UNIVERSITI TEKNOLOGI MARA
THE APPLICATION OF
TECHNOLOGY IN COMMISSARY
CATERING ESTABLISHMENTS
AND ITS IMPLICATION TO
FINANCIAL PERFORMANCE
MUNIRAH BINTI HAMID
MASTER IN FOODSERVICE MANAGEMENT
November 2009
I
I
UNIVERSITI TEKNOLOGI MARA
$
THE APPLICATION OF
TECHNOLOGY IN COMMISSARY
CATERING ESTABLISHMENTS AND
ITS IMPLICATION TO FINANCIAL
PERFORMANCE
Munirah Binti Hamid
Dissertation submitted in partial fulfillment of the
requirements for the degree of
Master in Foodservice Management
Faculty of Hotel and Tourism Management
November 2009
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DEDICATION
This thesis is especially dedicated to these special individuals as my inspirations of my
life:
My ever dearest beloved loving and caring parents,
Haji Hamid Haji Saad and Hajjah Ummi Kalsom Abd Flamed
My icons and my love that has sacrifices a lot, always giving me encouragements and full
of emotion supports, for being so considerate, having patience in me and giving me
t
freedom and endless love
My wonderful sisters,
Hilyati and Fadilah Noor
My adorable darlings' nephew and niece,
Muhammad Azhan Hamizan and Nur Husna Akmalina
I apologize for not being able to give all of you my fullest time and attention that I am
supposed to give as a daughter, sister and aunt throughout my exhilarating journey for the
last one and a half year.
However, I promise that I will make it up to those valuable time lost.
My only hope is that my success in academic pursuit will make all of you proud and I can
be at the same level of success as all of you in my future endeavours.
For my nephew and niece, hope that I will inspire and spur you on to even greater heights
that I have achieved. I love all of you so much with all my heart.
Thank you for all of your endless prayers. May all of you be blessed by Allah S. W. T.
Ameen Yaa Rabbal Alameen.
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In
In
Candidate's Declaration
I declare that the work in this thesis was carried out in accordance with the regulations of
Universiti Teknologi MARA. It is original and is the result of my own work, unless
otherwise indicated or acknowledge as referenced work. This topic has not been
submitted to any other academic institution or non-academic institution for any other
degree or qualification.
In the event that my thesis be found to violate the conditions mentioned above, I
voluntarily waive the right of conferment of my degree be subjected to the disciplinary
rules and regulations of Universiti Teknologi MARA.
Name of Candidate
Munirah Binti Hamid
Candidate's ID No
2008271166
Programme
Master in Foodservice Management
Faculty
Faculty of Hotel & Tourism Management
Thesis Title
The Application of Technology in Commissary
Catering Establishments and its Implication to
Ii
Financial Performance
Signature of Candidate
Date
24 November 2009
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ABSTRACT
Abstract of a thesis submitted in partial fulfilment of the requirements for the Degree of
Master in Foodservice Management, Faculty of Hotel and Tourism Management.
The Application of Technology in Commissary Catering Establishments and its
Implication to the Financial Performance
By:
Munirah Hamid
The importance of technology is undoubtedly denied in most industries with no exception
of foodservice industry. This is evident as many food establishments regardless big or
small including commissary foodservice systems of adopting technology in their plant. In
line with that notion, this study empirically investigates the application of technology in
Malaysia commissary catering establishments and to what extent it implicates the
financial performance. Triangulation methods which combined the qualitative and
quantitative were used in collecting the information. The primarily data was gathered
through semi-structured interviews with managers and questionnaire survey with
employees of four commissary catering establishments. Result of the interviewed clearly
indicated that the application of technology has brought vast benefits to commissary
establishments. Technology used not only increased the speed, volume, quality and
cleanliness but helped in smooth running of the food production. Despites these, most
importantly and the remarkable findings of this study is that the applications of
technology has directly boost up the financial performance of the commissary catering
establishment. These findings are further supported with quantitative results whereby
employees of having the same views with the managers. This study results has given
significant indicators not only to those who are already in commissary catering but also to
those individuals or companies who intent to venture into this Malaysia so called infant
stage in foodservice business.
if
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ACKNOWLEDGEMENT
In my academic pursuit, there is no other tougher experience than when I embarked this
thesis which through the entire process of searching, reading, understanding and writing.
From initial stage of this journey, I was in total darkness and blind with the uncertainties.
