1. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Chapter 9 Managed Services

2. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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:

3. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 What Are Managed Services? Consists of all food service operations in the following segments Service operations including Leisure and recreation Conference centers Airports Travel plazas Military Airlines Elementary and secondary schools Colleges and universities Health care facilities Business and industry

4. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

5. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

6. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Airlines Competitive factor Logistical operation that is complex Expansion industry Cost for average in- flight meal is $6.00 Foodservice at airports is typically contracted

7. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Military $6 billion dollars each year Trends Contract of officers club Fine dining to casual style Prepared foods (MREs) Use of fast food restaurants on bases

8. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Elementary and Secondary Schools National School Lunch Program feeds 26 million children daily Good nutrition is the key Potential market for fast food chains Preparation varies amongst schools Contract companies are offering more flexibility

9. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Figure 9-4 Food Pyramid

10. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Colleges and Universities Residence halls Sports concessions conferences Cafeterias/student unions Faculty clubs Convenience stores Administrative catering Outside catering

11. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Campus Dining Challenging Use of cyclical menus Budgeting is easy due to payment plans Various meal plans Sodexho

12. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Trends in Campus Dining Branded concepts Privatization Pictured is the logo for a campus dining hall at Hamilton University Campus cards

13. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Healthcare Facilities Hospitals Extended life facilities Retirement centers Major growth segment is the senior citizen market ARAMARK

14. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Healthcare Foodservice Offered Tray Cafeteria Dining room Coffee shop Catering Vending

15. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

16. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Business and Industry (B&I) Contractors Self-operators 80% of B&I is contracted 30,000 units nationwide Compass Group

17. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Leisure and Recreation Foodservices Characteristics Unique and fun Stadiums, arenas and state parks Points of Service Where food and beverage are provided

18. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

19. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Support Staff Positions Sales/Marketing Controller/Audit Financial Analysis Human Resources Training and Development Affirmative Action

20. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Support Staff Positions Safety Administrator Procurement Technical Services (recipes, menus, etc.) Labor Relations Legal Aspects

21. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 Contract Management Client Perspective Disadvantages Some segments perceived as institutionalized Potential for lost contracts

22. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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

23. Introduction to Hospitality, Fourth Edition John Walker ©2006 Pearson Education, Inc. Pearson Prentice Hall Upper Saddle River, NJ 07458 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