Chapter 8: Managed Services

Chapter 8 Managed Services Overview Airlines and Airports Military Elementary and Secondary Schools Colleges and Universities Responsibilities in Managed Services Healthcare Facilities Business and Industry Leisure and Recreation Trends

Overview 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

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 Gate Gourmet International is the largest in-flight foodservices provider—operating in 27 countries on 6 continents from more than 140 catering facilities and producing more than 250 million meals on average annually In-flight foodservice management operators plan menus, develop product specifications, and arrange purchasing contracts

Airlines 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 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: 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 National School Lunch Program: Federal funding is provided in the amount of approximately $2.19 per meal per student 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

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

Campus Dining 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

Figure 8–4 Operating Statement

Responsibilities in 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

Healthcare Facilities 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 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 and Industry (B&I) 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 and Industry (B&I) 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

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

Leisure and Recreation What makes this segment unique and fun is the opportunity to be part of a professional sporting event, a rock concert, a circus, or other event in a typical stadium or arena

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

Trends in Managed Services 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 in Managed Services 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

The End