MANAGEMENT BUSINESS PLAN: SOUTHWEST GARDENBURGERAT UPPER CHESAPEAKE MEDICAL CENTER

April 20, 2014Erin LopynskiARAMARK Dietetic Internship

Statement of Purpose

To allow Dietetic Intern to organize a business plan with a focus on the implementation of a retail food promotional week.

Includes: Objectives Company Summary Market analysis Marketing strategy Financial plan Resources Evaluation

Mission Statement

“University of Maryland Upper Chesapeake Health (UM UCH) is dedicated to maintaining and improving the health of the people in its communities through an integrated health delivery system that provides high quality care to all. UM UCH is committed to service excellence as it offers a broad range of healthcare services, technology and facilities. It will work collaboratively with its communities and other health organizations to serve as a resource for health promotion and education.”

“Our mission is to Deliver Experiences that Enrich and Nourish Lives. From our food and facilities businesses to our uniform and medical technology maintenance businesses, we deliver experiences that enrich and nourish lives every day. As a company, we have five focus areas: our consumers, our clients, our employees, our shareholders and the communities in which we work and live.”

Business Objectives

Specific Goal: Increase sales from previous week by 10%

Objective: Customer satisfaction

Company Summary

ARAMARK offers catering, retail, patient services and environmental services at UCMC Just4You® menu The Healthy for Life™ platform in the retail area

ARAMARK partnered with UCMC 14 years ago, since the opening of the hospital in 2000

ARAMARK has a guaranteed net budget contract with UM UCH, which infers that UM UCH guarantees to meet fiscal goals specified by ARAMARK Financial incentive basis – if UM UCH is over budget, write ARAMARK

a check, or if under budget, can get a bill back Consumers are saying good things about Aramark recipes and

UM UCMC Positive Net Promoter Score of 33% Participation in on-site dining is excellent with 88% eating at least

one meal per week On-site dining captures a 46% Market Share

The Garden Café

Cafeteria stations: Grill Home station entrées Sandwich/wrap/Panini station Pizza station Self-serve hot meal item station Salad and soup bar Refrigerated and non-

refrigerated, packaged To-Go items

Low Prices Open, bright dining area with

outdoor patio

Cafeteria

Market Analysis

Competitive local businesses The Daily Grind Café

– 5th floor of UM UCMC Higher prices than Garden Café More relaxing environment; more dimly lit Most popular for beverages

Market Analysis Cont’d

Competitive local businesses Pats Pizzeria

– within 1 mile radius of UM UCMC Higher prices than Garden Café Sit down dining facility; can order to go; does

not deliver Most popular for crab dip pizza, crab cakes and

Philly Cheese steak

Market Analysis - SWOTStrengths:Cafeteria in a convenient location (ground floor)Low pricesEmployee and volunteer meal discountAccepts many forms of paymentWide selection of foodsDifferent lunch specials each monthOffers “To-go” itemsFriendly/Caring staffQuick cooking/assembly, typically no more than ~5 minute wait before payingThree cashier serviceManageable flow of traffic in and outOpen/Bright cafeteria seatingOutdoor seating

WeaknessesHard to find from certain entrances if unfamiliar with the hospitalCan become extremely packed during busy hours During busy hours, cleanly appearance of cafeteria may sufferHot “To-go” items rarely availableRefrigerated “To-go” items available, but very limited optionsCustomers leaving with minimal purchase (i.e. coffee) or without a purchase

Opportunities:Increase combo meal purchases through improved marketing – more obvious signs, word of mouthAddition of organic food, gluten-free options and/or more vegetarian items to attract the health-conscious population in a hospitalTake advantage of display plates, food sampling/other marketing tacticsMaintain frequent cafeteria users while focusing on driving participation and frequency among medium and light users.

Threats:Lack of near-by parkingThe Daily Grind Café on the 5th floorIntimidation of long lines during busy hours, although rarely more than a 10 minute wait Other food courts within 1 mile of the hospitalEmployees and patient’s families bringing meals from homeHospital censusChange in economy

Local Demographics

Sex (US 2010 Census Data): Female – 51.1% Male – 48.9%

Race (US 2010 Census Data): White – 81.2% Black – 12.7% Hispanic/Latino – 3.5% Asian – 2.4% American Indian/Alaskan Native – 0.3% Native American/Pacific Islander –

0.1% Age (Healthy Harford CHAP 2010

Data) 18-24 – 14.9% 25-34 – 15.7% 35-44 – 22.9% 45-54 – 20.9% 55-59 – 7.8% 60-64 – 6.4% 65+ -- 10.6%

*Median Household Income within the Community Benefit Service Area (CBSA) (US 2009 Census Data):

