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Tourism The Food and Beverage Industry in General

Tourism:TheFood and Beverage Industry in General

Thefood and beverages industry is one of the major sectors of thehospitality industry and the tourism industry. The strategicmanagement of this sector requires advanced oversight in terms ofproduction of the products and delivery of the required services. Theimportance of management skills in this departments emanate from thefact that all the levels in the industry must be staffed withpersonnel that is equipped to meeting all the demands on the part ofthe clientele. The requirement of both standardized products andservices cannot thus be overemphasized. The management should also bealive to the fact that all the levels of professionalism must receiveupdated trainings constantly so as to match the ever dynamichospitality management (Janta, 2011). The achievement of this agendawould also mean that the specific company remains relevant andcompetitive in the industry. Other prerequisites that arefundamentally important are language and other modes ofcommunication, maintenance sanitation and hygiene, proper foodpreparation and service delivery etcetera.

Thisresearch paper will delve head-long into the food and beverage sectorof the hospitality industry. Thepaper will be split into three major parts for ease of analysis anddelivery of content. The first port of call will be to view food andbeverage sector through the manager’s eye with regard to theimportance attached to diversification of food and beverages in theindustry. In this section, various models will be employed. Thesecond port of call be delve into discussing the different importantthings to consider when planning, designing and allocating space for storage, preparation, production and service for a food and beverageoperation. The last portion of this substantive research will delveinto viewing the sector with regard to characteristics and proceduresof a food and beverage establishments in relation to its size, type,market, design, planning and organization (Dawson,Madera, &amp Neal, 2011).

TheNeed for Diversification of Foods and Beverages

Themain essence for the establishment of a hospitality industry isprovision of foods, beverages and accommodation for people who areaway from their respective homes. It is worth noting that the idea ofprovision of such services cannot be achieved if the culturalbackground of the clientele is not thoroughly understood (Ingram,1999).Focus of a good manager in charge of foods and beverages thus shouldbe directed to the consumers that are expected to partake of theservices rendered by the servicemen under him. The need fordiversified catering products and services have been necessitated bythe need of people to travel, either due to their job descriptions ordue to their touristic adventures across the globe. Because of thedifference in the cultural belonging of the people, the hospitalityindustry requires to carry out what is called product differentiation(Janta, 2011). This is important as it offers the different clientsan assortment of foods and beverages to choose from. From thatperspective, managing the diversification of food and beverages ininternational foods and beverage operation is very substantial.

Closelyrelated to the diversified foods and beverages, the manager ought tonot that communication come in handy. A restaurant that exhibitsinternational face and character cannot be said to be so if it doesnot reflect language diversifications. This is fundamental dependingwith the array of culturally captured clientele that the restaurantor bar receives. Language is an important tool of communication.Managing multi-lingual personnel may not be an easy ride for themanager that does not understand the languages of the employees. Andyet the manager requires to communicate to each of them for purposesof ensuring that the services rendered in the company is up tostandard. Managementplays a central role in coordinating organizational tasks, structureand people (Ingram, 1999).

Fora very long time, foods and beverage industry has had to grapple withthe high prices of foods. This challenge has stood in the way ofsatisfying the customers’ demand that is required from any singlerestaurant. Many food and beverages firms have developed what iscalled the food service system. This is a form of a centralized foodproduction to cater for the economies of large scale. Food firms likeLSG Lufthansa Service Holding, Gourmet Inc., Chef Solutions, ARAMARK,Compass GroupPlanning and Designing have been able to adopt thismodel to supply prepared foods and beverages externally to customers(Dawson, Madera, &amp Neal, 2011). The adoption of this model isefficient, sufficient and mindful of the costs and prices of bothfood and labor.

TheMarche is another model setting that is employed by specific industryto diversify customer satisfaction. With this setting, thedistinguishing characters the open-air market that serves as arestaurant. This setting is fundamental in that the management saveson the cost of running display of their foods. Further advantages ofthis setting are the freshness of the foods and beverages offered andthe timely service delivery that accompany the setting.

