Management Business Plan: Southwest Gardenburger at Upper Chesapeake Medical Center

1. Management Business Plan: Southwest Gardenburgerat Upper Chesapeake Medical Center April 20, 2014Erin LopynskiARAMARK Dietetic Internship

2. 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

3. 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.”

4. Business Objectives • Specific Goal: • Increase sales from previous week by 10% • Objective: • Customer satisfaction

5. 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

6. 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

7. 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

8. 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

9. Market Analysis - SWOT

10. Local Demographics *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 • 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%

11. UCMC Demographics Status Gender Job Classification

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. Flier

19. 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

20. Employee Resources • Tom Pugh • Assistant Director Non-patient Services • Susan Bruso • Marketing Production Manager • Ryan McMahon • Grill Cook

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

22. 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

23. Financial Resources: Breakeven

24. Financial Data

25. 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

26. Questions? • Thank you!