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Programme :

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Nelson College London


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Food Service Management

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Contents
Abstract................................................................................................................................................4
Introduction.........................................................................................................................................5
P1: Examine a range of different food supply chain approaches within the foodservice industry,
highlighting key stakeholders in the process.....................................................................................6
P2: Discuss the principles of effective procurement and sourcing processes for a foodservice
operation..............................................................................................................................................8
M1 Analyse a range of different food supply chain approaches and procurement strategies that
can enhance organizational effectiveness.........................................................................................10
P3: Assess the application of different analytical tools to support effective management
strategies.............................................................................................................................................11
P4: Evaluate different management practices that support successful business operations in
foodservice organisations..................................................................................................................13
M2 Critically evaluate management tools and practices that can support successful business
operation in foodservice organization..............................................................................................14
P5: Discuss ethical practices in a specific foodservice organisation and the impact of these
practices on overall business success................................................................................................15
M3 Analyse various ethical practices in a specific foodservice organization and the impact it has
on the overall business success..........................................................................................................17
P6: Assess management practices within a specific foodservice operation, using a range of
performance review techniques........................................................................................................18
P7: Recommend and produce management alternatives to improve performances, including an
implementation plan..........................................................................................................................20
M4 Devise appropriate management solutions to address shortcomings within a specific
foodservice operation, using a range of management tools and performance review techniques.
.............................................................................................................................................................22
Conclusion..........................................................................................................................................23
Reference.............................................................................................................................................24

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Abstract
This assignment discussed food service management. To run a restaurant a manager has to
manage supply, customers sound management, quality, competitors and many other things. In
this assignment, we will see how a manager uses different strategies to manage all these
activities smoothly and move forward to achieve an organization’s goal.

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Introduction
As a central London based restaurant, in this assignment, we will be discussing from the
perspective of Abruzzi restaurant. We will see how they apply different strategic tools such
as value chain analysis, SWOT analysis, PESTEL analysis on their business for providing
quality food services to the customer. Besides, the manager of any particular organization has
to remember that, he has to earn a competitive edge to sustain in the market. So, here we will
be discussing the way to maintain all these.

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P1: Examine a range of different food supply chain approaches
within the foodservice industry, highlighting key stakeholders in
the process.
The flow of food from a supplier or producer to the end-user is called the food supply chain.
This process involved producer, supplier, different intermediaries, distributor and many other
groups. Now, we will be discussing different approaches to the food supply chain.

 Direct approach: In the direct approach, restaurant or any organization buy foods
from the producer and directly sell it to the end-user. Abruzzi restaurant buys
finished goods or foods from any producer and directly sell those to the consumer. It
involves no other intermediaries.
 Indirect approach: In this approach, the supplier gets included. The food flows from
producer to supplier then supplier to a restaurant and finally restaurant to the
consumer. Abruzzi restaurant buys some of its raw materials from a supplier, while
the supplier collects those raw materials from the raw material producer. Finally,
Abruzzi restaurant prepares some finished goods with those raw materials and sell
them to the consumer. This is an indirect approach.
 Whole supply chain: In this approach, a lot of groups involved in the supply chain.
It begins from the producer then supplier, supplier of a supplier, distributor,
restaurant, delivery, customer and so on. This is the longest process which might take
some extra time and cost, as because every group will try to earn some profit from
their ending.

All of these approaches have various stakeholders. Everyone tries to ensure high-quality
service as well everyone wants to be benefitted through this food supply chain. So, now we
will discuss the different stakeholders of the food supply chain process here:

o Producer: Producer of raw materials is the first stakeholder of the food supply chain
process. They play a vital role in this process. If they can provide standard raw
materials restaurants can make high-quality food.
o Supplier: This group collect raw materials from the producer and supply to different
companies. They need to have a huge amount of storage facility. This group works as
a bridge between the producer and the company.

