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Trends in U.S. Hospital, Nursing Home and Residential Facility Foodservice
 

Trends in U.S. Hospital, Nursing Home and Residential Facility Foodservice

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The future of hospital & nursing and residential care foodservice is bright, with foodservice hospital & nursing and residential care expenditures reaching $34.0 billion in 2010, a 3.7% increase from ...

The future of hospital & nursing and residential care foodservice is bright, with foodservice hospital & nursing and residential care expenditures reaching $34.0 billion in 2010, a 3.7% increase from 2009, according to Packaged Facts’ Trends in U.S. Hospital, Nursing Home and Residential Facility Foodservice. Underpinning the largest and fastest-growing sector of the U.S. economy, hospital & nursing and residential care foodservice programs can count on serving an increasing pool of patients, employees, and visitors. For foodservice operators, a shrinking pool of mouths to feed is simply not on the menu, which informs much of our positive outlook.

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    Trends in U.S. Hospital, Nursing Home and Residential Facility Foodservice Trends in U.S. Hospital, Nursing Home and Residential Facility Foodservice Document Transcript

    •    Get more info on this report!Trends in U.S. Hospital, Nursing Home and Residential FacilityFoodserviceFebruary 1, 2011The future of hospital & nursing and residential care foodservice is bright, withfoodservice hospital & nursing and residential care expenditures reaching $34.0 billionin 2010, a 3.7% increase from 2009, according to Packaged Facts’ Trends in U.S.Hospital, Nursing Home and Residential Facility Foodservice. Underpinning the largestand fastest-growing sector of the U.S. economy, hospital & nursing and residential carefoodservice programs can count on serving an increasing pool of patients, employees,and visitors. For foodservice operators, a shrinking pool of mouths to feed is simply noton the menu, which informs much of our positive outlook.However, uncertainty looms in the form of government healthcare spending; theenactment of the Patient Projection and Affordable Care Act; and addressing state andfederal budget shortfalls. We view contract management companies as potentialwinners of a budget crunch. • Among the conclusions drawn in the report, foodservice programs should not only emphasize women’s nutritional and other health-driven considerations, but also be informed about the different ways women view food generally, whether at home or at restaurants. This need is even more pronounced at assisted living facilities. • The report also concludes that a wealth of opportunity exists to tailor foodservice programs around family caregivers. Under these circumstances, a person’s relationship with food may understandably change, and foodservice plays an important role. This explains why those dealing with illness are more apt to use a variety of foodservice types. • And while the presence of restaurant brands can provide hospitals with a health dilemma, we view hospital-based restaurant establishments as a component of foodservice consumers expect. Restaurant brands that forcefully play the health card can offer a win-win proposition for hospital foodservice. • The report also identifies the following trends as “primary” with positive momentum: Room service and individualized patient care; customer service; wellness and nutrition; variety and culinary exploration; sustainability and green initiatives; and the need for speed.
    • • In a unique approach to quantifying market opportunity, the report assesses “meal opportunity” for inpatient and outpatient hospital, assisted living, and hospital employee settings.This Packaged Facts report provides insight and analysis on hospital and nursing andresidential facility foodservice trends. We map key trends and policies shaping salesgrowth and potential, and provide in-depth profiles of hospital foodservice programs andhospital and nursing home foodservice contractors.Key coverage includes:“Share of stomach” analysis“Share of stomach” hospital and nursing and residential facility sales analysis, whichincludes 2005-2012 expenditures trends for the hospital and nursing and residentialfacility segments, with forecasts for 2010, 2011, and 2012.Consumer restaurant trackingVia our proprietary Consumer Spend Tracker, Packaged Facts places consumers’hospital foodservice use within context. This includes directional analysis on recent andintended consumer behavior related to food & foodservice usage; foodservice usageand usage frequency by foodservice category, including limited-service, full-service,snack and beverage, bars and taverns, and institutional foodservice; and targetedanalysis of hospital foodservice and associated user food, diet and health attitudes.In-depth trend analysis and market participant analysisReport coverage also includes: • Targeted analysis of hospital foodservice users and associated food, diet and health attitudes. • Trends related to the presence and growth of restaurant-branded hospital foodservice, supported by analysis of leading hospital foodservice programs. • Trends related to hospital foodservice, including but not limited to room service and individualized patient care, customer service, wellness and nutrition, variety and culinary exploration, sustainability and green initiatives, the need for speed.We also analyze the following market participants: • Three leading hospital foodservice programs, with a focus on foodservice trends, initiatives, and metrics. • Hospital foodservice segments of three leading foodservice contractors (Aramark, Sodexo, and the Compass Group) and one nursing home foodservice contractor (Healthcare Services Group, Inc.).
