business are also promoting the use of AGV (automated guided vehicles) as operation technology to execute warehouse operations (Bechtsis et al. 2017). This is because the AGV’s are able to perform in a potential way to pick any food product packages from the warehouse and transport them to exact location on distribution vehicles. In contrast, the restaurant businesses are using robotic technology in distribution of food from the kitchen to the tables as well as in cooking foods (Das and Pasan, 2016). Moreover, restaurants are referred to be using 3D technology in preparing food (Sun et al. 2015). These are done with the intention to provide foods within less time and serve increased number of consumers at the same time.

In marketing food and beverages, the businesses are using various forms of media. It is evident as the catering businesses are using social media such as Facebook, YouTube and others to promote their services in different areas to the target customers. This is done with the intention to promote their services to different areas without any geographic barriers to ensure them greater expansion of their business (Kelly et al. 2015). The restaurant businesses to market their products are using internet and different media to advertise detailed information about their cuisines and location to target consumers (James et al. 2017). The food manufacturing businesses are seen to use social media and internet to advertise video of their food manufacturing process to inform customers about each and every detail they focus in providing them the final product (Furtado et al. 2017). This is done with the intention to develop direct connect with the customers in marketing their products.

3. Investigating the factors that influence decision of the consumer on food and beverage outlets

The different factors that influence the consumer’s decision for choosing food and beverage outlets are as follows:

Location: The location of the food outlet is essential because in case the outlet is located at a remote place the consumer finds it difficult to locate and access. This makes the consumer decide to avoid availing food from the outlet as they are not visible to them and makes them face hindrance in reaching the place when in need (Houghtaling et al. 2019).

Food quality and price: The price and quality of the food served by the food and beverage outlets act to influence the consumer decision in availing services from them. This is because low-quality food makes the consumer perceive dissatisfied sense and high priced foods with lower quality served by outlets are often avoided to be chosen by consumers as they feel it would be wastage of money (Hee and Yen, 2018; Caspi et al. 2017).

Surrounding environment: The food outlets those have an unhygienic surrounding environment are often decided by consumers to be avoided. This is because unhygienic environment makes the customer feel that the food prepared is infected and by having it would ensure them to face ill health (Campo and Breugelmans, 2015). Thus, hygienic surrounding of the place where the food outlets are developed is required to attract consumers in making purchase from them.

Space Size: The space size of the food and beverage outlets influences the consumers to decide the outlet from which they are to avail food. It is evident as the consumers who are trying to enjoy their meal in the restaurants wish to choose the outlet that has increased place for them to eat. This is because eating within confined and small spaced outlet would make them suffocated and feel hindrance in enjoying their food (Narayan and Chandra, 2015).

Nature of food served: The nature of food served by the food and beverage outlet influences the decision of the consumers. This is evident as the consumers who are trying to avail fast-food would like to choose fast-food outlets whereas consumers who are trying to taste certain specific cuisine of any nature would select specific outlets that server the type of cuisine wished to be tasted or eaten by them (Bashir et al. 2019).

4. Analysing and evaluating strategies strategies implemented in food and beverage outlets for attracting consumers

The restaurant business in the food and beverage industry is seen to use the strategy of "Happy Hour" for attracting consumers and increased sales in slowest time in the day. The "Happy Hour" is referred to certain time period indicates by the restaurants during which they offer different attractive discounts on drinks and meals to let the consumers pay less for availing certain services (Scarpat et al. 2017). The strategies act to attract consumers as the individuals feel that with less investment of money they can enjoy more meals and drinks of their preference. In food and beverage industry, many restaurants are seen to offer discounts on food and beverages for consumers who frequently buy from them or are availing from them the first time (Freire et al. 2017). This is because discounts make the customers feel rewarded for their investment which in turn helps the restaurant to show value for their investment making the consumers become loyal to them out of feeling of being valued. The offering of free services or products by food and beverage outlets helps them to attract increased number of consumers (Hunter et al. 2015). This is because free services or products acts as incentives for the customers for the investment they made to visit and purchase from the outlet. The food and beverage outlets use the strategy of accessing feedback regarding their food products from the customers and accordingly make changes to build customer loyalty and attract more customers (Ryu and Lee, 2017). This is because the feedback allows the food outlets to understand the way they are to be developed to make themselves more customer-friendly and deliver satisfactory food to be able to attract more customers. Moreover, the changes as per feedback make the customer feel valued by the food outlet in the sense that they opinion are accepted making them loyal to them. The food outlets are seen to use the strategy of celebrating special festivals and occasions and arrange special foods in such situations as per order of the customers which help them to build loyal customers as well as attract new customers (Rahimi and Kozak, 2017). This is because celebrating special occasions and festivals makes people attracted to visit the place to have fun, in turn, drawing more customers to the outlet. Moreover, offering special foods on such occasions in the outlets makes the consumers feel they can enjoy their moments in the best possible way which in turn drives satisfaction making the customer loyal to the food outlets.

