Management Business Plan Project LifeBridge Health...
Transcript of Management Business Plan Project LifeBridge Health...
1
Management Business Plan Project
LifeBridge Health Northwest Hospital
November 4, 2016
Jordan Scheinberg
ARAMARK Dietetic Internship
2
TABLE OF CONTENTS
1.0 Executive Summary Page 3
1.1 Mission Statement Page 4
1.2 Objectives Page 4
2.0 Company Summary Page 5
3.0 Market Analysis Page 7
3.1 Market Segmentation Page 10
3.2 Target Market Page 12
4.0 Promotional Event Concept Page 13
5.0 Marketing Strategy Page 13
5.1 Sales Forecast Page 15
6.0 Resource Summary Page 15
6.1 Employee Resources Page 16
6.2 Equipment Resources Page 17
6.3 Food Resources Page 18
6.4 Financial Resources Page 19
7.0 Evaluation Page 22
8.0 Appendix Page 25
3
1.0 Executive Summary
Old Court Café, the primary dining retail facility at Northwest Hospital in
Randallstown, Maryland, is the place where majority of the employees and visitors
come to purchase meals, snacks and beverages while at the hospital. After
assessing the Volume Trend for Aramark period of October 2016, it was determined
that there is a potential for improved sales on the Friday following a payday, with
greatest potential during lunch.
The focus of this business plan was to use popular culture within the community
to increase total lunch sales, traffic and checks average in the cafeteria, on the
Friday of a payday week. A Football Friday themed lunch was implemented, in
preparation of the infamous, Baltimore Ravens versus Pittsburgh Steelers game, as
a creative way for the Old Court Café customers to come together as one
community and purchase lunch to show their spirit, therefore improving the financial
success.
Goals and objectives of this promotion were to increase total lunch café sales by
8% compared to the previous payday Friday, to increase the café lunch traffic by 8%
compared to the previous payday Friday, and to increase the lunch checks average
by 8% compared to the previous payday Friday. A total of 173 meals were sold and
the total lunch sales were $3,052.25, which is a 35.03% increase compared to the
previous payday Friday. The café traffic was 554 checks, which is an 18.63%
increase compared to the previous payday Friday and the checks average was
$5.19, which is only a 7.23% increase compared to the previous payday Friday.
4
1.1 Mission Statement
The mission of LifeBridge Health is “to always create exceptional experiences for
those we serve”. 1 The mission of Northwest Hospital is “the quest to be the best” and
“to improve the well-being of the community by nurturing relationships between the
hospital, medical staff and our patients”. 2 The mission of Aramark is “to deliver
experiences that enrich and nourish lives”. 3
1.2 Objectives
The following goals and objectives were developed to assess the promotion’s
success and maintain alignment with the LifeBridge Health, Northwest Hospital and
Aramark mission statements. The goals for this event aim to improve financial success
in the cafeteria. The retail manager and intern reviewed a Volume Trend for Northwest
Hospital’s Old Court Café for Aramark period of October 2016 and determined that
potential for improved sales existed on the Friday following a payday, with greatest
potential during lunch, 11:15-2:30 (See Appendix 8.0). A business plan was constructed
to develop a promotional event intended to gain achievement of the following goals.
Goal #1: Increase Old Court Café total lunch sales by planning a Football Friday theme
day. This goal is further defined by the following objective:
Objective: The promotional event will increase total lunch sales by 8%
compared to the total lunch sales from the previous payday Friday, October 21st,
2016.
5
Goal #2: Increase Old Court Café lunch traffic by planning a Football Friday theme day.
This goal is further defined by the following objective:
Objective: The promotional event will increase retail lunch sales traffic by 8%
compared to the retail lunch sales traffic from the previous payday Friday,
October 21st, 2016.
Goal #3: Increase Old Court Café lunch checks average by planning a Football Friday
theme day. This goal is further defined by the following objective:
Objective: The promotional event will increase lunch checks average by 8%
compared to the lunch checks average from the previous payday Friday, October
21st, 2016.
