Chapter 1 - Systems Approach to a Foodservice Organization

Approximately 98% of all businesses are considered

"small" business, that is, have less than 100 employees.

The commercial foodservice segment includes a broad range of restaurants

(from limited-service to fine dining), lodging, food and beverage, recreation and sports, and convenience stores.

Congregate care:

A community environment with one or more meals a day served in a community dining room. •Many services are provided, such as transportation, a pool, convenience store, bank, barber/beauty shop, laundry, housekeeping, and security.

Contracting:

A contract is defined as an agreement between two or more persons to do or not to do something. •A partnership between the two is necessary to make the contract work the focus must be long term.

Traditional.

About 2,400 to 2,500 square feet, offering a product mix that includes dairy, bakery, snack foods, beverages, tobacco, grocery, health and beauty aids, confectionery, as well as gasoline sales. •Other possible items are prepared foods to go, fresh or frozen meats, various products, and limited produce items; usually have 6 to 12 striped parking spaces and are open 24 hours a day.

Airport restaurants:

Airlines are decreasing onboard foodservice by serving snacks such as pretzels and peanuts and cans of cold beverages and cups of hot coffee.

Sports Events:

Americans are spending more of their leisure time close to home visiting theme parks, sports events, and national parks. •Hot dogs, popcorn, peanuts in the shell, ice cream, soda, and beer have long been the items sold most often at ballparks. Today, however, fans can leave work and go straight to the ballpark to eat dinner that could include deli sandwiches, pizza, fajitas, frozen yogurt, and cheesecake.

The type of ownership chosen is influenced by:

Amount of control desired by owners Management ability of owner Capital needs and availability Liability exposure Tax issues

Assisted living:

Apartment-style accommodations where assistance with daily living activities is provided. •Fills the gap between independent living and nursing home care. •Services include meals, housekeeping, medication assistance, laundry, and regular check-ins by staff.

Permeability of boundaries is the characteristic of an open system that allows the system to be penetrated or affected by the changing external environment.

Boundaries define the limits of a system, and permeability allows the system to interact with the environment.

Colleges and Universities:

College and university foodservice operations provide a variety of food options to students at more than 3,700 colleges and universities across the United States.

What is the key difference in foodservice between these two operations?

Commercial sells food for profit. Onsite - food service is secondary activity. Medical needs are primary.

Cruise Ship Dining:

Cruise ships have a reputation for service of excellent food. •No limit is set on what you choose or how much you eat - the cost of the food is included in the price of the cruise. •Some ships have theme restaurants, such as Italian, Chinese, Japanese, or Southwestern, in addition to the main dining area.

Employee Feeding:

Employee feeding has undergone many changes because of the rising cost of labor and the decrease in corporate subsidies.

• Museums:

Fine dining foodservice operations are becoming more prevalent in large museums.

Zoos:

Foodservice is becoming a profit center in several zoos across the country, and operators are upgrading the food eaten by visitors. •Some zoos self-operate their restaurants and others use contract foodservice companies to provide the food options in their facilities

Independent living:

For people who can take care of themselves in their own homes or apartments, a retirement community, or independent living apartment.

Franchising:

Franchising is defined as the right granted to an individual or group to market a company's concepts.

What is included in input?

Human (labor, skill) Materials (food, supplies) Facilities (space, equipment) Operational (money, time, utilities, information)

Child Care:

Increasing numbers of American children are enrolled in child care outside their homes as more mothers are working.

An open system has a number of unique characteristics:

Interdependency of parts, leading to integration and synergy; Dynamic equilibrium; Equifinality; Permeable boundaries; Interface of systems and subsystems; Hierarchy of the system.

Kiosk.

Less than 800 square feet intended to provide additional revenue beyond gasoline sales. •Sells only tobacco, beverages, snacks, and confectioneries, no groceries; parking only at the gas pumps. •Typical customers are transients and locals stopping in to buy gasoline.

Senior Care:

Many older people do not want to lose their independence by going to a nursing home, but they need assistance in preparing meals

What is included in output?

Meals (quantity, quality) Customer satisfaction Employee satisfaction Financial accountability

Military:

Military foodservice operations include dining hall and food court meal service for troops, hospital feeding for patients and employees, club dining for commissioned and noncommissioned officers, and mobile foodservice units for troops deployed to off-base locations.

Multidepartment, Multisite Management.

