The following research is based on food and beverages and to understand its importance in hospitality sector, two restaurants The Ledbury and Restaurant Gordon Ramsay are taking into the consideration. These both organization are dealing in hospitality sector and also offer food and beverages in UK. Objectives that will cover under the study are effectiveness of operational planning in hospitality unit, recommendations for developing performance indicators, evaluation of importance of marketing, sales and promotion in relation to food and beverages management. Along with this, SWOT and PESTEL analysis tools will also use to assess the internal and external environment where both The Ledbury and Restaurant Gordon Ramsay are operating their business.
In the case of The Ledbury and Restaurant Gordon Ramsay restaurants, SWOT analysis helps in provides information that can be use to match the organization capabilities and resources with the competitive environment. But, before analysis, a checklist has to be prepare which include menus, resources, promotions techniques, staffing and merchandising. The develop list helps in separating the strengths and weaknesses of both the organizations. It becomes easy to compare the food and beverages services as well as other operations. The evaluation of different operations of both The Ledbury and Restaurant Gordon Ramsay restaurants are as follows.
The Ledbury restaurant has opened in 2005 in London which has operated by young and energetic team of different chef's and other staff members. Dining style of this restaurant is Casual Elegant and cuisines are in nature of contemporary European. It has offered lunch and dinner services to the customers. Menu of The Ledbury has divided into different segments: tasting, lunch, set lunch, vegetarian tasting and dinner. Along with this, the pre dessert menu of restaurant is Brown Sugar Tart and Stem Ginger Ice Cream (About The Ledbury. 2016). On the other hand, Restaurant Gordon Ramsay has offered elegant and unsurpassed modern French cuisine by using different kinds of ingredients. The dining style of this restaurant is fine dining and characteristic of its cuisines is contemporary French. Menu of Restaurant Gordon Ramsay has divided into different segment: A La Carte, Lunch Menu, Prestige Menu, Seasonal inspiration, vegetarian menu, dessert and wine. Along with this, the various kinds of starters and main courses have also offered by restaurant to its customers (About Restaurant Gordon Ramsay. 2016). Although, the quality of the food and drinks of both The Ledbury and Restaurant Gordon Ramsay restaurants are good in quality and give excellent experiences to the customers. The menus of the both restaurants are different in nature and they are offering huge number of diversified food and beverages products.
The Ledbury has hire the new employees by posting the job descriptions on various information sources such as company website, job portals, newspapers etc. For each and every position, HR department of restaurant has created a complete job description. At the time of staffing of new applicants, The Ledbury ensure that it hires skilled persons so that quality of services should be maintain. Along with this, the dress code for the staff members are smart casual. The reason mention dress code is maintain the equality between the employees at the workplace (Ashe-Edmunds, 2016). On the other side, Restaurant Gordon Ramsay restaurant has outsource its staffing activity because organization wants to focus on its core competencies. The entire process of recruiting and selection of new applicants has done by other company. HR department of Restaurant Gordon Ramsay has manage different activities related to employee management such as payrolls, salaries, insurance, basic details of the staff members etc (Ashe-Edmunds, 2016). The dress code for the employees are jacket where they can carried any dress style.
Merchandising: The best way to make money in restaurant is to sell as much as merchandise as it possible with high possible margins. Restaurant Gordon Ramsay and The Ledbury restaurants are two organization which are operating business based on this method (Rieple and Singh, 2010). The Ledbury has use window displays techniques for marketing for its food and beverages. Here, restaurant has display its some special food products according to the seasons in the windows in different equipments (Marrs, 2015). On the other hand, Restaurant Gordon Ramsay has used destination merchandise method for market its food and beverages services in the target market. Under this, there are various kinds of food and beverages menus for the customers which are special and unique in the nature. The taste and flavours of food products give excellent experiences to the users (The 6 Types of Merchandise Your Retail Store Must Carry. 2015).
The Ledbury has used different types of promotional techniques to promote its brand as well as services in the target customers. In this context, restaurant has posted the new upcoming events in the organization, customer reviews on its services, launching of new food or beverages etc on different social media (Svastisalee and et. al., 2011). It has helped restaurant to developed and maintain good public relationship with the consumers. Along with this, by organizing the contests in the restaurant, The Ledbury has promoted its services. In this, end users no need to buy the food or services. By conducting the different contest on various occasions or on monthly basis, it has easy to bring the attention of the customers (Hose, 2016). On another side, Restaurant Gordon Ramsay has taken the help of different types of advertisement methods for promoting the food and beverages services. It has convey the important information to end users and increased the customer traffic (Troy, 2012).
