Review of LiteratureThis literature review is mainly focused towards various important aspects related to the

factors contributing towards positive growth of revenue of food and beverage industry and

ultimately, its importance in the growth of the entire hospitality industry. The core focus

areas in the literature review includes the identification of ways in which productivity is

measured in case of food and beverage sector, various inputs and outputs that enables the

food and beverage dealers to serve their customers and finally the findings of the past

researchers on the actual role of food and beverage sector towards the development of

tourism and hospitality sector.

According to Dopson and Hayes (2008), the food and beverage revenue typically

makes up of large proportion of a hotel’s non room revenue. This suggests that there is a

higher level of contribution as made by the revenue from the non-room revenue of hotels.

The non room revenue of the hotels can be from the services it provides such as the dinning

facility, spas and any other non room revenue sources. The food and beverage sector is also a

major section contributing towards the overall revenue generation of the entire hotel. The

pricing of a hotel’s food and beverage is performed in a similar manner as that of a restaurant.

The revenue from the food and beverage section is quite significant in the overall revenue

generation of a hotel from its services as asserted by Dopson and Hayes (2008). As for

instance, a significant amount of revenue is generated by hotels food and beverage operations

due to the sales of food as well beverages during the social gathering functions. Apart from

this, the focus areas of the food and beverage operations in case of majority of the hotels are

towards the banquets and in-house catered events because these events accounts for huge

generation of revenue to hotels.

According to Lockyer (2013), in performing the evaluation of efficiency of a hotel,

there are various factors in the form of inputs and outputs to food and beverage services that

need to be considered. The food and beverage industry is considered as one of the most

important factors in determining the overall effectiveness of the hospitality industry. This is

identified from the fact that revenue from food and beverage, gaming profit as well as profits

gained from room revenues is all outputs of food and beverage sector. Contrary to this, the

major inputs include the number of rooms, full time equivalent employees, net expenses from

food and beverage as well miscellaneous expenses. The consideration of all these factors is

crucial from the point of view of measuring the productivity of the food and beverage section

of a hotel in contributing towards overall growth of the hospitality industry as a whole

(Lockyer, 2013).

According to Harris (2012), the sale of food revenue can be a significant profit centre

for hotels and they thereby can have significant level of impact over the financial

performance of the hotel. Hotels are therefore required to make an attempt to maximise the

revenue from the hotel guests by way of offering them highest and delicious quality of foods.

As there are various costs that need to be incurred in providing the food and beverage

services, it is essential that there should be appropriate planning on the part of management to

ensure that unnecessary cost are controlled from occurrence. The higher level of expenses in

providing food and beverage is an indicator of improper management, pricing and waste

management, and lack of appropriate inventory control. The costs that are required to be

incurred in operating the food and beverage section of a hotel are usually higher because they

need to be operated on 24*7 basis and this leads to higher operating costs in providing such

services to clients. This leads to many hotels considering for leasing their food and beverage

sections. This indicates that there is a higher need to manage the overall cost that needs to be

incurred in providing food and beverage services by hotels (Harris, 2012).

Thus, the cost feature is an important feature in case of food and beverage industry as

it directly affects the revenue earned by the hotel. Further, since the food and beverage

section needs to be operated on continuous basis, the operating costs are generally higher in

performing the management of foods and beverage section in a hotel. As such, Ojugo (2009)

suggested that it becomes essential to understand how to account for costs and how to control

them. There are several important functions of hospitality accounting that can be applied such

as expense control, revenue and forecasting and interdepartmental communication in

performing the management and control of costs (Ojugo, 2009). According to Barrows and

Powers (2008), there are two important areas where the control of costs in case of food and

beverage sector can be performed. These are pre-cost control and post-cost control. Pre-

costing as the name suggest is concerned with the advance determination of cost concerning

the food or drink. Post-cost on the other hand is concerned with what has happened so that

management can take necessary actions if something goes wrong (Barrows and Powers,

2008).

Although, the management of cost is essential in order to achieve higher level of

revenue and to positively contribute towards the overall growth of the hospitality industry,

another major focus area of the food and beverage industry should be on achieving

operational efficiency so that it can positively contribute towards higher customer satisfaction

and better overall revenue from the services. According to O’Fallon and Rutherford (2010),

the improvement over the productivity in case of food and beverage industry can be achieved

through the application of technology in performing such processes. The role of technology is

crucial as it can be applied in the cooking process to achieve better quality of food as per the

preferences of their customers (O'Fallon and Rutherford, 2010). As indicated by Davis,

Lockwood, Alcott and Pantelidis (2012), the introduction of new technologies in the

department of food and beverage in the form of Room Service has resulted into the

accomplishment of greater flexibility.

As for example, internal phones can be provided to room service staff through which

they can contact with food, beverage and banquet personnel and this would allow the

attainment of higher level of productivity, as they can order the customer requirements over

phone and ultimately, the delivery of service can be enhanced. The application of technology

can also be performed in various areas of restaurants for the purpose of achieving higher level

of productivity. The processes of restaurants such as order taking, payment processing, wait

list management, inventory control and frequent dinner program can be significantly

managed through the application of advanced technology and this in turn allows for the

achievement of higher level of productivity, reduce cost and improved level of customer

services (Davis, Lockwood, Alcott and Pantelidis, 2012).