    • • Share of Stomach: Sales Analysis In this section, Packaged Facts provides market size and forecast for the hospital & nursing and residential care foodservice market, which we assess according to hospital and residential care foodservice segments. • Insight Capsule -- The future of hospital & nursing and residential care foodservice is bright. Packaged Facts estimates that foodservice hospital & nursing and residential care expenditures will reach $34.0 billion in 2010, a 3.7% increase from 2009. Going forward, we believe that sales will rise approximately 4.7% in 2011 and 5.3% in 2012, driven primarily by strong healthcare care industry growth.• -- Underpinning the largest and fastest-growing sector of the U.S. economy, hospital & nursing and residential care foodservice programs can count on serving an increasing pool of patients, employees, and visitors. For foodservice operators, a shrinking pool of mouths to feed is simply not on the menu, which informs much of our positive outlook.• Hospital Users Some 9.6% of age 18+ respondents to Packaged Facts’ October 2010 proprietary survey agreed with the statement, “I have been to a hospital in the past month because of illness or because of illness of someone I know.”• The ambit of this question covers a lot of ground: respondents who answered affirmatively could have been inpatients or outpatients receiving treatment or have been visiting/accompanying inpatients or outpatients. The common nexus, however, involves dealing with illness.• Bottom line: dealing with illness correlates with foodservice use• Stepping back from statistics, we need only try to step into the shoes of someone dealing with illness, either their own or that of someone dear to them. The emotional and physical toll can be tremendous. Schedules already at the bursting point are pushed beyond reasonable limits; order and calm are sacrificed in the face of fear of loss; animal instincts are aroused in pursuit of wellbeing and emotional security.• A strong McDonald’s skew!• Researchers found that the presence of a McDonald’s restaurant in a children’s hospital significantly increased the purchase of fast food. In fact, visitors to a hospital with an on-site McDonald’s were four times more likely to purchase fast food on the day of the survey than visitors to hospitals with no on-site fast-food restaurant.• Overall, 42% of respondents bought fast food on the day of the survey, and McDonald’s was chosen by 82% of fast food purchasers.
    • Table of ContentsChapter 1: Executive SummaryScope and Methodology ScopeMethodology Consumer survey methodologyIndustry Framework and DriversInsight CapsuleFast FactsFoodservice Usage & Outlook TrackerInsight CapsuleFast FactsShare of Stomach: Sales AnalysisInsight CapsuleFast FactsHospitals & Restaurant BrandsInsight CapsuleFast FactsHospital Foodservice TrendsInsight CapsuleFast FactsHospital Program AnalysisCleveland ClinicUCLA Medical CenterUniversity of Washington Medical CenterHospital Foodservice ManagementSelf-management versus contract management
    • A loyal—and growing—following? The tighter the budget becomes, the more outsourcing becomes attractive Bottom line: contracts grow but overall revenue flattensAramarkNorth America Health Care SectorStrategy: partnering in patient care, custom menus, branding Partnering in patient care Custom menus BrandingSodexo Inc North American Health CareHealth care foodservice strategy: high-value custom offerings, nutrition services High-value custom offerings Nutrition ServicesCompass Group PLCCompass Group North America (CGNA)North America Health Care SectorStrategy Personalized Care Retail Branding Retail StrategyHealthcare Services Group, Inc.Sales analysisFoodservice strategyChapter 2: Industry Framework and DriversOverviewA massive captive foodservice audience
    • Employee meal opportunity: $1 billion53,000 locations and countingTable 2-1: Hospital, Nursing and Residential Facility Establishments, 2005-20096.4% of U.S. workforce, with higher than average earning powerTable 2-2: Hospital, Nursing and Residential Facility Employee Earning Power, 2009Healthcare employment trends assure more mouths for foodservice to feed An employment behemoth that is only getting bigger Aging population to drive employment need—and patient foodservice needTable 2-3: Population Projection, Age 65+ and Age 85+, 2010-2025 Nursing and residential care job growth to be twice the rate of hospital employmentTable 2-4: Healthcare Employment Projections, 2008-2018HospitalsOverview and hospital types General hospitals Special hospitals Rehabilitation and chronic disease hospitals Psychiatric hospitals Community hospitalsAlmost a million beds and 40 million admissionsTable 2-5: U.S. Hospitals, by Type and Operational Characteristics, 2009General hospitals predominateTable 2-6: Hospital Facility Establishments, by Type, 2005-2009 Average length of stay stable over time, with demographic variationsTable 2-7: Average Length of Stay Trends, Gender Analysis, by AgeHospital patient meal opportunity: millions and millions servedTable 2-8: Inpatient Meal Opportunity, Community Hospitals, 2000-2008Patient illnesses and treatments strongly determine foodservice approach
