The Unique Features of Service in Managed Services of Food Services Operations

Posted on November 22, 2013 Updated on December 2, 2013

1. It is challenging to please guest and client

In managed services, the guest in food services operations is referred to whom having the food. The client is referred to who offers the chance to the food provider to run the business in client’s area. The food provider needs to reach the requirements from both the guest and client. It is a challenge because the food provider needs to consider two groups of people.

For instance, in secondary school, the students are the guests and the school and parents are the clients. The students (guest) consider the taste of food and food options. But the school and parents concern about the nutrition of meals. So, the food provider has to provide tasty, multi-flavor and nutritious meals. It is a challenging task.

2. Guests are captive clienteles

The guests do not have an alternate dining option. They need to stay in a control region and their locations may be far away from the city. So, the guests are being captured. They can only have their dining provided by the managed food service provider.

For example, most of the students in primary and secondary schools are restricted to eat at school. So, students will then order the meals from managed food services provider.

3. Food service is not the primary business

Providing food service is to increase a company of organization’s overall quality of services and to provide wide range of services. Food service is not the primary business.

For instance, the primary business in hospital is medical service and the primary business in hotel is accommodation service. In order to provide comprehensive and integrated services, hospital and hotel adopt managed services of food services operations to provide meals to the patients and customers.

4. Food is produced in large quantity

Food provider in managed services serves a large amount of customers. So, Food provider produces food in large quantity to meet the high demand and reduce cost.

For example, CityU canteen serves thousands of students in CityU and canteen in TVB serves thousands of artists. Therefore, those canteens produce the large quantity of food.

5. Volume of business is consistent

Since there is a consistent number of customers, the food provider can easily predict the demand of the number of meals. To compare with commercial restaurants, the demand may be fluctuate and hard to predict.

For instance, in CityU, food provider can predict the demand on weekdays since these are school days and the number of students is nearly the same.

The Challenges and Trends of Food Services Operations on Airlines and Airport

Posted on November 21, 2013 Updated on December 2, 2013

Airlines

1. Taste and Flavor

Taking meal in the sky will affect taste buds, which are about 30 per cent less sensitive than on the ground. To counter passengers’ dulled palates, the airline need to adjust the seasoning, but the amount of reasoning is difficult to adjust.

2. Using cutting-edge technology

Equipping airline cabin crew with tablets and smart phones is the latest step in continued efforts by airlines to increase their on-board service.

For example, Delta Air Lines provide flight attendants with customer-specific information, such as frequent flyer information, connecting gate updates, in order to enable more personalized service and provide passengers with up-to-the-minute flight, weather and connection information. The airline will also store manuals and important reference documentation on the device to virtually eliminate the need for printed materials. Therefore, it provide crew with the latest passenger information, they uses the devices for onboard transactions such as the purchase and order of food and beverages inflight.

3. Cutting cost on food service

Food, baggage, and even drinks were included in the price of a ticket, but in the last decade or so, the model has changed and the service package has become unbundled. Things like food, entertainment, and baggage are being billed separately. For example the budget airline, Air Asian.

4. Outsourcing

Pressure on costs and increased competition has led flight catering companies to re-think their business model. They are thinking of themselves less as caterers and more as experts in logistics. Much of the production activity in kitchens is being outsourced to food manufacturers and suppliers. For example, non-standard catering, such as for special meals, is being outsourced to specialist suppliers. The outsourcing inflight catering companies include LSG Sky Chefs and Gate Gourmet.

5. Control on inventory

For forecasting the food demand, airlines encourage passengers to order food when they booking the flight. It can also higher the food service quality.

An example is Air Canada where they serve Quiznos. It is a familiar brand and there is consistency across their network. Customers can now order their food vouchers directly in the booking path with their flight, and savvy airlines will be marketing their “celebrity chef” branded content at that time to encourage customers to book and order food ahead of time.

Airport

1. Moving food-service closer to gates

Airports and airport concessionaires are becoming more creative in meeting customer needs for foodservice, building foodservice outlets closer to, or even in the midst of, passenger gates, and installing elaborate ordering devices and food delivery service. it is because now the budget airlines not include food and beverage on ticket sales, therefore passengers need to have their meal before take the flight. Moving food service closer to gates can convenience passengers.