Planningand Designing

Foodproduction is the only manufacturing aspects that accompany the foodand beverage sector. The manufacturing stage is fundamental in thatit determines the quality of the products and services to be consumedby the client. The stage determines the class and the taste ofwhatever is to be produced. Various factors are thus considered inthe design, planning and allocating the space required for thisimportant venture. Food production is technological an operational innature. Various disciplines are incorporated to realize the endproduct that is later to be edible in nature (Enz,2004).The production sector is also supervised by different sectors in theindustry. The government of the day is also responsible in thequality and standards of the foods that these firms procure forconsumption. Therefore, the number one consideration is theregulations imposed by government and other mechanisms required(Rogers, 2005).

Meetingthe Legal Framework

InUK, for example, the QualityAssurance Agency for Higher Education, (QAAHE) is an independent bodytasked with the duty of supervising the establishments. QAAHE is alsothe organ bestowed with the power to approve planning and design offacilities, quality assurances of different sectors that come intocontact with foods and beverages such as airlines, conventioncenters, casinos and resort hotels. These departments in the courseof their carrying on gainful businesses must observe thestandardization frameworks developed by the relevant organ. Anydivergence of the requirements development in UK is regarded asviolation of the law and such establishments ought not to berecognized. In Australia the ANZFA is the regulating body wile inCanada, The Canadian Code of Recommended Manufacturing Practices(Agriculture Canada, 1990) is the major regulator.

Equipmentand Packaging Design

Aproper food and beverage offering firm must adopt a packaging designthat is market-friendly. Selection of equipment to be employed in aspecific firmis a requirement. The equipment ranges from the cookingto the storage of the foods and other products that are to beproduced by a company. The layout of the business and the costs ofinstallation are the riders into electing specific equipment. Theselection of the best equipment goes to the very substratum of thequality of the food that is produced and served to the people. Interm of preparation of the foods, the amount of energy to be consumedis also considered before equipment is elected (Rogers, 2008). Thedesign of the equipment affects directly the flow of energy and thendetermines the ultimate quality of the products. Computer models areused to determine the best equipment to be employed in the yard.Energy can flow by way of radiation, convectional or induction. Othermethods that can be applied are Chefcad, Computational Fluid Dynamicsand Neutral Networks among others (Rogers, 2005).


Everydream of a manager in the food and beverage department is to deliverthe best in the firm. The best can only be determined by the salesrendered by the restaurant or hotel over a specified period of time.The general rule is that the starting capital must be reflective ofthe profit margins expected in any business venture. Far from that,other factors come into play to determine the efficiencies requiredin the venture. The manager should thus be alive to the fact that hecan either choose the hard or technologically driven tools forproduction, storage or preparation. The size of the clientele and theunit of production per day determine the operation efficiencies of afirm. Generic operations management concepts must be applied for thebetterment of the success of the venture. These concepts includeproductivity, capacity and bottlenecks, master production schedulingamong others. For the wholesome consideration however, furtherrequirements include efficiencies through extended shelf-life, foodquality management, consumer and market studies and implications foreducators.

FoodProduction Philosophies and Technologies

Anotherimportant aspect to consider is the philosophy of food productionthat a firm should adapt to. This will basically depend on thephilosophy that is prevalent in an area and the cost of production.Technology goes hand in hand with the philosophy that a firm sticksto. The major philosophies so far established are industrialcuisines, fast foods and fresh foods. The manager, before fullyestablishing the line of specialization must take into considerationsall these philosophies. Industrial cuisine is a concept that cameinto being in 1980s. The concept involved elements of mass productionand personal attention. It also involved novel technologies such assous vide (cooked under vacuum) (Enz, 2004). Fast foods involvedelivery of small quantities of foods at relatively low prices. Inboth industrial cuisine and fast foods, the market must have beenestablished over time. Fresh food is however gaining popularity at avery fast rate. Though industrial cuisine is attributed toinstitutional sector and fast foods in the commercial sector, thedistinction is not clear-cut. Two or more philosophies can co-existin the same firm.