    • Male and female admission rationales significantly differentTable 2-9: Surgical Procedures, Type of Procedure, by SexTable 2-10: Hospital Earning Power & Foodservice Labor Expense,by Hospital Type, 2009Nursing and Residential Care Facilities A more labor-intensive environment calling for greater degree of salary allocationAssisted living facilitiesTable 2-11: Nursing and Residential Care Facility Earning Power& Foodservice Labor Expense, by Type, 2009 Residential care licensing types evolving toward “assisted living” terminologyState licensing and regulatory approaches Institutional model Housing and services model Service model Umbrella model Multiple levelsServices, demographics and fees McDonald’s watch out: assisted living meal opportunity may be a billion a year Inpatient meal opportunity outstrips that of hospitals Service assessment Room and board rates An overwhelmingly female demographicTable 2-12: Assisting Living Facilities: Key Demographics, 2009Nursing homesTable 2-13: Nursing Facilities: Key Operational Statistics, 2010A higher degree of assistance required Less than half of nursing home residents can eat independently
    • Table 2-14: Nursing Facilities: Patient Characteristics, 2010Mental health facilitiesChapter 3: Foodservice Usage & Outlook TrackerPackaged Facts’ Consumer Restaurant TrackerTable 3-1: Foodservice Categories and Types February 2010 food retail momentum continues through October 2010Graph 3-1: Consumer Restaurant Tracker: Current Behavior: A Top Line View Looking ahead: Consumers more likely to save & spend on groceries than spend at restaurants Intended behavior portends full-service restaurant pullbackGraph 3-2: Consumer Restaurant Tracker: Next 3 Months: A Top Line ViewSaving money remains at the forefront; intention to save spreadsGraph : Consumer Restaurant Tracker: Future Behavior: Saving MoneyFoodservice usage and usage frequencyOverview Limited-service restaurants Full-service restaurants Snack and beverage concepts Institutional foodserviceTable 3-2: Foodservice Establishment Usage and Mean Use, 2010Foodservice and institutional foodservice usage analysis Note on reading chartsFoodservice category use AgeGraph 3-4: Foodservice Usage in Last Month, by Foodservice Category, Age 2010HH incomeGraph 3-5: Foodservice Usage in Last Month, by Foodservice Category, HH Income,2010
    • Work statusGraph 3-6: Foodservice Usage in Last Month, by Foodservice Category, Work Status,2010 Population densityGraph 3-7: Foodservice Usage in Last Month, by Foodservice Category, PopulationDensity, 2010Institutional foodservice category use GenderGraph 3-8: Institutional Foodservice Use in Last Month, by Foodservice Category,Gender, 2010 AgeGraph 3-9: Institutional Foodservice Use in Last Month, by Foodservice Category, Age,2010 HH incomeGraph 3-10: Institutional Foodservice Use in Last Month, by Foodservice Category, HHIncome, 2010 Work statusGraph 3-11: Institutional Foodservice Use in Last Month, by Foodservice Category,Work Status, 2010 Population densityGraph 3-12: Institutional Foodservice Use in Last Month, by Foodservice Category,Population Density, 2010Hospital UsersBottom line: dealing with illness correlates with foodservice use Relationship with food changes; foodservice plays important roleTable 3-3: Hospital Users, Foodservice Use by Type, 2010Caregiver restaurant usage & food, health and diet attitudes Caregiving pressures may draw caregivers to full-service restaurantsTable 3-4: Caregiver Restaurant Usage Frequency, Family and Fast Food Restaurants,2010 But kids also play a role