2.0 Company Summary
Northwest Hospital is a community, acute-care general hospital located in
Randallstown, Maryland. 2 It was established in 1962 as Liberty Court Rehabilitation
Center, and in 1963 became Baltimore County General Hospital. In June of 1993, it
changed its name to Northwest Hospital. In 1998, Northwest Hospital sought to merge
with another hospital or group of hospitals to continue its growth. Nearby hospital, Sinai
Hospital was selected, and in October 1998, LifeBridge Health was created. 1,2,4 Today,
Northwest Hospital is owned and operated by Lifebridge Health, provider of health-
related services, wellness and fitness services and educational programs. 1,2 LifeBridge
Health includes Northwest Hospital, Sinai Hospital, Levindale Hebrew Geriatric Center
and Hospital, and associated affiliates and subsidiaries. 1 Northwest Hospital is an all-
6
private room hospital that has 254 beds, and offers a range of services including
anesthesiology, endocrinology, gynecology, medicine, oncology, oral/maxillofacial
surgery, orthopedics, pathology, psychiatry, radiology, surgery and urology. 2
In 1959, Aramark was created as two vending companies merged to create
Automatic Retailers of America, or ARA. 5 Today, Aramark is in the customer service
business across food, facilities and uniforms, wherever people work, learn, recover, and
play. United by a passion to serve, Aramark has more than 270,000 employees, whom
deliver experiences that enrich and nourish the lives of millions of people in 21 countries
around the world every day. 6 Specifically, Aramark serves world champion sports
teams, Fortune 500 companies, state-of-the-art healthcare providers and the world’s
leading educational institutions. Aramark continuously focuses on ways to improve,
through their commitment to innovation and their passion for excellent customer service.
3,6
Northwest Hospital currently has a two-year guaranteed net budget contract (GNB)
with Aramark, from January 2015-January 2017, meaning that the client is invoiced
based on a pre-determined budget. This budget guarantee states that Aramark
guarantees that the actual Net Operating Cost in any Fiscal Year will not exceed the
Projected Net Operating Cost in the applicable Fiscal Year Budget. On a monthly basis,
Aramark and LifeBridge review and discuss the Net Operating Cost. At the end of the
Fiscal Year, they reconcile the Budget Guarantee with the variances that occurred
during that year. If the actual Net Operating Cost exceeds the Projected Net Operating
Cost, then Aramark pays LifeBridge the amount of such Negative Variance. However, if
7
the actual Net Operating Cost is less than the Projected Net Operating Cost, then
LifeBridge pays Aramark 50% of the amount of such Positive Variance.
Aramark offers multiple services to Northwest Hospital, including patient
foodservices, retail services, catering, clinical services and uniforms. Aramark currently
maintains the same contract with all of the LifeBridge facilities.
3.0 Market Analysis
The cafeteria at Northwest Hospital, Old Court Café, is located next to the main
lobby. A wide variety of foods are offered through a grill, entree station, pizza station,
deli and salad bar with a soup station. A selection of coffee is available, as are grab-
and-go selections in a refrigerated section. 7 Snacks such as fruit and packaged chips,
crackers and cookies are also offered. The café is open for breakfast from 6:45 a.m. to
10:30 a.m., for lunch - 11:15 a.m. to 2:00 p.m., and dinner - 5:00 p.m. to 12 midnight.7
Hot breakfast items are offered on the steam table, including eggs, breakfast meats,
potatoes, biscuits and gravy, oatmeal, grits, and cream of wheat. A variety of fresh fruits
cottage cheese and yogurt, along with an assortment of bagels and pastries are
available each morning. During lunch and dinner, the cafeteria serves two featured hot
entrees, multiple sides, and a selection of two soups per meal. A combo meal is offered
which includes one hot entrée, two sides and a 20-ounce fountain drink for $5.99 to
$6.49. The grill is open all day, with made-to-order breakfast sandwiches and omelets
for breakfast, and hamburgers, chicken sandwiches, grilled cheese, French fries, and
more for lunch and dinner. A grill special is also offered which features a main item such
8
as a cheeseburger with fries and a 20-ounce fountain drink for $6.49. A full salad bar
and deli station with a wide array of meats, cheeses, vegetables, dressings and
condiments are available daily for lunch. The café has a pizza station, serving a variety
of pizzas for lunch and dinner. On the weekdays, the café also has an action station,
offering a different special item each day, such as a pasta bar, chicken stir-fry, and taco
bar. The refrigerated section offers grab-and-go options including fruit cups, premade
sandwiches and salads, yogurt, pudding, milk, hummus and snack packs.
