BHM202 Food And Beverage Management

BHM202 Food And Beverage Management

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BHM202 Food And Beverage Management

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BHM202 Food And Beverage Management

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Course Code: BHM202
University: Melbourne Polytechnic is not sponsored or endorsed by this college or university

Country: Australia


 Make a report on The “fruit juices and snacks” restaurant. Provide direction for operation of business.

Explore the company name, restaurant or operation type, its unique selling point, the growth of the market and recent trends, the management team and its strengths, financial requirements and an out line of the operations.


Food and beverage management is a very important aspect that needs focus. This report deals how food and beverage will be processed without harmful toxins, and the generation of the produce will majorly cater on a farm produces. The main aim in context to the business venture is to procure good and quality food at reasonable prices. The sole purpose of the business venture is to make the menu of the restaurant favorable and qualitative. This study incorporates the mission statement, business objectives and innovation criteria’s and analysis of the market.  This business venture is different from that of other food, and beverage business as the restaurant will offer quality food in context to reasonable prices. The management will take special care that customers get quality and effective service. The technical innovations will also make the food free from radicals and toxins. The market strategy will be incorporated in details to study the competition in context to this business arena.    
Business objectives

To provide quality food and beverage products at a favorable price
To attain cost ratios which are below 55%
To uplift the health of consumers through the production of food and beverage products which are free from toxic-substances

Concept Development for F&B Operation Innovation of Concept
Mission statement
The main mission is to offer a dining experience that is unique and genuine. We will work hard to obtain this goal by the provision of menu items incorporating quality juice and snacks products at fair prices. The restaurant will also take care of all the stakeholders by handling every individual with dignity and respect (Aras et al., 2017).

The management will innovate in offering training lessons to the employees to upgrade the service quality.
The restaurant management will high innovate on technology to make the whole process mere effective.
The restaurant will innovate on location to make it accessible by many consumers.

Market analysis
As commented by Chen et al., (2015, p. 570), the market analysis is used to determine the market in context to evaluate the position of the established or emerging markets. Evaluation of the current market helps to perform the actions that are not undertaken by the others. The future and the current risks are also estimated by this strategy.  In this case, the market analysis will be based on the restaurants operating in the same area and providing the same food and beverage items. The characteristics in context to the market analysis need to look amply at the outlook and the description of the industry, identification of the target market and position of the market.
Market needs and positioning
As commented by Bahl and Chandra (2018, p. 10), the rate of consumption of juice and snacks in the country portrays a growth rate of 13 % (as analyzed by IBISWorld statistics). With such a high growth rate there is a need to provide food and beverage products which are free from chemical substances which are added to improve the lifespan. As commented by Grekova et al., (2014, p. 175), several cases have been noticed where some substances caused heart diseases and cholesterol. The main attempt needs to be to cater to public demands without affecting their health.
Feasibility analysis
The analysis is used to determine the viability of the business idea involving the food and beverage restaurant. As commented by Hanssens et al., (2014, p. 535), the analysis is conducted by checking the technical, market and commercial feasibility. Overall risk assessment activity is also conducted during the analysis. Checking the business against the feasibility analysis description the restaurant business can be said to have met the market requirements (Meggitt, 2013).
SWOT analysis 
Strengths of the business

The restaurant will produce products which are free from any chemical contamination which will make the restaurant win many customers from the competitors
It is easy to make any required adjustment as per customers’ needs because the food and beverages are produced within the restaurant.
With cheap production process, there rises a big chance of making more profits.


The process of acquiring and training employees is expensive and problematic.
There arise high chances of making a loss as the products have a short lifespan.

Since the food and beverages will be preservative free, so the number of consumers will come which in turn will lead to business profits.
The common threat to this industry lies from the competition. There are so many restaurants in the market arena that are catering to the same consumer demands.





The beverage and the food products will be free from contamination.

Expensive training.

The innovation of food products.

