Enhancing the dining experience in senior living: more and more, facility dining resembles neighborhood dining and offers residents enhanced lifestyles.

In late 2005, AAHSA asked Gene Dolloff, chairman of Morrison Senior Dining and a 35-year veteran of the senior living industry, to study emerging and future trends in senior living from the perspective of a multisite CEO. Over two months, he interviewed more than 15 CEOs. All of these leaders recognized that change was inevitable and that all of their organizations would have to change--but, for the first time, they vocalized a trend that had so far been on the periphery: Their communities will have to become more outwardly focused. That is, retirement communities will have to be a part of their local neighborhoods and offer programs and services that will allow the outside community to interact with residents regularly. Senior living communities unwilling or unable to make this change will slowly find their leadership position eroding, all the CEOs agreed.

Connecting to the Community

Why is outreach important? For several reasons: First, residents want to live in an environment that is vibrant, dynamic, and alive. They want to live in places that facilitate intergenerational experiences; they do not want to feel as though they have been sequestered in a "senior ghetto." Second, well-developed programs and services that attract the general public to the community on a regular basis are a great marketing tool and a pipeline for future residents. Third, such programs generate an additional revenue stream for the organization and, in the era of tight budgets, this can be very important.

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This trend is certainly not new, but it is finally gaining some traction. In studies we have conducted over the past few years, residents have often told us they want to feel that they are part of the larger community--a part of the neighborhood. Several organizations have recognized the implications of this trend and begun to act on it--a notable example being Covenant Retirement Communities, based in Chicago. The organization has dedicated considerable resources to create attractive areas, called "Town Centers," at each of its communities. Regardless of what they are called, such areas are intended to give residents, families, staff, and visitors a place and a reason to congregate.

Developing such hubs is good not only for its social value, but also for the physical and cognitive health of residents. Studies have shown longevity increases by 10% on average if a person is socially active and has friends. At a community in New Jersey, I asked a resident who had recently moved in what he thought of his decision. He said, "I really like this place, but the most amazing thing is that I am making friends again. I never thought that at this age I would be making new friends."

Retail- or hospitality-focused programs become essential to creating such a community center. A caveat: These spaces have to offer the same type of environment and service that the residents enjoyed before they moved in; i.e., they are not institutional-feeling. In choosing a community, prospective residents are not comparing hospitality services and programs with those at another community down the street, but with what is on the street. In fact, today's residents are healthier and more active than ever. Adopting a retail and hospitality mind-set, especially as it relates to dining programs, is critical to a community's success. So how does an organization develop a successful hospitality program?

Dining Is Key

Dining venues often become the nexus of such community centers because, for the residents, the dining area is not just a utility--a place where you go to eat--but a part of the social fabric of the community. It gives people an excuse to meet, connect, socialize, maintain relationships, and gather. Many residents moving into a retirement community feel that they are giving up independence and control over several aspects of their lifestyles, but dining is one area in which they can still exert their independence and control.

"In ever greater numbers, residents today are choosing communities that offer them three attributes: choice, flexibility, and value," says Dolloff. "We believe it is no longer enough to be an expert in dining service; we also have to understand generational experiences and create designs and programs that match and exceed resident expectations."

Having conducted several studies nationally, I have found that residents today are not just looking for any dining venue, but are overwhelmingly seeking facilities and programs that will allow them to maintain their lifestyles, offer customized solutions, and provide value. Such a program begins not with architectural plans or layouts, but with developing a dining program that is well accepted by the residents.

Traditional Programs

Most communities offer some type of meal program to their residents, and the oldest and certainly the most unpopular of these is a "meal per day" program. This program offers residents a choice of one or more meals per day. Such a "use it or lose it" program offers residents no choice, since it forces them to eat at the community and, when they don't, residents don't get the value they paid for. At several focus groups, prospective residents have told us that they would "walk away" if they could find better options elsewhere.

Although a block meal program has a little better acceptance, it is still not a popular choice. Residents are offered a block of meals per month that can be used whenever they wish. These programs offer residents some flexibility, but not value. Residents have complained that if they choose to dine at a meal that has a lower value (even if it is only perceived), or only want light fare rather than a full meal, then they are not getting what they paid for. Despite the quality of the service and the food, this perceived inequity is a major cause of dissatisfaction with such programs.

