OKTOBERFESTManagement Business Plan Project
Jessica LacontoraARAMARK Dietetic Internship
Southern Ocean County Medical Center October 26, 2012
Wednesday, December 26, 2012
Statement of Purpose
This project grants the intern an opportunity to develop a business plan related to the implementation of a retail theme day
Skills covered: exploration of company, contract services provided, market analysis, marketing strategy, financial planning, and implementation of resources required for successful plan
Wednesday, December 26, 2012
Mission StatementMeridian Health is committed
to improving the health and well-being of the residents of New Jersey by providing quality, patient-centered health care services delivered in hospital, community and in-home settings, and to advancing medicine through clinical education and research.
“We are a professional services organization dedicated to excellence. -We develop and sustain our leadership position by engaging and supporting our most valuable and differentiated asset; the competence, commitment and creativity of our people…in a global company built on pride, integrity and respect”
Wednesday, December 26, 2012
Business Objectives
3. To increase the average check value by 10% for Oktoberfest when compared to the average check for the past three Thursdays.
1. To increase cafeteria sales for lunch by 7% on Oktoberfest as compared to a the average of the past three Thursdays.
2. To increase the number of customers in the Beach Plum Cafe by 5% by promotion of Oktoberfest event vs average past 3 Thursday customer count.
Wednesday, December 26, 2012
Company Summary Southern Ocean County Medical Center is part of the Meridian
Health family which includes 6 hospitals, 95 locations, 1,700 hospital beds, 12,000 members and over 2,100 physicians on staff.
SOMC is located in Ocean County, New Jersey. It has176 beds and currently is midway though a renovation to expand the emergency room.
ARAMARK services at SOMC include food management, catering, retail and facilities. They provide recipes, retail promotional signs, safety and sanitation forms, organizational tools and other management tools in a straight fee contract.
ARAMARK GoalsIncrease Efficiency
Increase Customer Satisfaction Reduce Operation Cost
Increase Profit from Retail
Reduce Patient Services Expenses
Reduce Labor Costs
Improve Employee Satisfaction
Improve Safety
Wednesday, December 26, 2012
Market SummaryNYC
SOMCPhilly
Local Demographics
Competition
Target market
SWOT
Wednesday, December 26, 2012
Market Analysis2010 Statistics Stafford
Township, NJ New Jersey
Total Population 34,089 8,733,304
Square Miles 46.53 7,417.34
Population Density 732.60 1,177.40
Population Female 51.07% 51.11%
Median Age 40.20 37.40
3%4%1%1%
91%
WhiteAfrican AmericanAsianHispanicOther
Local Demographics
Wednesday, December 26, 2012
Market Segmentation 91% of employees buy at least one meal/week 42% eat in the café 2 or 3 times/ week 33% of the employees eat lunch everyday 35% of employees who bring their lunch to work. 2% are choosing to leave campus and eat off site
Customer Close Up Survey (2010)
Off-SiteSkip
Bring
On-Site
On-SiteBring SkipOff-Site
Wednesday, December 26, 2012
SWOTSTRENGTHS
•Only on-site dining option•No dining available in walking distance•Skilled chefs produce quality products on site•Employee discount and competitive prices•Fresh new ideas, cycle menu•40 years in location and customer loyalty
WEAKNESSES•Not easily accessed by or advertised to public•Lack of marketing efforts to local workforce and retired community•Fall brings a reduction in patients, customers and sales•Limited seating•Lack of retail mobility in Cafe•Clients not willing to experiment•Retail prices are low
OPPORTUNITIES•Able to try new products that have already been analyzed by ARAMARK•Flexible staff is willing to experiment and prepare new menus• Repetitive patient menu allows time to expand retail menu•Price increase available due to extremely low level•New ER will increase customer base
THREATS•Café closed between 2:30- 4 pm daily•large number of local fast food and affordable establishments•Hospital Circle service will pick up food from local restaurants•Lack of parking near Cafe•Population suffers from economy recession
Wednesday, December 26, 2012
Market Segmentation Ocean County contains one of the largest
populations of over 55 communities in NJ. Target the retired of fixed income members of the
community Volunteers voucher $5.50
Reduce cost of foods and home station Employees meals discount excludes tax from
their sale Increase average check of employees
Visitors make up about 40% of the sales and pay full retail price with sales tax Increase visitor sales by advertising outside the
hospital
Wednesday, December 26, 2012
Beach Plum Café Seasonal Menu -4 week rotation Serves - 180 diners 6 Stations
Grill Simmer Crisp Build Exhibition Home
Wednesday, December 26, 2012
Competition SOMC
Surrounded by 3 highways Housing developments Golf course Large shopping centers - retail giants, restaurant chains and fast
food operations Within 5 miles
Subway, Sonic, McDonald’s, Applebee’s, TGI Fridays, Manhattan Bagel, Mikado Sushi and Hibachi, Chinese restaurants, Muscle Maker Grill, KFC, Wendy’s, Pizza Hut, & Shoprite.
