introduction to hospitality

fifth edition
john r. walker

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
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 Colleges and Universities
• Residence halls
• Sports concessions
• Conferences
• Cafeterias/student unions
• Faculty clubs
• Convenience stores
• Administrative catering
• Outside catering
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
Figure 8–4 Operating Statement

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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
Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.
Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 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

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.
 The End

Introduction to Hospitality Copyright ©2009 by Pearson Education, Inc.

Fifth Edition Upper Saddle River, New Jersey 07458
John Walker All rights reserved.