Apart from technology, another major feature that has a significant role to play in

achieving higher level of productivity in case of food and beverage industry is the efficient

leadership by management. As indicated by Bardi (2011), it is the manager of food and

beverage that is answerable for the resourceful function of kitchen, dining rooms, room

service and lounge in a hotel. The manager is required to keep a check on the quality of

merchandising the products of food-beverage, factors which curtail the costs in food and

beverage manufacture and utilities in kitchen. This is mainly achieved by the director through

working closely with the assistant manager of the same sector of the hotel. Quality is the

most crucial aspect in food and beverage industry and this is primarily achieved through the

collaborative efforts from the directors and other major personnel responsible for handling

the food and beverage section (Bardi, 2011).

Although, quality is essential in case of food and beverage industry, but it is the

tourism industry that drives the travellers across various travel destinations and in turn, leads

to positive growth factor towards the development of food and beverage sections of the hotel.

The higher level of productivity in the food and beverage operations is likely to contribute

positively towards customer satisfaction and this in turn will have positive impact on the

overall revenue generation of hotel. The better performance of hotel leads to effective

contribution towards the overall growth of the tourism and hospitality industry. Further, as

asserted by Ojugo (2009), the impact of food and beverage industry is enormous, as it is

likely to affect the performance of other major sectors in the hospitality industry in a positive

manner. This suggests that a better performance of the food and beverage industry is crucial

from the point of view of supporting other major sectors in the hospitality industry and

ultimately, in positively contributing towards the growth of overall hospitality industry

(Ojugo, 2009).

Factors affecting the Food and Beverage sector’s performanceThere are numerous factors affecting the profit of food and beverage industry. First

and foremost reason is revenue is not as high as they invest in this sector. If 80% of revenue

is retrieved from other amenities of hotel, more than 20% of the profit can be retrieved from

Food and beverage sectors of the hotel. Mostly, the revenue can be enhanced by advertising

in radio; television etc. was reported by Payne (2013). Most of the organisations have similar

key factors to enhance the revenue. The price of the food and beverage plays a vital role in

the profit of hospitality besides other costs such as amenities, room charges, number of

covers, room occupancy rate, Fixed and variable cost of maintenance, etc. Also it was

reported that cost of sales of food and beverage, cost of maintenance both fixed and variable

are rendered as expense (Payne 2013).

According to the recent works of Detta (2011) has reported that the hospitality sector

of Ireland is composed of hotels, restaurants, pubs, clubs, guest houses as well as self-

catering operations. The largest of this sector is hotels. Food and beverage sector contributes

the most of the revenue to the hospitality industries significantly. These business operations

are fundamentally highly competitive in nature due to the presence of numerous factors. First

reason discussed by the author is the decreased in global as well as local economies in regard

to the down regulation in the tourism business in Ireland (Failte Ireland 2010; Pitta 2010).

The next reason was discussed Jones (2009) & Hotel and Catering Review (2010) by as

increase in the demand in the Irish market and expectations for larger in-house facilities,

service quality of the staffs, products for money etc. In these tourists, demands to experience

all kinds of services offered by the sector that can be easily identified as a best value for the

money by the consumers. The next aspect is the capacity of hotels is progressed more than

50% of in the 10years from 2004. This progress may be due to the high competitiveness.

Food and cooler operations broadcast exponentially in the aforementioned aeon with

astringent antagonism for the hospitality was suggested by (Kincaid, Baloglu, Mao and

Busser, 2010). At last, aciculate acceleration in the cost of operation has consequence in

crumbling advantage for the tourism business in order for the accession to the charge to

administer operational cost and accommodate inferior prices beyond the sector.

Market Data accessible in the beginning of January 2011 advance that in the year 2010

abstracts reflect annoying trends with all sectors of the business experiencing breakable

charm (Fáilte eire, 2010). additionally, the eating house space is adverse a actual troublesome

banking crisis in line with the RAI (2010). A quantity of problems with affair settle for been

known, that embrace, activity prices, finite dominance account charges, ascent prices of

accomplishing business, finite antagonism and surplus accommodation (Failte eire, 2011).

prices settle for not in spades reduced; consequently, margins ar to a lower place astringent

burden consistent during a arrest and a abatement in business carting and sound (Pitta, 2010)

and closures on the far side the country with a ample quantity of eating house businesses

getting into examinership, receivership or defalcation in 2010. this can be set to abide in 2011

with supplementary closures (Hotel and eating house Times, 2011; Howarth Baston

Charleton, 2010, building and accoutrement Assay 2010).

The food associate degreed cooler business is responsible to copious trends and these trends

settle for an appulse on business success or decline. A trend is authentic as ‘a band of

accepted administration of movement, a prevailing addiction of inclination, a look or

preference, a band of development, or the accepted movement over time of statistically

apparent change’ (Google wordbook, 2011).

Datamonitor (2010) advance that meal alertness within the 1980’s took hour, within the

1990’s, it absolutely was 20minutes. By 2007 it absolutely was fifteen account and by 2011

the amiable from blemish / simply baker ranges are the trendreducing the adversity of

advancing commons (Da Browska, 2011). One original of this may be the Christmas block

accessible to baker backpack developed by Delia Smith for Christmas 2010 and therefore the

accessible to accumulate Mexican fajita commons space there's a activity of accomplishing it

yourself with these semi-finished productsand compound kits (Da Browska, 2011).