Nevertheless, Allah knew what's best for His creation and I always told myself that
everything happened with reasons.
First and foremost, I thank Allah for giving me the strength, blessing, perseverance and
good health which enabled me to complete this study. Alhamdulillah, Allah S.W.T has
answered my prayers in getting this "near impossible mission" accomplished. I have also
many parties to express my gratitude for providing the much needed assistance. Without
acknowledging their contributions it would be serious mistakes.
This research would not have been started, nor completed without the financial support
from the Universiti Teknologi MARA (UiTM) through a scholarship. My thank goes to
my advisor Pn. Roslina Ahmad who made me becomes a true fighter and real survivor
through this roller coaster journey. She taught me how to be independent, not to
procrastinate and made my spirit stronger than before.
My deepest gratitude goes to my superb Assoc. Prof. Dr. Haji Mohd Salehuddin Mohd
Zahari as my informal mentor. His pure heart and humanitarian was something that I
really admired and saluted. He has offered his generosity and allows me to hang onto him
without prejudice. He had opened up my minds to be more critical and be more cautious
in my academic writings. He had taught me many things in life, not only the academic
part but also the knowledge for the hereafter. Besides his fussiness, firmed and mental
torture especially during the process but all those very meaningful for my future career
and will be remembered forever. I would always look upon with wonders and admired of
his undying spirit, determination and commitment in giving me the best for my research.
Jv
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Special thanks goes to post graduate coordinator, Dr Salleh Mohd Radzi who had been
very supportive and full of consideration and concerned. Same goes to Assoc. Prof. Dr
Artinah Zainal and Encik Zulhan Othman for sharing their valuable knowledge and
experienced. Appreciation also goes to Syaiful Rizal Jamaluddin, Syauqie Kharip, Andri
Nasrun, Khairul Nizam Tafaruddin, Mohd Zulkifli Yaakop, Mohd Helmi Mat Lazi,
Shirley Ng and W Adnin Addini Alia W Abdullah for their assistance and contribution
during data collection process.
My heartfelt appreciation goes to my close friend, my classmate, my future colleague and
partner in research Fatimah Abd Ghani. With her I learned the real meaning of friendship
and she acts as a sister to me. We have overcome so many horrifying, embarrassing,
tormenting experiences throughout our journey. We have cried, laugh, and struggle
together, consoled each other, and motivating each other, burning spirit to complete our
study in the specific time given. Plus, my deep appreciation goes to her family as allow
me to hang on with their wonderful daughter and gave full of supports in finishing this
thesis. Not to forget my beloved best friends, Aisyah Zarak Au, Siti Noorshuhada Abdul
Aziz, Noorlizawati Jaafar and Wan Fatimah Wan Mohd Nowalid. Their sincere
friendship meant a lot to me.
Last but not least, a countless grateful goes to my parents, Haji Hamid Haji Saad and
-
Hajjah Ummi Kalsom Abd Harried for prayers, doa and providing me with an excellent
upbringing. Your never failed supports and love is priceless. No matter how great of an
-
accomplishment I received, nothing compared with love and cherish given by both of
you. God Bless you abah and ibu.
Munirah Binti Hamid
November 2009
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TABLE OF CONTENTS
TITLE PAGE...................................
PAGE
DEDICATION.................................
CANDIDATE'S DECLARATION.
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ABSTRACT.....................................
111
ACKNOWLEDGEMENT...............
iv
TABLE OF CONTENTS.................
vi
LIST OF FIGURES AND TABLES
VIII
CHAPTER 1 INTRODUCTION .......................................................................................... 1
1 .1
Overview....................................................................................................1
1.2
Background and Issues of Study................................................................1
1.3
Problem in Contextual Setting...................................................................2
1.4
Research Objectives...................................................................................6
1.5
Research Questions....................................................................................6
1.6
Conceptual Framework.............................................................................. 7
1.7
Significance of the Study........................................................................... 7
1.8
Structure of the Study ................................................................................8
1.9
Definition of the Terms..............................................................................9
CHAPTER 2 LITERATURE REVIEW .............................................................................. 10
2.1
Introduction..............................................................................................10
2.2
Commissary Catering Foodservice..........................................................10
2.3
Technology in Foodservice Industry .......................................................16
2.4
Technology and Financial Performance ..................................................18
2.5
Foodservice Industry in Malaysia............................................................19
CHAPTER 3 RESEARCH METHODOLOGY....................................................................24
3.1
Introduction..............................................................................................24
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Research Approach, Contextual Setting and Sampling...........................24
Instrument Development..........................................................................25
3.4
3.5
Data Collection Process...........................................................................29
Assessment of Reliability ........................................................................29
CHAPTER 4 QUALITATIVE ANALYSIS AND DISCUSSIONS...........................................31
4.1
Introduction..............................................................................................31
4.2
Commissary Catering Establishments' Profiles ....................................... 31
4.3
Reasons of Applying/Using the Technology ........................................... 33
4.4
Technology and Production.....................................................................35
4.5
Technology Uses and Financial Performance..........................................38
4.6
Quantitative Analysis...............................................................................40
CHAPTER 5 SUMMARY, IMPLICATIONS, LIMITATIONS,
5.1
RECOMMENDATIONS AND CONCLUSION ............................ 43
Introduction........................................................................... 43
5.2
Summary of Findings............................................................
