©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker CHAPTERCHAPTER CHAPTERCHAPTER 8 Managed Services

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker What Are Managed Services? Managed Services… –Consists of all food service operations that are classified as not-for-profit

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker What Are Managed Services? Managed Services (cont.)… –Service operations including Military Airlines Elementary and secondary schools Colleges and universities Health care facilities Business and industry

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Unique Qualities Qualities… –Challenge to please guest and client –Guests are captive clientele –Food service is not the primary business –Produce food in large quantity –Volume of business is consistent

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Reasons for Contract Management Contract Management… –Financial –Quality of program –Recruitment of management and staff –Expertise in management of service departments

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Reasons for Contract Management Contract Management (cont.)… –Resources available People, programs, management systems, and information systems –Labor relations and other support –Outsource administrative functions

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Airlines Airlines… –Competitive factor –Logistical operation that is complex –Expansion industry –Cost for average in-flight meal is $6.00 –Food service at airports is typically contracted

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Military Military… –$6 billion dollars each year –Trends Contract of officer’s club Fine dining to casual style Prepared foods Use of fast food restaurants on bases

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Elementary and Secondary Schools Schools… –National School Lunch Program feeds 25 million children daily –Good nutrition is the key –Potential market for fast food chains –Preparation varies amongst schools

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Colleges and Universities Schools (cont.)… –Residence halls –Cafeterias/student unions –Faculty clubs –Convenience stores –Administrative catering –Outside catering

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Campus Dining Dining… –Challenging –Use of cyclical menus –Budgeting is easy due to payment plans –Various meal plans –Sodexho

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Trends in Campus Dining Trends… –Branded concepts –Privatization –Campus cards

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Healthcare Facilities Facilities… –Hospitals –Extended life facilities –Retirement centers –Major growth segment is the senior citizen market –ARAMARK

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Healthcare Foodservice Offered Foodservice… –Tray –Cafeteria –Dining room –Coffee shop –Catering –Vending

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Healthcare Healthcare… –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

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Business and Industry (B&I) B&I… –Contractors –Self-operators –80% of B&I is contracted –30,000 units nationwide –Compass Group

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Leisure and Recreation Foodservices Characteristics… –Unique and fun Stadiums, arenas, and state parks –Points of Service Where food and beverage are provided

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Contract Management Client Perspective Advantages… –Experience in size and types of operations –Variety of services –Resource and support available –Hold contractor to higher level of performance

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Support Staff Positions Positions… –Sales/Marketing –Controller/Audit –Financial Analysis –Human Resources –Training and Development –Affirmative action

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Support Staff Positions Positions (cont.)… –Safety Administrator –Procurement –Technical Services (recipes, menus, etc.) –Labor Relations –Legal aspects

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Contract Management Client Perspective Disadvantages… –Some segments perceived as institutionalized –Potential for lost contracts

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Trends in Managed Services Trends… –Increasing challenges Reduction of revenues Increased cost –Declining enrollment

©2004 Pearson Education, Inc. Upper Saddle River, New Jersey Introduction to Hospitality Management, First Edition John Walker Trends in Managed Services Trends (cont.)… –Increased use of Campus cards Food-to-go –Proliferation of branded concepts –Development of home meal replacement –24 hour food service