Northwest Hospital is located off of Liberty Road, a main road, with many local
establishments and fast food restaurants that serve as competitors to the hospital’s
retail cafeteria. The convenience, value, cost and name of these local establishments
can attract the patients, visitors and employees at Northwest Hospital, and therefore
can impact the retail sales at Northwest Hospital. Some of these local competitors
include McDonalds, KFC, Wendy’s, Sonic, Popeye’s and Checkers. These restaurants
offer similar menu items at comparable prices, as Old Court Café, such as fast and
convenient breakfast, lunch, and dinner options all within a short distance from the
hospital. Old Court Café sells a cheeseburger for $4.29, a grilled chicken sandwich for
$5.49, a crispy chicken sandwich for $4.09 and a combo meal, including one hot entrée,
two sides and a 20-ounce fountain drink for $5.99 to $6.49. McDonalds sells a Big Mac
Cheeseburger for $3.99, an Artisan Grilled Chicken sandwich for $4.89 and a combo
meal, including a Big Mac, medium fries and a medium soft drink for $5.99. KFC sells a
Doublicious Chicken sandwich for $3.99 and a combo meal, including a two piece
chicken, one side and a medium drink for $5.99. Wendy’s sells a Daves Hot n Juicy
Cheeseburger for $4.19, a Spicy Chicken Sandwich for $4.69 and a combo meal,
9
including a Spicy Chicken Sandwich, one side and a medium drink for $6.69. Sonic sells
a Sonic Cheeseburger for $3.89, a crispy or grilled chicken sandwich for $4.49 and a
combo meal, including a cheeseburger, medium fries and a medium soft drink for $5.99.
Popeye’s sells a Chicken Tender sandwich for $4.99 and a combo meal, including a two
piece chicken, one side, one biscuit and one small drink for $6.29. Checker’s sells a
Checker Burger with cheese for $2.99, a Big Chicken Sandwich for $3.49 and a combo
meal, including a Checker Burger with cheese, one medium fries and a medium soft
drink for $5.49 (See Appendix 8.0).
Although some of these prices are hard to beat, Old Court Café has many
strengths and opportunities that allow them to succeed financially. Old Court Café offers
a wider variety of menu items than the mentioned competitors, including healthier
options and more made-to-order items. Unlike the local competitors, the café changes
parts of their menu daily, giving customers more options and variety. Because
Northwest Hospital employees only have a limited amount of time in their day to take a
break to eat, the Old Court Café is a convenient place for them to purchase their food,
without leaving the hospital. Also, all LifeBridge employees receive a 10% discount
when they purchase a meal, lowering the already low priced items.
The following SWOT analysis provides information that helps match the
company’s resources and capabilities to the competitive environment in which it
operates. It outlines internal and external factors that lead to potential business
opportunities, and can be used to build on strengths, resolve weaknesses, exploit
opportunities, and avoid threats.