5.3
Limitations of the Study and Possible Future Research ....... 45
5.4
Implications and Conclusion of the Study............................ 46
Bibliography......................................................
Appendix 1: Guideline Questions for Interview
43
48
Appendix 2: Questionnaire ................................
55
57
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e
LIST OF FIGURES AND TABLES
Items
Page
Figure 1.1: Conceptual Framework
6
Figure 2.1: The Food Product Flow for the Type of Centralized (Commissary) Foodservice System
13
Table 3.1: Original Sources of Items Used in the Interview 26
Table 3.2: Original Sources of Items in Section A 27
Table 3.3: Original Sources of Items in Section B
28
Table 3.3: Original Sources of Items in Section C
28
Table 3.4: Alpha Coefficient of Internal Reliability
30
Table 4.1: Commissary Catering Establishments' Profiles 33
Table 4.2: Mean Scores on the Technology's Benefits 40
Table 4.3: Mean Scores on the Relationship between the use of Technology and Production
41
Table 4.4: Mean Scores on the relationship between the use of Technology and Financial Performance
42
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CHAPTER 1
INTRODUCTION
1.1
Overview
This chapter enlightens on the application of technology in the commissary foodservice
system and its implication on the financial performance. It commences by reviewing on
It
the background of the study and follows by problem statement in the mentioned
situational context. Furthermore, research objectives and research questions are tabulated
in order to determine direction of the study. Conceptual framework is then constructed
whereby independent variables and dependent variables followed by intervening
variables. Significance of the study is to see its implication towards the related
individuals. Structure of the study is to know the overall of each chapter discussed and
reported. It ends by defining selected important definition terms that will make others
understand better this study. All of these are interrelated in the consequent sections.
1.2
Background and Issues of Study
In this present day, everybody talks about technology. Anywhere and anyplace people
are using technology. In fact, human cannot deny the importance of technology in every
field. In actual fact, what is technology? In simple word, technology is the process by
which humans modify nature to meet their needs and wants. Most people, however, think
of technology in terms of its artifacts computers and software, aircraft, pesticides, watertreatment plants, birth-control pills, and microwave ovens, to name a few. But technology
is more than these tangible products. According to Merriam-Webster Online Dictionary
(2009), technology can be defined as the practical application of knowledge especially in
a particular area; a capability given by the practical application of knowledge.
Technology can be found widely used in many industries such as agriculture,
telecommunication, banking, engineering, and not to forget in the food industry. The food
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industry such as restaurants, kitchens and food productions are commonly using
technology in their operation. For instance, technologies in food productions constantly
believe to increase the productivity in foodservice establishments (Rodgers, 2006).
Moreover, the increasing of food production due to the demand from the customers has
lead to many food establishments to use technology including commissary foodservice
systems. The commissary foodservice system also known as central kitchen, central food
production, or food factory or centralizes food production whereby food is prepared and
cooked in the central kitchen and transported to satellites (receiving kitchens) where it is
served to the customers (National Food Service Management Institute, 2002). One
unique characteristic of the commissary foodservice system is that food is transported to
external locations (satellite or receiving kitchens) for service. This system would be the
best choice availability of labor. Although in the past commissary system involved with
the high labor when large numbers of meals are required but the food production is still
slow and incapable to meet the high demand (National Food Service Management
Institute, 2002). This is evidence when commissary establishment failed to meet the
substantial demand of food production (Nonino and Panizzolo, 2007).
