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Food & Beverage

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Food & Beverage Overview

The Food & Beverage industry consists of two main services, manufacturing the packaged food/beverages and the restaurant serving. Being one of the industries that serves the basic consumer needs of human beings, both services can be seen everywhere in our life e.g. hotel, campus canteen, bar or coffee shops. In recent years, the overall primary demand drivers have changed along with the consumer habit, from purely food consumption and population growth to more healthy and organic living style. On the other hand, the profitability drivers also include not just the effective operation and pricing, but also the amount of processing added to the food, and whether the products are fitting in the consumer trend.

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The Food & Beverage industry consists of two main services, manufacturing the packaged food/beverages and the restaurant serving. Being one of the industries that serves the basic consumer needs of human beings, both services can be seen everywhere in our life e.g. hotel, campus canteen, bar or coffee shops. In recent years, the overall primary demand drivers have changed along with the consumer habit, from purely food consumption and population growth to more healthy and organic living style. On the other hand, the profitability drivers also include not just the effective operation and pricing, but also the amount of processing added to the food, and whether the products are fitting in the consumer trend.Food and beverage is one of the industry with lowest entrance barrier, given that the cost of holding a food store is relatively low compared to other consumer industry. However, low entrance barrier may also imply a high turnover rate to the companies as the investors may not be familiar with the industry and Food & Beverage Business. Still, the high profitability attracts many businessman to see F&B as there first step to run a business. Being one of the most common industry in the world, food and beverage industry has to quickly adapt to the new normal. The challenge is the awareness of the plastic ban, where customers will prioritise restaurants with environmentally friendly utilities and welcome for self-prepared take-away boxes. While the customers’ prepared boxes can ease some operating expenses, the takeaway boxes were a metric to measure the portion of the food. Thus, there was an example that even customers bought their own lunch box, the restaurant used one disposable utilities to measure the size before putting it back to customers’ lunch box. The restaurant has been trapped into a public relationship risk in this case. How can the restaurant manage the operation line when adapting to the trend will be a huge challenge. 

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