Chapter 9 Managed Services

1. Chapter 9 Managed Services • Overview • Airlines and Airports • Military • Elementary and Secondary Schools • Colleges and Universities • Health Care Facilities • Business and Industry • Leisure and Recreation • Trends

2. Overview • Managed Services consist of: • Airlines • Military • Elementary and secondary schools • Colleges and universities • Health care facilities • Business and industry • Leisure and recreation • Seniors • Conference centers • Airports • Travel plazas • National parks

3. 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.

4. 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.

5. Airlines • Airlines may either provide meals from their own in-flight business or have the service provided by a contractor. • LSG Sky Chefs is the largest airline catering company. • 270 international airline partners. • In-flight foodservice management operators plan menus, develop product specifications, and arrange purchasing contracts.

6. Airlines • Airlines regard in-flight foodservice as an expense that needs to be controlled. • The cost for the average in-flight meal is just over $7. • As airlines have decreased in-flight foodservice, airport restaurants have picked up the business and the number of chain restaurants in terminals have increased.

7. Military • Feeding military personnel includes feeding troops and officers in clubs, dining halls, military hospitals, and in the field. • Foodservice sales to the military top $6 billion each year. • Trends: • Contract of officer’s club. • Fine dining to casual style. • Prepared foods. • Use of fast food restaurants on bases.

8. Elementary and Secondary Schools • National School Lunch Act of 1946: • A response to concern about malnourishment in military recruits. • If students received good meals, the military would have healthier recruits. • Such a program would make use of the surplus food that farmers produced.

9. Elementary and Secondary Schools • National School Lunch Program feeds 29.6 million children daily. • Federal funding is provided in the amount of approximately $2.29 per meal per student. • Good nutrition is the key. • Potential market for fast food chains. • Preparation varies among schools. • Contract companies are offering more flexibility.

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

11. Campus Dining • Challenging because the clientele 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. • Budgeting is easy due to payment plans.

12. Health Care 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. • To increase cash sales and manage profitability, managers of health care operations have created such concepts as medical malls with retail pharmacies; flower and gift shops; boutiques; retail bakeries; catering; and restaurants.

13. 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.

14. 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.

15. 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

16. 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.

17. 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 • Souvenir stands

18. Trends in Managed Services • College and university foodservice managers face increasing challenges. • Declining enrollment. • Increased use of campus cards. • Increase in food to go. • Increased use of cards at vantage points. • For managers, dueling demands from students and administrators.

19. Trends in Managed Services • 24-hour foodservice. • Increase in health care and nursing homes. • Proliferation of branded concepts. • Development of home meal replacement options. • Increasing use of fresh products.