With the emergence of technology to the industry, many commissary food establishments
(Croes & Tesone, 2004) have adopted it in their plant. Rodgers (2006) contended that
high volumes of production which require the application of sophisticated foodservice
technologies and distribution logistics. She further noted that the application of
technology in cooking equipments and preparation techniques tremendously increased
the food production (Rodgers, 2008). Creed (2001) on the other hand posit that highly
technological in logistic need to be applied when food to be transported.
The application of technology in the commissary foodservice system involves high
investments to the establishments. This is due to the high cost in the installation of the
equipments that often sophisticated and with advanced technological design. In addition
to that, food safety and distribution of prepared foods should be concerned with the
installation of the advance technological equipment as there are many critical points in
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mass food production where the contamination could be occurred. With that, the
establishments need to employ a food microbiologist or someone knowledgeable about
safety techniques with specialized equipment in mass food handling which is often costly
(Palacio and Theis, 2009). They argued that the application of technology in the
commissary system is very risky to the establishments if there is no proper research and
planning done before applying them to their operation. Rodgers (2007) on the other hand
noted that increasing in food production has given a significance impact on the revenue
of the establishments.
To date, most available studies on commissary system are more concerns on food quality
(Hitec, 1994; Luning and Marcelis, 2009); food hygiene and food safety (Worsfold and
Griffith, 2003; Amjadi and Hussain, 2005; Rodgers, 2006); productivity (Kumar and
Basu, 2008); protective cultures (Rybka et al, 2001; Rodgers, 2003); skills and
responsibilities (Baum, 2006). Beside those studies, there are also researches on supply,
development and/or commercialization of new technologies has been studied
(Chesbrough and Crowther, 2006; Maula, Keil and Salmenkaita, 2006; Vanhaverbeke
and Cloodt, 2006). Nevertheless, there are only few studies looked into the relationship
between the application of technology in the hotels and their financial performance
(Sharma and Upneja, 2005; Orfila-Sintes and Mattsson, 2007) and none has looking from
commissary catering prospective. In fact, no such research available in Malaysian
context.
Having discussed on the study gap, the subsequent section discussed the issue related to
the present study which is focusing on commissary establishment in Malaysia.
1.3
Problem in Contextual Setting
Commercial Foodservice in Malaysia plays an important role in contributing income to
the country as the revenue forecasted will be increased from RM 38, 064 million in 2005
to RM 40, 550 million in 2006 (Ministry of Finance, 2006). According to Euromonitor
(2006), the number of commercial foodservice outlets grew by nearly four percent in
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2004, to reach over 23, 046 from 22, 266 units in 2003. Commercial foodservice
operations are designed to earn revenues in excess of expenses so as to provide a
financial return to investors and owners. Key segments of the commercial category are
eating and drinking establishment. One of the segments in commercial foodservice is
chained restaurant, such as fast food and pizza full service (Euromonitor, 2006), which
continue to be the fastest growing and strengthening their presence. Chained fast food
outlets accounted for more than 96 percent of the 1375 fast food outlets in 2004
compared to independent outlets. In line with these notions, many of foodservice
establishments have implementing commissary foodservice system to fulfill the demands
from the customers.
Similar to other foodservice system, technology advancement is also applying in many
commissary productions in this country. The commissary foodservice in Malaysia is used
in wide array of establishments such as airline foodservice, catering foodservice, and
hospital/healthcare foodservice. In airline foodservice for instance, there is a central
production facility on or nearthe airport property where the food is prepared, pre-plated,
sealed, and either chilled or frozen. The pre-plated meals are placed in closed carts, and
the trays with the cold items are assembled and placed in closed carts. These carts are
transported by truck to the airplane (satellite), where the food is placed in the galley. The
plates requiring rethermalization are placed in convection ovens by the caterer. Once the
airplane is airborne, the stewards assemble and distribute meals. Assembly usually only
consists of placing the passengers' choice of hot entrée on the tray that contains all of the
cold items. Once the airplane lands at its destination, the caterer sends a truck to the
airplane to get the used carts, trays, and dishes and returns them to the central food
production facility for washing and sanitizing. At the same time, the airplane is supplied
with the meals required for the next flight. On the same note, manyfat food restaurants
and casual restaurants are also using commissary foodservice system in their operation.
Mc Donalds, Secret Recipe, and Delifrance are the examples of it.
In the commissary kitchen, the technology involves are related to storing, preparation
techniques, cooking equipments, and logistics (distribution). For instance, the technology
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in storing such as blast chiller and freezer are a must in every large commissary
establishments. Likewise, the steam jacketed kettle and tilting pan are examples of the
equipments that involve of technological advance in the commissary operation.
