RETAIL BUSINESS PLAN PROJECTFOOTBALL FRIDAY THEME DAY

Jordan Scheinberg

Aramark Dietetic Intern 2016-2017

Lifebridge Northwest Hospital

Statement of Purpose

To provide the Dietetic Intern an opportunity to write, develop and implement a retail business plan, and to properly evaluate the results.

Mission Statement

Lifebridge Health Mission: To always create exceptional experiences for

those we serve. 1

Northwest Hospital Mission: Exists to improve the well-being of the

community by nurturing relationships between the hospital, medical staff and our

patients. 2

Quest to be the best!

Aramark Mission: To deliver experiences that rich and nourish

lives. 3

Company Summary: Lifebridge Northwest

Northwest Hospital is a community, acute-care general hospital located in Randallstown, Maryland

It was established in 1962 as Liberty Court Rehabilitation Center, and in 1963 became Baltimore County General Hospital. 2

In June of 1993, it changed its name to Northwest Hospital.

In October 1998, LifeBridge Health was created. 1,2,4

Owned and operated by Lifebridge Health- provider of health-related services, wellness and fitness services and educational programs1,2

Northwest is an all-private room hospital that has 254 beds. 2

Aramark & Northwest Hospital

2 year guaranteed net budget contract (GNB) with ARAMARK from January 2015- January 2017

Patient Services

Retail Services

Catering

Clinical Services

Business Goals & Objectives

: Increase Old Court Café sales Objective: Increase total lunch café sales by 8% compared to the

lunch sales from the previous payday Friday- October 21, 2016

: Increase café traffic Objective: Increase retail lunch sales traffic by 8% compared to the

lunch traffic from the previous payday Friday- October 21, 2016

: Increase checks average Objective: Increase lunch checks average by 8% compared to the

lunch check average from the previous payday Friday- October 21, 2016

Market Analysis: Local Competitors

Market Comparison

Old Court Cafe

McDonald’s KFC Wendy’s Sonic Popeye’s Checkers

Cheeseburger $4.29 $3.99- Big Mac $4.19- DavesHot n Juicy Cheeseburger

$3.89- Sonic Cheeseburger

$2.99-Checker Burger with cheese

Chicken Sandwich

$5.49-grilled$4.09-crispy

$4.89- ArtisanGrilled Chicken

$3.99-DoubliciousChickenSandwich

$4.69- Spicy Chicken Sandwich

$4.49- Crispy or Grilled Chicken Sandwich

$4.99- ChickenTender Sandwich

$3.49 Big Chicken Sandwich

Combo Meal $5.99-$6.49: 1 entrée, 2 sides, 20 oz. drink

$5.99 Big Mac,Medium Fries, Medium Soft Drink

$5.99- 2 piece chicken, 1side, 1 medium drink

$6.69- Spicy Chicken Sandwich, 1 side, 1 medium drink

$5.99-Cheeseburger, medium fries, medium soft drink

$6.29- 2 pc chicken, 1 side, 1 biscuit, small drink

$5.49-CheckerBurger with Cheese, 1 medium fries, medium drink

SWOT Analysis

Strengths Weaknesses

Internal Factors • Convenience• Visibility • Variety of menu options• Healthy food and beverage

options• Combo prices• Employee 10% discount• Complimentary chips/pickle with

deli sandwich• Variety of payment options• Quick charge option for

employees• Hours of operation• Customer service• Starbucks Coffee• Voice of the Consumer• Healthy for Life Program

• Visibility/marketing to outsiders

• Lack of marketing to hospital employees

• Wait time for food during peak lunch hours

• Prices • Limited Aramark recipes • Lack of seating in dining room• Crowds during peak hours• Limited healthy options

SWOT Analysis

Opportunities Threats

External Factors • Advertise menu offerings and specials via social media or on Intranet

• Keep up with emerging trends • Compete with local competitors

prices, offerings, service• Complete survey regarding

customers preferences and concerns

• Provide more incentives for Voice of the Consumer

• Implement more promotional event meals (Football Friday, Holiday, National Sandwich Day, etc)

• Convert employees who bring meals from home or from off-site locations

• Local competitors• Weather conditions• Economy• Employees who bring

lunch from home• Staff shortages• Quicker service at

competitor locations

Aramark Survey 5

December 2010

Total Number of Respondents: 166

Online Respondents: 127

Paper Respondents: 39

Survey Respondent Profile 5

Status97%

1%

0%

1%

1%

1%

0% 20% 40% 60% 80% 100% 120%

Employees

Visitors

Patients

Students

Volunteers

Other

2%

12%

2%

27%

11%

6%

19%

0%

12%

9%

0% 5% 10% 15% 20% 25% 30%

Executive

Director

Physician

Nursing

Technical

Support Staff

Patient Services

Administrative

Researcher

Other

Job Classification

Age

0% Under 18

4% 18 - 24

12% 25 - 34

40% 35 - 49

35% 50 - 59

9% 60 +

Gender

21% Male

73% Female

6% Prefer not to answer

Dining Behavior: Market Share of Alternatives 5

Market Share

Total 2010

Total 2009

Difference from 2009

Results

On-site 50% 47% +3%

Off-site 5% 15% -10%

Bring 42% 31% +11%

Skip 3% 7% -4%

Share of Stomach is the percentage of main meals that each of the listed alternatives currently capture during working hours

