RetailBusinessPlan

MapleGroveHospitalinMapleGrove,Minnesota

April10,2016

EmanKemp
ARAMARKDieteticInternship

TableofContents
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
Summary
..Page 6
3.1 Market
Segmentation
Page 9
3.2 Target
Market
..Page 10
4.0 Promotional Event
Concept
Page 10
5.0 Marketing
Strategy
..Page 11
5.1 Sales

Forecasting
..Page 12
6.1 Employee
Resources
Page 12
6.2 Equipment
Resources
.Page 13
6.3 Food
Resources
..Page 13
6.4 Financial
Resources
..Page 14
7.0
Evaluation
Page 14
8.0
Appendix
.Page 16

1.0ExecutiveSummary
MapleGroveHospitalisasmallcommunityhospitallocatedinthewealthysuburbsofMaple
Grove,Minnesota.ThefoodservicedepartmentandFourSeasonsCafisoperatedbyAramark
anditsstaffinordertodeliveroutstandingservice,food,andhospitalitytoitscustomerseach
andeveryday.Tostaycompetitiveinthefoodmarketanddevelophealthyanddeliciousmeals,
theFourSeasonsCafwillimplementdemonstrations,sampling,andfoodexhibitionstoentice
customerstotrynewdishesandtoincreaseoverallcafsalesandbusiness.Todevelopa
successfulretailbusinessplan,severalfactorsareconsideredincludingcosttoimplement,
likelihoodofsuccess,demandsandpreferencesofthecustomer,andavailability.BecauseMaple
GroveHospitalandAramarkdesiretopromotehealthylivingandhealthyoptionstoits
customers,specificallywithlimitingsugarybeverages,aWildBerryPowerSmoothiewillbe
soldonThursday,April7thfrom11amto1pmthepeaklunchhoursandbusiestdayforthe
FourSeasonsCaf.Thegoalofthispromotionistocompareweeklysalesofhealthyversus
unhealthybeveragesandincreasehealthybeveragesalesby20%.Ideally,customerswouldbuy
thesmoothiethathasnoaddedsugarinitorartificialingredients,butthegoalisthatcustomers
chooseahealthyoptionbeitasmoothieoradifferentlowcalorie,lowsugaroption.Theother
goalbeingmeasuredisoverallsatisfactionandtastewiththeWildBerryPowerSmoothie.To
makethisasuccessfulpromotionalevent,anadvertisementwillbesetupoutsideoftheFour
SeasonsCaftopromotethespecialandletcustomersknowaboutthehealthbenefits.ASWOT
analysiswillbeconductedtoeliminatepotentialbarriersandincreasethelikelihoodforsuccess
andincreasedsales.Afterhostingthepromotionalevent,itwasfoundthathealthybeveragesales
wereup34%onApril7thcomparedtotheweekprior,March31st.Allsurveyrespondersreported
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100%satisfactionwiththesmoothie,sayingitwastastyorverytastyandthattheywould
definitelypurchaseitagain.Limitationsandsuggestionsforimprovingtheretailplanare
includedbelow.

1.1Mission
MapleGroveHospitalsmissionistoempowercustomerstoachievetheirbesthealth.1
Aramarksmissionistocreateexperiencesthatenrichandnourishlives.2Onewaythisis
achievedisthroughfoodserviceanddeliveringexceptionalfoodandservicetopatients.

1.2 Objectives
Thefollowinggoalsandobjectiveswerecreatedtomeasurethesuccessoftheretailbusiness
planimplementedatMapleGroveHospital.
Goal:Increasethenumberofhealthybeveragessoldinoneday.
Objective:Sell20%morehealthybeveragesonThursday,April7thcomparedto
Thursday,March31st.
Goal:AchieveadequatecustomersatisfactionfortheWildBerryPowerSmoothie.
Objective:80%ofcustomerswillreporttastyorverytastywiththeirsmoothie.

