Transcript Document 7326091

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Managed Services
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©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
What Are Managed
Services?
• Managed Services…
– Consists of all food service operations that are
classified as not-for-profit
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
What Are Managed
Services?
• Managed Services (cont.)…
– Service operations including
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Military
Airlines
Elementary and secondary schools
Colleges and universities
Health care facilities
Business and industry
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Unique Qualities
• Qualities…
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Challenge to please guest and client
Guests are captive clientele
Food service is not the primary business
Produce food in large quantity
Volume of business is consistent
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Reasons for Contract
Management
• Contract Management…
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Financial
Quality of program
Recruitment of management and staff
Expertise in management of service
departments
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Reasons for Contract
Management
• Contract Management (cont.)…
– Resources available
• People, programs, management systems, and
information systems
– Labor relations and other support
– Outsource administrative functions
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Airlines
• Airlines…
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Competitive factor
Logistical operation that is complex
Expansion industry
Cost for average in-flight meal is $6.00
Food service at airports is typically contracted
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Military
• Military…
– $6 billion dollars each year
– Trends
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Contract of officer’s club
Fine dining to casual style
Prepared foods
Use of fast food restaurants on bases
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Elementary and
Secondary Schools
• Schools…
– National School Lunch Program feeds 25
million children daily
– Good nutrition is the key
– Potential market for fast food chains
– Preparation varies amongst schools
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Colleges and Universities
• Schools (cont.)…
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Residence halls
Cafeterias/student unions
Faculty clubs
Convenience stores
Administrative catering
Outside catering
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Campus Dining
• Dining…
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Challenging
Use of cyclical menus
Budgeting is easy due to payment plans
Various meal plans
Sodexho
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Trends in Campus Dining
• Trends…
– Branded concepts
– Privatization
– Campus cards
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Healthcare Facilities
• Facilities…
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Hospitals
Extended life facilities
Retirement centers
Major growth segment is the senior citizen
market
– ARAMARK
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Healthcare
Foodservice Offered
• Foodservice…
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Tray
Cafeteria
Dining room
Coffee shop
Catering
Vending
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Healthcare
• Healthcare…
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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
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Business and Industry (B&I)
• B&I…
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Contractors
Self-operators
80% of B&I is contracted
30,000 units nationwide
Compass Group
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Leisure and Recreation
Foodservices
• Characteristics…
– Unique and fun
• Stadiums, arenas, and state parks
– Points of Service
• Where food and beverage are provided
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Contract Management
Client Perspective
• Advantages…
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Experience in size and types of operations
Variety of services
Resource and support available
Hold contractor to higher level of performance
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Support Staff Positions
• Positions…
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Sales/Marketing
Controller/Audit
Financial Analysis
Human Resources
Training and Development
Affirmative action
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Support Staff Positions
• Positions (cont.)…
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Safety Administrator
Procurement
Technical Services (recipes, menus, etc.)
Labor Relations
Legal aspects
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Contract Management
Client Perspective
• Disadvantages…
– Some segments perceived as institutionalized
– Potential for lost contracts
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Trends in Managed Services
• Trends…
– Increasing challenges
• Reduction of revenues
• Increased cost
– Declining enrollment
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker
Trends in Managed Services
• Trends (cont.)…
– Increased use of
• Campus cards
• Food-to-go
– Proliferation of branded concepts
– Development of home meal replacement
– 24 hour food service
©2004 Pearson Education, Inc.
Upper Saddle River, New Jersey 07458
Introduction to Hospitality Management, First Edition
John Walker