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o Distributor: Distributor helps to transfer the foods from producer to supplier and
supplier to restaurant. This stakeholder provides transportation facility. They are
responsible to deliver the product in a safe hand without any loss.
o Company: Abruzzi or any restaurant like this, plays the most vital role among other
stakeholders. This group is directly responsible to provide healthy, fresh and quality
food to the consumer. This group collect raw materials and from supplier, process
them and finally make something delicious, which is served to the customer.
o Consumer: At this stage, the consumer consumes the food, which is the end of the
food supply chain journey. This group is the last stakeholder of this process. Every
stakeholder here tries their best to ensure the best quality food for the consumer.

These are the stakeholder of the food supply chain.

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P2: Discuss the principles of effective procurement and sourcing
processes for a foodservice operation.
Procurement refers to buying product on large scale for operating business activity. Same
goes with the foodservice operation. The restaurant buys a large amount of food or other
product for business purpose or for delivering consumers. Some principles of effective
procurement are described below:

 Identification of demand: The manager of the foodservice company has to be certain


regarding the quantity and quality of required food or product. Abruzzi restaurant
needs to identify what can satisfy their consumers.
 Identifying product: According to this principle restaurant need to find out a suitable
product or food among a lot of alternatives. As Abruzzi restaurant identify their
requirement in the previous principle, at this principle they will identify a product that
can welly satisfy consumers.
 Ordering: After finalizing everything, restaurants can place an order of their selected
product. Abruzzi restaurant can place an order differently, like- electronic media,
website, offline order etc.
 Product acceptation/ rejection: After placing order supplier will send the required
product after a particular time. If the product matches the expectation restaurant
manager accept the product and if don’t, they refuse to accept. Abruzzi restaurant
does such thing also. If they found suitable delivery then they accept the product,
otherwise, they also reject.
 Recording: If the organization accept the product, they have to record it for further
checking. Abruzzi restaurant has to maintain its accounts book if they accept any
product. It helps to know total cost and profit or other numerical data.

These are the important principles of procurement. Another important task comes before
purchasing, that is sourcing. Sourcing is a process which starts from suppliers evaluating and
ends with making a profitable relationship with them. Some important principles of effective
sourcing are given below:

 Supplier Evaluation: The food manager of any restaurant must evaluate their
supplier based on its quality and quantity. Quality must be maintained by the supplier
as prepared food will be served to the consumer.

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 Market evaluation: Manager often discusses with a different supplier for gathering
various information. These information help managers to understand the market
condition.
 Negotiation: After evaluating both the supplier and the market, the manager starts
negotiation with the supplier. Every manager tries their best to buy the best product at
a reasonable price.
 Final deal: Negotiation ends at a point where both the supplier and the restaurant
manager feel satisfied. At that point, they make their final deal about supply, delivery
system, payment method, delivery time etc.

These are necessary principles of sourcing of foodservice operation.

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M1 Analyse a range of different food supply chain approaches
and procurement strategies that can enhance organizational
effectiveness.
Food can flow through different approaches. Some approaches involve a minimum number of
group and some involve maximum. The complexity increases with the increase of group.
Maximum group means lots of complexity. Which is why the direct approach is very much
effective for the organizational benefit. As it involves a low number of groups it is easier and
cost-effective. On the other hand, procurement should be done very carefully. It is directly
involved with food quality and safety. In that case, the best strategy will be focusing on the
quality, not the cost. If a restaurant can provide high-quality food, they will never lose the
consumer. Their brand value will at the top. This strategy can enhance organizational
effectiveness.

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P3: Assess the application of different analytical tools to support
effective management strategies.
A business organization often use different analytical tools and management strategies, to
check where the organization is going, to take an effective decision, to measure threats and
risk and so on. There are a lot of analytical tools and management strategies out there, like-
SWOT analysis, PESTEL, Porter’s five forces etc.

In this part of the assignment, we will analyse the condition of Abruzzi restaurant through
different analytical tools. We will start with the SWOT analysis.