Multidepartment management is coming back into the picture for many foodservice operations.

Intermediate care:

Nursing home care for residents needing assistance with activities but not significant nursing requirements.

Small Business Ownership:

Owning a food or nutrition service business is an attractive option for many students.

Partnering:

Partnering is a mutual commitment by two parties on how they will interact during a contract with the primary objective of improving performance through communications. •It is primarily a relationship of teamwork, cooperation, and good faith performance through communications.

What is included in control?

Plans (standing and single-use) Goals Objectives Standards Policies and procedures Programs Contracts Laws and Regulations (state, local, federal)

Limited selection.

Range from 1,500 to 2,200 square feet and are becoming more numerous. •Gasoline and store sales are profitable - they have a broader product mix and grocery offering; gasoline buyers are normally the biggest customer base; striped parking and extended hours are common.

Convenience Stores:

Retail businesses with a primary emphasis placed on providing the public a convenient location to purchase quickly from a wide array of consumable products (predominantly food) and gasoline.

Self-Operation:

Self-operation means that the foodservice operation is managed by an employee of the company in which that foodservice operation is located.

Give an example of a competitive advantage in an onsite foodservice establishment?

Selling fresh fruits and veggies or in season items

Schools:

The National School Lunch Program (NSLP) is a federally assisted meal program operating in more than 101,000 public and nonprofit private schools and residential child care institutions.

There are many companies who will contract with an organization to run the foodservice operations in that organization.

The largest contracting companies are Compass Group, ARAMARK Corporation, and Sodexho, Inc.

Expanded.

The number of stores that have 2,800 to 3,600 square feet is growing fast. •Stores have more shelving for grocery products and more room for fast-food operations and seating; parking is important, with most having about 10 to 20 spaces; hours are extended.

Hyper.

These are very large stores, 4,000 to 5,000 square feet, and usually offer many products and services arranged in departments. •For example, such stores may offer a bakery, a sit-down restaurant area, and a pharmacy; many sell gas; the number of parking spaces is substantial and hours are extended.

Self-operation manager

This manager has full responsibility and authority for all functions within the department and reports to an administrator employed by this same company.

Skilled nursing:

Traditional state-licensed nursing facilities that provide 24-hour medical nursing care for people with serious illnesses or disabilities. Care provided by registered nurses, licensed practical nurses, and certified nurse aides.

Correctional Facilities:

Until 1960, prison foodservice offered only the basics; during this time, prison foodservice directors banded together to form the American Correctional Food Service Association (ACFSA).

Mini.

Usually 800 to 1,200 square feet in size, with emphasis on gasoline sales. Grocery selection is usually sparse and the only food is prepared sandwiches; parking is often only at the pumps; usually open from 18 to 24 hours and customers usually only buy gas

Fine dining restaurants, often referred to as "white tablecloth" restaurants, are characterized by

a high level of attentive table service, expensive-looking furnishings and décor, and fine cuisine. •Staff members in these restaurants work to create a memorable dining experience that communicates elegance and attention to every need of the guest. •Fine dining restaurants also include: •Hotel and motel restaurants •Country club restaurants

A franchisee is

a person who is granted a franchise

The Army & Air Force Exchange Service is

adding more national chains, such as Taco Bell and Manhattan Bagel Co., to food courts on military bases.

Memory includes

all stored information and provides historical records of the system's operations.

Those starting small businesses are commonly referred to as

an entrepreneur.

Human resources are an example of

an input to the foodservice system.

Transformation involves

any action or activity used in changing input into output, such as activities involved in production of food.

The input of a system may be defined as

any human, physical, or operational resource required to accomplish objectives of the system.

In addition, customer and employee satisfaction and financial accountability

are desired outcomes.

Managers also should be concerned about

assisting employees in achieving and coordinating personal and organizational objectives.

Units do not operate in a vacuum

but continually relate with other units.

The style and ambiance of full-service restaurants varies greatly from

casual to fine dining.

What is a system?

collection of interrelated parts or subsystems unified by design to obtain one or more objectives.

Foodservice operations commonly are categorized as either

commercial or onsite foodservices.

Dynamic equilibrium, or steady state, is the

continuous response and adaptation of a system to its internal and external environment, which includes all the conditions, circumstances, and influences affecting the system.

Policies and procedures are part of

control

Additional parts of a system are

control, memory, environmental factors, and feedback.

