Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Chapter 9 Managed.

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Chapter 9Managed Services

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

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

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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

What Are ManagedServices? 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 EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Airlines Competitive factor Logistical operation

that is complex Expansion industry Cost for average in-

flight meal is $6.00 Foodservice at

airports is typically contracted

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Military $6 billion dollars

each year Trends

Contract of officer’s club Fine dining to casual style Prepared foods (MREs) Use of fast food

restaurants on bases

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Elementary andSecondary 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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Figure 9-4Food Pyramid

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Colleges and Universities Residence halls Sports concessions conferences Cafeterias/student

unions Faculty clubs Convenience stores Administrative

catering Outside catering

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Campus Dining

Challenging Use of cyclical menus Budgeting is easy due to payment

plans Various meal plans Sodexho

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

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 EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Healthcare Facilities Hospitals Extended life

facilities Retirement centers Major growth

segment is the senior citizen market

ARAMARK

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Healthcare Foodservice Offered

Tray Cafeteria Dining room Coffee shop Catering Vending

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

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 EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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 EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Leisure and Recreation Foodservices

Characteristics Unique and fun

Stadiums, arenas and state parks Points of Service

Where food and beverage are provided

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper 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

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Support Staff Positions

Sales/Marketing Controller/Audit Financial Analysis Human Resources Training and Development Affirmative Action

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Support Staff Positions

Safety Administrator Procurement Technical Services (recipes, menus,

etc.) Labor Relations Legal Aspects

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Contract Management Client Perspective

Disadvantages Some segments perceived as

institutionalized Potential for lost contracts

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

Trends in Managed Services

Increasing challenges Reduction of revenues Increased cost

Declining enrollment Declining balance on debit cards Increase in food to go Dueling demands for managers

from students and administrators

Introduction to Hospitality, Fourth EditionJohn Walker

©2006 Pearson Education, Inc.Pearson Prentice HallUpper Saddle River, NJ 07458

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