Assignment On

“Importance of understanding of food and beverage cycle in

the context of Bangladesh”

Submitted To
Shahnawaz Kamal
Lecturer
Department of Tourism & Hospitality Management
World University of Bangladesh

Submitted By
Stanly Prem D’ Rozario
ID No: WUB 15/18/14/197
Roll:197 Batch: 14th
Program: Bachelor of Tourism & Hospitality Management

Date: 21.06.2020
Assignment On “Importance of understanding of food and
beverage cycle in the context of Bangladesh”

Introduction:
Food and beverage services sector contributes a great deal to the profits in hospitality industry.
With the increase in importance of business meetings, a range of personal and social events, a
large number of customers visit catering establishments frequently. The food and beverage
professionals tirelessly work to intensify customers’ experience through their service. The food
and beverage Services providing businesses deliver food and beverages to their customers at a
particular location such as hotel, restaurant, or at the customer’s intended premises.
Definition of Food and Beverage Services:
Food and Beverage Services can be broadly defined as the process of preparing, presenting and
serving of food and beverages to the customers.
Food and Beverage Services can be of the following two types
1. On Premise: Food is delivered where it is prepared. The customer visits the premise to avail
the food service. The premises are kept well-equipped and well-finished to attract customers to
avail F&B service. For example, restaurants, pubs, etc.
2. Off Premise or Outdoor Catering: This kind of service includes partial cooking, preparation,
and service at customer’s premises. It is provided away from the F&B Services provider’s base
on the occasion of major events which call for a large number of customers.
Types of F&B Services Operations: There are two broad types of F&B Services operations
1. Commercial: In this case, F&B Services is the primary business. The most known commercial
catering establishments are hotels, all kinds of restaurants, lounges, cafeterias, pubs, clubs, and
bars.
2. Non-Commercial: Non-commercial operations are secondary businesses in alliance with the
main business. These F&B services mainly cater to their consumers with limited choice of food
and beverages. These establishments often run under contracts. For example, food and beverage
services provided at hospitals, hostels, and prisons.

Food and Beverage Services Cycle:

Food and Beverage Services come only after preparing what is to be served. Most food and
beverage service businesses operate in the following cycle:
The upper half depicts food preparation related functions, whereas the lower half depicts food
and beverage service to customers.
Food and Beverage Service Objectives: The food and beverage service is looked as a means of
achieving satisfaction and making yourself feel comfortable in today’s world. The main
objectives of this service are:

 To satisfy the following needs

 Physiological − The need to taste different varieties of food.
 Economical − The need to get F&B Services at the invested cost.
 Social − The need to find friendly atmosphere.
 Psychological − The need to elevate self-esteem.
 To provide high quality food and beverages.
 To provide friendly and welcoming atmosphere.
 To provide professional, hygienic, and attentive service.
 To impart value for money.
 To retain the existing customers and to bring in new ones.

Food and Beverage Service operations:

Food and Beverage Service operations involve a multitude of activities which engage the staff right from
purchasing raw material, preparing food and beverage, keeping the inventory of material, maintaining
service quality continuously, managing various catered events, and most importantly, analyzing the
business outcomes to decide future policies. Let us look into the operations involved in F&B service.
Product Cycle in F&B Service:
The purchasing department in F&B Services is responsible for purchasing, storing, and issuing the
supply of raw food items, canned/bottled beverages, and equipment. The following is a typical product
purchasing cycle:
The purchasing department works with accounts department to keep the information on allocated budget
and balance budget.
The following factors influence purchasing

 Size of F&B Organization

 Location of F&B Organization
 Availability and Size of Storage Space
 Organization Budget and Policies
 Availability of the commodity due to season