Food is also being sold in on-base

convenience stores or gas stations.

The linking processes of decision making, communication, and balance are needed to

coordinate system characteristics in the transformation from inputs to outputs

A foodservice manager must control

costs in relation to revenues regardless of the type of operation.

Most airports require foodservice providers to

cover all day, from early morning to late at night, and offer a takeout option primarily for airline crews.

Instead of a straight-line cafeteria with an employee serving the food,

customers serve themselves from individually themed stations, such as salad, soup, pasta, grill, deli, desserts, and beverages.

What is included in linking processes?

decision making communication balance in the transformation from inputs to outputs

Patient census counts are

declining and foodservice managers are streamlining menus, staffing only one or two shifts, and relying on more convenience foods.

Traditional board plans often are being replaced with

declining-balance food accounts, which allow students to pay for only those foods eaten each day.

Greenwash

distribution of misleading or inaccurate claims by a company about its environmental efforts in an attempt to create a positive public image for the company.

Interdependency is the reciprocal relationship of the parts of a system;

each part mutually affects the performance of the others. •This characteristic emphasizes the importance of viewing the organization as a whole rather than the parts in isolation.

Which type of hotel food service operation is the most labor-intensive?

fine dining

Customers are spending more than half of their food dollars on

food prepared outside the home - foodservice operators who deliver high-quality, ready-to-eat foods at reasonable prices will succeed.

The commercial segment includes

foodservices in which selling food for profit is the primary activity of the business

The outputs are the

goods and services that result from transforming the inputs of the system; they express how objectives are achieved.

Another characteristic of a system is

hierarchy.

The onsite foodservice segment includes

hospitals; schools, colleges, and universities; correctional facilities; and military operations.

The inputs of the foodservice system are the

human and physical resources that are transformed to produce the output.

A major goal of ACFSA was to

improve foodservice and reduce food riots started by prisoners unhappy with the quality of food served to them.

The result of effective interaction is integration,

in which the parts of the system share objectives of the entire organization.

The major parts of a system include

input, transformation, and output

Interaction among units of an organization is implied by

interdependency.

The purpose of the Nutrition Services Program for Older Americans, as authorized by Title III of the Older Americans Act,

is to provide nutritious, low-cost meals to homebound persons and congregate meals in senior centers.

Managed care, providing care under a fixed budget, has put pressure on hospitals to control costs -

many hospital foodservice operators are changing and expanding the retail options they provide to staff and visitors.

The primary output in the foodservice system is

meals in proper quantity and quality.

Integration leads to synergy,

meaning that the units or parts of an organization working together may have greater impact than each of them operating separately.

Foods served to inmates must

meet standard dietary guidelines, and all menus must be approved by registered dietitians and are evaluated quarterly

Traditionally, these resources have been referred to as

men, materials, money, and minutes.

Casual dining restaurants are designed to attract

middle-income individuals who enjoy dining out but do not want the formal atmosphere and high price found in a fine dining restaurant. •The atmosphere is casual, the mood relaxed, and the price midrange at these restaurants.

Foodservice operations in this segment have grown from the traditional straight-line cafeteria in each dormitory to

multiple retail venues including food courts, deli, kiosks, and convenience stores.

The NSLP provides

nutritionally balanced, low-cost, or free lunches to more than 31 million children each school day.

Input requirements are dependent upon and specified by the

objectives and plans of the organization.

Employee satisfaction is another important output

of the foodservice system.

Each airport operates differently

operators either bid on their own or enter into a franchising arrangement with a major concession operator.

Financial accountability is an

output applicable to either a for-profit or not-for-profit foodservice organization.

Environmental factors are things that occur

outside of the foodservice system yet impact some component of the system.

A franchisor is a

person who grants a franchise; the right given to another to market the company's concepts

What is included in functional subsystems?

procurement, production, safety/sanitation/maintenance distribution/service

Functional subsystems of a foodservice system include

procurement, production, safety/sanitation/maintenance and distribution/service

Reasons for becoming a multidepartment manager:

professional development, value to the employer, a higher position within the organization, job security and simple survival.

Limited-service, limited-menu restaurants (sometimes referred to as quick-service or fast-food) were designed to

provide a limited number of food items to a customer in a relatively short period of time. •Often the customer orders food at a counter and pays for it before eating. •These restaurants are targeting working professionals and parents who want to have a meal served quickly at a low price.