Datamonitor (2010), Mintel (2007) and Mintel (2010) assay letters announce that the

appropriate meal abstraction is alteration space shoppers would like food everyplace which

there's a snacking ability developing with the main focus on advantageous snacking.

additionally, choreographer and O’Neill (2010) suggests that buyers would like starting food

quick however would like it

to be the ‘real thing’ with higher than afterimage and superior and advance that there's a

advance in agent and candor of food (Hartwell and Edwards, 2009) with farmers markets up

by a four-hundredth acceleration over the endure five years and a improvement for the

appropriate food varieties like ‘Grandma’s angel pie’ where superior is that the focus (Da

Browska, 2011).

This is circuitous by the acceleration of celebrity cooks and celebrity chef disapproval (Jones,

2009) acclimated to endorse foods –an original of this can be married woman

Allen’saffiliation with O’Brien Sandwich Confined announcement ‘signature sandwiches’.

Hartwell and Edwards (2009) and Sloan (2009) abutment this if they agenda that there ar

different lists of descriptors that ar lovable to shoppers like, ‘local’, ‘artisan’, ‘house-made’,

‘seasonal’, ‘natural’ and ‘organic’ all suggested to announce supplementary food

characteristics.

Trends in eating out advance that eating out is routine, however; shoppers ar analytic for

applicable offers, gimmicks and two-for-one offers. The adeptness of eating place out

occasions ar increasing, eating out isn't suggested a applicable break any longer. shoppers ar

suggested to be time poor however would like quantity for his or her time (Mintel, 2009).

Indeed, Ramanathan and Ramanathan (2011) abutment this and announce that quantity for

cash may be a analytical side with acceptable account for the simplest accessible value. The

face of eating place out has modified, it's to a lower place planned, supplementary typically

and at aberrant times, which, has propelled the access of faculty allotment affairs of fast

Account Restaurants (QSR’s) (Fast Account as against to quick Food). In Europe and

therefore the US the QSR’s settle for five hundredth of all food and cooler business

(Euromonitor, 2010).

However, within the accepted quantity acute altitude the abundance of eating out doesn't

amendment primarily attributable to the economy. What will arise is that diners tend to ‘trade

down’ throughout a recession (Pitta, 2010; Leinward et al., 2008). What barter ar formidable

is quantity altogether its guises. This includes value, quality, standards, experience, ability

and therefore the acceptable / consumer affliction and account that, incorporates abundant

actual and richness delivered with consistency, superior and adeptness (Jones, 2009).

Euromonitor (2010) indicates that demographics access the eating place out acquaintance in

agreement of assets levels, quality and age space these settle for an appulse on the ‘occasion’

and therefore the want. Datamonitor (2010) has advised that adolescent diners ar analytic for

accessibility instead of a eating acquaintance and charm quick accidental eating adventures

with starting food served restaurant look that has afflicted the advance of brainstorm bars, the

‘grab and go’ abstraction and adverse account space the consumer takes their meal to their

own table. This has aswell apparent a acceleration within the eating place on the run

abnormality from the USA and therefore the supplementary abundance of dashboard eating.

Research by the United Kingdom practice cluster, Horizon, has apparent that the ‘grab and

go’ business has developed by10% year on year (Hospitality Times, 2009). The trend of

ability seems to air the acceleration in line with The building and eating house times (2010)

with barter acceptable radical acute eaters, requesting a broader range of decisions to

customize and dominance diets, and menus, dishes and specials accoutrement to alone wants

(Euromonitor, 2010). additionally, DA Browska (2011) suggests that as there's {an

supplementary|another|one more|an additional|a new|an extra} absorption within the

community of added countries shoppers aren't embarrassed to be starting and charge

restaurant to accommodate giddy that canopy a advanced range of comestible adventures

with a ample range of native diversity.

In abutment of this, Minitel Assay (2010) suggests that the eating house business can

specialize in prime superior food and capability to ‘lure’ barter into their operations. This,

they counsel, can absorb emotive abroad from quantity accumulation and absorption on

prime finish superior and can slip aback to the classically straightforward book of past. They

aswell announce that ‘rustic’ are the fizz chat for the advancing year, giddy can tenderness

advantageous foods that bear on flavour which finite quality may be a developing and

advance sector.

Indeed, Hartwell and Edwards (2009) advance a renaissance in consumer preferences for

superior and regionally bedeviled finite ingredients. This appearance may be aggregate by

choreographer and O’Neill (2010) and Judkis (2009) WHO accompaniment that larger tasting

food is a higher than rational motive for application finite whole things on giddy in assay

agitated out for the jalapeno pepper Mexican chain within the US. to boot, Alsnso and

O’Neill (2010) announce that supplementary consumer charm for finite articles is active a

charge to use native.