2.0CompanySummary
MapleGroveHospitalwasbuiltjustsixyearsagoinMapleGrove,Minnesotaandisownedby
NorthMemorialHospitalandFairviewHospital.Witha115bedcapacity,MapleGrove
Hospitalisconsideredasmallcommunityhospitalisknownforitsintimateandspecialized
birthingcenter.FoodandNutritionServicesservesseveralmealsadaythrougharoomservice
menucustomizedtoeachpatientsprescribeddiet.Thefoodservicedepartmentalsooperatesa
FourSeasonsretailcafandStarbuckscoffeeshopforteammembersandguests.
MapleGroveHospitalwasbuiltjustsixyearsagoandstartedwithoffwithacontractwith
Aramark.Aramarkprovidesthehospitalwithexceptionalfoodservicemanagers,supervisors,
anddietitiansaswellasqualityfood,catering,andenvironmentalservicestoguests.Aramarks
accountsarenotlimitedtohospitals,thoughhighereducation,schools,andevensportsarenas
aroundMinnesotaandthenationdeliverAramarksservicesandstandards.
AramarkandMapleGroveHospitalhaveagreeduponanetbudgetcontractuntilNovember
2020.Pricingisnegotiateddependingonaspecificlevelofprofitability.Aramarkis
compensatedforanyincurredcostsoftheoperation,includingfoodandstaffing,aswellasa
fixedfee.
HavingacontractwithAramarkallowsMapleGroveHospitaltodeliverconsistentandquality
serviceseachdaytoitspatients.Withmeasuresinplacetoensurethatguidelinesarebeingmet
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andthehospitalanditsservicesarebeingheldtoahighstandard,MapleGroveHospitalisable
toexcelandexceedthecompetitioninareasoffoodquality,temperatureandtaste,foodsafety
standards,andoverallenvironment.HoldingacontractwithAramarkhasallowedMapleGrove
Hospitaltofocusoninnovationandrelationshipsmakingitawellknownanddistinguished
hospitalinthearea.

3.0MarketAnalysis
MapleGroveHospital,locatedinMapleGrove,Minnesota,isawealthysuburbandhometo
familiesandretirees.Thereisanoutdoorshoppingcenterandseveralrestaurants.MapleGrove
Hospitalisalittlemoreremotefromtheshopping,butisstillfairlyclosetosomefastfood
chainssuchasChipotle,Starbucks,Subway,andWhichWichaswellasTarget.
WithinMapleGroveHospital,thereistheFourSeasonsCaf,Starbuckscoffeeshop,andagift
shop.Thegiftshopsellssomesnacksandcolddrinks,buttheselectionislimited.TheStarbucks
shopwithinthehospitalisalicensedstoreandnotanactualStarbucksstoreitispartof
AramarkandallowedtosellStarbucksdrinksusingStarbuckslicensedproducts,butthe
selectionisalsolimitedhere.TheFourSeasonsCafisoperatedbyMapleGroveHospitalchefs
andemployeesandoffersarotatingmenuwithhealthyselectionsandcompetitiveprices.
TheFourSeasonsCafisopendailyfrom6:30amto7:30pm.Thereareavarietyofchoicesfor
eachmeal.Forbreakfast,thegrillisopenservingeggs,breakfastpotatoes,breakfastsandwiches,
pancakes,Frenchtoast,androtatingbreakfastspecialsincludingbiscuitsandgravy,breakfast
wraps,andcinnamonrolls.Anassortmentofpastriesisalwaysofferedaswellasparfaits,
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cottagecheese,oatmeal,andcreamofwheat.Lunchisthebusiesttimeinthecaf.Eachday
thereisarotatingsautandgrillspecial.ExamplesincludeCaliforniaavocadoburgers,Korean
BBQtacos,andsalmonwithgrilledvegetables.Burgers,pizzas,coldsandwiches,andasalad
bararealwaysoffered.Soupschangedaily.Theresabuildyourownsalad/tacobarstationas
wellaswrapsmadefresheachmorning.Thesameselectionsareofferedatdinnerbutwith
limitedavailabilityatthesautstationduetostaffing.
Theguestticketaveragesaround$5.35.Lunchspecialsareoffereddaily,whichmayincludea
sandwich,friesandafountaindrinkfor$5.99.Thereisnoemployeediscountoffered;however,
volunteersgeta$7.00credittowardstheFourSeasonsCafforworkingaminimumofathree
hourshift.
Competitionintheareaincludes,butisnotlimitedto,Target,Chipotle,Subway,and
McDonalds.MapleGroveHospitalhasnoticedadeclineinsalesinthesummertimesincemany
employeesplanlunchdateswithcoworkersoffsiteandatrestaurants.Inthewinterandinpoor
weatherconditions,gueststypicallydineattheFourSeasonsCaf.Thoughtherearenearby
restaurantsandfastfoodchains,thosewithinwalkingdistanceonlyincludeTarget,Subway,and
Chipotle.Targetofferstogosaladsandsandwichesrangingfrom$2.99to$5.99.Subwayoffers
a$6lunchdealfora6inchsandwich,bagofchips,andafountaindrink.Chipotlehastacosand
burritosthatrangefrom$6.49to$7.29.Targetopensat8amandclosesat10pm.Subwayopens
at8amandclosesat11pm.Chipotleopensat11amandclosesat10pm.
Targettendstobeacompetitiveoptionifcustomersarelookingforsomethingthatisgraband
gostylewhilealsograbbingapieceoffruitorsmallbagofchipsfromthegrocerystore.

