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Learning Objectives
 At the completion of this chapter you
should be able to:
 Outline the different managed services
segments
 Describe the five factors that distinguish
managed services operations from
commercial ones
 Explain the need for and trends in elementary
and secondary school foodservice
Exploring the Hospitality Industry, 2nd edition © 2012, 2008 Pearson Education, Upper Saddle River, NJ 07458.
John R. Walker 2 All Rights Reserved.

Learning Objectives
 At the completion of this chapter you
should be able to:
 Describe the complexities in college and
university foodservice
 Identify characteristics and trends in
healthcare, business and industry, and
leisure and recreation foodservices


Elements of Managed
Services
 Airlines  Business & Industry
 Military  Leisure &
 Elementary & Recreations
Secondary schools  Conference centers
 Colleges &  Airports
Universities  Travel Plazas
 Healthcare facilities  National Parks


Traits of Managed Services
Operations
 Must meet the needs of both the guest
and the client (institution)
 Guests may not have alternative dining
options
 A “captive” clientele
 Often housed in an organization that
does not have foodservice as a primary
business

Traits of Managed Services
Operations
 Food is produced in batch quantities for
service and consumption within fixed tie
periods
 Volume of business is more consistent
 Easier to predict number of guests
 Portions can be better controlled
 Working hours may be better


Airlines: In-Flight Foodservice
 May provide meals from
their own in-flight business
or use a contractor

 In-flight foodservice is a
complex logistical operation
 Food must be able to
withstand a wide range of
conditions

 LSG Sky Chefs is the
largest airline catering
company

Airlines: In-Flight Foodservice
 In-flight foodservice managers must:
 Plan menus
 Develop product specifications
 Arrange purchasing contracts
 In-flight foodservice is an expense that
must be controlled
 As airlines decrease foodservice onboard,
airport restaurants are becoming more
prevalent

Military
 Feeding military personnel includes
feeding in:
 Clubs
 Dining halls
 Military hospitals
 In the field


Military
 Foodservice sales exceed $6 billion
annually
 Trends include:
 Contracting services for officers clubs
 Moving from fine dining to casual
 Mobile field kitchens
 Prepared foods to heat and serve anywhere
 Providing fast food restaurants on base
instead of mess halls

Elementary & Secondary Schools
 In response to concern about
malnutrition of military recruits in the
1940’s the National School Lunch Act
was passed in 1946
 The program was designed to provide
stronger recruits for the military and use
surplus food that farmers produced


Food Pyramid


Elementary & Secondary Schools
 The National School Lunch Program
(NSLP) feeds nearly 30 million children
annually
 Federal funding is approximately $2.29 per
meal per student
 Focus on good nutrition
 Potential market for fast food chains
 Preparation and product varies among
schools
 Contract companies provide flexibility

Colleges & Universities
 Foodservice operations are complex and
include:
 Residence halls
 Sports concessions
 Conferences
 Cafeterias/Student Unions
 Faculty clubs
 Convenience stores
 Catering


Responsibilities in Managed
Services
 Responsibilities of
the manager are
often greater in
small to mid-sized
operations
 Managers in larger
operations often
have staff to
delegate tasks to

Responsibilities in Managed
Services
 Typical responsibilities include:
 Employee relations
 Human resources management
 Financial and budgeting
 Safety administration and budget
 Sanitation/Foodborne illness prevention
 Training and development


Colleges & Universities: Campus
Dining
 Campus dining is due to clientele living
on campus and eating many of their
meals there
 Budgeting is easy because of payment
plans
 Daily Rate
 Amount of money required per person to
pay for foodservice

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


Health Care Facilities
 The main focus of hospital foodservice is the tray
line
 To increase cash sales and manage profitability,
managers in health care operations have created
multiple options such as:
 Medical malls with retail pharmacies
 Flower and gift shops
 Boutiques
 Retail bakeries
 Coffee carts
 Catering
 Restaurant


Business & Industry (B&I)
 Contractors account for approximately
80% of the B&I market
 The B&I sector is approximately 30,000
units
 To adjust to corporate downsizing and
relocations, the B&I segment has
offered foodservice in smaller units
rather than full-sized cafeterias


Leisure & Recreation
 The segment is unique
and fun because there
are opportunities to be
part of:
 Professional sporting
events
 Concerts
 Circuses
 Other events held in
stadiums

Stadium Points of Service
 Facilities often have several points of
service where food and beverage are
provided including:
 Hot dog stands
 Restaurants
 In the stands
 Superboxes, suites, and skyboxes
 Souvenir stands

Trends
 There are several trends in managed
services which include:
 Balancing rising costs with fewer dollars
 Increased demand for food to go
 Request for 24/7 foodservice
 Increasing use of fresh products


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