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Management Business Plan Project

LifeBridge Health Northwest Hospital

November 4, 2016

Jordan Scheinberg

ARAMARK Dietetic Internship

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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

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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.

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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.

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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-

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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.

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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

http://www.aramark.com/services/food-services

http://www.aramark.com/services/facilities-services

http://www.aramark.com/services/uniform-services

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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

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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,

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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.

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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

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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

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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%

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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

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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

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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

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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

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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

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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

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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

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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




Raw Food Cost $3.75




Total $4.39

Variable Costs: Nacho & Cheese Cups




Variable Costs: Pittsburgh Roethlis Burger




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




Total $2.41

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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


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




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




Raw Food Cost $9.77


Total $11.20

Fixed Costs

Printing Cost for Flyers/Menu $8.00

Marketing/ Decoration Costs $24.33

Total: $32.33

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(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).

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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


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




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









Tortilla Chips: 1 bag (16 oz) @ $1.5175; 5 oz= $0.47

Nacho Cheese: 1 can (10 lbs) @ $7.913; 2 oz= $0.0989


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


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.

http://www.lifebridgehealth.org/Main/AboutLifeBridgeHealth.aspx

http://www.lifebridgehealth.org/Northwest/AboutNorthwest1.aspx

http://www.aramark.com/about-us/corporate-responsibility

http://www.aramark.com/about-us/corporate-responsibility

http://www.lifebridgehealth.org/Northwest/NorthwestHospitalHistory.aspx

http://www.aramark.com/about-us/history

http://www.aramark.com/about-us/our-difference

http://www.aramark.com/about-us/our-difference

http://www.lifebridgehealth.org/Northwest/DiningatNorthwest.aspx

http://www.aramark.net/.../Food/2010_Location_Reports/Midwest/30002690_NorthwestHospitalCenter.ppt

http://www.aramark.net/.../Food/2010_Location_Reports/Midwest/30002690_NorthwestHospitalCenter.ppt

Management Business Plan Project LifeBridge Health ...jordanscheinberginternship.weebly.com/uploads/9/9/5/3/...plan_proje… · Cheeseburger for $3.99, an Artisan Grilled Chicken

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