2. More diversity of location offer

Airlines throughout the world are experimenting with different ways of serving meals to passengers. These options include buy-on-board food products, buy-at-the gate options, giveaway-at-the-gate and offering a picnic bag rather than tray-set.

3. Advocacy

Airports are increasingly competitive, as travelers seek out travel deals across different routes, airlines, airport amenities and itineraries. By striving to develop a relationship with travelers via solid reputations for service and amenities, airports are able to differentiate their specific location.

In addition, airports must pursue active strategies to target evangelist travelers who are likely to share their experiences with others. Providing interesting, memorable and shareable experiences is the key to making these sorts of shares a reality.

An example used here is Eindhoven Airport’s Facebook VIP program, where select Facebook users were given perks that they then share with their friends, creating a virtuous circle that creates advocates.

4. Offering healthier meals

Nowadays, travelers looking for healthy food should choose vegetarian options, which are naturally low in fat and high in fiber. A survey to be released today of 15 major U.S. airports finds that 83% of restaurants have at least one vegetarian item on the menu. For example  Marché on Frankfurt Airport.

5. Offering local flavored meals

While national restaurant brands still dominate airport terminals, the last 10 years have seen a rise in the percentage of local-dining options as airports have sought to cultivate a “sense of place” by favoring vendors based in the airport’s host city. More airports are adding local food-service brands, forcing national companies to adapt to each location. Airports across the U.S. are adding a more local feel to their concourses in an attempt to offer travelers a better sense of what that city has to offer.

References:

Airlines

Balbi, K. (2010). Travel Trends: Airlines spending less on food in 2010, but are healthier options around the corner?. Retrieved Nov 17,2013, from http://www.gadling.com/2010/04/29/airlines-spending-less-food-2010-healthier-options-coming/

Kollau, R. (2013-09-13). Delta provides cabin crew with Nokia Lumia ‘onboard retail’ smartphones. Retrieved Nov 17,2013, from http://www.airlinetrends.com/2013/09/13/delta-cabin-crew-nokia-lumia-onboard-retail-smartphone/

Airports

Melnick, J. (2012). Local Flavor a Must at Big Airports. Retrieved Nov 17,2013, from http://www.qsrmagazine.com/competition/local-flavor-must-big-airports

The Challenges and Trends of Food Services Operations on Schools

Posted on November 18, 2013 Updated on December 2, 2013

A) Primary & Secondary Schools

In Hong Kong, almost all the primary and secondary school are conduct the school lunch program, which means student need to stay in schools for lunch that subscribed from food providers. Therefore, the food company would be the main or only choice of the students’ lunch.

Trends

1. One-stop lunch catering services

The basis operation of school lunch program is that the companies offer the door-to-door lunch delivery service. After the provider prepare the lunch box in the food production center, it will shipping to the school.

But in recent years, there is the new operational forms-one-stop lunch catering service that provides canteen catering facilities to serve meals on-site rather than delivery the lunch box. They would arrange designated chef on-site cooking for fresher taste and improved the food quality. It is operate as a school canteen and distributes the food to student on-site.

2. Healthy diet are promoted

As overweighed problem of children were become more serious, parent are more emphasis on the healthy diet and prefer nutritious food for their children’s lunch. According to the Department of Health (DH) Student Health Service, there are 219 primary school participate the EatSmart School Accreditation Scheme which about selection of the suppliers with good nutrition quality meal. In order to maintain and increase the competitiveness, more food providers are emphasis on the healthy and nutritious diet for students.

3. Awareness of green lunch

Green message in Hong Kong became more and more popular, service providers are also implement different policy to support for environmental protection. Just like distribute food quantities according to student’s consumption in order to reduce food waste. Also, using the recyclable tableware is increasing such as scientific porcelain utensils and reusable meal boxes to support environmental protection.