10
Table 1. SWOT Analysis
Strength Weaknesses
Inte
rnal
Facto
rs
Convenience
Visibility
Variety of menu options
Healthy food and beverage options
Combo prices
Employee 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
Opportunity Threats
Exte
rnal F
acto
rs
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
Lack of visitors
Staff shortages
Quicker service at competitor locations
3.1 Market Segmentation
Aramark completed a customer close-up survey in December 2010 to gain an
understanding of account demographics in order to enhance satisfaction, better
outcomes and service excellence and efficiency at Old Court Café. There were a total of
11
166 respondents, in which 127 responded online and 39 responded on paper. 8 The
survey respondent profile shows that 73% were female, 21% male and 6% preferring
not to answer. 40% of the respondents were between the ages of 35-49, 35% were 50-
59, 12% were 25-34, 9% were 60 years old or more, and 4% were between the ages of
18-24. 97% of the survey respondents were employees of the hospital, 1% were
visitors, 1% were students and the other 1% were volunteers. 8
Figure 1. Survey Respondent Profile: Status8
According to the study, the majority of cafeteria diners were nurses (27%) and
administrators (19%).
Figure 2. Survey Respondent Profile: Job Classification 8
97%
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
12
In the study, when asked how many days per week they typically eat at the on-
site dining service during working hours, 29% said they purchase a meal 4 to 5 times
per week, 28% said they purchase a meal 2 to 3 times per week, 22% said they
purchase 1 meal per week, 4% said they purchase over 5 meals per week, and 17%
said they purchase zero meals per week. 8 The survey displayed the percentage of main
meals that each of the listed alternatives currently capture during work hours, as an
opportunity to convert customers who buy meals away from work or who bring meals
from home. The percentages from the current survey and the survey conducted in 2009
were compared.
Figure 3. Dining Behavior: Market Alternative8
3.2 Target Market
With results from the customer close-up survey, observations by the intern, and
feedback from food service managers and directors, it was concluded that the target
Off-site
5%
Skip
3%
On-site
50%
Bring
42%
13
market was identified as employees of Northwest Hospital, specifically women, nurses,
and administrators, ages 35-59 years of age. 8
4.0 Promotional Event Concept
After conducting market research and assessing the popular culture at Northwest
Hospital, the chosen promotional event concept to be implemented at the Old Court
Café was a Football Friday theme lunch day. Northwest Hospital is located in
Randallstown, Maryland, a suburb only 20 miles away from downtown Baltimore. The
entire Baltimore community, are known to be dedicated, loyal Baltimore Ravens fans.
The passion that Baltimore residents have for the Ravens brings the entire community
together. Northwest Hospital implemented a “Purple Friday”, in which all of the
employees can dress casually and wear purple to show their Ravens spirit.
Implementing a Football Friday theme lunch day, right before the notorious rival game,
the Baltimore Ravens versus Pittsburgh Steelers, is a creative way for the Old Court
Café customers to come together as one community and purchase lunch to show their
spirit.
5.0 Marketing Strategy
Because it was determined that potential for improved sales existed on the
Friday following a payday, with greatest potential during lunch, the focus of this
business plan was to use a current popular culture trend within the community, aligned
with the mission of LifeBridge Health, Northwest Hospital and Aramark, to increase total
14
lunch sales, traffic and checks average in the cafeteria, on the Friday of a payday week.
A marketing strategy was developed to incorporate the four P’s of marketing.
The first P, product, was the featured football themed foods, based on the
playing teams, the Baltimore Ravens and Pittsburgh Steelers. The promotional event
took place on Friday, November 4, 2016, as the big Ravens vs. Steelers game took
place on that Sunday, November 6, 2016. This day also fell on a Friday during a payday
week. The menu included a Bratwurst Bar, with chili, grilled peppers and onions, served
on a pretzel bun, a crab pretzel, in support of the Baltimore Ravens, a Roethlis Burger,
with cheddar, provolone, bacon, barbeque sauce and ranch sauce, on an onion bun, in
support of the Pittsburgh Steelers, and nacho and cheese cups and curly fries.
The second P, place, was determined to be held in the Old Court Café, the
cafeteria at Northwest Hospital, which is the main dining facility in the hospital.
Specifically, the event took place at the action station table and on the grill.