The implementation of technology in many commissary establishments is probably
because it increases the productivity, quality, safety as well as hygiene and cleanliness. In
addition, the adoption of advancement technology in many production facets is believed
to reduce the operation and labor cost despite, these technologies applied requiring high
cost of the initial investment and maintenance by the establishments. Besides reducing
the cost, it could be also argued that the implementation of technology in the commissary
kitchen with the intention to increase the financial performance. Based on the previous
study undertaken in oversea the application of technology in the hotels and fast food
restaurants has given significant impacts to their financial performance (Sharma and
Upneja, 2005). Nevertheless, there is no reported study on catering commissary kitchen
related to the financial performance available in Malaysia. In other word to what extent
that the application of technology in catering commissary system improves the
establishments' financial performance is not known or widely research. Therefore, this
study is to examine the stated matter
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1.4
Research Objectives
In regards from the previous mentioned matters, this research is to investigate to what
extent the application of technology influence the financial performance in catering
commissary foodservice system in Malaysia. This main objective is further supported by
four sub-objectives:
ROt: To examine the reason of using technology in catering commissary foodservice
system.
R2:
To identify whether the uses of technology increase the production in catering
commissary foodservice system.
R3:
To investigate to what extent the technology uses increase the financial
performance in catering commissary foodservice system.
1.5
Research Questions
After research objectives have been developed, the researcher need to formulate several
research questions to clear up the direction of the study. In relation to that, four research
questions are formulated.
RQ1:
What is the reason of using technology in catering commissary foodservice
system?
RQ2:
How far the uses of technology increase the production in catering commissary
foodservice system?
RQ3: To what extent the technology uses increase the financial performance in catering
commissary foodservice system?
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1.6
Conceptual Framework
Further supporting the direction of the study, the conceptual framework which shows the
relationship between the variables interest is illustrated.
Independent Variable
Moderating Variable
Uses of Technology
S
• Preparation techniques
• Cooking equipments
• Storage
• Logistic
Production
Dependent Variable
Financial
performance in
Commissary
Catering
Establishments
• Speed
• Volume
• Quality
• Cleanliness
Figure 1.1: Conceptual Framework
1.7
Significance of the Study
The significant of this study can be looked from two aspects. On the theoretical aspects,
this study will provide some useful insight to the foodservice organizations on the benefit
of the application of the technology particularly in the catering commissary system. On
the other hand, this also would help catering commissary operators whether worth to
invest the use of technology in their operation.
Result of the study also will supports and assists the foodservice operators, restaurateurs
and caterers in bolstering the efficiency and productivity in their food production with the
application of technology. In addition, this study indirectly will educate particularly the
catering commissary managers to understand technology advancement which can be
applied to their plant.
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From the academic perspective, this study would extend and expand the body of
knowledge and literature in the application of technology in the catering commissary
system and its implication on financial performance. In addition, this study also provides
a benchmark and basis for future direction of other potential studies in this realm.
1.8
Structure of the Study
The structure of the study is arranged as follows and is position on five important
components represented as the chapters. The introductory chapter identified and
discussed the relevant issue or the problem setting related to the topic of concern. A
conceptual framework and the specific objectives and questions involved with this study
are also included in this first chapter.
Chapter Two then reviews the relevant literatures to the subject matter of the study and
this is discussed and argued between various researchers. The first section elaborates the
understanding on the concept of commissary catering foodservice system. This is
followed (section two) by the explorations on the technology in the foodservice industry.
The relationship between technology and financial performance is reviewed in the section
three. Section four ends the chapter by reviewing the previous studies relating the
Malaysian foodservice industry.
Furthermore, for Chapter Three, it presents the analyses of the study. The respondents'
profiles and the three research objectives are described in this chapter. The research
approach, method and survey employed in this study are described. Here guideline for
interviews and questionnaires are designed corresponding to the conceptual framework of
the research.
Moreover, the informative records are analyzed after obtaining from interviews.
Likewise, data obtained from respondents are evaluated after keying by using SPSS.
Results of the surveys are then shown and interpreted and presented in Chapter Four. A
summary of the findings and implications, as well as limitations and recommendations
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for the future research are presented in Chapter Five. Besides that, the researcher tries to
give some suggestions on how the conclusion can be applied in management practice, as
well as bring forward some research limitations. List of bibliographies and references
used for this research and appendices are also included for future use.
