Chapter 9 Managed Services

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

After Reading and Studying This Chapter, You Should Be Able to:

Outline the different managed service segments Describe the five factors that distinguish managed service operations from commercial ones Explain the need for and trends in elementary and secondary food service Describe the complexities in college and university foodservice Identify characteristics and trends in health care, business and industry, and leisure and recreation foodservices
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

What Are Managed Services?

Consists of all food service operations in the following segments Service operations including

Leisure and recreation Conference centers Airports Travel plazas Military Airlines Elementary and secondary schools Colleges and universities Health care facilities Business and industry

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Unique Qualities

Challenge to please guest and client Guests are captive clientele (they may not have an alternate dining option) Foodservice is not the primary business Produce food in large quantity Volume of business is consistent
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Introduction to Hospitality, Fourth Edition John Walker

Reasons for Contract Management

Financial Quality of program Recruitment of management and staff Expertise in management of service departments Resources available Labor relations Outsourcing of administrative functions
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Introduction to Hospitality, Fourth Edition John Walker

Airlines

Competitive factor Logistical operation that is complex Expansion industry Cost for average inflight meal is $6.00 Foodservice at airports is typically contracted
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Introduction to Hospitality, Fourth Edition John Walker

Military

$6 billion dollars each year Trends

Contract of officers club Fine dining to casual style Prepared foods (MREs) Use of fast food restaurants on bases

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Elementary and Secondary Schools

National School Lunch Program feeds 26 million children daily Good nutrition is the key Potential market for fast food chains Preparation varies amongst schools Contract companies are offering more flexibility
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Introduction to Hospitality, Fourth Edition John Walker

Figure 9-4
Food Pyramid

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Colleges and Universities

Residence halls Sports concessions conferences Cafeterias/student unions Faculty clubs Convenience stores Administrative catering Outside catering
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Introduction to Hospitality, Fourth Edition John Walker

Campus Dining

Challenging Use of cyclical menus Budgeting is easy due to payment plans Various meal plans Sodexho
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Introduction to Hospitality, Fourth Edition John Walker

Trends in Campus Dining

Branded concepts Privatization

Pictured is the logo for a campus dining hall at Hamilton University

Campus cards

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Healthcare Facilities

Hospitals Extended life facilities Retirement centers Major growth segment is the senior citizen market ARAMARK
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Introduction to Hospitality, Fourth Edition John Walker

Healthcare Foodservice Offered

Tray Cafeteria Dining room Coffee shop Catering Vending

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker

Healthcare

Challenge because of special meal requirements Economic pressures of health care Use of sous vide and cook chill methods Increased market share of contractors Use of major quick-service chains

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Business and Industry (B&I)

Contractors Self-operators 80% of B&I is contracted 30,000 units nationwide Compass Group

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Leisure and Recreation Foodservices

Characteristics

Unique and fun

Stadiums, arenas and state parks Where food and beverage are provided

Points of Service

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Contract Management Client Perspective

Advantages

Experience in size and types of operations Variety of services Resource and support available Hold contractor to higher level of performance
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Introduction to Hospitality, Fourth Edition John Walker

Support Staff Positions

Sales/Marketing Controller/Audit Financial Analysis Human Resources Training and Development Affirmative Action
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Introduction to Hospitality, Fourth Edition John Walker

Support Staff Positions

Safety Administrator Procurement Technical Services (recipes, menus, etc.) Labor Relations Legal Aspects
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Introduction to Hospitality, Fourth Edition John Walker

Contract Management Client Perspective

Disadvantages

Some segments perceived as institutionalized Potential for lost contracts

Introduction to Hospitality, Fourth Edition John Walker

2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Trends in Managed Services

Increasing challenges

Declining enrollment Declining balance on debit cards Increase in food to go Dueling demands for managers from students and administrators
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Reduction of revenues Increased cost

Introduction to Hospitality, Fourth Edition John Walker

More Trends

24 hour foodservice Increase in healthcare and nursing homes Proliferation of branded concepts Development of home meal replacement options Increased use of fresh product
2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458

Introduction to Hospitality, Fourth Edition John Walker