managed services

Managed Services

Chapter 8

John R. Walker

Introduction to Hospitality, 6eand

Introduction to Hospitality Management, 4e

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker

© 2013 by Pearson Higher Education, IncUpper Saddle River, New Jersey 07458 • All Rights Reserved

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

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



Airlines and Airports

• 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



Military

• The military still provides their own food service when it comes to mobilization

• 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:– Federal funding is provided in the amount of

$2.72 per student meal– 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

• 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



Colleges and Universities

• 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

• Campuses are seeing tremendous growth in branded concepts, privatization, and campus cards



Managing 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



Sustainable Managed Services

• Hospital foodservice directors often say that offering healthy choices in their cafeterias is a key department mission.

• But many operators are quick to add that they still offer the so-called unhealthy options to prevent a drop in participation and revenues.

• When providing healthier choices for menus, many organizations have found significantly healthier employees



Health Care Facilities

• Health care managed services are provided to:– Hospital patients– Long-term care and assisted-living residents– Visitors and employees

• The challenge in providing health care meals is that every patient has different nutritional needs

• Ensuring that each meal reach the proper patient is critical

• Every meal must be triple checked for accuracy



Health Care Facilities

• 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 & Industry

• 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 & Industry

• 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



Managed Service Other Than Food

• Many companies such as Sodexo have recognized the potential to increase their market opportunities by developing service capabilities beyond food.

• This also offers hospitality managers the opportunity to expand their career paths as well.

• Typically, hospitals, colleges, schools, and businesses outsource other service departments the same as they do food.



Managed Service Other Than Food

• These services often come under the area of facilities management and offer the following services:

• Housekeeping/custodial/environment services

• Maintenance and engineering

• Grounds and landscaping

• Procurement and materials management

• Office and mail services

• Concierge services

• Patient transportation services (hospitals)



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



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



Other Facilities

• Most of the U.S. national parks are contracted to these companies These parks have hotels, restaurants, snack bars, gift shops, and a myriad of other service outlets where tourists can spend their money.

• In addition to parks, other venues where food and beverage are offered include zoos, aquariums, tennis tournaments such as the U.S. Open in New York, and professional golf tournaments.



Trends• 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

• 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

• Increasing use of social media

• Offering more sustainable and local menu items



The End

managed services

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