1.9
Definition of Terms
1. Technology - the practical application of knowledge especially in a particular
area; a capability given by the practical application of knowledge (MerriamWebster Online Dictionary, 2009).
2. Commissary System - a central production kitchen or food factory with
centralized food purchasing and delivery to off-site facilities for final preparation
(June Payne Pallacio, 2005).
3. Financial Performance - a subjective measure of how well a firm can use assets
from its primary mode of business and generate revenues. This term is also used
as a general measure of a firms overall financial health over a given period of
time, and can be used to compare similar firms across the same industry or to
compare industries or sectors in aggregation. (Investopedia, 2009).
4. Productivity - a measure of output from a production process, per unit of input.
For example, labor productivity is typically measured as a ratio of output per
labor-hour, an input. (Wikepedia, 2009). It is often measured in financial a term
that is as the relationship of the cost of production versus sales revenue generated.
(Clark, 1997).
5. Speed of Production - Speed is the rate of motion, or equivalently the rate of
change of distance. Speed is a scalar quantity with dimensions length/time; the
equivalent vector quantity to speed is velocity. Speed is measured in the same
physical units of measurement as velocity, but does not contain the element of
direction that velocity has. Speed is thus the magnitude component of velocity.
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7
CHAPTER TWO
LITERATURE REVIEW
2.1
Introduction
This chapter begins with the literatures related to the commissary catering foodservice
system. The reason of looking at this is to gain a better understanding on the nature of
this system in the food service industry. This is discussed in the first section of this
chapter. As the application of technology is important in any foodservice operation, the
review on this matter is highlighted and discussed in the section. Subsequently, the
relevant past studies related to the financial performance are reviewed in the third section
of this chapter. This is follow with the scenario of Malaysian Food service industry which
is discussed in the final section of this chapter.
2.2
Commissary Catering Foodservice
Before we proceed on the commissary catering foodservice, it is vital first to discuss and
understand the types of foodservice system. According Payne-Palacio and Theis (2009)
t.
the foodservices that operate in similar manner, or common elements can be grouped into
specific types of systems depending where the food is prepared in relation to where as it
& served, the time span between preparation, and service, the forms of foods purchased,
methods of holding prepared foods, and the amount and kind of labor and equipment
required. They named four types of foodservice systems which are conventional, readyprepared (cook/chill or cook/freeze), assembly/serve and commissary (central production
kitchen).
According to National Food Service Management Institute (2002), the most common
foodservice system is a conventional foodservice. In this system, ingredients are
assembled and food is produced onsite, held either heated or chilled, and served it to the
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customers. Food is purchased all along the food processing continuum. For example,
some items may be purchased from the end and require full preparation. Other items may
be purchased with some processing, while others may be purchased fully prepared, only
requiring portioning and service. Usually, the conventional foodservice systems are used
extensively in schools, restaurants, colleges and universities, and cafeterias. Because of
the current labor shortage, many of these conventional foodservice systems are using
more and more food products from the complete end of the food processing continuum.
In ready - prepared foodservice system, food is produced onsite, held chilled or frozen,
reheated, and served to customers on site. Food production can be scheduled at any time,
since food is prepared and stored frozen or chilled for later rethermalization and service.
This system also allows multiple-day production to be done at one time. For example, if
chili is on the menu two times in the next 30 days, the total amount of chili can be made
at one time, which reduces labor costs. In this system, food is purchased all along the
food processing continuum. Some items for instance may be purchased from none end,
and require full preparation. Soups, entrees, casseroles, and sauces would likely be fully
prepared on site from ingredients purchased at none end of the food processing
continuum. Other items may be purchased with some processing, while others may be
purchased fully prepared, only requiring portioning and service (National Food Service
Management Institute, 2002).
The term "kitchenless kitchen" as other name implied to the assembly-serve foodservice
IN
system. This is owing to no on-site food production are required. According to PaynePalacio and Theis (2009), many of foodservice establishments confronted with high labor
costs and few skilled employees turned to this system to relieve the labor situation. Often
with this system, "single-use" disposable tableware is used, thus eliminating the need for
a dishwashing unit. National Food Service Management Institute (2002) on the other
hand explained that there are many choices in foods that can be purchased that only
require heating and serving. In addition, the food in this system is purchased at the
middle to complete end of the food processing continuum. The purchased food is then
*
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can be stored either frozen or chilled for later use. It is later can be portioned, reheated,
and served to customers.
