ARAMARK Dietetic Internship 2013/2014

Management Business Plan October Promotion featuring Sriracha Turkey Burger

Dasha Koropenko Sunday, October 27, 2013

TABLE OF CONTENTS

1.0 Executive Summary 1.0 Executive Summary 1.1 Mission Statement 1.2 Objective 2.0 Company 3.0 Market Analysis 3.0 Market Analysis Summary 3.1 Market Segmentation 3.2 Target Market 4.0 Promotional Even Concept 5.0 Strategy and Implementation Summary 5.0 Marketing Strategy 5.1 Sales Forecast 6.0 Resource Summary 6.1 Employee Resources 6.2 Equipment Resources 6.3 Food Resources 6.4 Financial Resources 7.0 Evaluation 8.0 Appendix

3 5 6 7 8 12 13 13 14 16 16 17 17 18 19 21

EXECUTIVE SUMMARY

1.0 Executive Summary Food service within a hospital is complicated and bearing task. To keep menus fresh, flavorful, and creative it takes great effort and expertise. While Highland Park Hospital is one of the smaller NorthShore ARAMARK accounts, their expertise and efforts are not lacking. With a great staff and team of managers and supervisors provided, the hospital is able to operate at above par levels. The struggle comes when menus become outdated and updated and the pressure to learn all new things can be quite overwhelming. But, to my knowledge the new menus are being altered and are now offering more tasty and current options and combinations. This new Fall Favorites promotion is a corporate ARAMARK promotion that is used to help with their success of Just For You promotional concept. This promotion was implemented in most of the hospital accounts across the country with ARAMARK. With Highland Park Hospital, which is located in a small suburb of Chicago, it was truly a success. There were two products offered on separate days. The promotional items were the Veggie Humus and Feta Sandwich and the Sriracha Turkey Burger with Cilantro Slaw. For the purposes of this project, the Sriracha Turkey Burger was chosen to promote and create a business plan on. The top priorities with any company would be to increase profit as well as clientele. With the normal, plain turkey burger not being a regular order from the Caf, the promotional item was not expected to do so well. By providing the customer with a new, flavorful, healthy option, meeting the criteria for diversity and creativity was reached.

The financial goal of increasing average sales by 5% was reached by increasing the sales by 6%. The average check was increased by 8% which was a success as well. The customer lunch transaction fell below and an increase from the average was not reached. The Sriracha Turkey Burger was the highest selling item during lunch time and feedback for the item was all positive, therefore making this item a success for the company.

1.1 Mission Statement ARAMARK has a unique mission statement that encompasses care for all: Deliver experiences that enrich and nourish lives ARAMARKs business purpose focuses on enrichment and positive encouragement for a desired outcome aimed to achieve excellence:

We are a professional services organization dedicated to excellence. We develop and sustain our leadership position by engaging and supporting our most valuable and differentiated asset; the competence, commitment and creativity of our people.

We provide world-class experiences, environments and outcomes for our clients and customers by developing relationships based on service excellence, partnership and mutual understanding.

We enable our clients to realize their core mission, and we will anticipate the needs and exceed the expectations of customers, by dedicating our skills in professional services hospitality, food, facilities and uniforms - to the goals and priorities of their institution.

We create long-term value and capture the greatest opportunity for all ARAMARK stakeholders - our people, clients, customers, communities and shareholders - by delivering sustainable, profitable growth in sales, earnings and cash flow in a global company built on pride, integrity and respect.

1.2 Objectives Goal: To increase sales Objectives: Increase overall sales by 5% on October 17th from the average cafeteria sales from the previous three Thursdays Increase check average on October 17th by 5% from previous three Thursdays Increase lunch customer transactions by 5% on October 17th from the previous three Thursdays

2.0 COMPANY

The NorthShore University HealthSystem Highland Park location is one of the hospitals in the NorthShore network. There are four hospitals located in the suburbs right outside of Chicago which are in Highland Park, Evanston, Skokie, and Glenbrook. The Highland Park location was established in 1918 and services the people of Lake County with 149 beds within the facility. It has been providing exceptional care for over a century and it was the first site in Lake County to perform open heart surgery. The NorthShore University Health System is also a partner with the University of Chicago Pritzker School of Medicine. ARAMARK is a partner with NorthShore in which ARAMARK provides services in environmental services, food service, linen, transportation, clinical engineering facilities, catering, retail, energy, and plant operation management. ARAMARK has had an ongoing business relationship with NorthShore for the past 30 years and continues to surpass expectations in delivering sustainable, profitable growth in sales. NorthShore collaborates with ARAMARK through a Cost Plus contract. With this contract, NorthShore will pay all costs to ARAMARK with an extra fee to have ARAMARK come in and hire and manage employees. This price includes food, labor, equipment, and additional fees. The services provided to NorthShore through ARAMARK are aimed to provide excellence.