    • Caregiving adds a layer of restaurant useTable 3-5: Caregiver Restaurant Usage Frequency, Family and Fast Food Restaurants,Kids, 2010 Caregiving an added burden for parentsGraph 3-13: Caregivers, Influence of Children And for grown childrenGraph 3-14: Caregivers, Influence of AgeHectic life of the caregiver reflected in food, health and diet attitudesTable 3-6: Caregiver Food, Health and Diet Attitudes, Strength of Agreement, 2010Chapter 4: Share of Stomach: Sales AnalysisSummary analysis The future of hospital & nursing and residential care foodservice is bright With significant caveats Contract management may win share Cost cutting versus revenue generationPackaged Facts hospital& nursing and residential care market size and forecastGraph 4-1: Hospital & Nursing and Residential Care Foodservice Sales, 2005-2012National Restaurant Association market size and forecastGraph 4-2: Hospital & Nursing Home Foodservice Sales, Contract Management Share,2001-2009U.S. Economic Census foodservice contractor market sizeTable 4-1: Foodservice Contractor Revenue, Hospital & Nursing Home Share, 2007Foodservice contract management contracts grow while revenue flattensTable 4-2: Foodservice Contract Management Performance, 2008-2009Table 4-3: Foodservice Contract Management, Hospitals Contracts, 2008-2009Growth factorsIndustry growth to drive foodservice increase Hospital spending grew 5.9% in 2009; solid growth ahead
    • Nursing home care expenditure growth rate to increaseGraph 4-3: Hospital and Nursing Home Care Expenditures& Projected Expenditures, 2005- 2019Buoyed by government fundingTable 4-4: Healthcare Expenditure Receipts, By SourceGraph 4-4: Hospital and Nursing Home Care Expenditures & Projected Expenditures,Public Funding, 2009-2014Serving an aging populationTable 4-5: Population Projection, Age 65+ and Age 85+, 2010-2025Table 4-6: Hospital, Nursing and Residential Facility Employee Earning Power, 2009Key hospital performance measure undervalues foodservice HCAHPS survey leaves out foodservice! So what?Meal opportunity analysis Inpatient hospital foodservice meal opportunity stagnates through decadeTable 4-7: Inpatient Meal Opportunity, Community Hospitals, 2000-2008 Meal opportunity highest among female and older patientsTable 4-8: Inpatient Meal Opportunity, Gender and Age AnalysisOutpatient hospital meal opportunity outstripped inpatient opportunityTable 4-9: Outpatient Meal Opportunity,Community Hospitals, 2000-2008Pricing and expenditures Average hospital check on the rise John H. Stroger Jr. Hospital of Cook County: foodservice expense primerTable 4-10: John H. Stroger, Jr. Hospital Of Cook County,2009 Foodservice Expense AnalysisChapter 5: Hospitals & Restaurant BrandsRestaurant brands at hospitals: a tug-of-war pitting health against revenue
    • The dilemma A violation of trust?The bottom line: healthy brands have room to growRestaurant brand penetration above 40%Table 5-1: Frequency of Brand Name Fast Food (BNFF)Franchises at 233 Academically Affiliated HospitalsTable 5-2: Food Outlet Analysis, U.S. Children’s HospitalsBarometer for fast food penetration at children’s hospitals set at 30%1 in 4 children’s hospitals with fast food franchisesFast food presence influences food purchases and perceptions Does food purchasing at a hospital with a McDonald’s differ from those without one? Study parameters A strong McDonald’s skew!Table 5-3: Children’s Hospital Study, Fast Food and McDonald’s PurchasesWhy did they pick McDonald’s? Convenient location and child preferenceTable 5-4: Children’s Hospital Study, McDonald’s Purchase Rationales The Subway alternativeWhere are they now?30,000 McDonald’s in the U.S. but only 32 in hospitalsMayo Clinic: “Live Well” and eat ZpizzaCleveland Clinic: McDonald’s on the way out; GO! Foods on the way in Ten-year battle with McDonalds coming to a close Fruit and walnut salad first offered here GO! foods a healthy option Brands galoreUCLA Medical Center
    • Johns Hopkins HospitalUniversity of Alabama HospitalOther hospitals University of Pittsburghs Magee-Womens Hospitals Childrens Hospital of Philadelphia Massachusetts General Hospital University of Washington Medical CenterFranchise cost analysis Local, independent brands; revenue-sharingHealthier restaurant profiles a better sellContracts that address degree of risk-rewardChapter 6: Hospital Foodservice TrendsHospital Foodservice TrendsOverview: trend prevalence and momentumPrimary trends Room service and individualized patient care Customer service Wellness and nutrition Variety and culinary exploration Sustainability and green initiatives The need for speedSecondary trends Visual stimulation CateringRoom service and individualized patient care Personal dining care: examples Variation in services