Macro environment consists of external factors which affect performance of corporation to a great extent. Both The Ledbury and Restaurant Gordon Ramsay are operating in UK. Owing to this, it will be affected by external environment in the same manner. It has been explained as follows-
Political factors affect performance of corporation because of changes in external environment (Kubota and Shimano, 2010). Here, Genetically modified labelling is the regulation of UK government imposed in 2004. It states that it is the momentary for restaurants to inform consumers of fast food if food contain Genetically modified ingrediets (Baraban, 2010). Similarly, introduction of Goods and Service Tax affected price of product to a great extent. Owing to this, both organization shifted their focus on improving service quality so as to attract more buyers.
The Ledbury and Restaurant Gordon Ramsay may suffer from economic issues due to changing policies and regulation. At this juncture, debt crisis and high exchange rate tend to have direct impact on profitability of restaurants (Haug, L.S. and et. al., 2010). Due to such kind of issues, income inequality take place which reduced buying power of customers. However, restaurants tends to perform good even at the time of recession because consumers addicted of hotels, try to shift to food of restaurants.
There are positive changes in social factors which proves to be positive for growth and development of both restaurants (Belda, Ribes-Dasi and Riudavets, 2011). Number of people travel across nation are increasing which increases scope of fast food chain. In addition to this, busy life styles of UK residents provide more scope for growth of restaurants by increasing demand of fast food. Similarly, customers are becoming health concious because the nation is already facing main issue related to obesity (Lang and Heasman, 2015).
Under this, social media is becoming the most significant aspect for managing the business (Haug and et.al., 2010). Here, The Ledbury Restaurant is using up[graded technology for the purpose of having great ambiance to consumers. This way it promotes products and services by using appropriate technology. On the other hand, Gordon Ramsay also making use of new technologies for customer attraction (Kemp and et. al., 2010)
Restaurants get affected because of change in environmental factors. It can harm corporation through climate change that raises ocean level and situation of floods can destroy resorts and restaurants (Mena, Adenso-Diaz and Yurt, 2011). In addition to this, rise in cost of oil and coals boosts prices of products and serIntroductionvices which may create dissatisfaction among buyers.
Legal factors affect performance of UK restaurants to a great extent. It is because company need to ensure compliance of Health and Safety guidelines and Food Standard Agency's regulations imposed by government of UK. Furthermore, consumer protection regulation and employment Act imposed by UK need to be considered by organization. In case of default made by any restaurant, Fast Food agency can take legal action because this it responsible for health and safety of UK residents (Mashhadi and Ijaz-Ur-Rehman, 2012).
The above mentioned findings are showing that both The Ledbury and Restaurant Gordon Ramsay are operating in UK and provides wide range of food services to customers. Thus, some kind of issues which are uncontrollable can affect performance of the same. Here, Pestle analysis has been used to analyse the situation of corporations. Similarly, SWOT analysis has also been used for assessing effectiveness of both corporations in the marketplace. These two tools are effective in order to analyse the current position of restaurants and accordingly bringing improvement in the same (Peric and Djurkin, 2014). As per the application of both tools, management of The Ledbury and Restaurant Gordon Ramsay can be suggested for meeting expectation of buyers and increasing profitability.
The Ledbury offers additional services related to outdoor dining, wheelchair access and non-smoking restaurants. However, it offers relatively less variety of beverages. Owing to this, company can focus on providing wide range beverages in order to ensure rapid growth in the marketplace. Though, it uses effective promotional techniques but still innovative ideas can be implemented to enter into new market (Brey, 2010). For example, it can enter into new market of UK with variety of combo pack of food. Here, focus can be laid on low prices in order to value customers' spending and retain them for longer time span. Furthermore, The Ledbury can focus on its innovative strategies to beat competition and ensure its continuous growth at international level (Ruiz-Molina, Gil-Saura and Šeric, 2013). Apart from this, focus can be laid on research and development thereby expectations of customers can be assessed. This proves to be effective in offering food services.
Restaurant Gordon Ramsay should focus on technological innovation in order to attract more buyers. This aspects can increase sales turnover which leads to create competitive edge of firm in the marketplace. Furthermore, focus can be laid on marketing and promotion of products and services. This way buyers will be attracted towards Restaurant Gordon Ramsay. In addition to this, Restaurant Gordon Ramsay can expand itself in emerging market of UK(Tsiotsou and Ratten, 2010). For this purpose, corporation must focus on recruiting competent workforce and provide them training in order to bring innovation and creativity in current service quality. Thus, companies can create its strong position on the marketplace (Pomeranz, 2013).
The aforementioned report concludes that restaurants should focus on its promotion policies and proper development of staff members. It helps to meet expectations of buyers and deliver them good quality of services. It can also be said that SWOT and PESTLE are imperative tool to assess performance of organization in specific country. Restaurants can adopt effective strategies for increasing skills and knowledge of employees working so as to retain buyers for long er time span. Similarly, models of communication must be upgraded like social media, mobile app through which brand recognition can be created. Moreover, focus can be laid on complying regulatory framework and provide range of food services accordingly. This aspects tend to beat competition and create ensure fast growth of corporation at national level.