$75,364 *Percentage of households with incomes below the federal poverty guidelines within the CBSA (US 2009 Census Data): 9.2% *Percentage of uninsured patients at UCMC:

3.4%*Medicaid recipients:

1.1%*Place of residence:

Small town suburbs

UCMC DemographicsStatus

Job Classification

12%

85%

4%

Male

Female

Prefer not to answer

Gender

Market Segmentation

The current UCMC menu and services match the demographic scope of the account Reasonable price given income of $75,000 Pertains to Maryland Population

Age group from 18-65+ years old and equal male to female ratio, a food item for everyone

81% white population, variety of options to satisfy average American The home station, changes weekly The self-serve hot item station, changes weekly The grill, one or more specials every month

There are currently no known underserved groups who need more attention

Target Market

UCMC survey conducted in December 2010 The average amount of days that cafeteria

users will choose to buy the cafeteria’s food per week is 4.1 days/week

The target market, at ninety-six percent of traffic in the cafeteria, is employees Only 3% of visitors/families dine in the cafeteria

The majority, or 40% of these cafeteria users are ages 35-49 years old and are 85% female

Marketing Strategy: Product

The burger is 461 calories, 21 g of total fat and 1,204 mg of sodium

Appealing because the vegetables in the patty are actually visible for consumers

The burger is comprised of brown rice, beans, red peppers, corn, carrots and spices

Exciting “southwest” toppings: pico de gallo and guacamole mayo, lettuce added

The Aramark recipe calls for a potato bun This meal can be made a combo with chips

and a fountain drink for $1.99 extra

Marketing Strategy: Price

The retail manager set the price of the burger at $4.29

Promotional item is typically a 40% food cost percentage boost

For the Southwest Gardenburger, with the food cost of $1.73, Aramark recommended a minimum standard retail price of $4.99

Marketing Strategy: Place

The Garden Café located on the ground floor between the

Emergency Department and the Kaufman Cancer Center

The burger will be cooked and assembled at the grill station in the cafeteria

Marketing Strategy: Promotion

The Garden Café will promote this burger for two consecutive weeks, only during the week

The first five days the burger will be sold without using any extra marketing strategies

Edited flier, approved by Marketing Production Manager

Email permission and table cad permission denied.

Decided to hand out samples on Tuesday of promotional week due to poor Monday sales

Flier

Sales Forecast

The amount of Southwest Gardenburgers sold during the first week were counted and used as a sales forecast for the second week

April 7-11th

total of 65 burgers generated $278.85

April 14-18th The aim of the promotional event is to sell 10%

more Southwest Gardenburgers sell at least 72 burgers minimum of $308.88

Employee Resources

Tom Pugh Assistant Director Non-patient Services

Susan Bruso Marketing Production Manager

Ryan McMahon Grill Cook

Equipment Resources

Grill Refrigerator Convection oven Serving utensil, spatula Plates To-Go boxes Prep bowls Cutting board and knives Whisk and spoons

Food Resources

Delivered on both Mondays of promotional event weeks

Sysco: garden burger, pepper jack cheese, lime juice,

guacamole, kosher salt, and mayonnaise H&S Bakery:

the hamburger rolls Keany:

the leaf lettuce, cilantro, plum tomato, yellow onion, jalapeno pepper, chives and garlic cloves

Financial Resources: BreakevenSales

Sales per unit $4.29

Units Sold 196

Variable Cost (VC)

Labor per unit $0.22 (4 hours, $11.00/hr, 196 units sold)

Raw food cost $1.71

Total VC $1.93

Fixed Cost (FC)

Marketing $0.30

Insurance and misc. administration $10.20

Total FC $10.50

Breakeven (BE) FC/ (Selling Price – VC)

BE = $10.50/ ($4.29 - $1.93)

Total BE $4.45

Financial DataWeek 1 Burgers sold Gross Sales

Monday 10 $42.90

Tuesday 12 $51.48

Wednesday 17 $72.93

Thursday 10 $42.90

Friday 16 $68.64

Total 65 $278.85

Week 2

Monday 11 $47.19

Tuesday 26 $111.54

Wednesday 20 $85.80

Thursday 21 $90.09

Friday 13 $55.77

Total 91 $390.39

Evaluation

How success was measured? Assess if the objectives and goal were met Goal met and greatly surpassed

The Garden Café sold 91 Southwest Gardenburgers, with net sales of $390.39

Sales were increased by 40%, which is substantial when compared to the 10% goal

Objective met – Customers Satisfied After the samples were handed out to 160 smiling customers, sales boosted

immensely Why the burger was successful?

Fliers and Samples Burger brought to customers attention and taste Health benefits Vegetarian

Improvements? Hospital team member email Table Cards Display Plate – Lemon Juice

Questions?

Thank you!