Challenges

1. Low birth rate narrows the market

According to Census and Statistics Department, there were 11.3 live births per 1 000 population in 2008 to 12.8 in 2012. The birth rate in Hong Kong has continued to remain at a low level. This situation also indicates that the number of student is decline and it defiantly narrows the school lunch service market.

2. Cost control

As the nutritional value of the diet became more important, the companies also facing the challenge on how to offer the healthy lunch at low price. Since the cost of meal design and nutritious ingredients may higher the production cost. Companies must have a better cost control to maintain the competitiveness among the competitor and also create the competitive advantage.

B) Colleges and Universities

In Hong Kong, the universities canteens are mainly operated by some fast food chain restaurants with a cyclical menu, Such as Café Da coral and Maxims’ Group. School canteen would be the main choice for university students’ dinning cause the convenience and low price factor.

Trends

1. Campus card plan

The idea of campus card is widely use around the foreign countries. In order to facilitate the transition and attract the student take a meal at campus, student can buy the food at discount price with the card that had cash amount credited. It is also useful for the data analysis and management.

2. Multifunctional design

Nowadays, the canteen in university become one of the social places for gathering or study rather than just for a meal. Therefore, the designs of the canteen become more relaxing and comfortable in order to attract the student at school dinning. For example, design with the great room, snack bar, pool table and big-screen television.

Challenges

1. High expectation

As the choices of the university student are not limited at school canteen. Student can choose to dine outside rather than always at campus. Therefore, the companies need to continuously maintain the attractiveness on their food. Like creative menu rather than the boring and repeating menu. Also, make the canteen become the multifunction space also can capture the students.

References:

Department of health, “EatSmart@school.hk” Campaign

http://school.eatsmart.gov.hk/en/template/index.asp?pid=2007&id=2001

http://school.eatsmart.gov.hk/files/pdf/ESAS_all_school_list_bi.pdf

Environmental Campaign Committee

http://school.ecc.org.hk/english/archive/archive_video_promo.html

GovHK-Factsheet

http://www.gov.hk/en/about/abouthk/factsheets/docs/population.pdf

The Challenges and Trends of Food Services Operations on Health Care

Posted on November 17, 2013 Updated on December 2, 2013

The Challenges

1. Increasing demand for low-priced meals

The number of patient in public hospital is increasing recent years. The competition for bed is fierce and it imposes a great pressure for hospital meals. The order of special meals is increased. At the same time, some outsiders may take advantages of the low-priced meals as they dine in the hospital. This increases the intense demand on the low-priced meals.

2. Cost Constraint

The food operators provide menus with a reasonable price and different ranges of choices. The target customers in public hospitals are mainly for hospital staff and the patients. The food operators need to control their cost as they cannot charge a high price for the customers.

3. Time Control

Time control is another challenge for hospital restaurants. The meals should be prepared carefully. A high hygienic standard and strict food-making procedure are needed to be maintained. The food must not affect the patients’ health. The selection on the ingredient is very careful and strict. The operators need to ensure its staff to deliver meals to patients accurately as they need to run 24-hour food service.

Recent Trends of Health Care

1.Healthy choices of food

Providing food menus with high nutrition values and quality for patients comes very important for hospital. The food providers needs put much emphasis on the nutrition value instead of the appearance and the taste. A balanced diet with low sugar, low fat, low sodium and high fibers and protein should be provided. They use fresh ingredients with high nutrition value instead of packaged or prepared food. The food should be designed for different kind of targeted groups like the elderly, the overweight. In order to protect the environment, the hospital operators use environment-friendly materials for packaging.

2.Entry of large-chain food providers

As the competition is fierce these days, the hospitals invite different large-chain food operators like Maxim’s Group, Fairwood, Café de Coral and Starbucks Coffee. Hospitals have a contract with them and they need to provide food with a reasonable price and quality. More brand-named restaurants operate in public hospital and it creates many other choices for the customers and patients.

References:

Operations mangement theory in health care

http://www.ehow.com/facts_7609922_operations-management-theory-health-care.html

Primary challenges of outsourcing in health care agencies

http://www.ehow.com/list_7688600_primary-outsourcing-health-care-agencies.html