Food Service - Research Paper
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Question: Discuss fine dining four star restaurants or local food trucks, private yachts to arena management all of these businesses are concepts related in some way to food and beverage management.
a. Research at least two different restaurant or other related food service type companies?
Answer: Introduction: In the present report, the two different types of food service types companies has been discussed. The first company is McDonald's which is based on a commercial foodservice business, and the second company is Aramark which is based on and non-commercial/institutional food service business.
Research on two food service types companies
McDonald is basically a USA-based popular fast food chain. It provides food items such as hamburgers, cheeseburger, French fries, chicken products, soft drinks, shakes, and deserts. It operates in more than 31,000 restaurants all over the world by employing above 1.5 million people (Rodrigues, Nikhil, & Jacob, 2016). It is a market-oriented food service, which is most recognized and appreciated for their type of food service operation. It makes money through its fast food and takeaway service by operating in different countries which are mostly operated through franchisee. According to Jo, et al (2016), this commercial foodservice accounts for approximately 77% of food expenditure outside of customer's home. The primary goal of McDonald is to provide food and beverages to all types of customers to create a positive customer experience and generate profit.
Aramark is a US-based foodservice facility that provides foods to its clients in the field of Health Care, education and government installations. It employs more than 50,000 workers who facilitate food service to more than 11,000 healthcare organizations all over North America (Levkoe, Erlich, & Archibald, 2019). Apart from North America is also operates in the UK, Philippines, Germany, Ireland, Spain, and Chile. It is a welfare enterprise that prepares and serves food for health Care centres and educational institutions and avails the service at minimal or basic price. Although it is not a profit-oriented organization, it makes money only to run the organization with the help of government bodies. For a certain group of customers such as from school, colleges, and hospitals, the price for food and beverages is not charged by the organization, as it is completely or partially subsidized from various government funds. As per stated by Jo, et al (2016), non-commercial food accounts for food expenditure of only 23% outside of customer's home. Unlike McDonald's, the customers of Aramark will not get the choice of different catering services.
b. Explain some of the similarities and differences between the organizations.
- Food services - Both McDonald and Aramark offer quality food that offers satisfaction to the customers in terms of quantity as well as quality.
- Competitive advantage- Achieving competitive advantage in market is a pre-requisite for food and beverage companies. Hence, quality consideration in both companies are higher, which also include basic infrastructure, employees, dinning space, varieties of eateries and beverages.
- Competitors in market - The quality consideration is also managed by competition in market. Competitors of McDonald in the market are KFC, BurgerKing, Subway, and Wendy'. Whereas, competitors of Aramark in market include Compass Group, Sodexo, and Serco.
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Price variation - McDonald's runs its outlet to serve people by providing food with competitive pricing. This means, the products such as burgers, ice-creams, beverages which have high market demand are offered at higher prices (Crane &Matten, 2016).In contrary, Aramark offers meals (eateries, meals, beverages) all-together at a fixed price(Ellis, 2017).
Healthy and quality of food - Aramark catering offers basic food service which include the concept of balanced diet and hygiene. Since it runs with government or institution-aided, the concept of healthy and quality of food is maintained(Ellis, 2017). In contrary, McDonald offers products that are of high demand and is often risky for health due to high fat contents (Crane &Matten, 2016).
Product variation - The variation of food types included in meals are according to routine menu at Aramark. However, being a commercial catering establishment, McDonald's retains high variability and on-demand products (Rodrigues et al 2016).
Customer attraction - McDonald tends to bring variation, uses customer' feedback for rapid improvement, and introduces offers and discount to attract customers. In contrary, Aramark introduces strategic variation at the time of tender agreement, which is once/twice a year, according to the terms (Levkoe et al 2019).
c. Where you would rather work? Why?
Answer: Based on my personal opinion, I would prefer to work in non-commercial food service establishments like Aramark.The reason is that it have a fixed inflow of cash and the business is stable.
d. How do they make money? What''s their biggest risk?
Answer: McDonald works with competitive strategy and is subjected to face problems due to food quality, health impact, and use of food ingredients (taste-enhancers) to attract customers (Crane&Matten, 2016). Though, it have a strong money making strategy, however, it is subjected to market risk. In contrary, Aramark is operated with basic pricing, offers quality food for institutions, and the profitable income is fixed according to the tender agreement. In other words, business like Aramark is stable, provided the food quality is maintained (Ellis, 2017).
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