Completion from others from this industry.

Customer friendly restaurant.

The short lifespan of the products.

The good location will incorporate more consumers.

A threat of new entries.

New technological innovations that will offer competition to the emerging businesses.

Training employees can give rise to several problems.

To make more innovative and healthy dishes.

Lack of food items.

 Table 1: SWOT Analysis
(Source: Created by the Learner) 
Planning and design: Operation
The restaurant will operate seven days a week as shown.

Days of week

Working Hours

Monday to Friday






As stated by Lim et al., (2018, p. 20), to make sure effectiveness is portrayed in operations; the working team will be sub-divided into several departments such as financial, purchasing, production department, and customer-services departments. Every department will perform specified tasks. Financial duties will be performed by the financial department. The Purchasing department will be making sure that raw materials are available. The Customers will be served by “Customer service team/department.
The following is the menu of food and beverages:

List of food and beverages

· Fruit juice@ 1dollar per 1litre
· Apple slices @ 2dollars
· Bitterballen @3dollars
· Carrots chips @ 1dollar
· Almonds @ 5dollars
· Cookies @ 7dollars
· Dried fruits @ 4dollars
· Sliced fruits @ 3dollars
· Fruit salad @ 5 dollars
· Fruit cocktail @ 9 dollars

Purchasing, Storage and Production
The restaurant management will create a research team which will always keep the restaurant-finance department updated on the current cost of the raw materials. The created team will also help the restaurant in purchasing and searching the raw materials. Insurance will be applied to the properties of raw materials to ensure safety in case of theft or fire accident. The restaurant will keep in mind a HACCP approach.  As commented by Jung and Yoon (2012, p. 370), HACCP plan will be documented by the principles in the context of the system. The business strategy is that it will rely in c upon context to the self-production of food and beverages. The products will be incurred free from chemicals. The lifespan of the raw materials will be improved through the investment regarding the latest technology. They will generally incorporate technology-based storage such as the use of refrigerators. Food hygiene and safety is the foremost thing when it comes to the HACCP system. As opined by Wallace et al., (2018, p. 456), the restaurant needs to follow the regulations regarding storage, production, and purchasing of the products. The principle in context to the HACCP needs to be followed to ensure food safety:
Conduction of hazard analysis

Establishment of the critical limits
Identification of CCP (Critical control points)
Monitoring the CCP
Establishing corrective action

Marketing Strategy
To create an effective and friendly marketing environment the business will highly implement the 7Ps marketing strategy.

As commented by Hamzah and Sutanto (2016, p. 200), the will involve all the pricing method to absorb competition force from competitors who are affected by the pricing issues. Some of the pricing strategies include; premium pricing, economy pricing penetration pricing, etc.
As stated by Arias et al., (2016, p. 110), the quality of the products offered by the restaurant is highly valued. The restaurant has put in place the health concerns of the customers by obtaining foods and beverages free from any chemical. This will result in the attraction of a higher number of customers.
Place. As commented by Huang and Sarigöllü (2014, p. 114), to achieve the celebrity of the business, it will be located in a station where there existed a related restaurant-business before. The place is also accessible to many people. With these location advantages, the restaurant will experience a super marketing environment.
Promotion. As opined by Helm and Gritsch (2014, p. 419), the restaurant management will invest in an advertisement to expand the celebrity. Advertisements will be made through televisions, radios, and Facebook.
People. As commented by Datta, Ailawadi and van Heerden et al., (2017, p. 5), to provide an excellent customer service process the management will introduce various departments in the restaurant. The department. Skilled personnel will be deployed to the introduced department. to upgrade the skills of the employed personnel the restaurant management will be offering training to all the employees respective to their working department
As stated by Jung and Yoon (2012, p. 370), the management will innovate on the process which will be fast and effective for the customers. By employing skilled personnel acts as a way of perfecting the service offering process.