Purchasing Product:
The purchaser is responsible for purchasing a product. He studies the market, and analyzes and selects
suppliers, wholesalers, and the contemporary market prices. He then liaisons with suppliers and
wholesalers to get good material at fair price and purchases the required commodities by following
appropriate purchase procedures.
Receiving the Product:
The receiver receives the products from the suppliers. He checks the product for right quality and
quantity. He deals with the delivery personnel from the supplier’s end and signs on the related receipts.
Storing and Issuing the Product:
The store men carry out the task of storing received supply and issuing it to respective departments. They
update the stock database, and manage old and new material in the stock. They also keep record of stock
to the latest date.
Preparing and Presenting an F&B Product:
This includes preparation of various food items and fresh beverages. The cooks prepare various foods and
the bar tenders prepare cold beverages such as mocktails and cocktails. They also make the dish most
presentable by arranging food on platter and decorating it in an attractive manner. The beverages are also
decorated by using fruit slices, decorating the glasses, sippers, and stirrers.
Consuming the F&B Product:
This part is played by the guests. At the service end, the respective staff takes inventory of the consumed
and balanced stock of food and beverages and keeps it updated to latest figures.

Importance of the Foodservice Cycle Notes:

 The Foodservice Cycle summarises what food and beverageoperations are concerned with
 It can be used as a basis for analysing and comparing how different foodservice operations work
 It provides a standard template or checklist for collecting andorganizing information about a
specific operation in a specific way

Importance of the Foodservice Cycle:

 It is a dynamic model in the sense that difficulties in one element of the cycle will cause
difficulties in the elements ofthe cycle that follow or precede
 For example, problems in purchasing will negatively affect food production and service, and
control

Restaurant Industry in Bangladesh:

Over the years, food-cart businesses like Takeout, Chillox or Mad chef (popular local burger joints)
became household names in the city. More and more restaurant businesses in Dhaka are opening up to
cater to budget friendly customers, which turn have seen a boom in the growth of these restaurants and
cafes.
Restaurant Types in Bangladesh:
There was once a time in Bangladesh, when if you wanted to go for something as simple as coffee, the
number of specialist coffee places or a café was non-existent. Now, there is Crimson Cup. Second Cup
Coffee and Gloria Jeans among numerous coffee places, and that too in Dhaka city. With the entire world
becoming smaller day by day and with state-of-the-art communication and technology, thanks to
globalization, a large proportion of the population seeks a lifestyle where they are able to eat foods, which
maybe are sought out by their favorite food blogger on YouTube. Today there's popular cafes in Dhaka
like the ones mentioned above where a group of friends can sit around and gossip as they take a sip on
their caramel lattes. With a large part of this population belonging to the middle-income group, casual
dining and family style restaurants are also on the rise. Ethnic restaurants selling different cuisines like
Lebanese, Japanese and Indian are also gaining popularity amongst people. It is safe to say that
Bangladesh currently has almost all the types of restaurant - from small sized fast food to premium exotic
dining, nothing is excluded.

Popular Food Items That We Prefer:

With over 50% of the population in this country being under 25 years of age, fast food is what majority of
us prefer when eating out. Also considering the fact that a large proportion of the population is also
working population who are always on the run and often struggle to get proper meals throughout the day
and thereby reliance on fast food is increasing. Pizzas, pastas, burgers, hot dogs and coffee are some of
the favorite. A large part of the market segment also demands for cheap, filling and tasty food in a crisp
environment and thereby restaurants today are offering plenty of buy one get one offers, discounts on
payments, and so much more. Food platter or set menu has a high number of loyal customers too; and you
can't forget about the local champions - biriyani, kacchi, and grill with naan. A large group of young
people also experiment for all new kinds of food and they have special preference for exotic and rare
foods. Sushi, seafood, and steak have an increasing demand as well.

