Chapters 5, 6, 7 & 8 Managed Services & Beverages

1. Chapters 5, 6, 7 & 8Managed Services & Beverages Prof. Karen Goodlad Fall 2013

2. Overview of Today’s Class Discussion of NY Times Travel Section Review of Homework Standards Distribution Experiential Learning Assignment Lecture Distribution of Accounting in Class “Challenge” Accounting Terms Taboo Poster Session Project Small Group Meeting

3. Overview of Managed Services • 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 • 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

4. "The customer is rarely right. And that is why you must seize the control of the circumstance and dominate every last detail: to guarantee that they’re going to have a far better time than they ever would have had if they tried to control it themselves."Trotter was thought of as a brilliant chef and was admired and respected by many in the industry. His thoughts though are obviously something slightly different that the "customer is alright right" mantra many of us learn and teach. What do you think about it? Charlie Trotter, September 8, 1959-November 5, 2013

5. Marcella Hazan1928-September 29, 2013 “The explanation is that I consider cooking to be an act of love. I do enjoy the craft of cooking, of course, otherwise I would not have done so much of it, but that is a very small part of the pleasure it brings me. What I love is to cook for someone. To put a freshly made meal on the table, even if it is something very plain and simple as long as it tastes good and is not a ready-to-eat something bought at the store, is a sincere expression of affection, it is an act of binding intimacy directed at whoever has a welcome place in your heart. And while other passions in your life may at some point begin to bank their fires, the shared happiness of good homemade food can last as long as we do.”

6. 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

7. Airlines and Airports • Airlines may either provide meals from their own in-flight business or have the service provided by a contractor • In-flight foodservice management operators plan menus, develop product specifications, and arrange purchasing contracts • Airlines regard in-flight foodservice as an expense that needs to be controlled • To trim costs, most domestic airlines now sell snacks instead of offering meals on a number of short flights and even on flights that span main meal times • Shift in foodservice from flights to airports

8. Military • 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

9. Elementary and Secondary Schools 219 • The National School Lunch Program is a federally assisted meal program operating in over 101,000 public and non‐profit private schools and residential child care institutions. • It provides nutritionally balanced, low‐cost or free lunches to more than 30.5 million children each school day in 2008. • School districts and independent schools that choose to take part in the lunch program get cash subsidies and donated commodities from the U.S. Department of Agriculture (USDA) for each meal they serve. • Nutrition education programsare now a required part of the nation’s school lunch program

10. Things to Know: Elementary & Secondary School Food Service Managers • “Eat Smart Play Hard” • NYC Department of Education “School Food” • Summer Programs

11. Colleges &Universities: Campus Dining • Residence halls, Sports concessions, Cafeterias/student unions, Faculty clubs, Administrative catering, Outside catering • 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

12. Healthcare Facilities, Assisted Living & Nursing Homes • 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 • Jobs are Slated to Increase

15. Business and Industry (B&I) • Contractors: Companies that operate foodservice for the client on a contractual basis • 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 • Self-operators: Companies that operate their own foodservice operations • 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

16. Responsibilities in Managed Services • A number of support staff positions offer career opportunities not only within managed services but also in all facets of hospitality operations and arrangements • Estimate budgets • Determine staff and equipment needed for FOH & BOH • Manage the cooking and serving of food • Direct the operation of cafeterias, dining halls and formal locations • Set standards for food storage, preparation & service • Maintain nutritional and sanitary standards • Plan Menus, sample weekly menu

19. Trends in Managed Services • Increase in use of campus cards • Increase in food to go • Increase in use of foodservice carts at vantage points • Contrasting demands for managers from students & administrators • 24-hour foodservice • Business increase in healthcare and nursing homes • Proliferation of branded concepts • Increasing use of fresh products • “Going Green” See Article, “Green and Growing” In Restaurants and Institutions

20. On Line Publications • Nations Restaurant News • Restaurants and Institutions

21. Beverages • Wine, Beer & Spirits Industry • Nonalcoholic Beverages • Bars and Beverage Operations • Beverage Establishments • Liquor Liability and the Law • Trends

22. Wines • Wine is fermented juice of grapes • Still, Sparkling, Fortified • In the United States, the premium wines are named after the grape variety, such as chardonnay &cabernet sauvignon • Champagne only comes from the Champagne region of France, Sparkling wine is different • Champagne goes through a second fermentation in the bottle itself—this process is known as methode champenoise • Fortified Wines are still wine with spirits added

23. Wine Producing Regions • Old World Wine Producing Countries • France • Italy • Germany • Spain • Portugal • Greece • New World Wine Producing Countries • California • North America, including Canada • Australia • New Zealand • Chile • Argentina • South Africa • Israel

