Chapter 9
Managed Services
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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
3Exploring 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: Describe the complexities in college and
university foodservice Identify characteristics and trends in
healthcare, business and industry, and leisure and recreation foodservices
Learning Objectives
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© 2012, 2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.
Elements of Managed Services Airlines Military Elementary &
Secondary schools Colleges &
Universities Healthcare facilities
Business & Industry Leisure &
Recreations Conference centers Airports Travel Plazas National Parks
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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
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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
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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
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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
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© 2012, 2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.
Military Feeding military personnel includes
feeding in: Clubs Dining halls Military hospitals In the field
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© 2012, 2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.
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
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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
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© 2012, 2008 Pearson Education, Upper Saddle River, NJ 07458.All Rights Reserved.
Food Pyramid
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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
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Foodservice operations are complex and include: Residence halls Sports concessions Conferences Cafeterias/Student Unions Faculty clubs Convenience stores Catering
Colleges & Universities
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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
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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
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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
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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
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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
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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)
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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
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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
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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