Current Status Of Restaurant Business In BD:

One of the integral reasons behind the increasing number of restaurants in Bangladesh is that it's deemed
to be quite profitable. Bangladesh today is known as the tiger economy in Asia due to the high economic
growth rate. Along with high economic growth and developments in the country the living standard and
disposable income for people is on the rise. When we go to a restaurant, it's not only because of the food
but rather a bunch of other variables come into play before we actually make a decision. We visit
restaurants to spend quality time, for the good quality food, the hygienic condition and the whole dining
experience matters to the modern-day consumer. As a result, people do not mind paying a little extra for
the value-added services that a good restaurant provides. Restaurants with good interior designing and
premium quality food are at a competitive advantage and the high prices they charge is thereby justified.
However, starting a new restaurant here in Bangladesh can be a costly venture. Quite a lump sum amount
of initial capital expenditure is required to get things started. Starting with the rent of the location, the
interior designing, raw materials, hiring employees and so much more. Also provided that the food
quality monitoring authorities in Bangladesh has aggressively started to investigate into the food industry
given the current condition of food contamination practices in our country. This is why restaurant owners
have to be extra careful about hygienic conditions and ensure top notch quality to avoid paying hefty fines
which adds up to business costs. The dining-out culture is becoming increasingly popular for reasons like
an increase in the income levels of the general population which led to a decline in the number of people
who actually don't carry home cooked food with them like they used to because we are becoming busier
every day. Changing consumer tastes and preferences has also caused a lot of people to seek out foreign
cuisines. Availability of decent quality food at affordable prices which is appealing to the students has
also contributed to the growing popularity of restaurants. More to that, the ease of getting food has
increased due to rise in food delivery services all over Bangladesh; uber eats, pathao food, and food panda
are few great examples. There is a major growth potential for the restaurant industry in Bangladesh.
According to various data collected from social media groups concerning food reviews has shown that the
market for restaurant business is growing exponentially.
A Statistical Report On This Business:
Khurshid Irfan Chowdhury, executive director of Transcom beverages It, says that the fast food market is
going to be huge within 2022, and they are expecting that the market value will worth 450 crores. More to
that, he says, this industry will create huge employment opportunities in the future. On the other hand, the
whole restaurant market of Bangladesh has estimated at BDT 4500 crores in the last year and by 2021 the
restaurant sector will contribute 2.1 percent of the country's GDP by the recent report.

Local And Multinational Brands In Bangladesh:

Due to increasing market demand, the multinational brands understood the opportunities available for
them in this country. One by one many major brands came to Bangladesh and they are statistically doing
well. Few example can include Dominos, Burger King, Pizza hut, KFC, Cold Stone Creamery, Kenny
Rogers Roasters, Baba Raf, Nando's, SBARRO, Mr.Manik and others. The affluent class in Bangladesh
travels abroad and has a fairly good idea about the food brands out there, and that creates a natural
demand for those brands in local community More to that, the globalization led by social media and
movie industry is a huge factor that got the local people in acquaintance with these international brands.

Bangladeshi Brands In Foreign Market:

A great example of local brands in foreign market is Takeout lanka. The renowned burger joint "takeout"
of Bangladesh has officially launched their outlet in Srilanka. There are no other significant example of
local restaurant brands in foreign market at this moment. But we are hopeful that our beloved local brands
will grow beyond the border of this country.

Future Of Restaurant Industry In Bangladesh:

Bangladeshi restaurant market is getting saturated day by day. The businesses are getting more
competitive and they are coming up with all new ideas in the market. But according to the statistics, the
customer segment is still on the rise and demand is not exhausted yet. People are getting more busier, and
they want to outsource food making to the specialist, hence it is safe to say that the market will expand a
lot more in the upcoming years and there are great opportunities for those who want to get a piece of this
business. We Bangladeshi people love to eat; it can be rephrased that people out there eat to live, and we
live to eat Eating out is a becoming a cultural integration of our country gradually. Maybe we cannot
predict what the future exactly holds, but we do know that, the demand from the restaurants are still on
the rise.

Conclusion:
Modern day food and beverage operations are continuing to improve in the quality, and the service.
Professionalism is increasing, through better training and development. The quality of service is
becoming the principal differentiating factor when customers are choosing between different
establishments.