Contract Food Service
Companies or Self-Op?
The Importance of Owning Your Data
Own Your Data: Contract Food Service Companies or Self-Op
An Ongoing Debate
There is often a heated debate regarding the preferred food service management style. Should operators self-operate or enlist contract food service companies? Self-operated facilities manage food service in-house, from inventory to production to distribution. Contract food service companies partner with clients to assist them in exchange for a cut of the profits. Each method has its benefits:
SELF-OPERATED FACILITIES
CONTRACT FOOD SERVICE COMPANIES
Help with operational decision-making
Retain all profits internally
Offer access to capital for equipment, construction, or improvements
Establish consistent recipes, menus, etc.
Bring expertise from experienced professionals (e.g., business analysts, food service personnel, etc.)
Prioritize patient satisfaction and customer service
Prioritize financial performance to ensure a solid return on investment
License food service software directly from the vendor
Have the potential to delete historical data if the contract ends
SELF-OPERATED FACILITIES
Retain all profits internally
Prioritize patient satisfaction and customer service
License food service software directly from the vendor
CONTRACT FOOD SERVICE COMPANIES
Help with operational decision-making
Offer access to capital for equipment, construction, or improvements
Establish consistent recipes, menus, etc.
Bring expertise from experienced professionals (e.g., business analysts, food service personnel, etc.)
Prioritize financial performance to ensure a solid return on investment
Have the potential to delete historical data if the contract ends
Crucial Considerations
While both management methods have their challenges, data should always be the primary focus regardless of the chosen style. Contract food service companies typically implement their food service software solutions, meaning operators may not have easy access to historical data they can leverage in decision-making processes. A data management system harnesses valuable information used to assess costs, reallocate funds, and benchmark performance. What happens if the operator cancels the contract? Transitioning to a new system can be disruptive. Implementation can strain staff time, increase the possibility of errors, and incur expenses for new hardware/licenses – especially across multiple sites.
Most of the time, operators weigh the two management options separately and aim to choose one over the other. Is it possible to employ a hybrid of both management styles? Absolutely! Every operation is unique, and leaders must make decisions specific to their needs.
Best of Both Worlds
When considering contract food service companies, operators must establish data ownership. The best way to do this is to employ food service software that isn’t restricted to specific menus/vendors and can integrate with any third party. Agnostic software won’t impede a food service department’s ability to control and compile data.
Moreover, having software separate from contract food service companies offers additional flexibility to select a different company if necessary. Operators can therefore make decisions based on patient/customer needs and what’s in their best interest and avoid undertaking a large software transition project.
Ultimately, the goal is to make data visible, accessible, and digestible; metrics provide clear, hard facts to demonstrate what is working and what may require attention. Consider the following best practices:
1
Utilize integrated solutions to promote seamless automation
2
Maintain a single source of truth (i.e., a data warehouse) to gather information
3
Leverage visualization tools to display info in charts, graphs, etc., for optimal analysis
Final Word
Remember the value of data ownership during the bidding process. You do not have to compromise your source of automation when partnering with contract food service companies!
Seeking a software provider who values data and integration as much as you do? We are here to help! Get in touch to discover what separates Computrition from the rest of the crowd.