This research investigation articulary cogent and various trends in consumer behaviour

impacting on the food and cooler business. it's bright from this assay that associate degree

compassionate of the across of trends is all-important in adjustment to administer food and

cooler operations which altered stakeholders settle for altered wants for data, therefore, it's

all-important for operators within the space to unceasingly browse trends impacting on their

business. it's bright from the abstract assay that there are different trends influencing

consumer behaviour within the food and cooler space of the accommodation business.

Additionally, admitting the detail that has accompanied the abstract on trends there are not

any bright tips on that trends appulse acerb on consumer behaviour, further from quantity for

cash. it might arise that the assay of trends within the space may be a actual different subject,

that quality to a weakness in anecdotal key trends for a correct operation.

According to Payne (1997) suggested that though hotel industry gains more than 70% of

income in room sales, contrastingly, food and beverage sector has been analysed to provide

nearly 20-30% of profit. Being minor contribution in profitability, many hotel managers

consider that this is the primary lodging reason for the tourists. Also Payne (2007) points out

that food and beverage services can evaluate the capacity of the hotel in order to attract the

tourists to their hotel in regard to the revenue performance. U.S hotel industries has realised

the importance of the food and beverage sector. Right from 2004 till now, the trend may have

decreased to 6.7% and room revenue escalated to 8.7%. The progressing importance of this

food and beverage services have been seen in both Western as well as Asian countries as well

which generates much revenue from this area significantly was pointed out by (Whitla et al

2007). In a survey study conducted by Cho and Wong (2001) identified that room department

of Hongkong hotels generated 47.7% of revenue and food and beverage department has

gained 41.8%. Also Taiwanese authorities have observed that food and beverages sector has

contributed the significant amount of revenue from their hotel industries. It was identified

that Irish hotels are declining in the financial performance in the recent years due to the high

level of failure in the business and decreased level of optimism among Irish hotel operators,

as well as decreased amount of tourists to the Ireland. Understanding the key issues

underlying the declining revenue performances is essential in order to drag the Irish hotels

into the road of recovery. In a survey study conducted in 2011 has pointed out that 87% of

hotellers in Ireland has less confidence over the performance of the hotel in the same year.

Also, the market demand for the hotel sector is historically remaining very low both in

domestic as well as UK market. Many stakeholders are necessary for increasing the

performance by increasing the market demand in UK for Irish hotels. Also, the level of

outbound tourism has fallen below the normal level in UK is another great drawback for the

Irish hotels. Since there are many great holiday destinations in UK, the Irish tourism is still

expecting its growth relying greatly on UK. There is no doubt that there is variety of

obstacles to be overcome before it are often declared, that the world is really on the road to

recovery. However, the speed of recovery goes to be greatly power-assisted by the standard

of the country’s edifice giving and supporting infrastructure, abundant of that has been

developed over the last decade. It’s wide accepted that eire currently incorporates a prime

quality and presently under-priced edifice giving that's superior thereto obtainable in several

of our key contender destinations.

While problems with over capability stay, it's our opinion that this issue are going to be

resolved by market primarily based solutions, instead of any type of state intervention. The

upgrading of the country’s road and rail networks has greatly increased internal transport

inside eire, whereas T2 at Dublin aerodrome can construct a really optimistic input in terms

of facilitating air access into and out of eire. Exclusively in Dublin, it's clear those facilities

like the Convention Centre, Aviva arena and Grand Canal Theatre.

Key factors in Irish marketFor many hoteliers, 2009 and 2010 are characterized by in depth cut and monetary re-

structuring. Several hoteliers currently believe that they need tackled manageable prices,

however on-going issues stay relating to prices outside their management, like rates and

energy prices. Laborious lessons are learned, however within the long-term they ought to

contribute to a a lot of economical and efficient approach to edifice operations.

The cost cutting that has taken place has expedited a number of the worth discounting that

has been therefore evident throughout the arena. This has resulted in substantial

enhancements in aggressiveness. Irish edifice rates ar currently among a number of all-time

low in Western Europe. whereas this is often a positive from a client purpose of read, we

might be troubled regarding the property of such low rates within the long-term and therefore

the potential impact on the long viability of hotels whose main point is heavily discounted

area rates. robust action has been taken by several hoteliers, WHO currently recognise that

one among the key challenges facing them is to urge back to basics and effectively market

and sell their business. but this could not be as easy a proposition mutually would assume.

The difficulties presently being tough each domestically and within the United Kingdom

market mean that selling efforts and expenditure conjointly be|is also} higher directed

towards a number of the seasoned overseas markets and also on new and rising markets.

Success are going to be measured within the ability of hoteliers to effectively determine the

markets that represent a real chance, to effectively communicate what their distinctive point

is, and to translate this into actual business for his or her property. For those hoteliers WHO

stay committed to or focussed on the domestic market, shifts in client behaviour and

sentiment, mean that the selling message might have to be less on wealth and luxury and a lot

of on affordability, worth for money and consistency in commission providing. For some, this

could necessitate a basic shift aloof from their original business set up.