The business venture stands different from other ventures because of its unique concept of food and beverages. As stated by Psomas and Kafetzopoulos (2015, p. 135), preservatives are generally present in all the drinks that are provided by the restaurants. But this restaurant will cater to provide no added preservatives and contamination free drinks. The food will be examined by hazard analysis. HACCP will be given innate importance to ensure food safety.
List of staffs
The staff of the restaurant includes:

Customers services employees
Accounting employees
Production employees
The managing employees
Cleaning employees

List of skills

The employee should have at least one year of experience in the applied department.
He/she should be literate.
He/she should be ready to work under minimal supervision.

Financial projections and quality management 
The business will be a partnership entity where two or more investors will contribute fund for the launching of the restaurant. At the beginning of the business, the operation will be run using the funds contributed. As commented by Hamzah and Sutanto (2016, p. 332), the business will then be run using the acquired funds from the customers. A certain portion of the profit acquired will be used to expand the business. Remaining profit will be equally shared among the investors. Proper analysis of the quality of the products needs to be done with the use of total quality management, and it would be beneficial for the business in the coming future. This would enhance the sustainability and competitiveness.
Aras, M., Syam, H., Jasruddin, J., Akib, H. and Haris, H., 2017, July. The effect of service marketing mix on consumer decision making. In International Conference on Education, Science, Art, and Technology (pp. 108-112).
Bahl, S. and Chandra, T., 2018. Impact of Marketing Mix on Consumer Attitude and Purchase intention towards’ Green’Products. A Journal of research articles in management science and allied areas (refereed), 11(1), pp.1-11.
Chen, E., Flint, S., Perry, P., Perry, M. and Lau, R., 2015. Implementation of non-regulatory food safety management schemes in New Zealand: a survey of the food and beverage industry. Food control, 47, pp.569-576.
Datta, H., Ailawadi, K.L. and van Heerde, H.J., 2017. How well does consumer-based brand equity align with sales-based brand equity and marketing-mix response?. Journal of Marketing, 81(3), pp.1-20.
Grekova, K., Bremmers, H.J., Trienekens, J.H., Kemp, R.G.M. and Omta, S.W.F., 2014. Extending environmental management beyond the firm boundaries: An empirical study of Dutch food and beverage firms. International Journal of Production Economics, 152, pp.174-187.
Hamzah, S.B. and Sutanto, J.E., 2016. The Role of Marketing Mix (7P) for Consumer Buying Decision Pastry Cake in Malang City.
Hanssens, D.M., Pauwels, K.H., Srinivasan, S., Vanhuele, M. and Yildirim, G., 2014. Consumer attitude metrics for guiding marketing mix decisions. Marketing Science, 33(4), pp.534-550.
Helm, R. and Gritsch, S., 2014. Examining the influence of uncertainty on marketing mix strategy elements in emerging business to business export-markets. International Business Review, 23(2), pp.418-428.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to the market outcome, brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-132). Springer, New York, NY.
Jung, H.S. and Yoon, H.H., 2012. The effects of emotional intelligence on counterproductive work behaviors and organizational citizen behaviors among food and beverage employees in a deluxe hotel. International Journal of Hospitality Management, 31(2), pp.369-378.
Lim, W.M., Jee, T.W. and De Run, E.C., 2018. Strategic brand management for higher education institutions with graduate degree programs: empirical insights from the higher education marketing mix. Journal of Strategic Marketing, pp.1-21.
Meggitt, C. (2013). Food Hygiene and Safety: A Handbook for Care Practitioners. USA: Sage
Psomas, E.L., and Kafetzopoulos, D.P., 2015. HACCP effectiveness between ISO 22000 certified and non-certified dairy companies. Food Control, 53, pp.134-139.
Wallace, C.A., Sperber, W.H. and Mortimore, S.E., 2018. Food safety for the 21st century: Managing HACCP and food safety throughout the global supply chain. John Wiley & Sons.

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