3.0 MARKET ANALYSIS

3.0 Market Analysis Summary: Highland Park Caf is located in the basement of the hospital and it can accommodate 150 patients and/or employees. The Caf provides guests with breakfast, lunch, and dinner that can suit just about anyones taste buds. It is composed of various stations including salad bar, home station, world station, deli bar, the grill, pizza station, and soup station. The prices for each of the stations vary but the average price for a meal which includes an entre, side and a drink is $5.00. Just above the Highland Park Caf, on the main floor, lies the Park Avenue West Caf which provides customers with quick choices, to-go items, and Starbucks Coffee making it a favorable choice for consumers. There are limited menu items but because of the quick service and the Starbucks Coffee, it makes for competition to the Highland Park Caf. Within a half of a mile is downtown Highland Park which is housed with a variety of diverse eateries ranging from sandwiches, burgers, hotdogs, bar-b-que, pizza, and vegan to Italian, Chinese, and Mexican. These places are conveniently located, cater many options, have inviting atmospheres, and reasonable prices making them the target of competition. When devising the list of competitors for this business plan, three items came to mind: burgers, salads, and sandwiches. In todays society, these menu items are still at the top for fast-paced eating options. Michaels Chicago Style Red Hots is one of the most well known eateries in Highland Park. This place thrives on their unique Chicago style hotdogs, burgers, Create-Your-Own-Salad

salad bar, wraps, and potatoes. Michaels has a unique atmosphere that is spacious and presents itself as a modern diner. The space is covered with photographs of locals eating at Michaels making it feel homey. Ordering is done at the front counter and the restaurant is operated in self-service fashion. Another added incentive at Michaels is that they have a separate frozen yogurt counter called Yogen Fruz. This offers the customer a sweet treat after their meal at the same location. At Michaels a plain hot dog goes for $3.39, a cheeseburger is $6.19, and a turkey burger is $5.49. To make those entrees a combo it would cost an extra $2.19 for French fries and $2.09 for a drink added to those prices. All of the prices on the grill at Highland Park Caf average to $5.00 which includes an entre, fries, and a drink. The salad bar at Michaels offers three different options; small greens for $5.49, medium green for $6.99, and large greens for $7.99. The small greens contain only 4 toppings and the number of topping increases as price increases. In Highland Park Caf, the salad bar is .29 cents an ounce, unlimited toppings. Michaels may be a fan favorite but if one is looking for convenience and better price, the Highland Park Caf is the ideal place. Down the street from Highland Park Hospital, less than half a mile away, lies a beloved American favorite fast-food chain: McDonalds. This is a familiar place to many and is famous for the speedy service. The McDonalds located in Highland Park is tucked away behind a main road where it is barely visible. If one was not familiar with the area, they would not be able to spot the restaurant right away. McDonalds has a very basic layout to it; the restaurant contains simple furnishings and child-like dcor. Ordering can be done by coming inside the restaurant or through a drive-thru. The food delivered usually takes no more than 5 minutes and the choices on the menu are pretty standard throughout all of the McDonalds chains. They offer a
9

variety of burgers, chicken entrees, salads, and breakfast items. For dessert they offer sundaes, shakes, pies, and cookies. The quarter pounder with cheese is one of their top selling burgers and it runs $3.69 and $5.39 for the meal which includes a medium drink and medium fries. The double quarter pounder with cheese is $4.69 and $6.39 for the meal. The chicken sandwich runs for $4.39 and the salad is $5.79. Though these meals are all reasonable prices, HPH still beats out the competition with $5.00 average for a burger meal and 5.60 for the chicken sandwich meal. The salads again, are just .29 cents an ounce with a great variety of veggies to choose from. Another great hometown favorite is Loves Caf which is nestled on Elm Place, less than half a mile away from the hospital. Their slogan is develop a passion, get addicted, fall in LOVE again which helps to create a vision of what kind of atmosphere this place brings. When stepping inside of Loves caf one can immediately see that it is not an overwhelming restaurant with lots to choose from. It presents itself with a diner feel, having only a handful of tables and chairs. The menu is colorful with specialty sandwiches, wraps, paninis, salads, soups, potatoes, and their frozen yogurt bar. The menu prices range anywhere from $3.50 to $8.00. This place, being a local favorite and so close to price and distance with the hospital, makes it a great competitor. Highland Park is a small suburban town where everything is fairly close. The restaurants mentioned above are in close proximity to the Highland Park Hospital and are accessible to anybody with a vehicle. There are also many diverse options for food choices besides the ones listed above that cater to a plethora of taste buds. Highland Park Caf does have advantages