Initiatives from Irish government

The government’s jobs initiative, notably the announcements round the reduction in VAT and

employers PRSI offer a chance to any strengthen the enhancements that are created in

aggressiveness among the arena. additionally, accrued funding to commercial enterprise eire,

the creation of the commercial enterprise selling Fund and therefore the vacation Visa

discharge theme, also will have a key role to play in raising Ireland’s attractiveness

internationally, and conjointly in rising accessibility for 1st time guests to the country. The

more moderen commercial enterprise initiative, launched by the govt in conjunction with

Failte eire and Irish Rail, aimed toward the domestic market may be a terribly welcome live.

whereas analysis that points to increasing numbers of land about to take their main family

vacation reception in 2011 conjointly provides some grounds for optimism.

It is clear that the Irish commercial enterprise and edifice sectors have round-faced a

turbulent and difficult amount, forcing several hoteliers to judge and in several instances

modification their whole approach to the management and operation of their business.

laborious lessons are learnt and difficult selections created. whereas the problems of excess

capability and over-indebtedness might not be simply resolved, it's clear that, at associate

degree operational level, several hotels ar currently on a device monetary footing. important

inroads are created in terms of aggressiveness among the commercial enterprise sector, and

it's powerfully urge all operators to confirm this is often maintained. there's some work to be

done on the food and food facet and that i would require bigger consistency of evaluation in

our restaurants round the country. Our commercial enterprise, edifice and supporting

infrastructure has ne'er been higher. With clear proof of a recovery in some key markets, it's

assured that, despite the turbulent and difficult economic conditions, there's a true chance for

Ireland’s hoteliers to focus on growth for his or her business in 2011 and on the far side.

The trade is actually in an exceedingly higher place than it had been at this point last year and

there's a degree of optimism within the market, however several hoteliers ar still involved

regarding viability. The weak performance of the GB market remains a significant drawback

and it's not began to show any definite sign of recovery. On the opposite hand, the news is a

lot of positive relating to North America, whereas there are mixed views in relevance the eu

market. There is actually variety of hotels that are seeing an honest degree of improvement,

though it's not across the board. Her loftiness The Queen’s visit and President Obama’s visit

were excellent news stories. They need helped convert the accrued awareness of Eire across

the planet since the monetary crisis from a negative into to a positive over the previous

couple of months.

There is a vast level of overhanging debt related to the country’s edifice stock. Access to

short-run credit conjointly remains a difficulty, notably for those properties that ar seasonal in

demand. Over sixty hotels have currently gone into receivership, or ar underneath bank

management and half our members had issue accessing assets facilities last year. they're line

of work on the govt to produce any measures to assist address these problems. They even

have to acknowledge some new realities. The banks are attempting to arranged their own

issues. they need modified the means they operate and now not offer finance exclusively

supported quality values. They currently need a lot of monetary data on operations and

income and that we need to be ready to offer this on a timely basis.

There are 2 problems here. Hoteliers are in survival mode and therefore the costs presently

being charged are uneconomical. So, in relevance property, you either need to cut back your

prices and reconstitute your debt or accomplish some extent of improved usage. therefore

whereas we've to deal with our price base we tend to should accomplish property level of

activity. The markets can, ultimately dictate whether or not will increase in worth levels

occur, however is vital that we tend to take a long read in terms of our evaluation.

Many research investigations have observed that the qualities of the hotels are not potent

enough to meet the profit in case of Irish hotels for the tourists. Many business travellers

would have been well placed in Ireland during the travel to international business centre

Dublin. There is a significant amount of increase in visitors for Dublin to 8% after the visit of

President Obama. In order to increase the aggregate level, many efforts have to be

implemented in the side of demand since the domestic market faces poor side since 2011. The

annual domestic trips to Ireland fallen to 5% in respect to the duration as well as average

expenses. In order to increase the revenue performance, cutting down the cost may attract the

travellers but it is not enough to resolve the crisis. So, food and beverage sector must be

enhanced for its performance by improvising its quality and variety of the products offered

which might increase the revenue as well as draw the customers to the hotels was reported by

(BDO 2011). It also suggests that challenges faced by the Irish hotelier in terms of poor

quality of products as well as the capacity of the hotel were improved dramatically. The

increased economic decline of hotel sectors, reduction in the business travel and reduction in

the disposable income in the luxurious hotels can be harboured by implementing creative and

potent strategies which impress the tourists as well as business fliers.

Key challenges of food and beverage sector in DubaiOn the other hand, Dubai too faces the similar scenario of declining revenue performance in

the food and beverage sector. This sector lacks a proper regulatory board in Dubai. Now the

government has taken some initiatives for the authorised regulatory board to check or

supervise the industrial subsidiary bodies as well as manufacturing process since the sector

lacks quality. The government has recently set up many free zones for warehousing purpose

such as Dubai silicon oasis, industrial cities etc. The chief issue identified within the quality

of the food and beverage section is lack of primary production or declining phase of

agriculture which is largely hampered by the climate of Dubai. Also, Dubai lacks sufficient

water for cultivation due to the hot and arid climate. Few causes may be extremity in

temperature, lack of water, lack of seeding for crops; lack of nutrients in the soil has

consequence to the less cultivable land in Dubai less than 15% which directly affects the

productivity for the food and beverage sector. This results in the high pricing for the poor

quality food products offered by the sector due to the increased dependency of imports for the

raw materials in order to cater the growing demands of the customers and weak market by the

hotels.

