Introduction
The food and beverage are one of the largest industries of every country across the globe. The sector offers jobs to a wide group of people, and it's quite appealing to people who are keen in the hospitality sector. The food and beverage cover a wide range of investments such as the pubs, coffees, fast food outlets, and restaurants. The management in this sector focuses on describing the roles of supervisors and managers in ensuring that people perform duties related to product supply and serving the consumers. For the managers who work in the food and beverage industries, they should have adequate knowledge of marketing, merchandising, team development, training, and consumer relations. The activities they perform in this industry require the application of several ideas and knowledge that can be applied in handling the assigned tasks. This paper explores the operations of the food and beverage operations and the role of managers in the food and beverage industry.
Literature Review
There are several operations carried out in the food and beverage industry, and the success of such activities depends on the effectiveness of the management staff in an organization. The process involves several services such as the planning of the menu, purchasing of the raw materials, cleaning foods, preparation and the storage of the food (Riley, 2005). Though the purchase of raw materials appears to be a simple task, in reality, it is a complicated aspect that requires competent and skilled management personnel. The operating manager has to take control of the inflow of raw materials that are expected to be used in the production process in the hotel and ensure that they are used in the right way. In most cases, managers determine the amount of money that is to be allocated for the purchasing of the raw materials thus determining the rate of supply of the products in the market.
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The operation of the food and beverage industry there is emphasizing on hospitality which requires the management to focus on some aspects such as the taking study on the supply markets. This information indicates that there is a need for ensuring that there is adequate information about the target markets so that the foods and drinks supplied in the market match the needs of the customers. The data collected by the marketing manager has to provide information about the buying methods applied by the buyers and the preference commodities that buyers show interest in purchasing. Based on this information, marketing leaders acquire the expected data, and they use it to analyze the value of the products offered in the food and beverage restaurant. There is also the need for developing the specs that govern the purchasing of raw materials with an objective of preventing the purchasers from stealing the money.
Since the hospitality industry is divided into two groups, it is evident that the management system can be divided into different groups. For example, there is a food production system and the beverage food production in the hospitality industry. The food production division includes everything from the planning, purchasing of raw materials, processing storing and cooking. The operation manager in the food and beverage industry remains the overseer of this process thus making several decisions such as the budget allocated for the purchase of particular war material and the direction of spending the money. In the case of the beverage sector, the staff performs essential roles in determining the operations of the organization in the production of several products such as the wines in the pubs and bars. The staff members play essential duties in assessing the costs and processes that need to be applied when choosing the type of brand to be produced in the firm.
According to Bayona-Saez et al., (2017) the management staff in the food and beverage industry plays a significant role in determining the success of a food service approach. In this case, there is an indication that the selection of staff members is given a high consideration because the individual occupying that position need to have adequate knowledge, skills, and the experience required in performing the prescribed tasks. The success of the business depends on the leaders’ ability to coordinate various activities such as the supply of raw materials and the production of commodities that meet the requirements of the customers. Additionally, the efficiency demonstrated in running the food, and beverage industry depends on the ability of the skills and knowledge of the staff or the ability to offer distinct services and features to the customers. Customers become the high valued people in the hospitality industry their decision to make purchases from a particular organizes on the competency shown by staff members in that business. For example, communication and politeness when handling customers are some of the aspects that every staff member or manager in a food and beverage industry needs to possess. In situations where the workers create a positive image to employees, there is always a possibility that there will be an increased demand for their services from that particular firm.
According to Ninemeier (2000), a good management team in the food and beverage industry is the determinant of the level of efficiency exercised by workers in and the utilization of resources in the firm. In situations where there is weak management system, the managers show a high level of commitment to achieving the set objectives in their operations, and there is a possibility that they motivate employees to make efficient use of resources thus increasing the level of productivity in a hospitality organization. However, if the leaders do not possess adequate qualities that and encourage workers, it is undeniable that the firm in the food and beverage industry will experience adverse effects because a majority of the workers will have inadequate skills required in performing their duties. Successful managers in the food and beverage industry are required to have exceptional skills and knowledge that they impart to workers to improve performance in performing tasks.
Financial statements are essential in the food and beverage industry because they determine the direction in which the organization is moving. The information provided in such financial statements are used in determining the profits and costs that an organization is operating in the food and beverage industry experiences. They keep information such as the sales records, variance, and expenses statements which determine the expenditures and profits experienced by the business. According to Cousins et al., (2002) a manager operating in the food and beverage industry needs to have adequate information related to the presentation of data in the business, and the interpretation mechanisms applied drawing sense from the data. The variance presents information about the features of the budget such as the costs and profits that a company experiences during the time of performing this information. This information becomes helpful in cases where the leader or the manager has to make judgments or decisions about the expected expenditures or profits that the firm can achieve. In this case, the indication is that every food or service manager in the hospitality industry to show concern on the costs incurred in food preparation, labor, and the expenditures that the company experiences in paying the employees who contribute to the functioning of the business.
According to Wu et al. (2014), several factors determined by the budget allocated by leaders have significant impacts on the menus prescribed for a particular meal. In this case, the managers need to have adequate information related to the factors that govern the preparation of food and beverages such as time, kitchen equipment, and the ingredients required in coming up with food or beverage and the indented purpose for preparing a meal. This knowledge provides insights about the expected costs associated with that beverage or food thus avoiding cases of over expenditures and decreased marginal profits experienced by the organization. Based on the existing literature, it is evident that managers in the hotel industry are the overall determinants for the efficient use of resources and performance of the workers thus becoming the driving engine for the whole organization. The success experienced in any organization depends on the level of commitment in the leaders.
