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Chapter 9

Managed Services

2Exploring the Hospitality Industry, 2nd editionJohn R. Walker

© 2012, 2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.

At the completion of this chapter you should be able to: Outline the different managed services

segments Describe the five factors that distinguish

managed services operations from commercial ones

Explain the need for and trends in elementary and secondary school foodservice

Learning Objectives



At the completion of this chapter you should be able to: Describe the complexities in college and

university foodservice Identify characteristics and trends in

healthcare, business and industry, and leisure and recreation foodservices

Learning Objectives



Elements of Managed Services Airlines Military Elementary &

Secondary schools Colleges &

Universities Healthcare facilities

Business & Industry Leisure &

Recreations Conference centers Airports Travel Plazas National Parks



Must meet the needs of both the guest and the client (institution)

Guests may not have alternative dining options A “captive” clientele

Often housed in an organization that does not have foodservice as a primary business

Traits of Managed Services Operations



Food is produced in batch quantities for service and consumption within fixed tie periods

Volume of business is more consistent Easier to predict number of guests Portions can be better controlled Working hours may be better

Traits of Managed Services Operations



May provide meals from their own in-flight business or use a contractor

In-flight foodservice is a complex logistical operation Food must be able to

withstand a wide range of conditions

LSG Sky Chefs is the largest airline catering company

Airlines: In-Flight Foodservice



In-flight foodservice managers must: Plan menus Develop product specifications Arrange purchasing contracts

In-flight foodservice is an expense that must be controlled

As airlines decrease foodservice onboard, airport restaurants are becoming more prevalent

Airlines: In-Flight Foodservice



Military Feeding military personnel includes

feeding in: Clubs Dining halls Military hospitals In the field



Military Foodservice sales exceed $6 billion

annually Trends include:

Contracting services for officers clubs Moving from fine dining to casual

Mobile field kitchens Prepared foods to heat and serve anywhere

Providing fast food restaurants on base instead of mess halls



In response to concern about malnutrition of military recruits in the 1940’s the National School Lunch Act was passed in 1946

The program was designed to provide stronger recruits for the military and use surplus food that farmers produced

Elementary & Secondary Schools



Food Pyramid



The National School Lunch Program (NSLP) feeds nearly 30 million children annually Federal funding is approximately $2.29 per

meal per student Focus on good nutrition Potential market for fast food chains Preparation and product varies among

schools Contract companies provide flexibility

Elementary & Secondary Schools



Foodservice operations are complex and include: Residence halls Sports concessions Conferences Cafeterias/Student Unions Faculty clubs Convenience stores Catering

Colleges & Universities



Responsibilities in Managed Services

Responsibilities of the manager are often greater in small to mid-sized operations

Managers in larger operations often have staff to delegate tasks to



Responsibilities in Managed Services

Typical responsibilities include: Employee relations Human resources management Financial and budgeting Safety administration and budget Sanitation/Foodborne illness prevention Training and development



Campus dining is due to clientele living on campus and eating many of their meals there

Budgeting is easy because of payment plans

Daily Rate Amount of money required per person to

pay for foodservice

Colleges & Universities: Campus Dining



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

Health Care Facilities



The main focus of hospital foodservice is the tray line

To increase cash sales and manage profitability, managers in health care operations have created multiple options such as:

Medical malls with retail pharmacies Flower and gift shops Boutiques Retail bakeries Coffee carts Catering Restaurant

Health Care Facilities



Contractors account for approximately 80% of the B&I market

The B&I sector is approximately 30,000 units

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

Business & Industry (B&I)



Leisure & Recreation The segment is unique

and fun because there are opportunities to be part of: Professional sporting

events Concerts Circuses Other events held in

stadiums



Stadium Points of Service Facilities often have several points of

service where food and beverage are provided including: Hot dog stands Restaurants In the stands Superboxes, suites, and skyboxes Souvenir stands



Trends There are several trends in managed

services which include: Balancing rising costs with fewer dollars Increased demand for food to go Request for 24/7 foodservice Increasing use of fresh products

Documents

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