chapter 8: managed services

introduction to hospitalityfifth edition

john r. walker

Chapter 8: Managed Services

Introduction to HospitalityFifth EditionJohn Walker

Copyright ©2009 by Pearson Education, Inc.Upper Saddle River, New Jersey 07458

All rights reserved.

Chapter 8 Managed Services

• Overview• Airlines and Airports• Military• Elementary and Secondary Schools• Colleges and Universities• Responsibilities in Managed Services• Healthcare Facilities• Business and Industry• Leisure and Recreation • Trends




Overview• Managed Services consist of:

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




Overview• Several features distinguish managed

services operations from commercial foodservices:– In managed services, it is necessary to meet

both the needs of the guest and the institution

– In some operations, the guests may or may not have alternative dining options available and are a captive clientele

– Many managed operations are housed in host organizations that do not have foodservice as their primary business




Overview

• Features distinguishing managed services operations from commercial foodservices (continued):– Managed services operations produce food

in large-quantity batches for service and consumption within fixed time periods

– The volume of business is more consistent and therefore easier to cater




Airlines and Airports• Airlines may either provide meals from their

own in-flight business or have the service provided by a contractor

• Gate Gourmet International is the largest in-flight foodservices provider—operating in 27 countries on 6 continents from more than 140 catering facilities and producing more than 250 million meals on average annually

• In-flight foodservice management operators plan menus, develop product specifications, and arrange purchasing contracts




Airlines• Airlines regard in-flight foodservice as an

expense that needs to be controlled • To trim costs, most domestic airlines now sell

snacks instead of meals on a number of short flights and even on flights that span main meal times

• As airlines have decreased in-flight foodservice, airport restaurants have picked up the business, and the number of chain restaurants in terminals have increased




Military• There are about 1.5 million soldiers, sailors,

and aviators on active duty in the U.S.• Feeding military personnel includes feeding

troops and officers in clubs, dining halls, and military hospitals, as well as in the field

• $6 billion dollars each year• Trends:

– Contract of officer’s club– Fine dining to casual style– Menu management– Prepared foods– Use of fast-food restaurants on bases




Elementary and Secondary Schools

• National School Lunch Act of 1946:– If students receive good meals, the military

would have healthier recruits– Such a program would make use of the

surplus food that farmers produced




Elementary and Secondary Schools• National School Lunch Program:

– Federal funding is provided in the amount of approximately $2.19 per meal per student

• Much work has gone into establishing the nutritional requirements for children

• Much debate has arisen as to whether fast-food chains should enter the schools

• Nutrition education programs are now a required part of the nation’s school lunch program




Colleges and Universities

• Residence halls

• Sports concessions

• Conferences

• Cafeterias/student unions

• Faculty clubs

• Convenience stores

• Administrative catering

• Outside catering




Campus Dining• Challenging because the clients live on

campus and eat most of their meals at one of the campus dining facilities

• Daily rate is the amount of money required per day from each person to pay for the foodservice

• College foodservice operations now offer a variety of meal plans for students




Figure 8–4 Operating Statement




Responsibilities in Managed Services

• A foodservice manager’s responsibilities in a small or midsize operation are frequently more extensive than those of managers of the larger operations– Larger units have more people to whom certain

functions can be delegated, such as human resources

– A number of support staff positions offer career opportunities not only within managed services but also in all facets of hospitality operations and arrangements




Healthcare Facilities• Health care managed services are provided to:

– Hospital patients

– Long-term care and assisted-living residents

– Visitors and employees

• The service is given by tray, cafeteria, dining room, coffee shop, catering, and vending

• The main focus of hospital foodservice is the tray line

• Experts agree that because economic pressures will increase, foodservice managers will need to use a more high-tech approach to incorporate labor-saving sous-vide and cook-chill methods




Business and Industry (B&I)

• Contractors: Companies that operate foodservice for the client on a contractual basis

• Self-operators: Companies that operate their own foodservice operations

• Liaison Personnel: A liaison is responsible for translating corporate philosophy to the contractor and for overseeing the contractor to make certain that he or she abides by the terms of the contract




Business and Industry (B&I)

• Contractors have approximately 80% of the B&I market

• The size of the B&I sector is approximately 30,000 units

• To adapt to corporate downsizing and relocations, the B&I segment has offered foodservice in smaller units, rather than huge, full-sized cafeterias




Leisure and Recreation

• Stadiums• Arenas• Theme parks• State parks• National parks • Zoos • Aquariums • Venues where food and beverage are

provided for large numbers of people




Leisure and Recreation

• What makes this segment unique and fun is the opportunity to be part of a professional sporting event, a rock concert, a circus, or other event in a typical stadium or arena




Stadium Points of Service

• Leisure and recreation facilities usually have several points of service where food and beverage are provided– Hot dog stands– Restaurants– In the stands– Superboxes, suites, and skyboxes




Trends in Managed Services

• College and university foodservice managers face increasing challenges

• Declining enrollment• Increase in use of campus cards• Increase in food to go• Increase in use of foodservice carts at

vantage points• Dueling demands for managers from

students and administrators




Trends in Managed Services

• 24-hour foodservice• Business increase in healthcare and

nursing homes• Proliferation of branded concepts• Development of home meal replacement

options• Increasing use of fresh products




The End

chapter 8: managed services

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