The last type of foodservice system is recognized as commissary foodservice. It is also
known as central kitchen, central food production, or food factory that centralizes the
food production. According to National Food Service Management Institute (2002), in
commissary foodservice system, the food is normally transported to satellites (receiving
kitchens) where it is served to customers. In addition, the Institute explained that the food
usually is purchased near the none end of the food processing continuum and food
preparation is done in the central kitchen, which results in lower food costs (National
- Food Service Management Institute, 2002). This can clearly be seen in Figure 2.1. PaynePalacio and Theis (2009) argue that labor costs are lower in this type of system because
of the centralization of food preparation. They further argue that this foodservice system
takes advantage of economies of scale, so it is most effective when mass food production
is required.
Kahraman, Cebeci and Ruan (2004) on the other hand described that the commissary
system as a large, central production kitchen with centralized food purchasing and
delivery of prepared foods to service (satellite) units located in separate, remote areas for
final preparation and service. They further contended that typical users of this system are
airline caterers, large city school systems and franchised or chain restaurant organizations
that provide food for their various outlets and vending companies.
One unique characteristic of the commissary (centralized) foodservice system is that food
is transported to external locations (satellites or receiving kitchens) for service
(Kahraman, Cebeci and Ruan, 2004). These researchers noted that two factors need to be
considered about the transported food are temperature and packaging. Food can be
transported both cold or hot, which impacts the delivery and the equipment needs in the
receiving kitchens and in transportation. The food can be sent to the receiving kitchens
bulk or pre-plated, which impacts the equipment and labor needed at the receiving
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kitchen. In addition, food production and delivery schedules must be coordinated (PaynePalacio and Theis, 2009).
FOOD PROCESSING CONTINUUM
'II S -
ilone
CENTRALIZED
FOODSERVICE SYSTEM
FOOD PRODUCTION
STORE
CHILLED
STORE
FROZEN
a
RECEIVING
KITCHEN
RECEIVING
KITCHEN
RECEIVING
KITCHEN
HOLD
HEATED
RECEI\!ING
KITCHEN
RECEIVING
KITCHEN
SERVE TO
CUSTOMERS
SERVE TO
CUSTOMERS
1
SERVE TO
CUSTOMERS
SERVE TO
CUSTOMERS
SERVE TO
CUSTOMERS
Figure 2.1: The food product flow for the type of centralized (Commissary) foodservice system
S
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NG
Minor and Cichy (1996) enlightened that the commissary foodservice systems are
characterized by food production in a central location with distribution to the service
outlets. This foodservice system has proliferated because of technological developments
in production equipment. They further noted that expensive multifunction equipment is
often required in the commissary for preparation of foods from the unprocessed state.
Besides that, they noted the space requirements at the service sites are minimized because
only limited production equipment is required.
Most recent researchers unanimously agreed that the commissary foodservice system is
also referred to commissary catering system (Clark, 1997; Creed, 2001; Wilson, Murray
and McKenna-Black, 2001; Worsfold and Griffith, 2003; Kahraman, Cebeci and Ruan,
2004; Riley, 2005; Chow, Lo, Sha and Hong, 2006). Kahraman, Cebeci and Ruan (2004)
for instance argued that the aim of commissary catering systems developed over recent
years is to overcome the problems of skilled labor shortage and reducing operational
costs by industrializing the catering operation. They further added that catering is
primarily concerned with the provision of meals, food and refreshments fully prepared
away from people's homes.
Davis, Lockwood and Stone (2006) stated the commissary catering industries have
diversely spreads into many segments in the foodservice organizations. This is including
the fast food catering, industrial catering, function catering, hospital catering, airline
catering and school catering and many more. Walker (2006) in fact argued that the food
and beverage division of a hotel that is responsible for arranging and planning food and
beverage functions for conventions is also consider as commissary catering.
Based literature, there were various studies relating to commissary catering foodservice
(Crow, 1995; Silverstone, 1995; Eves, Corney, Kipps, Noble, Lumbers and Price, 1996;
Wilson, Murray and Black, 2000; Kivela, Lam and Inbakaran, 2002; Rodgers, 2003;
Guilland, 2003). Crow (1995) looked into the quality and value for money produced
commissary kitchen in the prison. He explained that the food is obviouly a critical factor
in prison life and described this element as an "essential core service". The researcher
lT1
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