Managed Services

Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e Managed Services John R. Walker Chapter 8

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

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

Airlines and Airports • Airlines may either provide meals from their own in-flight business or have the service provided by a contractor • In-flight foodservice management operators plan menus, develop product specifications, and arrange purchasing contracts

Airlines and Airports • Airlines regard in-flight foodservice as an expense that needs to be controlled • To trim costs, most domestic airlines now sell snacks instead of meals on a number of short flights and even on flights that span main meal times • As airlines have decreased in-flight foodservice, airport restaurants have picked up the business, and the number of chain restaurants in terminals have increased

Military • There are about 1.5 million soldiers, sailors, and aviators on active duty in the U.S. • Feeding military personnel includes feeding troops and officers in clubs, dining halls, and military hospitals, as well as in the field • $6 billion dollars each year

Military • The military still provides their own food service when it comes to mobilization • Trends: • Contract of officer’s club • Fine dining to casual style • Menu management • Prepared foods • Use of fast-food restaurants on bases

Elementary and Secondary Schools • National School Lunch Act of 1946: • Federal funding is provided in the amount of $2.72 per student meal • If students receive good meals, the military would have healthier recruits • Such a program would make use of the surplus food that farmers produced

Elementary and Secondary Schools • Much work has gone into establishing the nutritional requirements for children • Much debate has arisen as to whether fast-food chains should enter the schools • Nutrition education programsare now a required part of the nation’s school lunch program

Colleges and Universities • Residence halls • Sports concessions • Conferences • Cafeterias/student unions • Faculty clubs • Convenience stores • Administrative catering • Outside catering

Colleges and Universities • Challenging because the clients 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 • College foodservice operations now offer a variety of meal plans for students • Campuses are seeing tremendous growth in branded concepts, privatization, and campus cards

Managing Managed Services • A foodservice manager’s responsibilities in a small or midsize operation are frequently more extensive than those of managers of the larger operations • Larger units have more people to whom certain functions can be delegated, such as human resources • A number of support staff positions offer career opportunities not only within managed services but also in all facets of hospitality operations and arrangements

Sustainable Managed Services • Hospital foodservice directors often say that offering healthy choices in their cafeterias is a key department mission. • But many operators are quick to add that they still offer the so-called unhealthy options to prevent a drop in participation and revenues. • When providing healthier choices for menus, many organizations have found significantly healthier employees

Health Care Facilities • Health care managed services are provided to: • Hospital patients • Long-term care and assisted-living residents • Visitors and employees • The challenge in providing health care meals is that every patient has different nutritional needs • Ensuring that each meal reach the proper patient is critical • Every meal must be triple checked for accuracy

Health Care Facilities • The service is given by tray, cafeteria, dining room, coffee shop, catering, and vending • The main focus of hospital foodservice is the tray line • Experts agree that because economic pressures will increase, foodservice managers will need to use a more high-tech approach to incorporate labor-saving sous-vide and cook-chill methods

Business & Industry • 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

Business & Industry • 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

Managed Service Other Than Food • Many companies such as Sodexo have recognized the potential to increase their market opportunities by developing service capabilities beyond food. • This also offers hospitality managers the opportunity to expand their career paths as well. • Typically, hospitals, colleges, schools, and businesses outsource other service departments the same as they do food.

Managed Service Other Than Food • These services often come under the area of facilities management and offer the following services: • Housekeeping/custodial/environment services • Maintenance and engineering • Grounds and landscaping • Procurement and materials management • Office and mail services • Concierge services • Patient transportation services (hospitals)

Leisure and Recreation • Stadiums • Arenas • Theme parks • State parks • National parks • Zoos • Aquariums • Venues where food and beverage are provided for large numbers of people

Stadium Points of Service • Leisure and recreation facilities usually have several points of service where food and beverage are provided • Hot dog stands • Restaurants • In the stands • Superboxes, suites, and skyboxes

Other Facilities • Most of the U.S. national parks are contracted to these companies These parks have hotels, restaurants, snack bars, gift shops, and a myriad of other service outlets where tourists can spend their money. • In addition to parks, other venues where food and beverage are offered include zoos, aquariums, tennis tournaments such as the U.S. Open in New York, and professional golf tournaments.

Trends • College and university foodservice managers face increasing challenges • Declining enrollment • Increase in use of campus cards • Increase in food to go • Increase in use of foodservice carts at vantage points • Dueling demands for managers from students and administrators

Trends • 24-hour foodservice • Business increase in healthcare and nursing homes • Proliferation of branded concepts • Development of home meal replacement options • Increasing use of fresh products • Increasing use of social media • Offering more sustainable and local menu items

The End

Managed Services