The Stafford Diner, Joeys Pizza and Wawa are the closest competitors to the Beach Plum Café.
New food trends Low fat, low calorie options - Healthy Advantage Gluten free items – Café does not advertise which food choices are
gluten free and may open up a greater market
Wednesday, December 26, 2012
Competitive Pricing
Beach Plum cafe are competitively lower then Wawa, Joey’s and Stafford diner
With only 2% of customers eating off campus daily the challenge is appealing to those who pack a lunch 3-5 days a week.
The Beach Plum Café
Joey’s Pizza Stafford Diner
WAWA
Panini 3.79 7.50 8.25 4.79Chicken Caser Salad
4.69 8.95 8.75 4.99
Pizza slice 1.35 2.00 - -Bar pie 3.60 11.00 - -French Fries 0.85 2.95 3.25 -Cheese steak 3.35 7.50 7.95 4.79Turkey Club 3.79 6.95 7.95 3.89Hamburger 2.45 5.50 5.25 -Wraps 3.99 7.50 8.25 4.29Chicken Fingers
3.49 5.95 5.25 4.69
Dessert/pie 1.99 4.95 3.50 1.99Large Coffee 1.15 0.95 1.10 1.00Fountain Soda
1.05 1.89 1.50 1.25
Wednesday, December 26, 2012
Target Market The Beach Plum Café mostly feeds employees & volunteers Visitors - smallest population but generates 40% of sales Target market
Equal mix of males to females Equal mix of blue collar to white collar Age average of 42 years old Important to consider the volunteers when generating a
menu because they must be fed on the $5.50 voucher and therefore menu item price has a ceiling
Event will be dedicated to increasing the average check for visitors and employees while keeping the price down on menu items.
Wednesday, December 26, 2012
Marketing Strategy
Fall Comfort Food Oktoberfest Theme
Authentic Special Beverages German Dessert Pretzels Advertise Theme
Wednesday, December 26, 2012
Marketing PlanProductPricePlace
Promotion
Wednesday, December 26, 2012
Product Budget friendly German foods at 5 of the 6 stations in the café Goal was to make the meal options exciting, traditional and inexpensive.
Grill - Kielbasa pretzel melt Simmer - Westerland fish soup & German corn chowder Home -Schweine-Schnitzel (breaded fried pork), Berlin style chicken
fricassee, braised red cabbage, spinach filled pancakes, potato pancakes and sautéed spaetzle
Desserts- Banden apple roll, lemon tart, and German chocolate cake Build- German hot dog & onion salad, and cold german potato salad Pretzels Specialty beverages - Hot apple Cider, Root Beer
17
Wednesday, December 26, 2012
Price Items competitively priced so that customers
would not be influenced to purchase Oktoberfest choices
Free samples of the home station items Meal prices continue to be at or lower then
competition.
18
Wednesday, December 26, 2012
Place Fresh clean appearance Seating for small or large groups Café layout is strategically mapped Oktoberfest items and decorations were placed at 5 of 6 station Dessert table & Pretzel twists were grab and go Samples given in font of home station The Beach Plum is accessible to employees, visitors and volunteers
19
PromotionPromotion material posted -Friday the week before the event. Marketing materials were distributed using the hospital email system with weekly menu, through the hospital mail system, and posted near Beach Plum Café, elevators, gift shop, lobby and at the front desk.