10

over the leading competition: price, options, distance, and people. The price that you will get at the Caf will dwindle most competition out of the water for what all they have to offer. Having a full, qaulity meal with a drink for about $5.00 is not found in many places. The choices like mentioned above give customers a great variety. On top of that, if one is already at the hospital, it is more convenient to dine in on site rather than drive somewhere even though it is fairly close by. Another attracting factor to the Caf is their food service staff. Everyone you meet is very welcoming and kind towards you. They are great with questions and are knowledgeable about the products that are being served. A close-up survey that was conducted in 2010 showed that 60% of the customers who were eating at the Caf were doing so 5 times per week. The average check that those customers said they paid was $4.79. SWOT Analysis Positive Strengths Well mannered, friendly staff The menu is diverse, offering a variety of items Menu pricing is good Located in hospital Experienced chefs Well trained employees Overall kitchen and caf cleanliness Staff can cross-train On site managers and/or supervisors Just 4 U signs Nutritional information for most of the products being served Negative Weaknesses Cafeteria dcor is out of date and worn Cafeteria small and outdated compared to other sites Healthier choices should be available Location of cafeteria (in the basement) Advertising of cafeteria not implemented Short hours of operation for lunch NetMenu recipes not up to date and accurate NetMenu not accurate for nutritional value Short staffed Not many promotions or theme days Low census

Internal Factors

11

Opportunity Update NetMenu More retail promotions and theme days Email blast to promote theme days Just 4 U program improved Conducting interviews to increase staffing To convert customers to eat at cafeteria instead of outside of hospital or who bring meals from home

3.1 Market Segmentation: A close-up survey that was conducted in 2010 showed that 96% of the customers dinning it at the Highland Park Caf were Highland Park Hospital employees (Graph 1). 34% of those employees were between the ages of 35 and 49 years old and 27% of those employees were nursing staff (Table 1). 81% of those frequenting the cafeteria are females (Table 2). The physician census for the cafeteria was only 2% making this a target that promotes more ARAMARK attention (Graph 2). A reason why this number may be low is because of the doctors lounge within the hospital that provides a small catering option for the physicians. Another factor could be that they purchase a meal package that may not be documented in these results. The menu that is instilled today is trying to focus on diversity and healthier options which are the top concerns people brought up in the close-up survey. By offering the World Station for lunch, consumers can experience a variety of cuisine that caters to the diverse. Healthier options are now available as well whether it is at the salad bar or at the steam table

External Factors

Threats Low patient census Budget cuts Competition close by Elimination of food service free meal program promotes employees to eat elsewhere

12

with varying freshly prepared hot meals. These options on the current menu plus the grill make it an optimal place to eat for the majority of the demographic. 3.2 Target Market: The target market for Highland Park Hospital is the female nursing staff between the ages of 35 to 49 (Table 1, Graph 2). With 60% of the consumers frequenting the cafeteria 5 days a week, the menu must be full of variety (Table 3). Also, because of the loyalty of the consumer, prices should refrain from reaching high levels and should stay at a comfortable range. The grill is a fan favorite for the hospital therefore promotion of the turkey burger should be a success meeting variety, price, and healthier food options concerns.
4.0 PROMOTIONAL EVENT CONCEPT

The promotional event is implemented in the month of October therefore the theme is Fall Favorites. The promotion is a healthy and better-for-you option that incorporates a traditional turkey burger and spicing it up with Sriracha sauce. The burger also comes with cilantro slaw which gives the burger a gourmet feel that one may find in a fancier, gourmet burger place. The slaw is fresh and it cools off the Siracha sauce, bringing the taste to a tasty medium. This promotion is dedicated to increase customer traffic and to increase the average check sale. With the concept of a healthier food option, in addition to the turkey burger, the promotion of substituting sweet potato fries for French fries will be implemented as well. The Sriracha Turkey Burger with Cilantro Slaw will be priced at $4.00 per burger and an additional $1.60 for fries and a medium drink coming to a total of $5.60 for the whole meal. At a price like

13

that, and for the product that the consumer will be getting, it is a steal. This will aid in consumers exploring more wonderful, healthier options that suit their pallet.
5.0 STRATEGY AND IMPLEMENTATION SUMMARY