The third P of marketing, price was determined based on regular cafeteria prices
and the prices of specialty ingredients purchased specifically for the event. The 10%
employee discount was also taken into consideration when determining the item prices
for the event. The Bratwurst Bar was sold for $2.79, the Pittsburgh’s Roethlis Burger
sold for $4.89, the Baltimore’s Crab Pretzel sold for $5.99, the nacho and cheese cup
sold for $2.59 and the curly fries sold for $1.99. A combo special, including a Roethlis
Burger, curly fries, and a 20-ounce fountain drink was offered for $6.59.
The fourth P, promotion, flyers were created by the intern and distributed one
week prior to the event. Flyers were personally distributed to various employees by the
15
intern, and also distributed to employee mailboxes and offices. Flyers were placed
around the cafeteria and by the register one week prior to the event. The intern and
other cafeteria employees verbally communicated the event to the customers.
Promotional signs and menus were also created by the intern and utilized at the event
to display menu options and prices (See Appendix 8.0).
5.1 Sales Forecast
The numerical goal to increase total lunch sales by 8% compared to the total
lunch sales from the previous payday Friday, to increase retail lunch sales traffic by 8%
compared to the retail lunch sales traffic from the previous payday Friday, and to
increase lunch checks average by 8% compared to the lunch checks average from the
previous payday Friday, were determined from the results of the Volume Trend for
Northwest Hospital’s Old Court Café for Aramark period of October 2016 (See
Appendix 8.0). The trend showed the potential for improved sales existed on the Friday
following a payday, with the greatest potential during lunch. The second payday Friday
of the month, October 21, 2016 showed an 8% increase in all lunch sales, lunch café
traffic and lunch checks average, compared to the first payday Friday of the month
October 7, 2016. This trend provided a numerical goal for the following payday Friday,
November 4, 2016 (See Appendix 8.0).
6.0 Resource Summary
Planning of the promotional event began two weeks prior to implementation.
Discussions with the production manager, retail manager, lead cook, purchasing
16
personnel, receiving personnel and intern were conducted in order to communicate the
food needed to be purchased and prepared, along with employee and equipment
resources necessary for the event. Each resource segment is discussed in the
following sections.
6.1 Employee Resources
Patricia Miller, the Retail Manager, was the primary employee who coordinated
and assisted in the planning. She provided the intern with the retail sales data from prior
weeks and assisted the intern in developing the business goals and objectives. She
provided recommendations for menu items and recipes to be served. She provided the
intern with pricing information of current products and the products for the promotional
event. She assisted the intern in distributing the flyers. She assisted the intern to ensure
everything was set up and prepared correctly on the day of the event. She assisted the
intern and the cooks throughout the event to replenish items that were running low. She
provided the intern with the sales report after the promotional event.
James Gray, the Chef Manager, assisted the Retail Manager and the intern in
determining the prices of the items served at the promotional event, and provided
suggestions and recipes for items to be served. George Robinson, the storeroom clerk,
purchasing and receiving personnel, was responsible for ordering the needed
ingredients. Carl Pendelton, the Lead Cook, ensured that all of the needed ingredients
were in stock the day before the event and assisted in preparing some of the recipes.
Patricia Simmons and Walter Beatty, Grill Cooks, grilled the hamburgers, bratwurst,
onions and peppers, and curly fries, and served the hamburgers at the event. Kim
17
Wilson, Supervisor, and William Banks, Cafeteria Cook, assisted in restocking the foods
that were running low during the event, bringing food from the kitchen to the cafeteria as
needed. Tonya Hicks and Sharday Watkins, Cashiers, were responsible for manning
the cash register during the promotional event.
Dietetic Intern, Jordan Scheinberg, was responsible for developing the business
plan and implementing the promotional event. With assistance from the Retail Manager,
she evaluated the retail sales data and developed the business goals and objectives.
She planned the menu and ensured that all needed ingredients were ordered and
received prior to the event. She created the promotional flyers and distributed them
throughout the hospital and cafeteria. She helped the cooks prepare the food, oversaw
and managed the prep and set up all equipment and food on the day of the event. She
purchased and set up decorations around the cafeteria on the day of the event. She ran
the station for the entire lunch period, interacting with and serving the customers. She
evaluated the results and presented the information to the employees, supervisors and
managers after the event.
