Introduction
The business environment in the hospitality industry has become increasingly complex due to the global warming phenomenon, owners’ and operators’ need to reduce operational costs, evolving investor attitudes towards environmental protection, growth of the corporate social responsibility concept, increased regulatory scrutiny of facility operations and development, along with the generation gravitation towards the ‘sustainability’ paradigm. Small, medium-sized and large hotels are increasingly going green, practising sustainable development and fulfilling their corporate social responsibility not only to boost their brand image, but also benefit the planet (Siegert, 2013). From the point of view of the resource-based theory (RBV), adopting sustainability practices could benefits the food and beverage industry by serving as an essential part of the firm’s capabilities that in turn contribute to variability in performance. Though the hospitality industry, as compared to chemical or metallurgical industries, is neither a major consumer of non-renewable resources nor contributor of environmental pollution, it is at the top of the service industry as relates to resource usage.
However, the rapid size and growth of the food and beverages sector (F&B) in the recent past has made environmental sustainable actions a necessity for restaurants and hotels. The environmental footprint of the hotel industry, particularly as a result of food and beverage development, is large due its resource-intense use of energy, water as well as consumables in hotel facilities (Siegert, 2013). While the individual activities in the hotel industry often contribute to an insignificant share of environmental pollution as relates to water and energy consumption, waste and other resources, it is their contribution that is greater than the sum of its parts.
Sustainable development in food and beverage development
According to the 1987 Brundtland Report, sustainable development is “development that meets the need of the present without compromising the ability of the future generations to meet their own needs” (Haverkamp, 2007). Sustainable aims at securing economic development, social equity and environmental protection while dealing with the challenge of striking a balance between these goals with the conflicting objectives of the hospitality industry. In this regard, sustainability is presently a challenging issue in the hospitality industry with the growing demand for food and beverage among for tourists and visitors. This often results in a conflict of interests pertaining to the protection of the environment. According to the stakeholder theory, the ecological customer of the food and beverage industry often punishes restaurants and hotels with environmentally-unfriendly practices, but at the same is unwilling for the sustainability benefits due to the fact they are non-personal benefits (Baldwin, 2012). In the same light, food and beverage supply chains of restaurants and hotels often receive considerable amount of attention due the fact that their productions decisions have significant impacts on the survival of animals and plants. As such, restaurants and hotels are increasingly being required to address concerns among consumers relating to the impacts of their food and beverage supply chains on the well-being of the environment at large.
With the increasing negative effects of global warming and increased demand for environmental protection, the hospitality industry has strived to embrace sustainable development as part of corporate strategy (Baldwin, 2012). Issues of sustainability touch almost all aspects of food and beverage development, a factor that has made restaurants and hotels to increasingly take efforts to align their management with financial, social, and environment elements to promote responsible business activities over time. While such aspects of the hospitality industry as capitalization rates and occupancy percentages are relatively easy to record and analyze, sustainability remains uniquely difficulty to quantity (Haverkamp, 2007). This is in part due to the lack of clear universal metrics to measure sustainable development in different hospitality sectors. Current trends in sustainable development as relates to the hospitality industry concern three core areas: energy, waste, and waste.
i) Energy
Consumption of energy in the hospitality industry relates to HVAC activities, fuel, lighting, cooking along with other miscellaneous power requirements (Siegert, 2013). Owners and managers are placing much focus on reduction of energy intensity through technical, engineering technique known as commissioning. This involves such front house efficiency measures as lighting retrofits, minimizing plug loads on the one hand and back-of-the-house energy efficiency measures e.g. improved equipment scheduling, reduced simultaneous heating and cooling, proper sensor calibration, and maintenance of building ventilation (Baldwin, 2012). The industry is increasingly taking advantage of recent technological advances in such renewable sources of energy as solar, wind, geothermal to reduce costs of food and beverage development as well as to reduce their carbon footprint.