Hospitals.

provide food for both inpatients and outpatients and their family and friends.

The onsite (sometimes referred to as noncommercial or institutional) segment

provides foodservice as a secondary activity for the business in which the foodservice is located

Competitive advantage:

providing room service in a hospital having higher patient satisfaction scores than other hospitals in the region.

A convenience store is a retail business with primary emphasis placed on

providing the public a convenient location to purchase quickly from a wide array of consumable products (predominantly food) and gasoline.

The objective of production of food is to

satisfy the expectations, desires, and needs of customers, clients, or patients.

The foodservice industry includes a variety of operating practices, including

self-operation, partnering, contracting, franchising, and multidepartment management.

Today, many facilities have

self-serve salad, pasta, and dessert bars and serve favorites like pizza, chicken nuggets, and homemade baked goods.

The position of the Academy of Nutrition and Dietetics (formerly the American Dietetic Association, ADA) is that all child care programs

should achieve recommended benchmarks for meeting children's nutrition and nutrition education needs in a safe, sanitary, and supportive environment that promotes healthy growth and development.

The International Franchise Association (IFA) suggests that the biggest advantage of becoming a franchisee is that it

solves the two biggest expansion problems: people and money.

The overall organizational system has many interfaces with other systems such as

suppliers, government agencies, community organizations, and unions.

These are all interdependent parts of transformation that function

synergistically to produce the output of the system

For example, a college student, pleased with pizza on the luncheon menu of a college residence hall, would be unhappy if

that same item were served at a special function of a social fraternity at a country club, even though in both instances the product may be of high quality.

Many organizations also sponsor home-delivered meals, including

the Visiting Nurse Service and the National Association of Meal Programs, which is subsidized partially by the USDA and the United Way.

Restaurants rely on

the airlines to attract people to their concourse.

A customer at an office snack bar, for example, might be content with a grilled cheese sandwich and tomato soup; that evening at an upscale restaurant, however,

the customer will have quite different expectations of the cuisine.

These foodservice operations provide meals primarily for those directly involved with

the facility such as patients, students, prisoners, and employees; some visitors to these facilities also may be served.

Menus have been updated and facilities renovated to make

the foodservice more like a commercial restaurant operation.

The area of interdependency between two subsystems or two systems is often referred to as

the interface.

Management should be concerned about

the satisfaction of their employees.

A system is composed of subsystems of lower order;

the system is also part of a larger suprasystem.

Customer satisfaction is closely related to

the types and quality of food and services provided and to customer expectations.

In fact, the ultimate system is

the universe.

Managers are realizing that

these operations must be self-supporting and revenue generating.

Parts of systems do not stand alone

they are interrelated.

Feedback includes

those processes by which a system continually receives information from its internal and external environment.

The output is the result from

transforming the input, and it represents achievement of the system's goal.

For example, the decision to open a full-service restaurant serving fine cuisine rather than a limited-menu operation with carryout service would have a major impact on

type and skill of staff, food and supplies for production of menu items, capital investment, and type of foodservice facility and layout.

Full-service restaurants provide

waited table service for customers. •Guests are greeted and seated by a host/hostess and orders taken and delivered by waitstaff. •Payment occurs after the meal is completed and tip is typically given for the service provided by the waitstaff member.

Following are fundamental implications of the term system:

• A system is designed to accomplish an objective. • Subsystems of a system have an established arrangement. • Interrelationships exist among the elements. • Flow of resources through a system is more important than basic elements. • Organization objectives are more important than those of the subsystems.

The U.S. Environmental Protection Agency categorizes sustainability efforts into four areas:

•Built environment •Water, ecosystems, and agriculture •Energy and the environment •Materials and toxins

This traditional definition has been expanded by defining the following four types of resources:

•Human: labor and skills •Materials: food and supplies •Facilities: space and equipment •Operational: money, time, utilities, and information

The control element performs three functions in a system:

•It ensures that resources are used effectively and efficiently in accomplishing organizational objectives •It ensures that the organization is functioning within legal and regulatory constraints; and •It provides standards to be used in evaluation of operations.

The term equifinality is applied to the organization as a system:

•It means that a same or similar output could be achieved by using different inputs or by varying the transformation processes. •In other words, various alternatives may be used to attain similar results.