Characteristicsand Procedures of a Food and Beverage Establishment

Theprocedures of attaining a proper food and beverage establishmentdepend on the management model that is adopted. The major factors tobe considered in an attempt to attain a proper establishment wouldthe size of the establishment, the type of products (whetherspecialized or general) and the organizational design and planningdesired. Specialization is one of the aspects that are adopted bysmall firms in the industry. With specialization, the line ofproduction is usually concentrated and not diversified (Barry,Art, &amp Dayle, 2010).

Interms of an attempt to achieve market design and planningorganization, the firm must undergo what is called organizationalculture. The organizational culture of a firm is important inattempting to position itself in the market that is full ofcompetition. The prevalence of organizational change is such that afirm must be creative enough so as to curve a niche of its own in themarket. Technological advancement is but one of the tools ofachieving organizational change. Creation and innovation areimportant when it comes remaining relevant in the hospitalityindustry. Development of new operational strategies and new productsare some of the precursors of a firm that is diligent in the market.For a firm to achieve a specific culture and the desiredorganizational level, organizational learning is the most prudent. Itis the only avenue of re-orienting a firm in the hospitality industrythat is otherwise very competitive. Organizational learning is acomplex process (Wanto&amp Suryasaputra, 2012).The process is time-honored and is capable of changing individualsand the corporation’s behavior. The proponents of this model arguethat a firm that has a strong learning culture often than notperforms very well. By inducting the members into the learningculture, knowledge is always dispensed with. Other newer and bettermanaging strategies are achieved through the learning culture.

TheAspect of Segment Reporting

Inan attempt to maximize cost so as to maximize profits, managers inthe hotel industry have become very conscious. This is because thehotel industry has previously been worst hit by bad economicrecession. For there to be conscious decision making in a food andbeverage firm, segment reporting is a very important tool. It must beunderstood from the outset that the applicability of segmentreporting system in the hospitality industry is different from thesame being applied in the manufacturing industry. The hospitalityindustry has its peculiarity in that it deal with guests,accommodation services, fixed facilities, volatile customer demandetcetera. With this regard, in order to get segment report, hotelmanagement accounting is very important. This always assists themanager to get financial and non-financial information that helps himin getting in-house decisions with regard to management.Responsibility management accounting is another segment that alsocontributes in the organization of the firm. In this one, eachmanager is judged according to how they supervise all persons andassets that fall below them. Their performance is gauged alongsideothers in the same level.

TheUSALI (Uniform Systems of Accounts for the Lodging Industry) model ofaccounting has withstood the test of time in assessing performance ofhospitality industries. USALI is structured in such a way that itevaluates all the department holders with regard to theirperformance. The major objects targeted are the revenue and cost thatis under the control of each manager in all the departments. Thecontent of USALI model is inclusive of the following entries arebalancesheet, statement of owners` equity, statement of cash flows, notes tothe financial statements among others (Peršić,Janković, &amp Poldrugovac, 2012).


Fromthe above submissions, it’s worth to note that the food andbeverage sector of the hospitality department is a sensitive sector.The sector is also fundamental as it contributes to the economy atalmost equal measure with other sectors. Further, it must be notedthat the sector is regulated by more than one organ in each state,depending on the government of the day and locality. The strictregulation is acceptable due to the demands that the industry faces.Since the industry deals directly with customers and offers edibles,then, the stern regulation is worthwhile.

Fora food and beverage firm to be successful, there are somerequirements that must be met first and foremost. The legislativeprerequisites must be fulfilled. The food-handling policies mustthoroughly be met. The standards must be up to the set levels. Theset organs must approve the sites and locations. Secondly, after theapproval, the manager takes over in terms of the setting that thefirm needs to adopt. The equipment to be used in the day to dayrunning of the firm must be in place. The design of theorganizational structure is also important. In order to assess thecost of installation of equipment, a consultant may be required.Other factors that come in handy in the course of establishment ofthe firm are efficiency criteria, the market survey, packaging anddesign, food quality management in the firm and implications on theeducators and so on.


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