Managed Services

C H A P T E R C H A P T E R Managed Services 8

What Are ManagedServices? • Managed Services… • Consists of all food service operations that are classified as not-for-profit

What Are ManagedServices? • Managed Services (cont.)… • Service operations including • Military • Airlines • Elementary and secondary schools • Colleges and universities • Health care facilities • Business and industry

Unique Qualities • Qualities… • 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

Reasons for Contract Management • Contract Management… • Financial • Quality of program • Recruitment of management and staff • Expertise in management of service departments

Reasons for Contract Management • Contract Management (cont.)… • Resources available • People, programs, management systems, and information systems • Labor relations and other support • Outsource administrative functions

Airlines • Airlines… • 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

Military • Military… • $6 billion dollars each year • Trends • Contract of officer’s club • Fine dining to casual style • Prepared foods • Use of fast food restaurants on bases

Elementary andSecondary 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

Colleges and Universities • Schools (cont.)… • Residence halls • Cafeterias/student unions • Faculty clubs • Convenience stores • Administrative catering • Outside catering

Campus Dining • Dining… • Challenging • Use of cyclical menus • Budgeting is easy due to payment plans • Various meal plans • Sodexho

Trends in Campus Dining • Trends… • Branded concepts • Privatization • Campus cards

Healthcare Facilities • Facilities… • Hospitals • Extended life facilities • Retirement centers • Major growth segment is the senior citizen market • ARAMARK

Healthcare Foodservice Offered • Foodservice… • Tray • Cafeteria • Dining room • Coffee shop • Catering • Vending

Healthcare • 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

Business and Industry (B&I) • B&I… • Contractors • Self-operators • 80% of B&I is contracted • 30,000 units nationwide • Compass Group

Leisure and Recreation Foodservices • Characteristics… • Unique and fun • Stadiums, arenas, and state parks • Points of Service • Where food and beverage are provided

Contract Management Client Perspective • Advantages… • Experience in size and types of operations • Variety of services • Resource and support available • Hold contractor to higher level ofperformance

Support Staff Positions • Positions… • Sales/Marketing • Controller/Audit • Financial Analysis • Human Resources • Training and Development • Affirmative action

Support Staff Positions • Positions (cont.)… • Safety Administrator • Procurement • Technical Services (recipes, menus, etc.) • Labor Relations • Legal aspects

Contract Management Client Perspective • Disadvantages… • Some segments perceived as institutionalized • Potential for lost contracts

Trends in Managed Services • Trends… • Increasing challenges • Reduction of revenues • Increased cost • Declining enrollment

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

Managed Services