MEA

L A

LTER

NA

TIV

E

Off-site

5%

Skip

3%

On-site

50%

Bring

42%

Dining Behavior: Participation 5

17%

22%

28% 29%

4%

Zero 1 2 to 3 4 to 5 Over 5

Purchases per Week

83% Participate (buy a meal)

“How many days per week do you typically eat at the on-site dining service for your main meal during working hours?”

Target Market

Employees of Northwest Hospital

Predominately women

Nurses and Administrators

Ages 35-59

Marketing Strategy

Flyers posted throughout the cafeteria one week prior to the event

Flyers distributed and posted throughout the hospital one week prior to the event

Food service employees communicated event to customers

Marketing Plan

Product Bratwurst Bar

Pittsburgh’s Roethlis Burger

Baltimore’s Crab Pretzel

Nacho Cups

Curly Fries

Price Bratwurst Bar: $2.79

Pittsburgh’s Roethlis Burger: $4.89

Baltimore’s Crab Pretzel: $5.99

Nacho Cups: $2.59

Curly Fries: $1.99

Combo Meal: $6.59

Marketing Plan

Place Old Court Café

Action Station & Grill Station

Promotion Flyers

Employee Resources

Jordan Scheinberg: Dietetic Intern

James Chambers: Director

Pat Miller: Retail Manager

James Gray: Chef Manager

Carl Pendleton: Lead Cook

Sissy Gross: Administrative Assistant

George Robinson: Storeroom Clerk, Purchasing, Receiving Personnel

Patricia Simmons & Walter Beatty: Café Grill

William Banks: Café Cook

Kim Wilson: Supervisor

Tonya Hicks & Sharday Watkins: Cashier

Equipment Resources

Grill Conventional Oven Warmer Refrigerator Deep fryer Chaffing Dishes Cutting board Pans Can Opener Knives Mixing Bowls

Sheet PansSpatulas Tongs Ladle Serving spoonsPlastic containers,Soufflé cups and lids Plastic plates and lidsLatex glovesHairnets

Food Resources

Items Purchased

Bratwurst: 3 packs (10 lbseach) @ $32.74= $98.22

Curly Fries: 2 cases (6 packs, 5 lbs each) @ $28.89= $57.78

Onion Buns: 5 packs (8 each pack) @ $3.15= $15.75

Pretzel Buns: 1 case (50

each case) @ $23.33

Items in Stock Hamburger meat

Chili meat

Bacon

Cheddar and provolone cheese

Raw Onions, Green and Red Peppers

Tortilla chips

Nacho cheese

Soft Pretzels

Jumbo Lump Crab meat

Cream cheese

Mayonnaise

Old Bay seasoning

Blue Cheese Dressing

Barbeque and ranch sauce

Financial Resources

Majority of ingredients already available in current inventory

Labor costs did not change for the event

Regular managers, supervisors, lead cook, café cook, café grill employees

Intern helped

Variable Costs: Raw Food Cost

Bratwurst Bar: $1.51• Bratwurst: 3 packs (10 lbs each) @ $32.74= $98.22; 3.2 oz= $0.65• Pretzel Bun: 1 case (50 each case) @ $23.33; 1 bun= $0.4666• Chili: 2 oz= $0.256• Sauteed Peppers & Onions: 1 lb= $2.1686; 1 oz= $0.1355

Pittsburgh Roethlis Burger: $1.77• Onion Bun: 5 packs (8 each pack) @ $3.15= $15.75; 1 bun= $.39375• Bacon, Cheeseburger, lettuce/tomato/onion: 1 serving= $1.3768

Baltimore’s Crab Pretzel: $3.50

Nacho & Cheese Cups: $0.5739• Tortilla Chips: 1 bag (16 oz) @ $1.5175; 5 oz= $0.47• Nacho Cheese: 1 can (10 lbs) @ $7.913; 2 oz= $0.0989

Curly Fries: $0.24075• Fries: 2 cases (6 packs, 5 lbs each) @ $28.89= $57.78; 4 oz= $0.24075

Variable Costs: Labor Cost

Labor per unit: 1 hour labor= $12

Labor cost: 6 hours (set up, duration, breakdown)