Wednesday, December 26, 2012
ResourcesEquipment
laborFood
Financial
Wednesday, December 26, 2012
Equipment ResourcesCooking Equipment Small Wares
Fryer SpatulaRefrigerator/Freezer Steam table pan (full, 1/4 , 1/2)
Stand-up Mixer Scoops
Steamer Ladles
Stock pots Spoodle
Convection oven Tongs
Grill Shot guns
Coffee Urn (hot cider) Cutting boardsSteam Jacketed Kettle Slicing knife
Clam Shell Chef’s knife
Soup Kettle Large Mixing Bowls
Large Saute Pan Sheet Pans
Wednesday, December 26, 2012
Food
Resources
Food Item Amount Used Unit Price Total Price
Pork Loin 24# 2.26/# 54.24
Red Cabbage 2 10.00 20.00
Potatoes 1/5 20.63 4.13
Potato pan cakes 5/6 31.46 26.22
Pastry dough 1/2 31.05 15.53
Apples 1/5 38.68 7.74
Kielbasa 1 case 28.16 28.16
Onions 1/4 14.65 3.67
Peppers 1/4 20.31 5.08
Pretzel roll 1/2 39.60 19.80
Fish fillet 1/5 50.92 10.18
Shrimp 1/4 58.91 14.73
Spinach 1/4 35.29 8.82
Chicken ( 1/4) 3/4 55.13 41.35
Hot dogs 1/5 61.18 12.24
Bacon 2/15 53.48 7.13
Corn 1/6 31.27 5.21
Chocolate Cake 1/4 42.43 10.61
Total ------- ------- 294.84
Wednesday, December 26, 2012
Financial ResourcesThe budget for Oktoberfest was the same for a normal day
Total special food items ordered were $294.84
No extra labor resources were used
No money was spent on decorations or printed materials
Left overs will be used for dinner and next day meals
Total sales from the Oktoberfest = retail price x # sold (from production sheets) = $829.30
$294.84 (Food cost)/ $829.30 (total sales) x 100% = 35% food cost without labor and disposables.
Wednesday, December 26, 2012
Financial Data
Sales ForecastBreak Even
Wednesday, December 26, 2012
Sales Forecast To estimate the budget and number of meals sold averages
Customer count ( past average - 333.5) By factoring in the percent increase (5%=17 people) the goal
= 350 Total sales ( past average -$912.70)
With a 7% increase (64$) the goal =$976.70 Check history ( past average $2.74)
Goal with the 10 % increase ( $0.27) = $3.02
Wednesday, December 26, 2012
Breakeven AnalysisHome Station Unit
Sales
Sales price per unit 5.79
units sold 120
Variable Costs
Labor per unit (6 hrs, $14/hr, 120 units sold) 0.70
Raw food cost 1.60
Total VC 2.3
Fixed CostsInsurance and administrative fees estimated by Food Service Director 65
Total fixed costs 65
BE= 30/(3.69 - 2.305) = 18.62464183
Break even in number of units sold 19
Profit = (units sold - BE) x sale price 584.79
Financial implications for practice include a reduction in sales or revenue, decreased satisfaction of customers, increased operational costs, & increased labor hours.
These implications can be avoided if theme days are planned carefully.
Wednesday, December 26, 2012
Evaluation To evaluate the success of Oktoberfest retail business plan we compared the objectives
to the results. Objective 1- Increase cafeteria sales for lunch by 7% on Oktoberfest as compared to a
the average of the past three Thursdays The past average $912.70 - our goal was $976.70 Actual sales were $1105.88 = 18% increase in sales Attributed to a larger amount of desserts, sides and beverages purchased This shows that there is room for retail promotion improvements in the regular
cafe organization Objective 2 - Increase the number of customers in the Beach Plum Cafe by 5% with
promotion of an event versus the average past 3 Thursdays customer count. The average is 333.5 and at 5% increase is approximately 17 people which brings
the customer count goal to about 350 Customer count for Oktoberfest 329 Attributed to the volume of catered lunches at the hospital that day
Wednesday, December 26, 2012
Evaluation continued Objective 3- Increase average check value by 10% for Oktoberfest when
compared to the average check for the past three Thursdays Average total sales /average customer count = $2.74 +10%
increase ( $0.27) = $3.02. Actual average check value was $3.36 = 20% increase Attribute this increase to customers impulse buying dessert, hot
cider, pretzels and extra sides A notable increase in the purchase of entree with combo meal occurred
once the intern presented samples around the home station Staff received encouraging feed back that the Oktoberfest items were
authentic, appealing, and delicious28
Wednesday, December 26, 2012
Event Photos
Jessica Making Spaetzle
Wednesday, December 26, 2012
Build Station - Cold Salad
30
Wednesday, December 26, 2012
Westerland Fish Soup
German Potato Chowder
31
Wednesday, December 26, 2012
32
Wednesday, December 26, 2012
Grill Station - Kielbasa Pretzel Melt33
Wednesday, December 26, 2012
34
Pretzel Roll and Twists
Wednesday, December 26, 2012
Thank You...Questions?
35
Wednesday, December 26, 2012