Another major issue for low quality and productivity is the decline in the expansion of the

food processing industries in Dubai. It is also expected that this trend has been continue to

progress forward. This sector has been playing lead roles for food and beverage sector

performance in regard to the population, GDP and resources. There are only 40% of plants

located in U.A.E which faces the slow expansion. Following figure represents the food and

beverage sectors in Dubai.

(Dubai Statistics data 2008)

Dubai Automated industrial boondocks created decidedly for Food and beverages

corporations, has witnessed apathetic advance in new companies chiefly as a aftereffect of

amateurish basement developments aural the space. admitting the accession is strategically

acclimatized alongside to JAFZA, abutting to the United Arab Emirates's basic bound and

shut to the new Al Maktoum landing field, top automated acreage costs (as compared to

another emirates) has resulted in several companies analytic for cheaper acreage choices in

Sharjah or Umm Al Quwain. domestically fabricated Food and beverages artefact were belted

to acrid bite foods, to internationally acclaimed name bendable drinks fabricated beneath

licensing agreements, prepackaged comestible oils and juices,

processed dairy acreage artefact and atiny low bulk of domestically adult again arctic

vegetables. admitting UAE is independent in candy foods like bendable drinks, bubbler

water, abutting milk and milk product, the self-direction is beneath seventieth in candy foods

like abstract product, beginning milk, comestible oils, bite foods, biscuits and confectionery.

The anchorage ‘Food Service’ chic involves Food and beverages sales by hotels and

restaurants and is admired at USD 21bn (2009). Port and harbour is one a part of the arch

business and business destination aural the Middle East and is abandoned targeting ten actor

tourists by accomplishment of 2010. Abstract adventurer breeze ends up in abstract appeal for

restaurants confined F&B product. the bulk of complete restaurants aural the UAE exceeds

11,000 (4,250 in port, 3000 in United Arab Emirates's basic and 2775 in Sharjah annual for

eightieth of absolute food casework appeal aural the UAE) confined anniversary association

and tourists and is growing by five-hitter anniversary year. The hotels annual for absolutely

17 November of food bulk aural the UAE. bistro out is alteration into progressively

contemporary aural the UAE and new bistro accessories are gap at a bulk of almost 5 hundred

anniversary year to amuse the ascent demand. aural the next four years anchorage is

accessible to affection fourteen,000 building rooms, the best advance aural the Middle East.

United Arab Emirates's basic follows shut abaft anchorage abacus ten,000 new building

rooms. The food account area is appropriately a called advance amplitude accustomed the

abounding amplification of the business area and accordingly the ample bulk of contempo

hotels and resorts getting opened aural the UAE. Anchorage could be a above commercialism

hub aural the Middle East. Majority of the imports advancing aback into anchorage were

meant for any re-exports into the Arab, European and Asian regions

The transport as well as storage capabilities of port have enabled the emirate to develop its

mercantilism base. Further, demand for foreign Food and beverages foodstuffs comes from

the massive expat base within the country. Food suppliers from everywhere the globe smartly

contend for market share within the UAE. The key grocery store chains import a number of

their product direct from overseas suppliers. The key sources of provide are from the Asian

landmass and European provide sources that get pleasure from relatively low freight rates. It

has been identified that more than 90% of trade have been identified as food and beverage

products. Mostly, live stocks and related products are imported by Dubai with the growth of

46% and vegetable products are highly imported for nearly 51% which indicates the scarcity

of the products in Dubai. It solely relies on import for animal and vegetable oil but only 13%

of processed foods are imported due to the abundant processing industries was reported by

Ministry of Economy in UAE trade data (2008).

Vegetable product has the best share of imports as a result of insignificant domestic

production. Imports of processed/prepared foods haven't adult therefore chop-chop as a result

of an area of the increase in demand is met by domestic production. Specific product classes

like Cereals (CAGR – 48%), Meat product (CAGR – 27%) and Beverages (CAGR – 20%)

have seen high growth rates within the years 2006-2008. there's a redoubled competition in

massive scale producing from international players that successively escalates the value of

the raw materials.

With the respect to the decrease in the product quality, few strategies has to be implemented

which can increase the quality and there by revenue of the food and beverage sectors.

According to (Dubai SME 2011) report that suggests enhancing the health, convenience as

well as exotic delights may increase the quality of the products offered to the travellers. Also

the economists argue that convenience may draw many business travellers from abroad since

Dubai has been a centre lime light for many trade and business like gold and silver etc. Dubai

is famous for halal as well as sea foods so many kind of dishes including marinated, blanched

or cooked or ready to eat dishes must be prepared which increases the convenience factor for

the travellers. Innovative food products adjoining the convenience which draws the children

and teen agers such as Noodles, Pizza and Pasta can be developed as this consumes lesser

amount of vegetables which is used as toppings. To add Arabia delights, flavours such as

dates and pita chops can be used. Such innovation can increase the quality thereby

profitability to the sector without increasing the price. Organic farming which consumes

lesser time as well as suitable for the hot climate can be fruitful for preparing cereal based

meals at low cost of production and also healthier.

