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OPERATIONAL CHALLENGES FACED BY FOOD BEVERAGE INDUSTRY IN HOSPITALITY SECTOR
OPERATIONAL CHALLENGES FACED BY FOOD BEVERAGE INDUSTRY IN HOSPITALITY SECTOR
Introduction
Hospitality industry is experiencing immense growth across all the sectors.
Food and beverages sector including cafes and restaurants is the fastest growing sector.
This sector accounts for nearly 8.3% of the national establishments in Australia.
The sector has experienced a growth of 5.5%.
The work in this sector can range from preparing of food to packaging, transporting and serving of food and beverages.
The sector is facing challenges in operational areas of supply and demand, human resources and marketing.
Hospitality industry is one of the fastest growing industries all the across the globe and has been experiencing immense growth across all the sectors. However, food and beverage sector of the hospitality industry including cafes and restaurants is the fastest growing sector. Nearly 8.3% of the establishments in Australia are from the food and beverage sector. Furthermore, this sector has experienced a growth of 5.5%. As far as the work in this sector is to be considered it can range from preparing of food to packaging, transporting and serving of food and beverages. The food and beverage sector are facing several challenges in operational areas of supply and demand, human resources and marketing.
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Supply and Demand Challenges in Food and Beverage Sector
Regulatory Burdens: As the regulatory landscape continues to be stringent, this sector of the hospitality industry is now bound to follow the food safety standards. For instance, the use of plastics for packaging is a major issue and therefore, is affecting the fast-food corners in particular, which offer ready to eat dining facilities or are offering cash and carry services (Mansour et al., 2019).
Demand Forecasting : Accurate demand forecasting has turned out to be a challenge as it requires accurate data to improve productivity, reduce inventory costs and improve distribution channels
Global Visibility: Businesses operating in the food and beverage sector requires connections with global trading partners, which is quite difficult to establish and maintain.
Some of the most prominent supply and demand challenges in the food and beverage sector are regulatory burdens, demand forecasting and global visibility. As the regulatory landscape continues to be stringent, this sector of the hospitality industry is now bound to follow the food safety standards. For instance, the use of plastics for packaging is a major issue and therefore, is affecting the fast-food corners in particular, which offer ready to eat dining facilities or are offering cash and carry services (Mansour et al., 2019). Furthermore, accurate demand forecasting has turned out to be a challenge as it requires accurate data to improve productivity, reduce inventory costs and improve distribution channels. In the recent times, businesses operating in the food and beverage sector requires connections with global trading partners, which is quite difficult to establish and maintain.
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Supply and Demand Challenges in Food and Beverage Sector
Predictive Scheduling: Predictive scheduling is another challenge in the food and beverage sector. It is not on easy task to optimise production schedules and manage the demand and supply of the resources required accordingly
E-Commerce Expectations: Food and beverage sector has been quite slow, when it comes to the adoption of e-commerce therefore, the supply chain in the food and beverage sector is often slow and thus adversely affecting the supply and demand
Inventory Management: Inventory accuracy and availability turns out to be a challenge for supply and demand in food and beverage sector (Dimas Mukhlis, IndraEfrialdi & Rimawan, 2019).
Predictive scheduling is another challenge in the food and beverage sector. It is not on easy task to optimise production schedules and manage the demand and supply of the resources required accordingly. Furthermore, food and beverage sector has been quite slow, when it comes to the adoption of e-commerce therefore, the supply chain in the food and beverage sector is often slow and thus adversely affecting the supply and demand. As far as inventory management is to be considered, inventory accuracy and availability turns out to be a challenge for supply and demand in food and beverage sector (Dimas Mukhlis, IndraEfrialdi & Rimawan, 2019).
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Human Resource Challenges in Food and Beverage Sector
Shortage of capable workforce with the required skill set: The biggest human resource challenge that the food and beverage sector is facing is the shortage of workforce with right skill set. Finding the staff, which is able to meet the changing demands and expectations of the customers is a big challenge (Rolfe, 2017).
Attracting and retaining young talent to the sector: Another prominent challenge, this sector is facing is that of attracting and retaining young talent. Employee retention and employee satisfaction is turning out to be a major challenge for the sector.
Inefficient hiring and onboarding processes: Sometimes interview processes do not involve all the stakeholders and thus hampering the hiring process. Also, familiarising the employees with the culture of the company becomes quite challenging.
The biggest human resource challenge that the food and beverage sector is facing is the shortage of...