Do you work in the institutional food service industry, or are you interested in joining it? This guide is for you! This sector encompasses a wide variety of establishments, ranging from school cafeterias to corporate restaurants and hospitals. If you’re a manager or are simply interested in this field, then you’ve come to the right place!
In this guide, we'll show you the different methods of managing and operating foodservice operations, as well as the advantages and disadvantages of each.
Definition of foodservice
Contract catering is a sector of the food industry that aims to provide prepared meals to large numbers of people in establishments such as school canteens, company restaurants, hospitals, retirement homes, leisure centers, prisons, etc. These meals can be served on the premises or delivered remotely, according to the specific arrangements of each contract catering service. These meals can be served on site or delivered remotely, according to the specific requirements of each catering service.
Contract catering differs from traditional commercial catering, which focuses on serving meals to individuals in for-profit restaurants or catering establishments. Collective catering, on the other hand, focuses on satisfying the dietary needs of groups of people in a collective setting.
Foodservice establishments are subject to strict regulations governing food safety, hygiene, meal quality and compliance with nutritional standards. They often have to meet specific requirements linked to the health, allergies, special diets or religious beliefs of their guests.
👉 Further information: HACCP approach in foodservice: the complete guide
Direct management by the establishment or local authority
The primary management model for institutional food service establishments is direct management. In this case, the establishment or local government manages everything directly: operations, purchasing, meal preparation, and so on. This management model offers total control over meal quality and allows for easier adaptation to the specific needs of diners. However, it requires significant investment in infrastructure, equipment, and qualified staff. Seventy percent of institutional food service operations are managed directly. These are generally school facilities with cafeterias.

Concessioned management or delegation to a public or private service provider
If management is not handled directly, it is referred to as outsourced management or delegation to a service provider. The service provider may be from the public or private sector, and three operational models are possible: on-site kitchens, central kitchens, and satellite restaurants.
Unlike direct management, the institution in question does not directly handle all aspects of the restaurant’s management. Instead, management is delegated to a public or private service provider that handles everything. This provider takes charge of all activities related to food service, from meal preparation to supply and personnel management. This management model offers professional expertise, reduces the administrative burden on the institution, and provides operational flexibility. The beneficiary organization no longer has to worry about these matters and can focus on other activities.
Cuisineon site
First, there are on-site kitchens. These establishments produce meals that are consumed exclusively on the premises. They can be adapted to the specific needs of the establishment, such as special diets or special culinary requirements.
The advantages of this modality include geographical proximity to guests, enabling fresh, hot meals to be served. In addition, it allows greater control over meal quality and the customization of menus to suit the specific needs of diners. However, this approach can be more costly in terms of investment in infrastructure and kitchen equipment, as well as in skilled human resources to manage and prepare meals.
Example of on-site cooking
Most collèges and lycées directly manage the preparation of meals, which are prepared and consumed on site. Meals are generally prepared in a dedicated kitchen and served to guests in the canteen dining room.
In this type of collective restaurant, the kitchen team is responsible for menu planning, meal preparation, cooking and service. Meals are often designed to meet the nutritional needs of children, taking into account the guidelines laid down by health authorities and current regulations.

Central kitchen
Next, there are central kitchens. These are establishments where part of the business involves producing prepared meals intended for delivery to satellite restaurants or social service organizations. In this model, meals are produced in large quantities in a single central kitchen and then distributed to the various locations where they are consumed. This approach offers advantages in terms of logistical efficiency and cost savings. It allows for economies of scale by purchasing food in bulk and optimizing production processes. Furthermore, it facilitates menu standardization and ensures a certain consistency in meal quality. Thanks to this organizational structure, consistent quality can be guaranteed across all establishments.
Example of a central kitchen
A well-known example of this type of institutional dining service is Compass Group, one of the world’s largest catering and food service companies. Compass Group owns and operates central kitchens where meals are prepared in large quantities according to strict quality and hygiene standards. The meals are then delivered and served in corporate cafeterias, hospitals, schools, convention centers, and other locations. To learn about the other major players in this sector, check out our overview of the largest contract food service companies in France.

Satellite kitchens or restaurants
Finally, satellite restaurants are establishments or premises served by a central kitchen. They can produce certain meal portions on site (starters, desserts, etc.), to meet the specific needs of their clientele.
The advantages of this approach include greater flexibility in adapting menus to guests' specific needs, and the ability to respond rapidly to last-minute requests or changes. What's more, it allows us to maintain close geographical proximity to our guests, thus ensuring the freshness and quality of our meals. As far as restaurant management is concerned, this organization offers great flexibility. However, this approach can be more costly in terms of infrastructure and personnel, as each site must have its own kitchen facilities and team.
Example of a satellite restaurant
An example of a satellite restaurant is a café located in a hospital. The central kitchen is also located in the hospital, but meals are delivered to the café to be served to patients, visitors and hospital staff.
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