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Product development - The food and beverage product

30 important questions on Product development - The food and beverage product

What is the second step after concept development phase?

The next requirement in developing a consumer-product relationship is to consider the nature of a food and beverage product.

What happens in the second stage of concept development?

Within this phase, questions need to be addressed, and decisions made, in order to turn a consumer focus (the abstract concept that consumers purchase) into an operational focus.

The meal experience concept has 5 factors. What are the 5 factors?

1. Food and drinks offer
2. Level of service
3. Cleanliness and hygiene
4. Value for money/price
5. Atmosphere
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What influences the 5 factors of a meal experience?

The 5 meal experience factors influence both the customers' choice of a food and beverage + the potential enjoyment of a meal.

What is the experience escape?

A holistic (naar geheel kijken) conceptualization consisting of social, cultural, sensory, functional and natural components that are all present in the dining experience and work together to create the overall meal experience.

What is the focus of food and drink?

The food and drink itself, usually in the form of a menu and beverage lists, must Cleary focus on the needs and demands of the consumer. Operators need to focus on what food and beverages the different market segments require.

Because of what can operators be creative in the food and beverage list?


This is possible because of the almost endless permutations of range, tastes, textures and presentations of food and beverages. Because of this the operator can generate product differentiation.

Give 3 examples of service methods.

1. Silver service
2. Buffet service
3. Cafetaria service
Can be selected the most appropriate method to meet the demands of their customers

What are the 2 key service aspect in the f&b service?

1. Efficiency: how timely, consistent and organised the service is (procedural)
2. Conviviality (gezelligheid): the way the service is carried out, and the friendliness and attitude of the staff.

How can you achieve balans between efficiency and conviviality?

This is achieved through ensuring that both of the 2 key service dimensions are always considered together, when designing or reviewing the service being offered.

What is the cost plus pricing method?

The ingredient cost is established and the required profit (gross profit) is added.

Why is cost plus pricing attractive?

Because of its simplicity.

What is the negative side on cost plus pricing?

1. It ignores price sensitivity and demand and that value for money must be factored into the pricing decision.
2. It makes the assumption that the required profit can be established by making it a standard percentage of the selling price. Does not work for every restaurant. 
3. Does not take into account that each dish/beverage is only part of a collection of items purchased to produce the meal experience.

What are the prime costing methods?

These methods attempt to factor-in the labour cost of a dish, and actual cost pricing attempts to include fixed and variable costs as well as labour. These additional costs are also established as a % of the final selling price.

What is the negative side of prime costing?

1. Labour is a factor related to the time needed to prepare a dish, not to the value of the ingredients used to prepare it.
2. No account is taken of volume of business or item popularity in assessing the labour content of a dish.
3. Not taking into account economies and diseconomies of scale.
4. Allocating fixed and variable costs to each menu item should at least be related to the volume of each dish sold rather than a fixed % figure to be used for each menu item.

What is backward pricing method?

This method attempts to match costs to a price previously established for a desired potential market.

What are difficulties in backward pricing?

1. To establish the gross profit.
2. Ingredient costs
3. Labour costs
4. Care must be taken to avoid the problems of using percentages.

What is the profit-per-customer pricing method?

This establishes the total profit required and allocates this to a forecast demand resulting in an average profit per customer. This 'profit' is then added to the material and/or other costs to produce a selling price for each dish. (break-even analysis).

How is are menu prices determined with elasticity pricing?

The operator will try to determine the effect a price change may have on demand. It is possible to increase demand and profitability  through price decreases. It is difficult to predict market responses to price changes.

What are negative sides on competition pricing?

1. There is no guarantee that the cost structure of any competitors offering a similar product will be similar, a particular market price may produce higher or lower profits.
2. Copying the competition may take the form of special offers.

What are other pricing strategies?

1. Marginal analysis
2. Break-even analysis
3. Cost margin analysis
4. Individual menu item profit and loss
5. Frequency distribution pricing

What are the 4 pricing objectives?

1. Sales volume maximisation: where the pricing objective is to achieve the highest sales possible.
2. Market share gain: where objectives is to increase your number of customers relative to the total possible market and the competition.
3. Profit maximisation: where the pricing objective is to achieve the highest profit possible.
4. Market  penetration: where the pricing objective is to move from a position of a zero or low market share to a significant market share.

How is atmosphere created?

It is created through the combination of a number of tangible factors such as: design, decor, lighting, heating, furnishings, acoustics and noise levels, the other customers, the staff and the attitude of the staff. It is the manipulation of these tangible factors which create atmosphere or restaurant mood.

Through what is atmosphere sensed? (7)

1. Sight
2. Sound
3. Touch
4. Taste
5. Smell
6. The attitude of the staff
7. Other customers

How do operators use sight?

The sense of sight through the presentation of food and beverage products, furniture and textures, equipment, lighting, colours, employees, shapes, spaces and their own customers.

How do operators use sound?

The sense of sound can be controlled through acoustics, the use of materials and shapes, which alter sound, music, tv, and operational sounds including speech.

How do operators use touch?

The sense of touch will be incorporated through, the quality of the air and the fabrics and equipment with which customers come into contact, the texture of the foods and the touching of other people.

How do operators use taste?

The sense of taste has great volumes of documentation dedicated to it through recipe and wine books and the variations are almost infinite.

How do operators use smell?

The sense of smell is used by many food and beverage operators to attract customers through coffee, bread, roast meat, etc. And any other aromas which may be associated with the core consumer concept.

Give 7 examples of policies an operation can choose to have.

1. Customer dress requirements
2. Mobile phone use
3. Maximum group size
4. Accepting children
5. Alcohol over-consumption
6. Minimum levels of acceptable customers behaviour
7. Mix of customers

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The question on the page originate from the summary of the following study material:

Food and Beverage Management | 9781906884260

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