Management Business Plan Project Holy Redeemer Hospital 10-20-14 By: Rachel Sedgwick Aramark Dietetic Internship

Statement of Purpose To better understand retail management with the usage of promotion, production, market analyzing, and pricing. Promote a meal intended for the target audience. Provide people with a vegetarian healthy lunch. Increase the sales and profit in the Hospitality Café.

Mission Statements 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 Catholic Health System, rooted in the tradition of the Sisters of Holy Redeemer, we care, comfort and heal, following the example of Jesus, proclaiming the hope God offers in the midst of the human struggle.

Goals and Objectives Goal 1: Increase total deli sales by implementing Aramark's Meatless Monday retail promotion. Objective 1: Increase total deli sales by 10% with the eblast, posters, and promotion on the menus compared to the last 2 non-promotional Mondays. Goal 2: Increase sales of the specialty vegetarian sandwich with sampling and promotion. Objective 2: Sell a minimum of 16 vegetarian sandwiches during lunch time with the use of promotions and sampling.

Company Summary Holy Redeemer Health System is a Catholic health system located in Meadowbrook, PA. It was founded in 1934 by the Sisters of the Holy Redeemer. The health system contains 250 acute care beds, 350 long term care beds, and 250 beds at the Lafayette location. Aramark has been partners with Holy Redeemer Health System for 11 years. Strong focus on Community.

Aramark provides a wide range of duties for the health system such as: Environmental Services Linen Distribution Services Uniforms Retail Catering Staffing- Managers In patient services Long term care services

Competitors There are many restaurants near the hospital for people to eat at, but none within walking distance.

Market Analysis Holy Redeemer Cafeteria Tin Pan Alley Tavern (2.3 miles away) The Allways Café (2.6 miles away) New Napoli Pizza (1.6 miles away) Soup $2.19 $4.50 $5.25 N/A Salad $.36/ounce $6-7.00 $8-9.00 $5.95-8.55 Entrée $5.79 w/ 2 sides and 22 oz. drink $6.95-7.95 $9-14.00 $7.95-10.75 Sandwich $4.79 w/ chips, pickle, and 22 oz drink $6.50-7.95 $9-9.50 $5.45-7.95 Pizza $1.16 Plain Slice $1.43 Meat Slice $2.00 Plain Slice $2.50 Meat Slice Prices for cafeteria are without employee discount

The real competitor would be employees packing a lunch The real competitor would be employees packing a lunch. Our most recent average cost per check was $4.25 while packing a lunch costs around $1.97. Customer Close Up Survey 2009

  Positive Negative Internal factors Strengths Location/convenience (1st floor of hospital) Improved menu Improved salad bar (more options) Cycle menu (constant change to keep people coming back) Staff members (Dedicated employees, same people every day) Large seating area/outside seating Healthy for Life promotions Prices (cheaper than competitors) Many food options daily Employee discount Serves Breakfast, Lunch, and Dinner Fresh produce section from local farm Friendly and helpful staff Café layout Weaknesses Confusing hospital layout (due to the added on buildings) No fryers (due to healthy for life promotion) Oven is broken Cashier line times during peak hours Sandwich station develops line during peak hours Small pizza slices (due to healthy for life promotion) Small retail kitchen (not enough work space) Customers think prices are high Short lunch breaks, so customers want more efficiency External factors Opportunities Improvement in marketing and promotions Updating cash registers (new pricing and discount changes need to be applied) Fix broken equipment Possibly bring back fryers (allow the customer to make the healthy option) People are more willing to try new foods than before (ability to expand the menu with flavors and foods) Competition weaknesses (competitors don’t change their menus each day/week like the café does) Promote that the customers are getting a deal by eating the café meals Threats Local Competitors More people brown bagging lunches Financial resources (may become limited) Possible pop up restaurant within walking distance of hospital Economy (less customers, and cuts somewhere in the retail area whether it be less employees, cheaper foods, less choices, etc) Decreasing profit (possible increase in raw food costs) Cost of technology improvements Tax increases Weather conditions

Market Segmentation The Hospitality Café appeals mostly to the employees of the hospital based on the Customer Close Up Survey from 2009.

Most of the café customers are from the nursing and administrative departments.

Target Market According to the Customer Close Up Survey: 85% of the customers of the café are females. The most common age group of customers is 35-49 years old. Most customers are during the lunch hours. Most employees have a 30 minute lunch. They want quick service and healthy fresh food.

Marketing Strategy Used the Aramark website for posters for the Meatless Monday promotion. Developed Poster for the specialty sandwich to post outside of the café. Sent out email blasts to all employees. Put promotional information on the menu. Prepared samples of specialty sandwich for people to try and bring more customers into the café.

4 P’s of Marketing Product Fresh Mozzarella, tomato, basil, with balsamic pesto dressing on ciabatta Place Holy Redeemer Cafeteria Lunch Hours 11am-2pm October 20, 2014 Price $4.79 per specialty sandwich meal Sandwich, chips, pickle, and 22 oz. fountain drink Promotion Specialty sandwich Poster Meatless Monday Poster Meal Display Samples Lunch Menu

Sales Forecast The promotional event will provide at least a 10% increase in total deli sales at the Hospitality Café compared to the two previous non-promotional Mondays. At least 16 specialty sandwiches will be sold due to promotions and samples.

57 Sandwiches worth of product from Aramark’s e-recipes Food Resources 57 Sandwiches worth of product from Aramark’s e-recipes Note: These rolls are half the size of normal ciabatta rolls so we only used 57.

Employee/Equipment Resources Retail Manager Production Manager Stock/Inventory Employee Executive Chef Food Service Workers Refrigerator Freezer Oven Cutting Board Serrated knife Chef’s knife Emersion blender Spoon Bowl

Financial Resources

Break Even Analysis Breakeven in Number of Units Sold   BE = FC/ (SP – VC) BE = $14.64/ ($4.79 – $1.81) BE = 4.91 Specialty Sandwiches

Evaluation Non-promotional Mondays: Goal 1: Increase total deli sales by implementing Aramark's Meatless Monday retail promotion. Objective 1: Increase total deli sales by 10% with the eblast, posters, and promotion on the menus compared to the last 2 non-promotional Mondays. Non-promotional Mondays: 10-6-14 Deli Sales: $772.00 $772/$892=100-86.5= 13.5% 10-13-14 Deli Sales: $710.00 $710/$892=100-79.6=20.4% Promotional Meatless Monday: 10-20-14 Deli Sales: $892

Evaluation Sold 47 sandwiches, when goal was 16. Goal 2: Increase sales of the specialty vegetarian sandwich with sampling and promotion. Objective 2: Sell a minimum of 16 vegetarian sandwiches during lunch time with the use of promotions and sampling. Sold 47 sandwiches, when goal was 16. 31 sandwiches over goal x $4.79 sales price= $148.49 profit over goal

Sources Strategic Assets. Aramark homepage. https://www.aramark.net/ids/home/topic.aspx?id=5012&contentid=252430   History and Sponsorship. Holy Redeemer. Healthcare. Homecare. Lifecare. http://www.holyredeemer.com/Main/OurHistory1.aspx Customer Close Up Survey PowerPoint. December 2009. Holy Redeemer Health System. Huntington Valley, PA. Our Business Purpose. ARAMARK Website. Available at: http://www.aramark.com/AboutARAMARK/BusinessPurpose/. Accessed October 13, 2014. Google Images. Google.com