HBM 131 1st Edition Lecture 17 Outline of Last Lecture I Red Lion Presentation Outline of Current Lecture I On site Food Service Current Lecture I On Site Food Service A Definition 1 Food outlets in business and industry schools universities hospitals skilled nursing centers eldercare centers correctional facilities recreational facilities such as stadiums and child care centers 2 This can include locations where people are at work play recreation school etc 3 This segment has a long history it was originally known as institutional food service because it was associated with institutions such as universities and hospitals 4 General categories include 1 Business and Industry 2 Education 3 Health Care 4 Corrections 5 The segment was also known as noncommercial food service because originally it was operated by the institutions themselves on a break even basis without attempt to make a profit 6 It was long operated on the assumption that its customers represented a captive market the current perspective reflects the market more as customers who have choices B Major Categories 1 Airlines airports 2 Businesses and Industry 3 Corrections 4 Education 5 Healthcare 6 Military 7 Recreation State parks Stadiums etc 8 Vending C Terms 1 Participation rate compare with measure used in commercial restaurants 2 Self op 3 Contractor 4 Managed services 5 Client D Performance indicators 1 Capture participation rate the percentage of the potential customers who actually use the services 2 Penetration rate basically it is the same as market share 3 Note based on a Food Cost percentage but a cost per person basis Corrections Health care Military Schools E Managed service companies 1 The penetration of managed services companies continues to grow The penetration rates in the major market segments is B I 85 90 Colleges and universities 60 65 Health care 45 50 Schools 20 25 2 The major companies include ARAMARK USA Sodexo France and Compass UK 3 Other companies tend to be smaller regional operators or operators that specialize in a particular segment D Business and Industry 1 Business and industry or business dining provides food service to company employees 2 B I food service is affected by the size of the work force and the health of the economy or employment rate F Trends in business and industry 1 Aggressive marketing 2 Organic growth 3 More options for diners 4 More branded concepts 5 Innovative menus 6 Grab n go G Trends in colleges and universities 1 Healthy segment 2 Universities are trying harder to attract nontraditional students 3 New brands Starbucks 4 More choice 5 Comfortable multi purpose dining areas
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