ii) Water
Water is an integral part of the hospitality industry especially for domestic functions in the bathrooms, F&B and laundry as well as for such facility operations as HVAC, cleaning, maintenance, and irrigation. Restaurants and hotels are taking environmental sustainable measures by collecting and treating grey-water (i.e. water as a result of domestic activities) as well as black-water (i.e. water from sewage) generated by guests, visitors, and back-of-the-house activities (Siegert, 2013).
iii) Wastes
The hotel industry generates such waste streams as F&B wastes, recyclable oil, hazardous materials (e.g. cleaning solutions and fluorescent bulbs, durable goods (e.g. appliances, office equipment, furniture), consumables (e.g. batteries, toner, paper), and wastes from construction or refurbishment activities (Siegert, 2013). Owners and managers of restaurants and hotels are adopting various techniques to reduce, reuse, and recycle resulting wastes so as to minimize costs of food and beverage development and help protect the environment from further pollution. Vendors are offering restaurants and hotels such waste-to-energy processing services as conversion of waste into alternative energy sources (e.g. biodiesel fuel or natural gas) at much reduced costs (Baldwin, 2012).
In addition, other sustainable development activities in the hospitality industry include sustainable procurement, staff training programs on maters of environmental sustainability, and indoor environmental qualify with focus on cleaning/chemical product use and air quality. Further, restaurant and hotel owners and operators are being exposed to a vast number of sustainability resources from international organizations, environmental firms, public agencies, energy firms, architectural and engineering consultancies, and trade organizations (Haverkamp, 2007). There are currently specific environmental programs targeted at the hospitality sector: environmental programs, green building & operation programs, and green product certifications & standards. Therefore, owners and managers in the hospitality industry are finding it mandatory to practise environmental and societal responsibility by integrating sustainable management in their day-to-day activities and business practices.
‘Going Green’ in the hospitality industry
Going green is fundamental aspect or concept in corporate social responsibility, and is imperative in the development of competition in an organization (Siegert, 2013). For instance, in the hotelier industry or hospitality industry values chain functionality has been constantly used to ensure that the customers obtain quality services and products in regard to their taste fashion and preference (John, 2013). However, this also involves the use of food and beverages sector in developing preferences to the market. Additionally, the sector has adopted a going green business strategy in developing the industry.
Therefore how does, going green concept and its related trends influence the future strategic and operational management practices in food and beverages?
The business world has adopted the using of the phrase and concept of ‘going green’ to change the aspect of doing business. For instance, many businesses which are involved in trading, food and beverages have noticed that in order to be competitive they have to reduce their carbon footprint in the hotel industry among others (John, 2013& 2013).This is because many of the customers have become environmentally conscious hence try to promote environment sustainability, this therefore causes the manager of the food and beverage companies to adopt new trend of doing business such as: recycling their food into manure for growing food, using biodegradable packing papers for packing food, among many others.
Obtaining environmentally friendly policies to promote ideal business environments ensure that investors invest in a food and beverage development by either building environmental friendly hotels or restaurants. A good example of this policy is the EMAS (Eco- Management and Audit Scheme) which states that such a business in the hospitality industry has already been aptly certified with the ability to offer sustainable hospitability in management (Pizam, 2012). This type accreditation ensures that an entity in its industry remains competitive amidst close business rivalry form other businesses.
The prevalence trend in the use technology has also influence the development of the food and beverage industry. For instance, the FoodRouttes Network in the region of Pennsylvania is a company that has invested in environmentally friendly technology tools , support, as well as marketing advice among many others (Middletown Thrall Library, 2013). This will or ensures that the food and beverage industry is developed throughout the revolution in technology.
Corporate Social Responsibility
Corporate social responsibility (CRS) is characterized by a distinct set of self guidelines in the business world which are integrated into a business model such as tourism (Grayson, 2004). It aptly involves assessing and making responsible actions in regard to the environment generally by industries as well as ensuring that there is a positive impact on social welfare. Moreover, it entails the dedication of funds to run different program in the social environment, provision of resources, amongst others (Richard, 2008).
