Retail theme day business plan Bryn Mawr hospital cafeteria October 24th Lauren Martin, ARAMArk Dietetic intern

Overview Mission Statement & Objectives Company Summary Market Analysis Resource Review Financial Data Evaluation

Statement of Purpose Purpose of the retail theme day business plan: Explore Retail operations of Bryn Mawr Hospital (BMH) Determining customer demographics/Market Analysis Theme Day idea implementation Financial accounting The purpose of the retail theme day is to: Explore all operations and functions of the Bryn Mawr cafeteria Determine cafeteria customer demographics and from there determine food preferences and determine food interest and preferences A Market Analysis will also be conducted to determine how the BMH cafeteria is competing in the market place From there, develop a theme day idea to meet to the needs of the cafeteria and its customers The business plan also allows for experience dealing with finances, setting sales goals for the café and learning how to reduce costs to increase profit

Mission Statement Bryn Mawr Hospital “Our Mission is to thrive as a hospital food & nutrition organization that is striving to achieve an exceptional patient satisfaction experience by being customer driven, continually improving our services, team focused and fiscally responsible.”

Business Objectives Goal #1: Increase cafeteria sales Objective #1: To increase daily cafeteria sales by 5% compared to the pervious three Friday sales. Goal #2: Increase selling number of daily “meal deal” special Objective #2: To increase the number of daily meal deal specials sold by 10 compared to the past three Friday meal deal sales. So as I was developing the business objective’s for the retail theme day, I tried to ensure they reflected this mission of the hospital. Shortly, I will speak to the customer close-up survey that was conducted to help increase customer satisfaction. These business objectives were chosen to measure the financial success of the theme day.

Bmh company summary Main Line Health – Well Ahead Guaranteed Net Budget Contract ARAMARK Services offered: Patient & Clinical Services Retail Food Services Environmental Services (EVS) Facility Operations Manager Laundry Customer Service Center Bryn Mawr Hospital is one of four hospital in suburban Philadelphia part of the highly recognized Main Line Health System Since 2000, BMH operates under a Guaranteed Net Budget Contract with ARAMARK ARAMARK services that are provided There are great benefits like standards of excellence and well refined policies and procedures. But there are also downfalls to working as part of larger system like being confined to buying from certain accredited suppliers. It does lessen the ability to work independently.. Like having to produce “tasteless” soup

Market analysis, market segmentation, target market The market Market analysis, market segmentation, target market

Bryn Mawr Hospital Cafeteria Market analysis   Bryn Mawr Hospital Cafeteria Wawa Bertucci’s Sushi Land 6” Turkey Sandwich $3.49 $4.19 ___ 8 piece California Roll $4.99 $4.95 Cheese Pizza $1.79 (slice cheese pizza) $9.99 (personal Margherita pizza) Egg, Cheese and Bacon Breakfast Sandwich $2.79 A market analysis was conducted to become familiarized with the local competition Prices are generally lower at BMH Bertucci’s, Sushi Land, Mediterranean Grill, Verdad Restaurant & Tequila Bar.. All offer a sit-down more formal style of service

Market analysis: Swot analysis Strengths Low food prices Convenience Familiarity Payroll deduct Weaknesses Limited selection and variety Hours of operation Vegetarian Ethnic Foods Opportunities Specialty coffee’s Exhibition/Sauté GRO Promotions Threats Meal Deals offered Establishment within quick walking distance “vegetarian and vegan friendly” restaurants Strengths Weaknesses Opportunities Opportunities for the Retail Department to explore would be the introduction of specialty coffee’s including espresso, latte’s, flavored iced coffee’s etc.. In addition, utilization of the exhibition/sauté station will provide customer’s with additional choices, variety and can also meet the requests for more healthier/vegetarian options by featuring special entrées on that station. The Gro Promotions, sent by ARAMARK, also will provide new dishes and most likely increase sales Threats

Market segmentation A customer close-up survey was conducted to determine the demographics and food preferences of the customer’s at BM Cafeteria According to the survey: -91% of the customer’s are female, 9% males The majority of the customer’s are employee’s of the hospital (86%), with the highest percent coming from the Nursing Department, followed by food and nutrition and management On average about 14% of the customer’s will be visitors This information helps us to determine that selection and variety should be of more importance, if our customer’s are employee’s who will be in the cafeteria on a daily basis

Market segmentation cont.

Female Age: 41-55 Employee of the hospital Department: Nursing Target Market Female Age: 41-55 Employee of the hospital Department: Nursing

Theme Day Marketing strategy So now that there is a solid background and understanding of the BM cafeteria operations, contracts, the café competition, customer demographics and food preferences, I will speak about how the Vegetarian Theme Day came to be. We will become by talking about the marketing strategy, laying the foundation with the four P’s of Marketing: Product, price, place and promotion Product, place, price, promotion

Product Vegetarian Theme Tofu Stir Fry Satay Pesto Pizza Roasted Garlic Hummus Veggie Burgers Tomato Basil Soup & Vegetarian Chili Vegetarian Theme day was decided upon because: October is National Vegetarian Month Customer request Meatless Monday Campaign Product: In order to increase cafeteria sales by an additional 5%, additional vegetarian selections were added to the menu, including roasted garlic hummus on the salad bar, a specialty pesto pizza and the Tofu Stir Fry Satay - Additional menu item’s were highlighted like the veggie burger and vegetarian soups, which the café always carries,

