Management Business Plan ARAMARK October Promotion: Increasing Sales Featured items: Sriracha Turkey Burger & Hummus

Veggie Sandwich

The Woodlands Hospital October 10, 2013 Allison Elliott ARAMARK Dietetic Internship

Purpose
Provide the intern an opportunity to develop a business plan aimed at the implementation of a retail theme day based on ARAMARK monthly retail promotions. Components of Business Plan
o Exploration of ARAMARK o Services Provided o Market Analysis o Marketing Strategy o Financial Plan o Resources Required for Successful Implementation

Business Objectives
Goal: To increase retail sales at the Swan Caf at The Woodlands Hospital on October 10, 2013.

Objective 1 Objective 2
Objective 3 Objective 4

Increase average customer check from the past 4 Thursdays by 5% ($4.63 to $4.86).

Increase daily specials sales by 9 percent (25 to 27 Grab N Go sandwiches , and from 6 to 7 grill specials).

Increase number of customer checks from an average of 753 by 5 percent to 791 checks or higher.

In comparison to the average net sales on the past 4 Thursdays ($3,533.66), increase overall retail sales by 7 percent during lunch service to $3781.02.

Company Description
What type of Contract and Services are Offered? ARAMARK provides Catering, Retail Sales, Patient Services for The Woodlands Hospital 10 year partnership PNL Contract: Profit and Loss What does ARAMARK bring to this hospital? ARAMARK brings knowledge and experience in food service to this hospital Buying power with vendors ARAMARK has standards of excellence in customer service, and already has established menus for both specialized and regular diets.

Market Analysis

Swan Cafe
Seasonal 4 Week Menu Most customers are employees with a 10% discount Style of Service: Dining Options Include:
Sizzle Grill Home Action Station Salad Bar Grab N Go Cooler

SWOT Analysis
Strengths
Employee Discount Buying Power Low calorie & vegetarian selection Friendly Staff Food Display of Daily Specials Recent Implementation of New Menu

Weaknesses
Limited sandwich variety, only served cold Limited market of customers Limited Staffing Hidden location of Swan Caf Charge for Fountain Drink Refills Lack of marketing at caf entrance

Opportunities
Gluten Free Bread Kids Meals Double/Triple Meat Burger Options Pick 2 Option: Soup, Salad, Sandwich Include drink with daily specials Marketing at Swan Caf entrance

Threats
Numerous competitors 2 neighboring hospitals Limited operating hours, especially on weekends Ongoing construction for hospital expansion

Competitors
More than 20 within 1 mile radius
Competitors to Sizzle Grill: Whataburger Wendys McDonalds Willies Grill & Ice House Burger King Sonic Competitors to Grab N Go Sandwiches: Subway Einstein Bros Bagels Panera Bread McAllisters Lennys Sub Shop Brooklyn Caf Forest Caf & Bakery Willies Grill & Ice House

Competitor Pricing
Burgers
Establishment Sonic Combo Price $5.89 A La Carte Price $3.49

Wendys Burger King

Whataburger

$5.79 $5.99
$5.39

$3.89 $3.99
$3.04

Sriracha Turkey Burger $5. 95 Combo, $4.29 A La Carte

Competitor Pricing
Sandwiches
Competitor Lennys Sub Shop Combo Price $8.70 A La Carte Price $6.55

Subway
Panera Bread McAllisters

$7.29 (6 inch)
$6.99 (Pick 2) $6.99 (Pick 2)

$4.50 (6 inch)
$7.59 (Sandwich w/side) $6.99 (Sandwich w/side)

Veggie Hummus Sandwich $5. 95 Combo, $3.99 A La Carte

Market Segmentation

Ethnicity
77.8% White 9.9% Hispanic Fewer Hispanics and Blacks than state average 86.8% speak English, 7.3% speak Spanish at home

Age, Gender, Education, Income

Average Age
77384: 40.4 Years Old State Average: 33.7 Years Old

Education
96.3% Bachelors Degree or Higher 96.3% H.S. Graduate or Higher

Gender
Males: 47.5% Females: 52.5%

Median Income
77384: $79,682 77381: $139,250 (Neighboring Zip Code) Texas: $49,392

