Transcript Chapter 9 Managed Services

Chapter 9 Managed Services
Overview
 Airlines and Airports
 Military
 Elementary and Secondary
Schools
 Colleges and Universities
 Health Care Facilities
 Business and Industry
 Leisure and Recreation
 Trends

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Overview

Managed Services consist of:
– Airlines
– Military
– Elementary and secondary schools
– Colleges and universities
– Health care facilities
– Business and industry
– Leisure and recreation
– Seniors
– Conference centers
– Airports
– Travel plazas
– National parks
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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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Airlines

Airlines may either provide meals from their
own in-flight business or have the service
provided by a contractor.
 LSG Sky Chefs is the largest airline catering
company.
– 270 international airline partners.

In-flight foodservice management operators
plan menus, develop product specifications,
and arrange purchasing contracts.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Airlines

Airlines regard in-flight
foodservice as an expense that
needs to be controlled.
– The cost for the average inflight meal is just over $7.
 As airlines have decreased inflight foodservice, airport
restaurants have picked up the
business and the number of
chain restaurants in terminals
have increased.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Military

Feeding military personnel includes feeding
troops and officers in clubs, dining halls,
military hospitals, and in the field.
 Foodservice sales to the military top $6
billion each year.
 Trends:
– Contract of officer’s club.
– Fine dining to casual style.
– Prepared foods.
– Use of fast food restaurants on bases.
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Elementary and Secondary Schools
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National School Lunch Act of 1946:
– A response to concern about
malnourishment in military recruits.
– If students received good meals, the
military would have healthier recruits.
– Such a program would make use of
the surplus food that farmers
produced.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Elementary and Secondary Schools

National School Lunch Program feeds
29.6 million children daily.
– Federal funding is provided in the amount of
approximately $2.29 per meal per student.
Good nutrition is the key.
 Potential market for fast food chains.
 Preparation varies among schools.
 Contract companies are offering more
flexibility.

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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Colleges and Universities
Residence halls
 Sports concessions
 Conferences
 Cafeterias/student unions
 Faculty clubs
 Convenience stores
 Administrative catering
 Outside catering

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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Campus Dining
Challenging because the clientele 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.
 Budgeting is easy due to payment
plans.

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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Health Care Facilities
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Health care managed services are provided to:
– Hospital patients.
– Long-term care and assisted-living residents.
– Visitors and employees.
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The service is given by tray, cafeteria, dining room, coffee
shop, catering, and vending.
The main focus of hospital foodservice is the tray line.
To increase cash sales and manage profitability, managers
of health care operations have created such concepts as
medical malls with retail pharmacies; flower and gift shops;
boutiques; retail bakeries; catering; and restaurants.
Walker: Exploring the Hospitality Industry.
© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
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.
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© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Leisure and Recreation
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Stadiums
Arenas
Theme parks
State parks
National parks
Zoos
Aquariums
Venues where food and beverage are
provided for large numbers of people
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Leisure and Recreation
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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.
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Stadium Points of Service
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Leisure and recreation facilities
usually have several points of
service where food and beverage
are provided.
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Hot dog stands
Restaurants
In the stands
Superboxes, suites, and skyboxes
Souvenir stands
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Trends in Managed Services
College and university foodservice
managers face increasing challenges.
 Declining enrollment.
 Increased use of campus cards.
 Increase in food to go.
 Increased use of cards at vantage points.
 For managers, dueling demands from
students and administrators.
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Walker: Exploring the Hospitality Industry.
© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.
Trends in Managed Services
24-hour foodservice.
 Increase in health care and nursing
homes.
 Proliferation of branded concepts.
 Development of home meal
replacement options.
 Increasing use of fresh products.
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Walker: Exploring the Hospitality Industry.
© 2008 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.