Placement Steam table Easy access

Price Costing from E-Recipes $4.49 Meal Deal: $4.99 Was determined by using raw food cost from E-recipes on aramark.net , where the Tofu Satay was found $4.49 was decided upon, to ensure the break-even point would be meet if people decided to forgo the meal deal option, which included the Satay, Jasmine Rice and a 24oz fountain soda for $4.99

Promotion Highlighted menu items Recipes Just For You Vegetarian Facts Sheet In addition to adding new vegetarian menu items for the day, existing vegetarian options like the black bean burger and tomato basil soup were highlighted and brought to attention. The promotion of these items did create immediate short-term sales, but will help encourage sale of these products and other vegetarian options over time and help to gain positive customer responses

Promotional addendums Black Bean & Sweet Potato Burritos 8-12 flat tortillas (any brand, any flavor) 2 cups sweet potatoes, peeled, cubed, boiled until fork-tender, drained 1 can black beans, drained 1/2cup sliced onions 3 cloves minced garlic 1 cup shredded Mexican-style or cheddar cheese, or other cheese blend 2 tsp cumin 1 tsp chili powder (more or less, depending on your taste) - Preheat oven to 350°F. - Sauté onions and garlic in 1-2tsp olive oil over medium heat. - Add can of drained black beans to onions and garlic. Stir in seasonings. - Add boiled and drained sweet potatoes to bean and onion mixture. Gently mix. - Stuff tortillas with black bean and sweet potato mixture and place in a greased 9x13 baking dish, with seam side faced down - Sprinkle cheese over burritos. - Bake at 350°F for about 5 – 10 minutes, or until cheese it melted. - Serve with salsa, sour cream, guacamole, lettuce and tomato!

Promotional addendums: Table Flyer Did You Know… October is National Vegetarian Month   The average America consumes 8 ounces of meat per day – that is 45% more than the USDA recommends Vegetarian lifestyles are associated with a reduced risk of many chronic illnesses, including heart disease, many types of cancer, diabetes, high blood pressure, and obesity. Meatless meals can allow you to consume larger portions for the same amount of calories! Coming soon… I was able to also promote the Meatless Monday Campaign

Marketing strategy Sales forecast

Sales forecast Increase sales by 5%: $4,819.35 Increase number of meal deal units sold by 10 21 units: $105.00 The sales forecast helps to determine ahead of time how much money the theme day is planning to generate The first objective was to increase sales by 5% comapared to the average sales of the previous 3 Friday’s. This would result in a sales forecast of generating a total of $4,819.35, an increase of $229.49 The second goal was to increase the total number of meal deal specials sold by 10. The average was 11, thus this presents the goal of selling 21 meal deals, which would equal a revenue of $105.00, an increase of $50

Equipment, food, financial Resource review Equipment, food, financial

equipment Sauté pan/stove Hot holding cabinets Rice steamers Refrigerator Steam tables Spoodles, spatula's, knives

food Sysco & Ambrogi Food was ordered through Hatem from Primary Vendor Sysco for all food supplies except the yellow pepper’s, which Syco does not carry, thus they were ordered from Ambrogi Produce

Financial: budget Direct Costs Food $125 Plates/Utensils $10   Food $125 Plates/Utensils $10 Marketing Materials (color printing, paper) $5 Total = $140 Indirect Costs Supplies $13.45 Physician and other fees $0 Repairs/maintenance $0.35 Communication/education $0.03 Utilities Professional Services $7.31 Employee benefits $1.35 General hospital expenses $1.41 Salaries and outside fees $17.01 Total = $40.91 The direct food costs were estimated by using the raw food cost multiplied by the number of portions prepared. The food cost is estimated for all Vegetarian Menu items: stir fry, soup, pesto pizza, hummus, black bean burger The indirect/fixed costs were estimated using the budget for FY201. I figured out how much to budget per patient day, then divided that number by 24 to figure out the hourly cost, then multiplied that by 7 hours of operation for the theme day

Financial: breakeven point Vegetarian Stir-Fry Special   Sales Sales price per unit $4.49 Variable Costs Decorations $0.00 Labor $2.31 Raw Food Cost $1.58 Total Variable Costs $3.89 Fixed Costs Insurance and misc administrative (paper, printing, taxes etc…) $7.62 Fixed Costs total Breakeven in number of units sold 13 units need to be sold Breakeven Unit’s sold: Fixed cost / (selling price ($4.49) – variable costs) Food cost from E-recipes Labor was estimated at $15/hr for 4 hours for prep then divided by 26 units sold to determine how much labor cost per unit Fixed Costs were estimated using number’s from the Food Department’s Budget for FY2011, determined for 4 hours of production

evaluation How did we do?

Financial Evaluation Breakeven Objective 1 Objective 2 Sold 26 Tofu Stir Fry Satay’s $58.37 profit Objective 1 Increased sales by 8% Net sales of $4,955.07 Objective 2 Sold 11 Meal Deals Sold 26 total Tofu Stir Fry Satay’s The calculations showed that a total of 13 stir fry satays, for a price of $4.49 needed to be sold in order to break even. The dish broke even and generated an additional $58.37 in profit. As you remember, the first object was to increase total cafeteria sales for the day by 5%. The theme day was able to meet and exceed the goal by increasing cafeteria sales by 8%, a total of $4,955.07, when the average was $4,589.86 The second objective was to sell an additional 10 meal deals, totaling 21 meal deals. We ended up selling only 11, but did sell a total of 26 tofu stir fry dishes. Explanation for purchasing just the stir fry w/o meal deal Positive customer feed back

Customer Satisfaction Positive Feedback Sampling Overall Success!

The end Any questions?