SWOT analysis of Abruzzi restaurant

 Strength: Abruzzi restaurant is located in the centre of London. Daily lot of people
passes through this restaurant which is another plus point of the Abruzzi restaurant.
On the other hand, Abruzzi has high brand value or brand image.
 Weakness: Abruzzi mainly offers Italian food to the consumer. As it is located in the
UK, consumers love to have some English food beside the Italian one. As well as, its
interior design is not that much unique, interior design always attract a lot of
consumers at such types of business. [ CITATION Kot \l 1033 ]
 Opportunities: Abruzzi restaurant can introduce English food besides Italian, it will
attract a lot of consumers. And if they can improve their nutrition on their food they
will get more credit, cause people love to have healthy and safe food.
 Threats: The biggest threat for Abruzzi restaurant is, giant multinational business
organization or restaurant. If any of those start offering Italian food Abruzzi restaurant
will face some difficulties. So, before any new entrance in this sector, Abruzzi has to
make a strong position.

This is the SWOT analysis of Abruzzi restaurant. Now, we will conduct another analysis,
which is:

Porter’s Five Forces

 Bargain power of customer: This means how much influential power customer have
in case of bargaining. Abruzzi Restaurant offers a safe and healthy product at a fixed
price, customer can not change the price level directly. Abruzzi set this price base on
market condition and their cost.

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 The Threat of Substitution: Substitute means a customer can meet their demand for
a particular product by another product. As Abruzzi restaurant provides Italian food
their substation is relatively low at the centre of London.
 Bargain power of supplier: Like the previous one, this means how much influential
power supplier has in case of bargaining. Suppliers of Abruzzi restaurant have
relatively low power, as because there is a lot of supplier out there in the market. No
one wants to lose their running business. [ CITATION Gra1 \l 1033 ]
 The threat of new entrance: Abruzzi restaurant might face this threat after
sometimes. Abruzzi doing quite a good business at the centre of London, this will
attract many entrepreneurs to start such business. So, the threat of the new entrance is
kind of upcoming for Abruzzi restaurant.
 Rivalry: Rivalry means, similar competition with another organization. Abruzzi
doesn’t have any rival in the field of the Italian food sector in London, but they might
face any other restaurant as a rival.

These are Porter’s five forces analysis on Abruzzi restaurant.

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P4: Evaluate different management practices that support
successful business operations in foodservice organisations.
Practising different management operation is very essential for every organization. Like,
without HRM practices organization can not hire potential employee, market research or
branding cannot be done without the Marketing department, profit cannot be measured
without finance and accounting department and so on. So, now we will be discussing
different management practices that support successful business operation in foodservice
organization, especially Abruzzi restaurant.

 Finance Department: Finance department finds out the source of finance for the
organization as well as they also define where the organization should invest for
maximum earning maximum profit. The finance department of Abruzzi restaurant
makes a list of the source of capital as well as it also specifies the area spending that
money. This department also sanctioned budget for different activities or various
department.
 Production Department: This department is directly involved in the existence of a
foodservice organization. The production department is prepared food for the
restaurants. All the healthy and safe food of the Abruzzi restaurant is prepared by
their production department.
 HRM Department: HRM department hires an employee for the organization
according to the organization’s requirement. Potential area manager, production
manager, branding manager and every other employee of Abruzzi restaurant is hired
by their HRM department. They also provide training and development facility if any
employee needs such support.
 Marketing Department: Marketing department analyses the market and customer
condition. Their main task is creating awareness through different branding campaign.
Because of the marketing department, people know about Abruzzi restaurant and the
services they are providing. The marketing department of Abruzzi also customers
review their food which they report to the production department. Then based on
customer’s choice production department bring changes in their services. [ CITATION
LEE20 \l 1033 ]

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Like these, there are many other departments in every organization and their activities are
extremely important for successful business operation.

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M2 Critically evaluate management tools and practices that can
support successful business operation in foodservice organization
Management tools help every organization to understand their position and upcoming
barriers. Through SWOT analysis and Porter’s five forces foodservice organization can able
to know about their strong area of the business and their influential power in case of
bargaining. These tools also help to know about the upcoming threat or rival in the same
foodservice industry. If a restaurant can evaluate this area before a particular time, they can
take precautions.