Flex-Dollar Programs

The most acceptable and popular program with residents today is a dollar-based declining balance program. With this program, the resident is allotted a bank of dollars that expire either monthly or, in most cases, quarterly. These dollars can be used for any dining purchase, including grocery purchases, catering events, and guest/visitor meals. Flex-dollar plans are extraordinarily popular, boasting an outstanding resident value perception.

To manage such a meal plan, a "point-of-sale" system is necessary. The most basic point-of-sale system links the facility's various cash registers or terminals to a central computer to track customer transactions and items sold. More advanced versions keep track of such items as inventory and peak utilization, as well as customer transactions. Point-of-sale systems improve accuracy and ensure that all meals and sales are captured electronically. Such a system can also be used for purchases in the gift shop and beauty salon, housekeeping or maintenance services, transportation, laundry services, etc. In general, the concept of creating a "cashless community" is gaining tremendous popularity among many communities and residents. The system creates a resort-style ambience for residents, and it ensures that all charges are being captured.

To attract users, discounts and customer loyalty programs could be offered, such as additional savings for frequent use and incentives for nonpeak transactions. These enticements would allow the dining venues to generate additional sales and increase repeat business. Typically, residents who participate in these programs overspend an average of 15% above their allocations. This is a win for both the residents and the community, since such revenues can be used to reduce fee increases and provide greater convenience to residents with reduced mobility.

The flex-dollar program could be introduced to the neighborhood community--especially if the incentive is age-qualified, such as a "senior discount." Offering a flexible dollar program to residents might be the first step toward creating a vibrant community center, as discussed earlier. The next step would be to implement concepts that will entice prospective customers to visit and revisit the area.

Venue Options

In working with this trend, dining options would include a cafe or marketplace venue, a casual (open-kitchen) restaurant, and a fine-dining restaurant. In communities that feature all three venues, the split in diners works out as follows: marketplace--65%, casual restaurant--25%, fine-dining restaurant--10%. In communities that feature a marketplace and a fine-dining restaurant, the split in diners is: marketplace--70%, fine-dining restaurant--30%. This information has been tested at various communities nationally over the past four years, and the ratios have remained relatively constant.

The marketplace is generally the heart of the dining program operation. Typically, this location is open for all three meals and in-between meals, allowing residents to choose among several dining options and yet pay only for what they want. This area can be themed to look like a Parisian cafe, a farmers' market, or a multitude of other scenic backdrops, depending on location and preference. The most important elements, regardless of theme, are the ability to offer items prepared upon request and dine-in or takeout options. Ideally, this venue also includes grab-and-go cuisine, with a small grocery store featuring fresh fruit, vegetables, deli meats, and more.

To promote even more choice, the casual "open-kitchen-style" restaurant typically features multiple display stations. Providing entertainment and interaction at each of these stations as part of the dining experience, chefs can custom-prepare dishes and/or infuse the cooking line with selected items. The "open-kitchen" concept, allowing customers to view the cooking process, is also popular both inside and outside the community.

Even more casual venues, such as bars or lounge areas, are quickly becoming a standard offering in these communities. A favorite neighborhood spot, the bar is a wonderful place to enjoy a drink and socialize before dinner. In maintaining a resort-style ambience, the bar also offers quick, casual meals in a relaxed atmosphere.

With all this, a fine-dining restaurant will always remain an important staple. Most communities maintain a dining area where linens and decorative touches create an upscale atmosphere. But still more enhancement of the dining experience is needed. In addition to daily selections, restaurants will need to offer an upscale menu similar to those offered at fine restaurants. This venue provides an opportunity for residents to celebrate special occasions or invite family or friends to dinner.

In Sum ...

With all the changes taking place, one fact remains certain: The dining experience at senior living communities will never be routine again. As communities continue to provide more services that mimic the retail environment, they will start attracting people from the outside, thus creating a true intergenerational experience. From both sides of the generation gap, this is something to look forward to!

Taizoon S. "Monty" Jhaveri is a hospitality consultant and director of design innovation at Culinary Design Service, a business unit of Atlanta-based Morrison Senior Dining. An 18-year hospitality veteran, Jhaveri has been involved in operations, concept development, marketing, brand research, and strategic planning, and participated in the Executive Development Program at Pennsylvania State University's Smeal College of Business. For further information, phone [phone] or visit www.iammorrison.com. To send your comments to the author and editors, e-mail [e-mail].