5.0 Marketing Strategy: A marketing strategy is created in hopes of increasing sale, volume, and the promotion of the product. It is done so by implementing the four Ps: product, price, place, and promotion. Product: A turkey burger is a healthier alternative to the American favorite ground beef burger. The Sriracha Turkey Burger offers consumers a familiar product but for less calories and fat. It is a great way to show consumers how they can put a twist on an original favorite and turn it into something more nutritious. By pairing the Sriracha Turkey Burger with sweet potato fries, the meal becomes a colorful fall decoration that is pleasing to the eye as well as satisfactory to the taste. Price: The price for the complete meal which includes the Sriracha Turkey Burger with Cilantro Slaw, sweet potato fries, and a medium drink is $5.60. If one did not want the whole meal, the price for just the turkey burger is $4.00. When looking at the surrounding competitors, this price is pretty standard and actually falls below the average for a fast food meal. The desired mark-up factor for this product is 2.5 was attained by having the food cost percentage below

14

40%. The sale of this product will increase profit margin and will be appealing to new customers for purchase. Place: The Highland Park Caf is located in the basement of the hospital. The station that the item is featured at is called the Grill. This is the perfect place to hold the promotion because not only is it the station that normally offers burgers but it is also a customer favorite, usually carrying the longest line. Most of the customers in that line order the special of the day therefore seeing that promotion it will prompt them to do the same. The Grill is also a great place because they see the burger made in front of them by one of our fantastic cooks that they see every day thus adding to the customer loyalty. Once the consumer enters the kitchen they will be able to see posters for the turkey burger, drawing them to the product. Promotion: The program came with a kit that included a large poster, mini posters, and Healthy for Life newsletters to promote the product. A poster was placed right outside of the caf where it had been for the past two weeks. In addition, table tents were created and placed on all of the cafeteria tables the week of the promotion (found in Appendix). The mini poster will be displayed by the grill where the meal is prepared. The customers were also prompted to fill out the survey which was created for the event. The survey consisted of four statements to be answered with a yes or no: I received good value for the price I paid, overall I was satisfied with the quality of products, the promotion that was offered was compelling, would you like to see this promo item offered again in the future. The survey included a comments section at the end
15

as well. The surveys did as expected providing us with feedback from about 25 customers which is about half of whom purchased the promotional item. 5.1 Sales Forecast The predicted sales of the turkey burger for the promotion were a total of 20 burgers. The number was this low because the sale of turkey burgers within the cafeteria seems rather unpopular with clientele. There are roughly 2 turkey burgers sold per week. The goal was to increase sales by 5% from the past three Thursdays. The next goal is to increase the average check by 5%. The average check is $4.37 and if it is increased by 5%, it would be $4.59*.
6.0 RESOURCE SUMMARY

6.1 Employee Resources For this promotional event to occur, multiple team members were joined in collaboration. Firstly, Tim Misicka prompted the production manager and executive chef Peter Witwicki to call in and order products used for the turkey burger. Prior to the event, Tim also helped the dietetic intern, Dasha Koropenko, with creating the survey and hosting up signs. The dietetic intern designed and created a box for the surveys, the surveys, and table tents and was in charge of putting those item up prior to the event. Linda Hankins, the catering coordinator was in charge of putting out the display and display signs on the day of the event. Employee Illan Baron was in charge of making the sriracha sauce and creating the slaw to go on the burger. Andres Mancilla is the cook who works at the grill and is in charge of the preparation and the final product of the turkey burger. During lunch time on October 17th, the dietetic

16

intern helped with preparation of the fries, stocking needs, management of staff, and was in charge of telling customers to fill out the survey after their meal. 6.2 Equipment Resources In preparation of the turkey burger, sriracha sauce, and cilantro slaw, the following equipment was used: Gloves Grill Spatula Serving spoon Ice Cutting board Deep Fryer 4 1/6 Pan

6.3 Food Resources The food items used in the event were ordered by the production manager Peter Witwicki on Monday, October 14th and they were delivered on Tuesday, October 15th. The ingredients that were ordered through Sysco were as follows: 2 cases of turkey burgers (24 burgers a case) and 5lb box of coleslaw. Everything else that the turkey burger required such as cilantro, mayonnaise, sriracha seasoning, lettuce, diced onions, and buns were already stocked on hand.