Nonetheless, corporate social responsibility has gradually become a great influence in the food companies especially in regard to Food and Beverage development. This concept has been key to ensuring that there is a robust growth in the economies of various countries. According to Hartmann, (2011), the growth of the CRS in the business environment is due to: series of perceived failures or else limitations of governmental regulations in view of negative results of globalization and reorganization of the businesses environment welfare state, hence the need to examine how this concept and related trends will influence the future strategic and operational management practices in food and beverages development.
CRS has three major trends that influence the future of strategic and operational management practice in the food and beverage development. This includes an exponential growth of in population numbers at an estimated 7.5 billion person by the year 2010 (Business Leaders Forum, 2002). In addition, the scarcity of land for farming is highly declining and there is minimal space to practice agricultural. For instance there has been a decline in the volume of water need to reclaim a dry land and make it into a land that produces enough food to meet the demand by the country’s food security level. In other words, the volume of food production, in the globe has been greatly affected and cannot sufficiently suffice the increasing population.
Nutrition uptake, lifestyle as well as the marketing trends influences the future of strategic and operational management practice in the food and beverage development in regard to tourism (Business Leaders Forum, 2002). For instance, having a variety of unique cultural foods in hotels in a particular country is likely to woo customers/ tourists from one region to another. This improves the trends of marketing of food and beverage development within the hotelier industry thus culminating into profits and regional development. Though this has been the trend of growth, there is a lucking challenge of meeting the consumer needs in regard reduced space for farming hence production is less than the market demand for the food and beverages.
The other trend that influences the future of strategic and operational management practice in the food and beverage development is an increase in the need to manage of value chains in established business and other forms of businesses (Business Leaders Forum, 2002). For instance, the sudden increase in the development of economic globalization coupled with food production, process and packaging technologies have ensured that there is time utility in every good delivered to its clientele base or market. However, this vast growth has caused many of these entities/businesses to question themselves about how they could create holistic impact within their organizational development and operation, hence a necessity to, review and tweak areas that would ensure there is accountability in social responsibilities.
The increase in communication insurgency has also greatly influenced and is influencing the future of strategic and operational management practice in the food and beverage development (Business Leaders Forum, 2002). Apparently, communication revolution has been a great factor in ensuring there is exponential growth in the expansion of businesses and global trade marking. However, nonconformist of business have taken this opportunity to distort the effect of business brands as well as their reputation. For instance, nonconformists may take advantage of a successful global brand and steal share, which involves rebranding a company in order to obtain more shareholders in the company. This approach and many others pose a challenge in operating and developing a brand for a food and beverage company.
On the other hand, a strong and unique brand positively influences the trend of market sales (Business Leaders Forum, 2002). This is evident when the brand is appealing to the customer who buy foods and beverages from a particular brand such as KFC(Kentucky Fried Chicken) which is a well known brand offering fast foods, while Coca cola offering various beverages for its consumer market (Grayson, 2004). In fact, these unique brands help food and beverage mangers to be able to trace and assess the consumption rate that occurs in market and estimate the market share in the industry.
Therefore, it can be said that, CRS concept and trends influence the future strategic and operational management practices in food and beverages development, if factors of production of goods and services are influence, which is inclusive of taking care of the welfare of working personnel (Grayson, 2004). This is because in order to obtain a successful CRS in a company, the workers in that environment ought to be cared for in regard to global ethical standards (Business Leaders Forum, 2002). This in turn ensures an industry such as the food and beverage operation management practice in regard to tourism meets great quality demands of the tourism market.
References:
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Grayson,D.,& Hodges,A.( 2004).Corporate Social Opportunity!: 7 Steps to Make Corporate Social Responsibility Work for Your Business. Austin, Texas: Greenleaf Publishing.
Hartmann, M. (2011). Corporate Social Responsibility in the Food Sector. European Review of Agricultural Economics, 38(3), 297-324.
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Middletown Thrall Library.(2013).Going Green: Sustainable Living, Eco-friendly Advice & Alteratives, Environmentally-mindful Lifestyle. Retrieved from http://www.thrall.org/special/goinggreen.html#Food
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