6.2 Equipment Resources
The following items were needed for the execution of the Football Friday event:
Grill Conventional Oven
Warmer Refrigerator Deep fryer Chaffing Dishes
Cutting board
Pans
Can Opener
18
Knives Mixing bowls
Sheet Pans
Spatulas Tongs Ladle Serving spoons
Plastic containers, soufflé cups and lids Plastic plates and lids
Latex gloves
Hairnets
6.3 Food Resources
Once the menu was developed and recipes were identified, the ordering and
inventory needs were discussed with the intern, Retail Manager, Chef Manager and
Purchaser two weeks prior to the event.
The following items were already in stock, and did not need to be ordered specifically
for the Football Friday event:
Hamburger meat
Chili meat
Bacon
Cheddar cheese
Provolone Cheese
Raw Onions
Green and Red Peppers
Tortilla Chips
Nacho Cheese
Barbecue Sauce
Ranch Sauce
Soft Pretzels
Jumbo Lump Crab Meat
Blue Cheese Dressing
Cream Cheese
Mayonnaise
Old Bay Seasoning
19
The following items were purchased specifically for the Football Friday event, and
ordered two days to one week prior to the event:
Bratwurst, 3 packs (10 lbs/pack) @ $32.74= $98.22
Curly Fries, 2 cases (6 packs/case, 5 lbs/pack) @ 28.89= $57.78
Pretzel Bun, 1 case (50 buns/case) @ $23.33
Onion Bun, 5 packs (8 buns/pack) @ $3.15= $15.75
6.4 Financial Resources
Table 2. Sales Summary
Sales
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
Table 3. Variable Costs- Individual Menu Items
Variable Costs: Bratwurst Bar
Labor Cost per Meal Labor per unit: 1 hour labor= $12
Labor cost: 6 hours (set up, duration, breakdown); 6 hours x $12/hour = $72
Total labor cost per meal: $72/ 173 meals= $0.42
20
Raw Food Cost $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
Equipment Cost $0.22
Plates: 500/case @ $28.38; $.06 per plate
Dome Lids: 250/case @ $39.60; $.16 per plate
Total $2.15
Variable Costs: Baltimore’s Crab Pretzel
Labor Cost per Meal Labor per unit: 1 hour labor= $12
Labor cost: 6 hours (set up, duration, breakdown); 6 hours x $12/hour = $72
Total labor cost per meal: $72/ 173 meals= $0.42
Raw Food Cost $3.75
Equipment Cost $0.22
Plates: 500/case @ $28.38; $.06 per plate
Dome Lids: 250/case @ $39.60; $.16 per plate
Total $4.39
Variable Costs: Nacho & Cheese Cups
Labor Cost per Meal Labor per unit: 1 hour labor= $12
Labor cost: 6 hours (set up, duration, breakdown); 6 hours x $12/hour = $72
Total labor cost per meal: $72/ 173 meals= $0.42
Variable Costs: Pittsburgh Roethlis Burger
Labor Cost per Meal Labor per unit: 1 hour labor= $12
Labor cost: 6 hours (set up, duration, breakdown); 6 hours x $12/hour = $72
Total labor cost per meal: $72/ 173 meals= $0.42
Raw Food Cost $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
Equipment Cost $0.22
Plates: 500/case @ $28.38; $.06 per plate
Dome Lids: 250/case @ $39.60; $.16 per plate
Total $2.41
21
Raw Food Cost $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
Equipment Cost $0.117
2 ounce souflee cups: 2500/case @ $36.50; $0.014 per cup
2 ounce souflee lids: 2500/case @$31.55; $0.012 per lid
Clear Hinge Containers: 500/case @ $45.50; $0.091 per container
Total $0.58
Variable Costs: Curly Fries
Labor Cost per Meal Labor per unit: 1 hour labor= $12
Labor cost: 6 hours (set up, duration, breakdown); 6 hours x $12/hour = $72
Total labor cost per meal: $72/ 173 meals= $0.42
Raw Food Cost $0.24075 • Fries: 2 cases (6 packs, 5 lbs each) @ $28.89=
$57.78; 4 oz= $0.24075
Equipment Cost $.0225
Red Plaid Baskets: 1000/case @ $22.50; $0.0225 per basket
Total $0.24
Table 4. Breakeven Analysis: All Menu Items
Variable Costs: ALL