On the other hand, to run a restaurant smoothly towards its objective it needs to maintain
different management practices. Otherwise, an employee will be working without destination
and coordination which will create a massacre inside the restaurant. And ultimately they can
not achieve a common goal.

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P5: Discuss ethical practices in a specific foodservice organisation
and the impact of these practices on overall business success.
Ethical practise refers to operating business according to common norms, terms and ethical
facilities for their customers. Besides, they also follow all the governmental rules and
regulations of the United Kingdom. They also maintain their corporate social responsibility.
Corporate social responsibility or CSR means an organization’s responsibilities towards
society and the environment. Abruzzi Restaurant provides its taxes and organizes some social
problem. Besides, their service never harms the environment. In this part of the assignment,
we will discuss the different ethical practices of a restaurant.

 Equality: The business organization should never have partiality between male and
female or black and white or in terms of providing salary. Everyone should be treated
equally. Abruzzi restaurant needs to judge their employee based on their talent,
enthusiasm, contribution and by many other common standards. This will encourage
everyone to provide their best at the workplace and participate in workforce
management planning. Full participation from each employee will lead the Abruzzi
restaurant towards its business success. Cause everyone will work there to achieve a
common goal.
 Transparency: Honesty is the best policy. The business organization must maintain
honesty with the customer, employees, govt and stakeholders. Customers of Abruzzi
restaurant must know about what they are having is safe and healthy or not. From the
perspective of Abruzzi, they should make such issue clear to their customers. Thus,
customers will love to come at Abruzzi again and again. Which means because of
honesty Abruzzi can ultimately increase their profit level as well as brand image. In a
nutshell, honesty will bring business success to Abruzzi restaurant.
 Ethical Hiring Process: The business organization should always hire the best
employee from a lot of candidates. Because a potential employee can lead the
organization towards its success. Abruzzi restaurant never fails at this practice. They
always hire the best employee according to the restaurant’s requirements. Every
potential restaurant of theirs works diligently to achieve an organization’s success.
Which is why they are now in the root of success. [ CITATION Pet \l 1033 ]
 Sound Working Environment: Restaurants have to make sure a healthy and safe
workplace for their employee. Beside ethical practice, this is also a responsibility of a

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restaurant. Abruzzi restaurant makes sure such a safe and healthy environment which
is why no one feels embarrassed in the workplace. Which boost everyone’s
participation and ultimately bring success for the organization.
 CSR Project: Business organization do their business at the society. So, it is natural
that they have some duties and responsibilities towards society. If Abruzzi restaurant
contributes to the development of society, they will have a sweet bonding with the
society and its people. This relationship increases the employee and customer
retention of Abruzzi restaurant. Both of this retention will help Abruzzi to reach its
success. [ CITATION Hun \l 1033 ]

These are the ethical practices of a foodservice organization that helps the organization to
achieve its objective.

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M3 Analyse various ethical practices in a specific foodservice
organization and the impact it has on the overall business success.
Abruzzi restaurant follows various ethical practices in its organization. Like- equality,
transparency, ethical hiring, safe work environment, CSR project and so on. These practices
increase employee morale and retention. If an employee gets proper treatment from Abruzzi
restaurant they will work for the organization’s benefit. Equal participation from every
employee will lead the organization towards its success. On the other hand, because of CSR
Abruzzi can make a sweet and healthy relationship with society. And such a relationship will
attract a lot of customers towards Abruzzi restaurant. So, one way or another by maintaining
various ethical practices Abruzzi restaurant can achieve its business success.

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P6: Assess management practices within a specific foodservice
operation, using a range of performance review techniques.
Management practices are the techniques that an organization apply to keep the activities
smooth and efficient. Some important management practices of Abruzzi restaurant are
described below:

 Selective Hiring: Organization should not be biased in case of hiring an employee.