5. Critically evaluate the effect of digital technology on food and beverage industry operation and consumer buying behaviour

The digital technology has impacted in a positive way for operations of food and beverages businesses as it has resolved geographic barriers (Furtado et al. 2017). This is evident as through the use of digital technology the food and beverages businesses use social media and websites to connect with any consumers in any region to receive orders and deliver products to ensure the smooth operation of business. The digital technology has also influenced the food and beverages businesses to easily learn about the activities of the competitors as well as their performance in the industry ensuring execution of fruitful market research (Lemon and Verhoef, 2016). This helps the food and beverage companies to make required changes as per the researched information to operate their business by remaining in competitive position. Further, the use of digital technology has reduced the time and effort required by the food and beverage businesses to communicate with employees to operate their business. It is evident as through the use of intranet facility the food and beverage companies are directly communicating and clarifying the objectives to be fulfilled by the employees ensuring smooth operation of business (Zeng et al. 2017). This is because having clarified information about the objectives to be fulfilled makes the employees work in a proper manner that is required in operating the business in successfully way. The digital technology has made the consumers in the food and beverage industry to become aware of the health quotient of the food they consume (Bashir et al. 2019). This is because digital media has led customers to get feedback regarding health quotient of the products from various areas and individuals who have already use or have it. Thus, it has influenced the customers develop the behaviour to buy food products of those nature that are of healthy nature compared to unhealthy ones. The digital technology has impacted the consumers in the food industry to develop polygamous buying behaviour. This is because the technology now and then makes the customers get informed of similar good products by different brands and companies which they wish to avail to experiment which the best ones, in turn, making them polygamous.

6. Conclusion

The above discussion informs that Flow-Through sortation system, AGV (automated guided vehicles), 3D technology and digital technology are being used in food and beverage industry. The Food quality and price, surrounding environment, space size and others influences consumer’s decision in choosing food and beverage outlet. The strategies such as discount, free products, happy hour and others are used to attract customers and build loyal customers. The digital technology has made customers more aware to buy food products.

References

Assignment 1:

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Appendices

Appendix 1:

The FHIS provides three different ratings which are Pass meaning the food and beverage business meet all legal requirement of food hygiene, Improved Required meaning the business did not meet all legal procedures and require to make improvement and Exempt Premises means that business is inspected and passed by local food safety officer but it did not pass the criteria in the scheme (www.foodstandards.gov.scot, 2018). Thus, it can be examined that achieving Pass by the business in Scotland means they are offering quality and hygienic foods to the consumers.

Appendix 2:

In the internal context, the ISO 22000 is used for rating food and beverages which is actually the standard that has been developed by the International Organisation for Standardization who mainly deals with ensuring food safety. It is the standard that specifies the requirement of food safety management which includes system management, interactive communication and prerequisite programs and Hazard Analysis and Critical Control Points (HACCP) (www.iso.org, 2018). Thus, it can be examined that ISO22000 is the international standard to be fulfilled by all food and beverage business to show they are valuable and offering good quality foods to the consumers.

Appendix 3:

This is because proper communication skill would help the manager to identify the needs of the customers and inform them to the chef to ensure effective management of food and beverage services in the restaurant. Moreover, being proactive and problem-solving skills are required by the manager in the restaurant so that they can resolve any issues with food and beverages prior to their service to the customers to ensure proper professional standards of the restaurant is maintained.