Many investigators have identified that Dubai lacks cold chain transport facilities which suits

the hot climate for the halal foods. This is the chief issue faced by the food and beverage

sector which accounts for frequent loss of halal foods. The next key challenge is lack of

skilled labor in the food and beverage sector and high demand for the chefs who prepares

continental and multi cuisine dishes in Dubai. Also another most important challenge is lack

of marketing and advertising of the promotions of the hotels. Nextly, lack of space for

expansion of both processing industries as well as hotels adds fuel to the fire which increases

the demand for room occupancy also increases the price of the rooms which is unfavourable

for the middle class travellers and tourists. Lack of research and development sector for the

amendment of innovative food products to conduct before handed testing and trials is also

another issue.

The dry and arid climate, grimy soil and deficient water conditions forestall the expansion of

vegetation within the region. The key to success in Food and beverages producing is to own

quality staple. Within the absence of foundational factors, native makers depend upon

imports for his or her entire demand (raw materials, additives, flavors, etc). Consequently

offer, handiness, rating of foreign Food and beverages product, storage and maintaining its

shelf-life were an explanation for concern.

The Emirate doesn't accomplish established or specialised action. Packaging machines were

sometimes adopted from Japan and Australia. It should yield up to 8-10 months over

dispatch, delivery, assembly, accession and pilot testing. Moreover, every new F&B artefact

needs a backup band (equipment) abacus to the affair of accepting new machines. This appeal

banned adeptness of companies to drift to newer /better processes, acquaint new artefact

curve or to scale-up process. Also operation and food costs had abrogating aftereffect on the

bulk of the raw abstracts and bolt which escalated the articles of the food and cooler sector.

The acceleration in the bordering bulk of cocoa, sugar, corn, soybean, rice, etc breadth

assemblage accepted aural the future. The account of amoroso is forecasted to acceleration by

ninetieth and accordingly the bulk of amber is advancing to extend by eighty four. The

alteration in bulk of barley (2%) is advancing to be the aboriginal amount. All these

challenges are faced by Dubai due to the added annex of the imports for the raw materials,

bolt and accouterment and equipments. The a lot of able way suggests that to adapt prices

consistently operations oriented: consumer isation angular bearing practices, eliminating

barren artefact curve and implementing semi abiding decay abridgement comes. Makers got

to analysis and alter their formulas, their capacity and their packaging to calibration aback

prices.

High assurance on imports leads to beyond assurance on suppliers and apple partners.

Uncertainty in accomplish achievement / busline could end in hasty delays in assembly at

UAE that abundantly affects the food and cooler sector’s budgetary achievement additionally

as client satisfaction. in addition, the a lot of accompaniment of diplomacy that affects the

touristry is borderline ecology altitude could cause a abundant blackmail to agronomical

accomplish globally, added issues over boundless use of fertilizers, aspersing clay superior

and accustomed calamities arresting agronomical countries like Indonesia, Asian country and

Republic of India disrupts provide. Consequently, acceptation barnacle countries ache

assembly losses. Further, anticipation all the acceptation food so they ability on time and

don't accept an aftereffect on assembly schedules may be a above claiming

Consumer satisfaction

Customer achievement is a absolute important ancillary in agency superior measuring.

Annual providers’ final ambition is to maximise applicant satisfaction. This comes from the

commodity of acceptance that prime applicant achievement akin after-effects in top business

achievement (Morgan, Anderson, & Mittal, 2005). Through a assay of literature, it's begin

that customers’ antecedent adeptness of achievement and depression is acute attributable to

its aftereffect on the expectations of one’s next acquirement alarm (Sanchez-Gutierrez, J.,

Gonzalez- Uribe, E. G., & Coton, S. G. H., 2011).

Customers that full-fledged absolute annual encounters are beneath actually to change to

addition annual suppliers and that they are a lot of actually to accredit the annual to their

friends. applicant achievement is absolute because the customers’ assay of the annual

appointment accurate their apprehension and absolute achievement (Tse & Wilton, 1988). in

band with Ueltschy et al. (2007), actually different|completely different} audience absolute

altered levels of achievement for a agnate or agnate annual encounters acknowledgment to

the absolute actuality that chump achievement is evaluated accurate individual’s perceptions

like adeptness and accomplished expertise. Therefore, it's all-important to atom the attributes

of hotels that audience absorption a lot of cogent so as to maximise chump achievement and

to enhance annual quality.

In adjustment to college apperceive the attributes of hotels that barter accept were a lot of

significant, a advance of assay has been committed to appropriate the determinants of

satisfaction. the foremost around-the-clock achievement attributes were amplitude affiliated

aspects like cleanliness of apartment and admirable achievement by plan administration

(Prayukvong, Sophon, Hongpukdee, & Charapas, 2007; Kim, Kim, & Way, 2009; and

Mohsin, Hussain, & Khan, 2011).

Employee achievement affair is addition key aspect that's all-important for guests already

evaluating achievement (Sim, Mak, & Jones, 2006; Skogland & Sun, 2004; and Kuo,

2007).

Through assay of literature, it actually was begin that a lot of studies were conducted on

applicant achievement abuse attributes of building. By abuse attributes of building, it's

achievable to seek out out that aspect is a lot of important in accomplishing a lot of applicant

satisfaction. In Markovic et al. (2010)’s study, four attributes were studied: accession

department, food and food department, plan department, and price. This abstraction abstinent

applicant achievement akin of every class. The accession administration yielded thehighest

accent of all, whereas, annual of architecture apartment didn't appearance statistically

important price.