Labor Cost per Meal Labor per unit: 1 hour labor= $12
Labor cost: 6 hours (set up, duration, breakdown); 6 hours x $12/hour = $72
Total labor cost per meal: $72/ 173 meals= $0.42
Raw Food Cost $9.77
Equipment Cost $1.01
Total $11.20
Fixed Costs
Printing Cost for Flyers/Menu $8.00
Marketing/ Decoration Costs $24.33
Total: $32.33
22
(ALL) Break-even Analysis: (Fixed Costs) ÷ (Selling Price – Variable Costs)
32.33 ÷ (18.25- 11.20) = 4.59 5
Table 5. Breakeven Analysis: Individual Menu Items
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
Equipment Cost $0.22 $0.22 $0.22 $0.117 $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
Breakeven Point 51 14 21 23 30
7.0 Evaluation
The result of the Football Friday theme lunch day was measured and evaluated by
comparing the sales and revenue data to the previous payday Friday sales and revenue
data stated in the goals and objectives that were established.
The first goal to increase total lunch café sales by 8% compared to the lunch
sales from the previous payday Friday- October 21, 2016, of $2,260.46 was evaluated.
In order to meet this objective, a total lunch sale of $2,441.29 would be needed. The
objective was met, as the total lunch sale on Friday, November 4, 2016 was $3,052.25,
which is a 35.03% increase (See Appendix 8.0).
The second goal to increase retail lunch sales traffic by 8% compared to the
lunch traffic from the previous payday Friday- October 21, 2016, of 554 checks, was
evaluated. In order to meet this objective, total lunch café traffic of 505 checks would be
needed. The objective was met, as the total lunch café traffic of 554 checks, which is an
18.63% increase (See Appendix 8.0).
23
The third goal to increase lunch checks average by 8% compared to the lunch
checks average from the previous payday Friday- October 21, 2016, of $4.84, was
evaluated. In order to meet this objective, a lunch checks average of $5.22 would be
needed. This objective was not met, as the total lunch checks average was $5.19,
which is only a 7.23% increase (See Appendix 8.0).
After evaluating the results of the promotional event, it was determined that
generally, the Football Friday themed lunch day was a huge success, as two out of the
three goals and objectives were met.
One area of improvement for a future promotional event would be to include a
combo meal for all of the entrees on the menu. We had a combo meal special, including
a Roethlis burger, fries and a 20-ounce fountain drink. However, during the event, many
customers asked if a Bratwurst bar could be substituted for the combo. Because we did
not have any pricing planned or inputted on the register, we could not offer this special. I
saw many customers get the Bratwurst bar, but not purchasing the fries because there
was no special combo meal. If we had included a Bratwurst combo meal, I feel that
more customers would have purchased this, increasing the sales and checks average.
Another issue I observed during the event was that many customers ordered
their meals before seeing the action station table, and mentioned that they wished they
had walked through the entire cafeteria before making their decision. Although we
placed menus and flyers in the daily menu display at the entrance of the cafeteria, one
area of improvement could be to have decorated the table at the entrance of the
cafeteria and had an employee and more menus and flyers to grab the customer’s
24
attention before they enter the cafeteria. Lastly, an all-user email could have been sent
prior to the event to ensure that all employees received notice of the promotional event.