Abruzzi restaurant needs talented and potential employee for the betterment of their
organization. Which is why in case of hiring employee HRM department make to
ensure that the applicant has enough enthusiasm and required talent that can help to
achieve an organization’s success.
 Information Sharing: Every information on the Abruzzi restaurant needs to be
known by every employee. Higher-level management must share everything with
their employee. It will increase employee morale as well as it motivates employees to
give their hundred per cent in the workforce.
 Training and Development: Train employee as per both organization’s requirement
and employee requirement is an important management practice. An organization can
handover their important resources to their employees when they are enough skilled.
Abruzzi restaurant organizes such training and development program for their both
old and new employees. It increases the productivity of the employees and makes
them more skilful. If an employee of Abruzzi become more efficient and skilful in
her/his respective field he can contribute something valuable in the workforce
planning process. And skilful employee like this is a huge resource or asset for
Abruzzi restaurant.[ CITATION All20 \l 1033 ]
 Managing employee relation: The employee should have coordination among each
other’s work. And maintaining this relationship well is a primary practice of
management. Employees of Abruzzi restaurant will be more motivated in
contributing to an organization if they have quite good bonding among each other.
Such bonding will lead an organization towards its goal.
 Build a strong team: Abruzzi restaurant has to make a strong and talented team for
the organization. Such a team can lead the organization to move forward. For making
such team they have to be sincere in case of hiring.

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Employees performance need to reviewed time to time. So, now we will be discussing
some performance review techniques below:

 360-degree feedback: According to this method a representative of the


organization takes a review of a particular employee from every stakeholder,
managers, clients etc. Some questions are being set earlier to conduct this review
method. Everyone wants to get a positive review from everyone. So, if Abruzzi
restaurant applies this method their employee will be more workaholic, which
means ultimately their effectiveness of the management will be increased.
[ CITATION Joh20 \l 1033 ]
 Management by Objectives: According to this method, where everyone set
individual performance objective. And after a particular time, everyone evaluates
how much an individual achieved. If the objective of an individual
predetermined, everyone will work hard to complete their one. Little achievement
of every employee will help Abruzzi restaurant to achieve its main objective.
 Rating Score: According to this, method employees are given a rating by the
top-level manager based on some selected criteria. Employees are judged based
on their achieved score. Everyone wants to get a good rating from their senior
management. For earning a valuable score, everyone will work potentially and
effectively. Alike others, this method also increase the effectiveness of the
management of Abruzzi restaurant.
 Customer Satisfaction Model: Employees can be evaluated through customer
satisfaction level. Customer’s review can be collected through the survey process.
Based on some predefined questions customer will berate an employee.
Achieving a high score in this method, give a self-satisfaction to every person.
Which is why to please consumer the employee of Abruzzi restaurant will never
fail. This is how this method also increases the effectiveness of management.

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P7: Recommend and produce management alternatives to
improve performances, including an implementation plan.
Employee performance is the key to achieve the organization’s goal. But with the change of
the world, organizations these days have to adapt some new and updated alternative method
to improve employee performance. Previous methods will not be that much effective
nowadays, so some effective management alternatives to improve performances are given
below:

 Managing employee relation: The employee should have coordination among each
other’s work. And maintaining this relationship well is a primary practice of
management. Employees of Abruzzi restaurant will be more motivated in contributing
to workforce planning if they have quite good bonding among each other. And the
HRM department of Abruzzi is responsible for both maintaining this relationship as
well as developing.
 Performance appraisal: Another alternative is evaluating the performances of
employees. HRM merge with another department for conducting the performance
appraisal process. HRM of Abruzzi restaurant also conducts such a process once in a
year or after some particular time. By doing this they can understand their employee’s
performance and necessary steps can be taken based on this evaluation. On the other
hand, if every employee of Abruzzi restaurant knows about this appraisal system, they
will always try to give their best to the organization’s performance appraisal activity.
 Following labour laws: The organization needs to follow the labour laws provided
by the government. Management of the organization needs to ensure proper safety
and compensation method for their employee. Abruzzi restaurant always provides
safety and follow other rules and regulations of government which always motivate its
employee to give their best performance in the workforce planning activity.
 Employee engagement: An engaging employee in the planning process is the most
effective practice. If an employee gets involved and participates in the planning
process their morale will be increased towards the organization. Such empowerment
will be visible in their performance.
 Customer feedback: No employee wants to get a low rating from the customer. If the
organization able to collect customers opinion about an individual employee it will be
best. Then the employee will be more watchful at their job.

