Managed Services and Beverages Trends in the Hospitality Industry

1. Chapters 5 & 6Managed Services & Beverages Prof. Karen Goodlad Fall 2014

2. Class Session Student Learning Outcomes Evaluate and apply information discerningly from a variety of sources to classify and examine food and beverage operations (Gen Ed: Integration)

3. Overview of Today’s Class Discussion of NY Times Travel Section Lecture Small Group Discussions

4. Overview of Managed Services • How do you serve? Whose needs are being met? • In managed services, it is necessary to meet both the needs of the guest and the institution • Are options prevalent or restricted? • In some operations, the guests may or may not have alternative dining options available, a captive clientele • Describe operating conditions and hours: • Managed service operations produce food in large-quantity batches for service/consumption within fixed time periods. • Are managed service more or less difficult to plan for than full service operations? Why? • The volume of business is more consistent and therefore easier to cater to as apposed to full service operations

5. Managed Services Consist Of • Airlines • Military • Elementary and secondary schools • Colleges and universities • Health care facilities • Business and industry • Leisure and recreation • Conference centers • Airports • Travel plazas

6. Airlines and Airports, Trends • Airlines may either provide meals from their own in-flight business or have the service provided by a contractor. Trend is toward contractor. • Airlines regard in-flight foodservice as an expense that needs to be controlled, How do they control it? • To trim costs, most domestic airlines now sell snacks instead of offering meals on a number of short flights and even on flights that span main meal times • What impact does this trend have on managed services? • Shift in foodservice from flights to airports. Airline Food through the Years Airport Food, NYTimes

7. Elementary and Secondary Schools • The National School Lunch Program is a federally assisted meal program operating in over 101,000 public and non‐profit private schools and residential child care institutions. • School districts and independent schools that choose to take part in the lunch program get cash subsidies and donated commodities from the U.S. Department of Agriculture (USDA) for each meal they serve. • Nutrition education programsare now a required part of the nation’s school lunch program

8. In Fiscal Year 2012, more than 31.6 million children each day got their lunch through the National School Lunch Program. Since the modern program began, more than 224 billion lunches have been served. Free lunches: Reduced-price lunches: Paid lunches: $2.93 $2.53 $0.28 Free snacks: Reduced-price snacks: Paid snacks: $0.80 $0.40 $0.07 Amount School Districts are reimbursed for each meal

9. Things to Know: Elementary & Secondary School Food Service Managers • “Eat Smart Play Hard” • NYC Department of Education “School Food” • Summer Programs

10. Healthcare Facilities, Assisted Living & Nursing Homes • Health care managed services are provided to: • Hospital patients • Long-term care and assisted-living residents • Visitors and employees • The service is given by tray, cafeteria, dining room, coffee shop, catering, and vending • The main focus of hospital foodservice is the tray line • Jobs are Slated to Increase

12. Business and Industry (B&I) • Contractors: Companies that operate foodservice for the client on a contractual basis • 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 • Self-operators: Companies that operate their own foodservice operations • 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

14. Trends in Managed Services • Increase in use of campus cards • Increase in food to go • Increase in use of foodservice carts at vantage points • Contrasting demands for managers from students & administrators • 24-hour foodservice • Business increase in healthcare and nursing homes • Proliferation of branded concepts • Increasing use of fresh products • “Going Green” See Article, “Green and Growing” In Restaurants and Institutions

15. On Line Publications • Nations Restaurant News • Restaurants and Institutions

16. Beverages • Wine, Beer & Spirits Industry • Nonalcoholic Beverages • Bars and Beverage Operations • Beverage Establishments • Liquor Liability and the Law • Trends

17. Wines • Wine is fermented juice of grapes • In the United States, the premium wines are named after the grape variety, such as chardonnay &cabernet sauvignon • Champagne only comes from the Champagne region of France • Champagne goes through a second fermentation in the bottle itself—this process is known as methode champenoise • Fortified Wines are still wine with spirits added