6 hours labor x $12/hour = $72

Total labor cost per meal: $72/ 173 meals= $0.42

Variable Costs: Equipment Cost

Equipment Cost Cost per Item

Plates 500/case @ $28.38 $.06 per plate

Dome Lids 250/case @ $39.60 $.16 per lid

2 ounce Soufflé Cups

2500/case @ $36.50

$.014 per cup

2 ounce Soufflé Lids

2500/case @ $31.55

$.012 per lid

Clear Hinge Containers

500/case @ $45.50 $.091 per container

Red Plaid Baskets

1000/case @$22.50

$.0225 perbasket

Menu Item Equipmentused per item

Equipmentcost per item

Bratwurst Bar Plate, lid $0.22

RoethlisBurger

Plate, lid $0.22

Crab Pretzel Plate, lid $0.22

Nacho & Cheese

Souflee cup, lid, container

$0.117

Curly Fries Red PlaidBasket

$0.225

Variable Costs

Variable Costs

(Food Cost per meal, Labor Cost per meal, Equipment cost per meal)

Bratwurst Bar $2.15

Roethlis Burger $2.41

Crab Pretzel $3.75

Nacho & Cheese Cups $0.58

Curly Fries $0.24

Fixed Costs

Fixed Costs

Printing Cost for Flyers/Menu $8.00

Marketing/ Decoration Costs $24.33

Total: $32.33

Breakeven Analysis

Breakeven: Fixed Costs (Selling Price - Variable Costs)

Bratwurst Burger Crab Pretzel Nachos Curly Fries

Food Cost $1.51 $1.77 $3.75 $0.58 $0.24

Labor Cost $0.42 $0.42 $0.42 $0.42 $0.42

EquipmentCost

$0.22 $0.22 $0.22 $0.177 $0.225

Selling Price $2.79 $4.89 $5.99 $2.59 $1.99

Profit per Unit $0.64 $2.48 $1.60 $1.413 $1.105

Fixed Costs $32.33 $32.33 $32.33 $32.33 $32.33

Break Even Point

51 14 21 23 30

Sales Summary

Sales Price Per

Item

Number of Items

Sold

Gross Revenue Discounts Net Revenue

Bratwurst Bar$2.79 40 $103.60 $9.36

$94.24

Roethlis

Burger$4.89 14 $61.06 $4.79

$56.27

Crab Pretzel$5.99 51 $305.49 $28.20

$277.29

Nacho &

Cheese Cups$2.59 17 $44.03 $4.16

$39.87

Curly Fries$1.99 41 $81.59 $7.19

$74.40

Combo Meal$6.59 10 $65.90 $5.28

$60.62

Total 173 $661.67 $58.98 $602.69

Evaluation

GOAL 1: Increase Old Court Café sales

Objective: Increase total lunch café sales by 8% compared to the total lunch sales from the previous payday Friday- October 21, 2016

Friday, October 21 $2,260.46

Friday, November 4 $3,052.25

GOAL MET 35.03%

Evaluation

GOAL 2: Increase café traffic

Objective: Increase retail lunch café traffic by 8% compared to the lunch café traffic from the previous payday Friday- October 21, 2016

Friday, October 21 467 checks

Friday, November 4 554 checks

GOAL MET 18.63%

Evaluation

GOAL 3: Increase checks average

Objective: Increase lunch checks average by 8% compared to the lunch checks average from the previous payday Friday- October 21, 2016

Friday, October 21 $4.84

Friday, November 4 $5.19

GOAL NOT MET 7.23%

Conclusion

2 out of 3 goals and objectives were met!

Possible areas of improvement:

Bratwurst Bar Combo Special

Advertise at entrance of cafeteria

All-user email

Creative, fun way for customers to come together, show their spirit and purchase food from cafeteria!

Thank You!

Thank you to everyone who helped make this a HUGE success!

Any Questions?

References

1. About LifeBridge Health. LifeBridge Health Website. http://www.lifebridgehealth.org/Main/AboutLifeBridgeHealth.aspx Accessed November 2, 2016.

2. About Northwest Hospital. Northwest Hospital Website. http://www.lifebridgehealth.org/Northwest/AboutNorthwest1.aspx Accessed November 2, 2016.

3. About Us: Corporate Responsibility. Aramark Website. http://www.aramark.com/about-us/corporate-responsibility. Published 2015. Accessed October 20, 2016.

4. Northwest Hospital History. Northwest Hospital Website. http://www.lifebridgehealth.org/Northwest/NorthwestHospitalHistory.aspx Accessed November 2, 2016.

5. Northwest Hospital Center Survey. Aramark Employee Website. www.aramark.net/.../Food/2010_Location_Reports/Midwest/30002690_NorthwestHospitalCenter.ppt. Published December 13, 2010. Accessed October 20, 2016.