    • Customer service! University of Washington Medical Centeruse of feedbackThe need for speed ExamplesFood safety Examples Minimizing disease transmission ExamplesWellness and nutrition: the obvious is actually not obvious Pros to healthier hospital foodservice Cons to healthier hospital foodservice Wellness and nutrition initiatives in the upswing Menu labeling catching onVariety ExamplesCulinary exploration Examples Chefs on boardSpecial discounts and incentives to dine in the hospital Would you make a trip to the hospital just to eat the food?Green initiatives ExamplesVisual stimulation Driven by restaurant competition Food as visual stimulationCateringIntegrated technological systems
    • Building staff collaboration, knowledge, and moraleChapter 7: Hospital Program AnalysisCleveland ClinicOverviewPatient profileTable 7-1: Cleveland Clinic, Demographic Data, Treated DiabeticsFoodservice programs and services Multitude of dining options Ousting chains Pizza Hut leaves; McDonalds stays Management split between Sodexo and AVI Food Systems Room service an extra: get a Founders Suite Foodservice growth trends Emerging trends 2009-10 foodservice initiatives Future initiativesUCLA Medical CenterOverviewDemographicsFoodservice programs and services Signature Dining, anyone? Customized service The backend meets the front end: how it works A diverse menu to meet needs of a diverse population Café Med: serving 1.2 million customers a year Offerings and sales trends Catering at 10 years of age
    • Foodservice growth trends2009-10 foodservice initiatives Foodservice philosophy Overnight café Price increasesFuture initiativesUCLA Medical Center -numbers recapUniversity of Washington Medical CenterOverviewPatient and employee profileUniversity of Washington Medical Center2009 statisticsHarborview Medical Center, Staff EthnicityHarborview Medical Center, Patient EthnicityFoodservice programs and services General, renal, heart healthy, and low fiber/soft menus Room service reduces food and supply costs; limiting overtime reduces labor costs Equipment upgrading Plaza Café: local chefs, expanded offerings Harborview Medical CenterFoodservice growth trendsEmerging trends2009-10 foodservice initiativesFuture initiativesUniversity of Washington Medical Center -numbers recapChapter 8: Hospital Foodservice ManagementSelf-management versus contract management
    • Self-managed hospital foodservice still holds sway A loyal—and growing—following? An issue that stirs passion among the faithfulHospital CEO plays pivotal roleThe tighter the budget becomes, the more outsourcing becomes attractive Cost concerns favor contractors Outsourcing trend among government institutions?Bottom line: contracts grow but overall revenue flattensTable 8-1: Foodservice Contract Management Performance, 2008-2009Table 8-2: Foodservice Contract Management, Hospitals Contracts, 2008-2009Table 8-3: Foodservice Contractor Revenue, Hospital & Nursing Home Share, 2007Aramark CorpFoodservice operations Sales analysisNorth America Business and Industry SectorNorth America Education SectorNorth America Health Care SectorPatient foodserviceRetail foodserviceFacility servicesStrategy: partnering in patient care, custom menus, branding Partnering in patient care Custom menus BrandingTable 8-4: Aramark by the NumbersSodexo IncCorporate Foodservice
    • Education FoodserviceNorth American Health CareNorth American Health Care Foodservice Patient dining services Visitor & staff dining services Retail foodserviceHealth care foodservice strategy: high-value custom offerings, nutrition services High-value custom offerings Nutrition ServicesMarket trends & Sodexo response Health care expenditures Patient consumerism Shortage of health care personnelTable 8-5: Sodexo by the NumbersCompass Group PLCCompass Group North America (CGNA) Sales analysisFoodservice strategy Room for growth It Takes You - Eat Local Leveraging role of single-source provider Selective acquisitionsNorth America Health Care Sector Patient Foodservice Senior Living Foodservice Retail Foodservice Support Services
    • Strategy Personalized Care Retail Branding Retail StrategyTable 8-6: Compass Group by the NumbersSubsidiariesHealthcare Services Group, Inc.Sales analysisFoodservice strategyFuture growthTable 8-7: Healthcare Services Group, Inc. by the NumbersMiniprofilesAVI Food Systems, IncUnidine Corp.Prince Food Systems, Inc.AppendixWorks ReferencedOrder InformationOnline Download - $3,995.00Global Site License - $6,495.00Hard Copy Mail Delivery - $4,395.00Online Download plus 1 Hard Copy - $4,795.00Available immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=6044306 US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004