18. Wine Producing Regions • Old World Wine Producing Countries • France • Italy • Germany • Spain • Portugal • Greece • New World Wine Producing Countries • California • North America, including Canada • Australia • New Zealand • Chile • Argentina • South Africa • Israel

19. How to Read a Wine Label • The name of the vineyard • The vintage • The growing area • The grape variety • The producer • Percentage of Alc. • Size of bottle • Warning label • Contains Sulfites

20. Matching Wine With Food

21. Beer • Beer is brewed from water, malt, yeast, &hops • Lager: • Clear, light bodied • Ale: • Fuller bodied, more bitter • Stout: • Dark ale, sweet, strong malt flavor • Pilsner: • Style of beer brewing

22. Spirits • Liquid that has been fermented and distilled • Whisky: Made from a fermented mash of grain to which malt, in the form of barley, is added • Gin: Made from potatoes with juniper berries added during distillation • Rum:Light is from sugarcane, Dark is from molasses • Vodka: potatoes

23. Bars and Beverage Operations • Bar Setup: • Physical setup of the bar is critical to its overall effectiveness • Each station should have everything it needs to respond to most, if not all, requests • Most bars operate on some form of par stock level; for every spirit bottle in use, there is a minimum par stock level of one, two, or more bottles available as a backup • Inventory Control: • The better the control system, the less likely it is that there will be a loss • The beverage operation manager needs to establish what the expected results will be • Beverage Management Technology: • Technology for beverage management has improved with products from companies such as: • Scannabar and AZ Bar America POS • Personnel Procedures: • Procedures for screening and hiring bar personnel • Employees must be experienced in bartending and cocktail serving and also must be honest

24. Liquor Liability and the Law • Dram shop law: • Made owners and operators of drinking establishments liable for injuries caused by intoxicated customers • The bar is liable if: • They serve a minor. • They serve a person who is intoxicated.

25. Beverage Establishments • Restaurant and hotel bars • The profit margin from beverages is higher than the food profit margin • Night clubs • High risk business & Requires a considerable time commitment • Owners should study demographics, market attitude, and social dynamics • Microbreweries • Combination brewery and pub or restaurant that brews its own fresh beer on-site to meet the taste of local customers and produces a wide variety of ales, lagers, and other beers. • Sports bars • Geared toward a more diverse base of patrons, more family oriented • Satellite television coverage of the top sporting events helps sports bars to draw crowds

26. Coffee Shops • Originally were created based on the model of Italian bars • Students as well as businesspeople find coffeehouses a place to relax, discuss, socialize, and study • Cyber cafes offering Internet accessibility are a recent trend in the coffeehouse sector • Coffee Wars • Starbucks, Dunkin Donuts, McDonalds, Local Establishments • Gotamist: http://gothamist.com/2014/03/12/best_coffee_shops_nyc.php • NYTimes: http://www.nytimes.com/2014/05/07/dining/where-to-find-serious-coffee-in-new-york-everywhere.html • Thrillist: http://www.thrillist.com/drink/new-york/best-coffee-shops-in-nyc-by-neighborhood

27. Beverage Trends • The comeback of cocktails • Designer bottled water • Microbreweries • More wine consumption • Increase in coffeehouses and coffee intake • Increased awareness and action to avoid irresponsible alcoholic beverage consumption • An increase in beverages to attract more female participation • An increase in the number and variety of “energy drinks”

28. On Line Publications • Nations Restaurant News • Restaurants and Institutions

29. You’re In-charge… • In small groups create a lunch menu for the following managed service operations: • Hospital In-room Dining • Elementary School Cafeteria • High School Cafeteria • Airline In-flight, For-purchase Meal • Senior Living Center (not a nursing home) • Corporate Dining Room • Each meal must include: • Balanced nutritional offerings • Serve methods • Beverage options (2)

30. Until we meet again… Homework consists of reading article to support your presentation. The articles are in the Chapter Summary section of the OpenLab page. Arrive to class on time, dressed professionally for your role as a concierge.