Target Market
Mostly White, Upper Class Individuals (Median Income $79,682-$139,250) Hospital Employees, Visitors Hospital Employees tend to desire healthy meal options (500 Calories or less)

Business Strategy

Marketing
Product
Healthy (Under 500 Calories) Flavorful, Unique Sriracha Turkey Burger Veggie Hummus Sandwich

Price
$5.95 Combo $3.99 A la Carte Sandwich $4.29 A la Carte Turkey Burger Average Competitor Combo Price: $5.63 Average Competitor A la Carte Price: $4.54

Place
Poor Location-back of building Compensate by placing marketing at entrance to draw in customers Friendly Staff

Promotion
No marketing allowed outside of caf area Table Tents placed day before Signs at entrance of caf promoting the specials Email to all St. Lukes Employees morning of event

Resource Review

Equipment Resources
Sriracha Turkey Burger Flat top griddle Freezer Refrigerator Prep Table Spatula 1 oz. spoodle Meat thermomoter Veggie Hummus Sandwich Refrigerator Prep Table Knife Cutting Glove Spatula #30 Scoop 3 oz. spoodle 1 oz. spoodle

Food Resources
Sriracha Turkey Burger Hamburger bun 1 turkey burger oz. sriracha dressing 1 leaf lettuce 1 T onion oz. coleslaw Veggie Hummus Sandwich 1 whole grain ciabatta roll (sliced in half) 1 T olive spread 3 oz. spinach 4 slices tomato 4 slices cucumber 1 oz. feta cheese 4 grinds of pepper

Financial Resources
Labor 8 employees to prepare, serve, and sell Food Order Budget same as weekly ordering budget for Swan Caf No major additional costs for marketing (Cardstock, color ink, and tape only) Same weekly budget for Swan Cafe

Financial Data

Sales Forecast
Start-up Budget: Same as weekly retail budget
Analysis of previous 4 Thursday sales results
Average of 6 grill specials, and 25 sandwiches sold Average check: $4.63 Customers: 763 Total Sales: $3,533.66

Overall Goal was to Increase Sales Objectives: 1. Increase average check to $4.86 2. Increase daily special sales by 9% (7 grill, 27 sandwiches) 3. Increase number of customers by 5% to 791 4. Increase total sales by 7% to $3,781.02

Breakeven Analysis: Sales

Sales (SP)

Sales price per combo meal

$5.95

Sales price per Sriracha turkey burger

$4.29

Sales price per Veggie Hummus Sandwich

$3.99

Number of a la carte Sriracha Turkey Burgers

Number of a la carte Veggie Hummus Sandwiches

22

Number of combo promotional meals

17

Breakeven Analysis: Costs

Variable Costs (VC) Labor per unit (3 hours, $10.50/hr, 43 units sold) Raw food cost (Sriracha Turkey Burger) Sales price per combo meal Raw food cost Sales price per Sriracha turkey burger (Veggie Hummus Sandwich) Sales price per Veggie Hummus Sandwich Beverage Number of a la carte Sriracha Turkey Burgers Total: Number of a la carte Veggie Hummus Sandwiches Fixed Costs (FC) Number of combo promotional meals Marketing Insurance & Misc. Administration Costs Total Sales (SP) $5.95 $1.07 $4.29 $3.99 $0.15 4 22 17 $3.09 $1.27 $0.73

$5.00
$9.02 $14.02

Breakeven analysis Breakeven in number of units sold=FC/(SP-VC)= 9 units

Evaluation
Average Sales $3,533.66 Event Sales $4,509.43 +975.77 (Up 21.6%)

Successful Promotion!

Average 753 Customers

1,068 Customers on 10/10

Increased Customers and Sales

Evaluation
Objective 1 (Failed to Meet)
Increase customer check from $4.63 to $4.86. Not met due to increased foot traffic, reduced average check

Objective 2 (Met)
Increase sales of the daily specials by 9%.

Objective 3 (Met)
Increase number of customer checks from 753 to 791 checks.

Objective 4 (Met)
Increase overall retail sales by 7 percent from $3,533.66 to $3781.02.