Factors Affecting the growth of TIPSY restaurant

These are two major factors affecting the food and beverage industry:

1. External factors

These are factors originating outside the organization on which the management has no control,
which determines F&B operations.

a) Political: Government policies and regulations on food packaging, processing, food safety,

disposable system, pollution control, labor laws, and so on. And always the tax laws are
included.

b) Economical: The increasing cost of raw materials, labor, water, and energy. Changes in the
disposable income of society. Credit policies of the suppliers and the loan policies for starting the
venture.

c) Social: Changes in the eating habit of people. Growth of ethnic minorities that demand
particular cuisine or preparations. Changes in population distribution. Changes in the socio-
economic grouping of the area.

d) Technical: Advancement in food processing technology. High tech food production and

service equipment and information technology.

2. Internal factors

These are the factors originating within the organization on which the management has its
control. Some of the major internal influences that govern the operations are this.

a) Food and Beverage: Highly perishable nature of food commodities. Wastage, pilferage, and
poor portion control of food and beverages.

b) Staff: High level of staff turnover. Like,

1. Absenteeism
2. Poor supervision
3. Shortage of staff
4. Unskilled staff

c) Control: Stores control procedures.

1. Purchase procedures
2. Proper cash control to avoid theft
3. Correct pricing of dishes
4. Issue procedures
Discuss the procurement process in your establishment

Step 1: Purchase Requisition

Purchase requisition are written or electronic documents raised by internal users/customers seeking the procurement team’s help
to fulfill an existing need. It comprises key information that is required to procure the right goods, services, or works.

Step 2: Requisition review

The procurement process will officially commence only after the purchase requisition is approved and cross-check for budget
availability. In the review stage, functional managers or department heads review the requisition package and double-check if
there is a genuine need for the requested goods or service and also verify whether necessary funding is available.

Approved purchase requests become POs, while rejected requests are sent back to the requisitioner with the reason for rejection.
All these can be handled with a simple purchase order software

Step 3: Solicitation process

Once a requisition is approved and PO is generated, the procurement team will develop an individual procurement plan and
sketch out a corresponding solicitation process. The scope of this individual solicitation plan depends ultimately on the
complexity of the requirement.

Once the budget is approved, the procurement team forwards several requests for quotation (RFQ) to vendors with the intention
to receive and compare bids to shortlist the perfect vendor.

Step 4: Evaluation and contract

Once the solicitation process is officially closed, the procurement team in conjunction with the evaluation committee will review
and evaluate supplier quotations to determine which supplier will be the best fit to fulfill the existing need.

Once a vendor is selected, the contract negotiation and signing are completed, and the purchase order is then forwarded to the
vendor. A legally binding contract activates right after a vendor accepts a PO and acknowledges it.

Step 5: Order management

The vendor delivers the promised goods/services within the stipulated timeline. After receiving them, the purchaser examines the
order and notifies the vendor of any issues with the received items.

Step 6: Invoice approvals and disputes

This is a crucial step in the procurement process and having procurement software gives you a competitive edge over others., by
software you can perform three-way matching between GRN, Supplier Invoice and PO to check if you have received the order
correctly and there aren’t any discrepancies. Once three-way matching is complete, the invoice is approved and forwarded to
payment processing.

Step 7: Record Keeping

After the payment process, buyers make a record of it for bookkeeping and auditing. All appropriate documents right from
purchase requests to approved invoices are stored in a centralized location.