1. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Managed Services Chapter 8 John R. Walker Hospitality, Lodging and Food Services Operations

2. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Overview Several features distinguish managed services operations from commercial foodservices: needs of the guest and the institution – In managed services, it is necessary to meet both the needs of the guest and the institution alternative dining options – In some operations, the guests may or may not have alternative dining options available and are a captive clientele host organizations – Many managed operations are housed in host organizations that do not have foodservice as their primary business

3. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

4. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

5. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

6. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

7. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

8. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

9. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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 programs are now a required part of the nation’s school lunch program

10. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved Colleges and Universities Residence halls Sports concessions Conferences Cafeterias/student unions Faculty clubs Convenience stores Administrative catering Outside catering

11. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

12. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

13. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

14. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

15. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

16. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

17. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

18. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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.

19. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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)

20. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

21. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

22. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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.

23. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

24. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved 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

25. Introduction to Hospitality, 6e and Introduction to Hospitality Management, 4e - Walker © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey 07458 All Rights Reserved The End