24. How to Read a Wine Label • The name of the vineyard • The vintage • The growing area • The grape variety • The producer • Percentage of Alc. • Size of bottle • Warning label • Contains Sulfites

25. Matching Wine With Food • When a dish is cooked with wine it is best served with that wine • White wines: • Poultry, fish, and egg entrees cooked with light sauces • Red wines: • Any game or red meat, some fish or chicken cooked with more robust flavors • Sparkling wines: • Any course—from dry to sweet • Champagne can be served throughout a meal • Sweet wines should be served with foods that are not too sweet

26. Beer • Beer is brewed from water, malt, yeast, &hops • Lager: • Clear, light bodied • Ale: • Fuller bodied, more bitter • Stout: • Dark ale, sweet, strong malt flavor • Pilsner: • Style of beer brewing • Beer and Food Pairing • Hops provides bitterness • identify the “weight” of the beer to pair it with food

27. Spirits • Liquid that has been fermented and distilled • Whisky: Made from a fermented mash of grain to which malt, in the form of barley, is added • Generic name for the spirit first distilled in Scotland and Ireland centuries ago • Scotch Whisky: Smokey Kilns • Irish Whiskey: Not dried, milder • Bourbon Whisky: Corn mixed with rye • Canadian Whisky: From corn • Gin: Made from potatoes with juniper berries added during distillation • Rum:Light is from sugarcane, Dark is from molasses • Vodka: potatoes

28. Spirits Cont. • Brandy: Distilled from wine in a fashion similar to that of other spirits • Cognac: Regarded as the best brandy in the world • Only made in the Cognac region of France—where the chalky soil and humid climate combine with special distillation techniques • Tequila: Agave tequilana—a type of cactus • Cocktails: • Drinks made by mixing two or more ingredients resulting in a blend that is pleasant to the palate—with no single ingredient overpowering the others

29. Bars and Beverage Operations • Bar Setup: • Physical setup of the bar is critical to its overall effectiveness • Each station should have everything it needs to respond to most, if not all, requests • Inventory Control: • The better the control system, the less likely it is that there will be a loss • The beverage operation manager needs to establish what the expected results will be • Beverage Management Technology: • Technology for beverage management has improved with products from companies such as: • Scannabar and AZ Bar America POS • Personnel Procedures: • Procedures for screening and hiring bar personnel • Employees must be experienced in bartending and cocktail serving and also must be honest

30. Beverage Establishments • Restaurant and hotel bars • The profit margin from beverages is higher than the food profit margin • Bars carry a range of each spirit, from well (least expensive) to call (most expensive) packages • Most bars operate on some form of par stock level; for every spirit bottle in use, there is a minimum par stock level of one, two, or more bottles available as a backup • Night clubs • A way to get away from the stresses of everyday life, social environments • High risk business & Requires a considerable time commitment • Owners should study demographics, market attitude, and social dynamics

31. Beverage Establishment Continued • Microbreweries • Combination brewery and pub or restaurant that brews its own fresh beer on-site to meet the taste of local customers and produces a wide variety of ales, lagers, and other beers—the quality of which depends largely on the quality of the raw materials and the skill of the brewer • Sports bars • Geared toward a more diverse base of patrons • People’s tastes have changed, causing sports bars to now offer a more diverse menu • More family oriented, now offering games and family-friendly menus • Satellite television coverage of the top sporting events helps sports bars to draw crowds • Coffee shops, continued…

32. Liquor Liability and the Law • Dram shop law: • Made owners and operators of drinking establishments liable for injuries caused by intoxicated customers • The bar is liable if: • They serve a minor. • They serve a person who is intoxicated.

33. Coffee Shops • Originally were created based on the model of Italian bars • Students as well as businesspeople find coffeehouses a place to relax, discuss, socialize, and study • Cyber cafes offering Internet accessibility are a recent trend in the coffeehouse sector • Coffee Wars • Starbucks, Dunkin Donuts, McDonalds, Local Establishements

34. Beverage Trends • The comeback of cocktails • Designer bottled water • Microbreweries • More wine consumption • Increase in coffeehouses and coffee intake • Increased awareness and action to avoid irresponsible alcoholic beverage consumption • An increase in beverages to attract more female participation • An increase in the number and variety of “energy drinks”

35. On Line Publications • Nations Restaurant News • Restaurants and Institutions

36. Until we meet again… Read Chapter 17, answer all questions that do not require a DVD Review to understand and communicate Accounting Terms handout