Overall, the promotional event had a positive outcome. Implementing a fun
promotional event, like the Football Friday themed lunch day, allowed the employees to
purchase and enjoy their meal in a spirited, enjoyable work environment. Promoting the
event one week in advanced, to mailboxes and personally to hospital offices and units
gave the intern an opportunity to communicate the event directly to the customers. The
decorations were a huge hit and the customers gave positive feedback of the menu,
prices, marketing supplies and the idea as a whole. The current promotional event
concept can be useful in the future as a creative way to improve sales, café traffic and
checks average in the hospital cafeteria.
25
8.0 Appendix
Volume Trend for Aramark Period of October 2016
26
Market Analysis Reports
Competitive Analysis Report: A Comparison of Prices at Local Food Service Establishments
Old
Court
Cafe
McDonald’s KFC Wendy’s Sonic Popeye’s Checkers
Cheeseburger $4.29 $3.99- Big
Mac
$4.19- Daves
Hot n Juicy
Cheeseburger
$3.89- Sonic
Cheeseburger
$2.99-
Checker
Burger
with
cheese
Chicken
Sandwich
$5.49-
grilled
$4.09-
crispy
$4.89-
Artisan
Grilled
Chicken
$3.99-
Doublicious
Chicken
Sandwich
$4.69- Spicy
Chicken
Sandwich
$4.49- Crispy
or Grilled
Chicken
Sandwich
$4.99-
Chicken
Tender
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, 1
side, 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-
Checker
Burger
with
Cheese, 1
medium
fries,
medium
drink
27
Marketing Materials: Promotional Flyer
28
Marketing Materials: Football Friday Menu Sign
29
Marketing Materials: Combo Meal Promotion Sign
30
Financial Analysis Calculations
Labor Cost per Unit: $0.42
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
Raw Food Cost per Unit: $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
Equipment Cost per Unit: $0.22
Plates: 500/case @ $28.38; $.06 per plate
Dome Lids: 250/case @ $39.60; $.16 per plate
Raw Food Cost per Unit: $1.77
Onion Bun: 5 packs (8 each pack) @ $3.15= $15.75; 1 bun= $.39375
Bratwurst Bar
Pittsburgh Roethlis Burger
Labor Cost Per Unit
31
Bacon, Cheeseburger, lettuce/tomato/onion: 1 serving= $1.3768
Equipment Cost per Unit: $0.22
Plates: 500/case @ $28.38; $.06 per plate
Dome Lids: 250/case @ $39.60; $.16 per plate
Raw Food Cost per Unit: $3.75
Equipment Cost per Unit: $0.22
Plates: 500/case @ $28.38; $.06 per plate
Dome Lids: 250/case @ $39.60; $.16 per plate
Raw Food Cost per Unit: $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
Equipment Cost per Unit: $0.117
2 ounce souflee cups: 2500/case @ $36.50; $0.014 per cup
2 ounce souflee lids: 2500/case @$31.55; $0.012 per lid
Clear Hinge Containers: 500/case @ $45.50; $0.091 per container
Baltimore’s Crab Pretzel
Nacho & Cheese Cups
32
Raw Food Cost per Unit: $0.24075
Fries: 2 cases (6 packs, 5 lbs each) @ $28.89= $57.78; 4 oz= $0.24075
Equipment Cost per Unit: $.0225
Red Plaid Baskets: 1000/case @ $22.50; $0.0225 per basket
Curly Fries
33
Product Mix-Revenue and Sales Summary
34
Photos From Exhibition Day
35
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. Aramark History. Aramark Website. http://www.aramark.com/about-us/history Accessed
October 20, 2016.
6. That’s the Aramark Difference. Aramark Website. http://www.aramark.com/about-us/our-
difference. Accessed October 20, 2016.
7. Patient and Visitor Information. Dining. Northwest Hospital Website.
http://www.lifebridgehealth.org/Northwest/DiningatNorthwest.aspx. Accessed November 5,
2016.
8. Northwest Hospital Center Survey. Aramark Employee Website.
www.aramark.net/.../Food/2010_Location_Reports/Midwest/30002690_NorthwestHospitalCente
r.ppt. Published December 13, 2010. Accessed October 20, 2016.