A Managerial Objective In The Food And Beverage Industry
Managers in the food and beverage industry play an essential role in determining the success of an organization. They are the decision makers, and they have to act rationally when conducting their activities to ensure that their actions are in line with the organizational goals. In summary, the operation manager as to be in a position to calculate the varying costs and staffing considerations n an organization and ensure that the profits exceed the expenses incurred in operation (Ninemeier, 2000). Determining values in the business are essential because accurate calculation ensures the manager sets the right prices for all foods in the thus charging fair prices and an acceptable profit margin. Though there are several food outlets in the food and beverage industry, the management should have adequate data and ensure there is coordination between each outlet, costs and the staff implications. For instance, the self-service outlet consists of the delis and vending machines where the expenses involved are low because there is only the need for purchasing storage machines. The manager should ensure that there are few staff members to reduce the operating costs thus providing a large profit gap.
The leadership in food and Beverage Company need to be able to successfully manage the financial accounts and use such outlets to determine the financial worthiness of the company. In this case, the manager applies several commercial outlets such as the balance sheet which shows the assets, liabilities, and the capital worthiness of a company (Davis et al., 2018). This tool is essential because people the management team can determine if the expenditure it incurs always remain low in the company. If the liabilities are relatively low compared to the assets, the company fir, and beverage industry is sustainable, and it is always in a position to thrive in the market. However, if the liabilities exceed the assets, the manager is responsible for identifying areas that they need to use in reducing the costs such long term and short term loans to reduce the debts associated with the company's operations. Managers also take note of the financial statements which indicate that they are always responsible for recording the expenses and incomes for daily activities conducted in the business. Success in the industry shows the excellent performance of the daily transactions and managers should always ensure that they still track the daily deals, monthly operations with the rationale of reducing the long-term challenges that may occur in the business.
Food and beverage managers play a role in setting prices for the products sold in the company. The amounts set for a particular commodity should serve the interests of the customers and those of the organization. In this case, managers have to ensure that prices offered in a hospitality company are affordable by the customers and they are capable of earning the company a profit. The process begins by establishing all the costs associated with the production process, storage and serving of the food or drink. For instance, the leaders need to consider the cost per unit method, yield test, cook test, and standard recipe to establish all the costs associated with operation process of the food industry (Wood, 2018). The establishment of all costs acts as a guiding tool for managers to calculate all prices of the commodities and place them on the menu. Pricing the list requires the manager to have adequate knowledge of the multiple approaches that can be applied in deciding the prices for the commodities. For instance, there are subjective and objective, and each of these processes has specific factors that have to be considered when determining the cost of the commodity. The prices set in the business should demonstrate a strong knowledge of all these factors to ensure that they remain profitable attractive to customers.
The purchasing process in an organization has to be managed such that the bought raw materials are in line with the allocated budget to reduce the unnecessary expenditures associated with the process. In most cases, the people performing the roles of acquiring the materials tend to overspend on buying the items thus adding unnecessary expenses to the business. In the case of food and beverage companies, several raw materials need to be purchased, and the diversification of the process creates many outlets through which people can spend money. As a result, the manager always has to maintain all the purchased commodities and monitor the entire purchasing process with an objective of avoiding the loopholes for increasing expenditure.
The manager in the food and beverage industry has to keep a close look at the entire purchasing process which starts with determining the quality of the products required in the business. At this stage, the management team should identify the menu style, standard style, and the service style expected in the company (Wood, 2018). The information provided can be applied in coming up with a combination of the number of products that can serve the interests of the companies and the customers. The manager has to make decisions that ensure there is always stock in the store to provide a consistent production process and also pay attention to the freshness of the materials. The rationale behind this stage is to create a continuous supply chain such that customers get the expected commodities at the right time and in the best quality. Identification of the suppliers and maintaining a good relationship with the vendors ensures that the organization receives quality materials at the best prices and there is transparency in operations. In effect, transparency between the manager and the supplier reduces several avenues through which the company can incur expenditures thus increasing an opportunity for recording high profits. The payment options and the storage facilities in the organization determine the performance of the company because profits experienced by a company originates from the manager's ability to reduce costs such as transport and storage expenditures.
Conclusion
Food and beverage industry has several activities, and the success of the operations depends on the ability of the management team to coordinate these activities. Food and beverage industry performs several activities such as the purchase of raw materials, transport, and food and drinks processing which has to be coordinated to avoid unnecessary expenditures. The objective for engaging in any business is to ensure that there is a huge profit gap. Achieving these goals in the food and beverage industry requires the managers to participate in several activities such as maintaining the financial budgets with an objective of evaluating the company’s performance both in the short and long-term intervals. For example, the balance sheet, income, and cash flow statements determine the performance of a company and a manager make decisions based on the information provided in these accounts. The purchasing process of raw materials experienced in the food and beverage industry is diverse and if now ell managed can result in unnecessary expenditures. The managers in the company need to remain in control and determine the total costs incurred in the process and the production of the commodities thus determining the prices for each product.
References
Bayona-Saez, C., Cruz-Cázares, C., García-Marco, T., & Sánchez García, M. (2017). Open innovation in the food and beverage industry. Management Decision , 55 (3), 526-546.
Cousins, J., Foskett, D., & Gillespie, C. (2002). Food and beverage management . Pearson Education.
Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. S. (2018). Food and beverage management . Routledge.
Ninemeier, J. D. (2000). Management of food and beverage operations .
Riley, M. (2005). Food and beverage management: A review of change. International Journal of Contemporary Hospitality Management , 17 (1), 88-93.
Wood, R. C. (2018). Strategic questions in food and beverage management . Routledge.
Wu, P. H., Huang, C. Y., & Chou, C. K. (2014). Service expectation, perceived service quality, and customer satisfaction in food and beverage industry. International Journal of Organizational Innovation , 7 (1).
