Chapter 9 Managed Services Walker Introduction to Hospitality

Chapter 9 Managed Services Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

After Reading and Studying This Chapter, You Should Be Able to: n n n Outline the different managed service segments Describe the five factors that distinguish managed service operations from commercial ones Explain the need for and trends in elementary and secondary food service Describe the complexities in college and university foodservice Identify characteristics and trends in health care, business and industry, and leisure and recreation foodservices Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

What Are Managed Services? n n n n n Airlines Military Elementary and secondary schools Colleges and universities Health care facilities Business and industry Leisure and recreation Conference centers Airports Travel plazas Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Unique Qualities Challenge to please guest and client n Guests are captive clientele (they may not have an alternate dining option) n Foodservice is not the primary business n Produce food in large quantity n Volume of business is consistent n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Reasons for Contract Management n n n n Financial Quality of program Recruitment of management and staff Expertise in management of service departments Resources available Labor relations Outsourcing of administrative functions Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Airline and Airport Services n n n Competitive factor Logistical operation that is complex Expansion industry Cost for average in-flight meal is $6. 00 Foodservice at airports is typically contracted Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Military $6 billion each year n Trends: n Contract of officer’s club ¨ Fine dining to casual style ¨ Prepared foods (MREs) ¨ Use of fast food restaurants on bases ¨ Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Elementary and Secondary Schools National School Lunch Program feeds 2. 6 million children daily n Good nutrition is the key n Potential market for fast food chains n Preparation varies amongst schools n Contract companies are offering more flexibility n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Figure 9 -2 Food Pyramid Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Colleges and Universities n n n n Residence halls Sports concessions Conferences Cafeterias/student unions Faculty clubs Convenience stores Administrative catering Outside catering Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Campus Dining Challenging n Use of cyclical menus n Budgeting is easy due to payment plans n Various meal plans n Sodexho n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Trends in Campus Dining Branded concepts n Privatization n Campus cards n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Healthcare Facilities Hospitals n Extended life facilities n Retirement centers n Major growth segment is the senior citizen market n ARAMARK n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Healthcare Foodservice Offered Tray n Cafeteria n Dining room n Coffee shop n Catering n Vending n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Healthcare n n n 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 Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Business and Industry (B&I) Contractors n Self-operators n 80% of B&I is contracted n 30, 000 units nationwide n Compass Group n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Leisure and Recreation Foodservices n Characteristics: ¨ Unique and fun: n ¨ Stadiums, arenas. and state parks Points of service: n Where food and beverage are provided Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Managed Services Other Than Food Housekeeping/environmental/custodial n Maintenance and engineering n Grounds and landscaping n Procurement and materials management n Office and mail services n Concierge services n Patient transportation services n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Contract Management Client Perspective n Advantages: Experience in size and types of operations ¨ Variety of services ¨ Resource and support available ¨ Hold contractor to higher level of performance ¨ Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Contract Management Client Perspective (cont. ) n Disadvantages: Some segments perceived as institutionalized ¨ Potential for lost contracts ¨ Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Support Staff Positions Sales/marketing n Controller/audit n Financial analysis n Human resources n Training and development n Affirmative action n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Support Staff Positions (cont. ) Safety administrator n Procurement n Technical services (recipes, menus, etc. ) n Labor relations n Legal aspects n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

Trends in Managed Services n Increasing challenges ¨ ¨ Reduction of revenues Increased cost Declining enrollment n Declining balance on debit cards n Increase in food to go n Dueling demands for managers from students and administrators n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.

More Trends 24 -hour foodservice n Increase in healthcare and nursing homes n Proliferation of branded concepts n Development of home meal replacement options n Increased use of fresh product n Walker: Introduction to Hospitality Management, 2 nd edition © 2007 Pearson Education, Upper Saddle River, NJ 07458. All Rights Reserved.