17

6.4 Financial Resources Resources and budgeting for this promotion were equivalent to day to day budget within the Caf. There were no additional decorations that required extra cost. Sales Sales Price Per Turkey Burger Number of Promo Meals Sold Revenue from Promo Item $4.00 52 $208.00 Variable Cost Labor Per Unit Raw Food Cost Total $0.48 $1.06 $1.54 Fixed Cost Misc. Administration and Insurance Cost Total Breakeven Point $12.00 $12.00 5 burgers

18

7.0 EVALUATION

To verify whether or not goals were met, the objectives were compared with the ending results of the project. The first goal of the promotion was to increase the overall average sales from the past three Thursdays by 5%. The sales from October 17th were $2035.87 which is a 6% increase from the previous average sales of $1907.89. The second goal was to increase the check average by 5% from the previous three Thursdays. The check average was $4.59 and the reports that came back for October 17th showed that average check was $4.98 making that an 8% increase to the check average. The last goal for the promotion was to increase the total lunch transactions by 5%. The average lunch customer transaction for the previous three Thursday was 300 transactions. The total transactions for October 17th were 298 which did not reach the 5% increase that the goal was set for. The goal may not have been successful because the census for that day was lower than the previous days. The total sales and the check average was a success though the lunch customer transactions goals were not reached because it created profit. The total amount of turkey burgers that were purchased for the promotion was 52. Provided that we were predicted to sell only about 20 turkey burgers, the final sale output was a huge success. The likeability and draw of a turkey burger can sometimes be unappealing to consumers because of previous bad encounters; therefore getting consumers to try it was tricky. Though the favorability of the grill item draws the attention of the crowd half of the time, it was more difficult as many customers hesitated to order and asked numerous questions about the burger. I was in charge of selling the burger therefore I took it upon myself to advertise as much as I could. During the lunch hour, I made sure to stand in front of the grill to
19

answer any questions about the turkey burger. I validated the taste of the ingredients such as the Sriracha sauce and the cilantro slaw and I recommended it to customers that were unsure of what to get. There were many people who mentioned I dont like turkey burgers in which my response was The turkey burger is great! If you are feeling brave today, you should definitely try one! It wont disappoint you! Many hesitated but went along with it and tried it. I told them about the survey in the cafeteria for feedback whether or not they liked the burger. All of the responses that came back were favorable and said they liked the burger and would like to see it offered again! I also had multiple customers coming up to me and telling me how much they loved the burger. Even the following week people were asking for the Sriracha Turkey Burger at the grill. That was such a great accomplishment because it meant that the burger was indeed a success. There has even been word about making the Sriracha turkey burger a permanent menu item. Though there was success with sales and profit, it was more of a success to see that a new item on the menu that consumers have never tried before actually worked and it worked well! This is a great benefit to the company as a whole because it gives room for creativity within the kitchen that leads up to success in most profitable aspects.

20

8.0 APPENDIX

Appendix A: Equations Page 14: Food Cost % = (FC / S) x 100 = FC% $1.06 / $4.00 = 26.5 % Mark-up Factor = 100 / (26.5) food cost % = 3.77 Sale Price = (FC) SF Page 18 Breakeven Point: FC/(SP-VC) =BE $12.00 / ($4- 1.54) = 4.87 burgers to sell to breakeven % Check Increase: $4.59 / $4.98 = .92 x 100 = 92% 100% - 92% = 8% increase

21

Appendix B: Graphs and Tables: Graph 1 Percent of patients who frequent Caf
Employees Visitors Patients Students Volunteers Other
0%

96% 1% 0% 0% 2% 1%
20% 40% 60% 80% 100% 120%

Table 1 Age Distribution 0% 4% 23% 34% 29% 10% 17% 81% 2% Under 18 18-24 25-34 35-49 50-59 60+ Table 2 Gender Distribution Male Female Prefer not to answer

Graph 2 Job Classification

Executive Director Physician Nursing Technical Support Staff Patient Services Administrative Researcher Other
0% 5% 10%

0% 11% 2% 27% 13% 13% 8% 10% 0% 13%

15% 20% 25% 30%

22

Table 3 Days per week frequenting the Caf

Days/Week
0% 2% 7% 13% 0 Days 1 Day 2 Days 3 Days 4.4 14% 60% 3% 1% 4 Days 5 Days 6 Days 7 Days

Mean Days

Appendix C: Pictures

23

24

25

26

RESOURCES

About ARAMARK: Business Purpose. ARAMARK Network. https://www.aramark.net/corporate/home/topic.aspx?id=4842&contentid=228734. Accessed October 5, 2013. Highland Park Hospital. NorhShore University HealthSystem Website. http://www.northshore.org/locations/highland-park-hospital/. Accessed October 7, 2013 Lake County, Illinois. United States Census Bureau Website. http://quickfacts.census.gov/qfd/states/17/17097.html. October 13, 2013. ARAMARK Healthcare. Customer Close Up Survey. https://www.aramark.net/healthcare/home/topic.aspx?id=1436&contentid=183570. Accessed October 13, 2013. Mens Fitness. http://www.mensfitness.com/nutrition/what-to-eat/essential-ingredients-everyman-should-have-in-his-kitchen?page=9. Accessed October 18, 2013.

27