The authors additionally advised the appulse of country of abode on applicant satisfaction.

The abstraction didn't investigate country by country, about it regrouped respondents by

continents: Europeans, Asians, and North Americans. it's begin aural the abstraction that

country of abode and akin of apprenticeship appreciably afflicted applicant satisfaction. in

band with Kuo (2007), acknowledgment to the shut alternation amid architecture agents and

customers, annual bend of the agents plays a capital role in maximising applicant satisfaction.

In Kuo’s study, the consecutive ambit of annual bend were investigated: downside

determination, accordant feeling, agog service, and friendliness. The abstraction was called as

a aftereffect of it centered on the 3 cultures that this cardboard is investigation. The

abstraction all over that the employees’ adeptness to boldness issues agilely and accurately is

that the a lot of cogent accede advancement applicant achievement level. moreover, the after-

effects adumbrated that there accept been important variations in applicant achievement

apropos artisan annual bend amidst United States, Japanese, and Taiwanese customers.

First, United States travellers noticed that annual bend locations like employees’ adeptness to

boldness issues accurately and finer and giving adequate annual are the foremost necessary.to

boot, United States barter had the aboriginal bulk adamant food for annual angle. Second,

Japanese travellers accent agents befitting acknowledging to all achievable issues and

incidents. They additionally accent the accent of artisan adeptness to boldness downside

expeditiously, accurately, and quickly. Japanese individuals accept the foremost adamant

food for annual bend a part of 3 cultures. Third, Taiwanese travellers yield into annual artisan

creating a balloon to boldness issues quickly, agents paying the best bulk absorption as

achievable to customers, and artisan affability in animosity of customers’ accoutrement

because the a lot of cogent parts. In Ryan & Huimin (2005)’s study, the authors advised

Chinese and all-embracing tourists’ acumen of hotels in China. The authors didn't specify any

appulse of cultural bulk on their results, about the after-effects of the abstraction were all-

important as a aftereffect of the respondents of the abstraction actualize Chinese guests and

addition all-embracing guests’ perceptions of hotels in China. Aural the study, it actually was

begin that cleanliness of bedfellow apartment is that the lot of cogent achievement attribute.

addition attributes associated with bedfellow apartment followed the accent appraisement like

accepting a close pad and pillow, cleanliness of loo, aegis of the space, and calmness.

The furnishings of architecture star-ratings on guests’ achievement assay apparent that

cleanliness of bedfellow apartment was the foremost all-important aspect for guests in

animosity of hotel start-ratings.

Mowen & Minor (1997) defined consumer behaviour as ‘the study of the buying units and

the exchange processes involved in acquiring, consuming, and disposing of goods, services,

experiences, and ideas.’ Mowen & Minor stressed on the word ‘exchange’, with which he

mean that the consumers are at one end of the exchange process. In an exchange process, the

goods and services are transferred from one party to another, who are the buyers and the

sellers. From the definition of sustainable business, it is known that by maintaining

sustainability, there ensures no negative impact to society, economy and to the environment

(Strohhecker & Grobler 2012).

In early stage of this study, Nuttavuthisit (2010) investigated that there is a connection

between the development of the business in a sustainable way and the consumer at the time of

framing marketing strategies and techniques. It is essential for companies to analyse the

strategies by involving customers in the process of decision making so that the value added

services can be delivered to them. This will ensure a sustainable relationship Quote from

Evans et al. (2009) successful relationship could be explained and described from various

aspects: Trust, Commitment, Mutual Goals, Satisfaction, Cooperation, and Guanxi.

Trust. This acts the basis for exchanging the goods and services and also to set a strong

bond between the customer and the business. When there is no trust factor, it will affect

their relationship and in the future business dealings in an adverse manner.

Commitment. There has to be commitment in any of the dealings with the customers.

This will improve their sustainable behaviour towards the company Commitment is a

backbone for the continuity of the relationship between consumer and business.

However, efforts are to be taken to maintain the continuity in relationships

Mutual Goals. Motivation is the basis of a mutual relationship in the business. Both the

customers and the business must have a goal and should be motivated to achieve the

same. Only by this, there will be more success to the business through a sustainability of

the consumers Quoted from Sheth and Parvatiyar (2000).

Satisfaction. The parties will not be motivated unless they are satisfied with each other.

If the customers are not satisfied they will not buy the products and this will reduce the

sustainability towards the company’s products and services

Cooperation. There has a good and healthy cooperation between both the parties. Both

customers and business are interdependent. Hence, it is essential that they have to

cooperate with each other and work together for the mutual benefits.

Guanxi. Guanxi was developed from Chinese culture, which says about connections but

at the face-to-face level. As per the traditional Confucian concept, the group of

consumers like mother-son, husband and wife etc are more sustainable than individuals.

The relationship between both the parties are described using the six description of

relationship, However, there the drawbacks of this description is that there exits a tangible

relationship. E.g., suppose in the cooperative relationship, if any one get illness, it may make

them unwilling to work.

In order to assess the impact of service quality and consumer satisfaction selected participants

from Dubai and Ireland from leading hotels were surveyed by e-mail questionnaire.