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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition 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 After Reading and Studying This Chapter, You Should Be Able to:

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

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

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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Airline and Airport Services Competitive factor Logistical operation that is complex Expansion industry Cost for average in-flight meal is $6.00 Foodservice at airports is typically contracted

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

© 2007 Pearson Education, Upper Saddle River, NJ All Rights Reserved. Walker: Introduction to Hospitality Management, 2 nd edition Elementary and Secondary Schools National School Lunch Program feeds 2.6 million children daily Good nutrition is the key Potential market for fast food chains Preparation varies amongst schools Contract companies are offering more flexibility

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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