Challenge to please guest and client
Provide managed service is different with running a restaurant, as a managed service provider, we don't only deal with the guests who enjoy the food and beverage, but also need to deal with the client who own the place where we provide our services.
As clients in different industry may have different preference for the food and beverage provided by the managed service provider, we may need to adjust our service under the clients' requirements and regulations in order to build a long relationship with the client.
However, guests who actually enjoy the managed service we provide may have different view of the service requirement. Satisfying both clients and guests demand is a big challenge for a managed service provider.
For example, provide managed service for educational facilities, especially for primary schools and secondary schools, can be difficult. This is because the guests are mostly teenagers, who usually put taste of the food at top priority, while the clients, schools, may concern the nutrition value of the food instead.
Therefore, how to balance the aspects that guests and clients want from us is challenging.
Guests are captive clientele
For managed service providers, guests are usually captive clientele, which means they may not have other alternatives of dining.
This feature gives managed service providers an advantage in the business that they are able to charge a relatively higher price for their food and beverage. Also, as dining choice is limited, it is easy for the managed service provider or its client to advertise for their brand.
For example, managed service in theme parks usually provide food and beverage at higher price than in the market.
For managed service providers, guests are usually captive clientele, which means they may not have other alternatives of dining.
This feature gives managed service providers an advantage in the business that they are able to charge a relatively higher price for their food and beverage. Also, as dining choice is limited, it is easy for the managed service provider or its client to advertise for their brand.
For example, managed service in theme parks usually provide food and beverage at higher price than in the market.
Also, managed service providers like Luncheon Star is famous within the guests who is captive in school and have no other alternatives.
Food service is not the primary business
For the clients of managed service providers, food and beverage is not their primary business, the aim of providing food and beverage for their guests is to enhance their experience of enjoying the primary business.
Therefore, quality of food and beverage may not be the biggest concern of the clients of managed service, and hence they may not be willing to input too much capital and resources in food and beverage area. This is one of the reason why they prefer using contract management to provide food and beverage in their business to reduce cost.
For example, in airline industry, food and beverage is not the major service they provide. Although it also provides food and beverage to enhance the quality of their service and to give customers a better experience, food and beverage provided tend to be simple, uniform and have limited choice.
For the clients of managed service providers, food and beverage is not their primary business, the aim of providing food and beverage for their guests is to enhance their experience of enjoying the primary business.
Therefore, quality of food and beverage may not be the biggest concern of the clients of managed service, and hence they may not be willing to input too much capital and resources in food and beverage area. This is one of the reason why they prefer using contract management to provide food and beverage in their business to reduce cost.
For example, in airline industry, food and beverage is not the major service they provide. Although it also provides food and beverage to enhance the quality of their service and to give customers a better experience, food and beverage provided tend to be simple, uniform and have limited choice.
Produce food in large quantity
Ability to handle large quantity of food production is important in managed service as there are often constant groups of guests to be served in a period of time.
Therefore, a large quantity of food is needed to be produced and delivered. Batch cooking is a common way to achieve large demand of food in short period of time.
For example, in military area, the dining periods of soldiers are uniform, which means that all of them are likely to dine at the same time, demanding a large quantity of food in a short period. This is one of the challenge for managed service providers.
Ability to handle large quantity of food production is important in managed service as there are often constant groups of guests to be served in a period of time.
Therefore, a large quantity of food is needed to be produced and delivered. Batch cooking is a common way to achieve large demand of food in short period of time.
For example, in military area, the dining periods of soldiers are uniform, which means that all of them are likely to dine at the same time, demanding a large quantity of food in a short period. This is one of the challenge for managed service providers.
Volume of business is consistent
As mentioned above, source and number of guests and their demand of food is relatively more predictable in managed service. With this advantage, the managed service provides are able to have better estimation and allocation of time and resources in their business so the operating cost can be reduced.
In order to have better estimation of demand of service, some managed service provider, for example service providers for educational facilities, may ask the guest to decide whether they want to have food and beverage and what kind of food and beverage they want in advance.
As mentioned above, source and number of guests and their demand of food is relatively more predictable in managed service. With this advantage, the managed service provides are able to have better estimation and allocation of time and resources in their business so the operating cost can be reduced.
In order to have better estimation of demand of service, some managed service provider, for example service providers for educational facilities, may ask the guest to decide whether they want to have food and beverage and what kind of food and beverage they want in advance.
Conclusion
After the research for the unique features of managed services, we further explore different real life examples of the features. By studying the real life examples, we found out the benefits that a managed service provide may get and challenges they may face. For example the cost reduction due to better estimation and the difficulty to balance guests' and clients' demand. It gives us a better understanding in this chapter.
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