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 Benchmarking: This a tool through which an organization compare their
performance, product or services or management with other organization. Through
this tools Abruzzi restaurant can find their lacking thus they can introduce a different
alternative plan to improve the lacking area.
 Balanced Score Method: A balanced scorecard method is a tool which shows the
performance of an organization in four perspective- financial, customer, internal
process and growth. If the organization doesn’t have a satisfactory review of these
four sectors, they need to implement new alternatives. [ CITATION cle20 \l 1033 ]

Now we will be discussing how these recommended alternatives can be implemented. There
is a model, we can understand that easily.

 Unfreeze: In this unfreeze step the organization identify the most appropriate change.
Before implementing the change, the manager should announce it to the employee. If
employers can deliver the significance of the change to the employee than the
employee may not resist. The employer should remain open to employee concerns
and address them in terms of the need to change.
 Change: In this stage, the management implements the change in the organization.
The employer describes and sees how the change affects the performance of the
employee and the organization. The management prepares everyone for the change.
The employee of the organization face difficulties and they started to resist. If the
employer directs them it is possible the reduce the resistance of the employee.
 Refreeze: In this stage, the management successfully implement the change in the
organization. The management should develop effective leadership in the organization
moreover employee reward system should be developed. All these steps help the
organization to successfully implement the change.

This is the process of implementing the alternatives.

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M4 Devise appropriate management solutions to address
shortcomings within a specific foodservice operation, using a
range of management tools and performance review techniques.
Having shortcomings is very common in a foodservice operation. But with proper technique
and strategy, such shortcomings can be overcome. Those could be updating or bringing
changes in management practice. Creating sound coordination among employees as well as
building engagement among themselves can increase the effectiveness of the management.
On the other hand, if the employee knew that they are working under legal labour law they
will be more pleased to work with more effectively. Performance review techniques also
work as solutions for the shortcomings. Because of the various methods, employees will
always work potentially and effectively. No one wants to have a bad review of their
performance. This is how shortcomings can be overcome.

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Conclusion
In this assignment, we go through different management practices, evaluation tools,
alternatives and their implementation and so on. As it is an assignment of the foodservice
industry, one thing every restaurant should always keep in mind that, provided food must be
safe and healthy. There is no option of skipping this. If they can make it possible and hold
that. Success will be theirs.

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Reference
AllenComm, 2020. WHAT IS EMPLOYEE TRAINING AND DEVELOPMENT?. [Online]
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[Accessed 28 11 2020].

Armstrong, G., n.d. Porter's Five Forces. 13th ed. s.l.:s.n.

clear point strategy, 2020. A Full & Exhaustive Balanced Scorecard Example. [Online]
Available at: https://www.clearpointstrategy.com/full-exhaustive-balanced-scorecard-
example/
[Accessed 29 11 2020].

Drucker, P. F., n.d. Performance appraisal. s.l.:s.n.

Duval, J., 2020. Performance review methods: Which one is right for your employees?.
[Online]
Available at: https://www.fuseworkforce.com/blog/performance-review-methods-which-one-
is-right-for-your-employees
[Accessed 29 11 2020].

FREDERIKSEN, L., 2020. The Role of Your Marketing Department — And What You
Should Expect From It. [Online]
Available at: https://hingemarketing.com/blog/story/what-you-should-expect-from-your-
marketing-department1
[Accessed 28 11 2020].

Hunnicutt, n.d. Corporate Social Responsibility. s.l.:s.n.

Kotler, n.d. SWOT analysis. 13th ed. s.l.:s.n.

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