An exploratory study of outsourcing of foodservice operations in Canadian hotels

Outsourcing in hotels has received sporadic attention in the academic literature but remains a key strategic decision, particularly as it pertains to food and beverage operations. The purpose of this paper was to investigate the outsourcing practices of food and beverage operations of selected Canadian independent hotels. Specifically, it attempted to determine: the various outsourcing practices and the hotels' reasoning behind such decisions, the hotels' perceived benefits from outsourcing their food and beverage services, and the factors the hotels considered when contemplating the outsourcing of their food and beverage services. Most of the findings from the interviews with hotel operators were generally consistent with respect to these reasons. However, mixed responses were reported with respect to the factors and drawbacks the respondents believed should be considered before outsourcing. Overall, respondents suggested that decisions were made with respect to financial considerations, ability to focus on core competencies, and strategic intent. They also suggested that the results of the outsourcing decisions were mixed. Overall, it was concluded that the independent hotels were found to outsource their food and beverage service for the many of the same reasons hotel chains do. Challenges with regard to the outsourcing decision are discussed and recommendations are made with respect to continued challenges around the outsourcing question as well as directions that future research could take.