Chipotleisacompetitiveoptionforcustomerslookingforalotoffoodforadollarortwomore
thantheFourSeasonsCaf.Subwayisacompetitiveoptionforacustomerlookingforacasual
andfastsandwichtogo(turkey,ham,tuna)withabundleddealchipsandsodaforalow
price.
Therearenositdownrestaurantsintheareaorrestaurantsbeingbuilttoincreasethecompetition
withtheFourSeasonsCafatMapleGroveHospital.AtrendthatMapleGroveHospitalhas
noticedisthatcustomersliketoeathealthieroptionssalads,fruit,leanmeatsbutlikehigh
sugarybeverages.ASWOTanalysiswasperformedtoanalyzethetrendsbetweentheFour

Internalanalysis

Externalanalysis

SeasonsCafanditscompetition.
Positive
Strengths

Easyforstafftoaccess
Varietyofoptions
Reasonableprices
Healthychoices
Friendlyteammembers
Openasearlyas6:30amfor

breakfast
Opportunities
Morevarietymayberotate
menuslessfrequentlysostaff
dontgettiredofeatingsame
meals
Implementhealthierbeverages

Negative
Weaknesses
Menurotatesona3weekschedule
andmealsmayfeelrepetitivefor
staff
Noemployeediscount
Seatingcanbelimitedincaf
Threatsduringpeakhours
Pricemaybetoohighforsome
Peopleareusedtohighsugary
beveragesanddontwelcome
change
Competitionmayofferhealthier
optionsatalowerprice

3.1MarketSegmentation
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Accordingtoahospitaladministeredsurvey,94%oftheFourSeasonsCafcustomersare
employedbyMapleGroveHospitalorNorthMemorialHospital,itsaffiliate.2%identifiedas
MapleGroveHospitalvolunteers,3%identifiedasvisitors,and1%identifiedasother.79%of
thesurveyrespondentswerefemaleand21%weremale.Regardingethnicity,91%ofthesurvey
respondersidentifiedaswhite/Caucasian,2%identifiedasAfricanAmerican,4%identifiedas
Asian,1%identifiedasHispanic/Latino,1%identifiedasNativeAmerican,and1%identifiedas
other.Regardingage,10%were1829yearsold,39%were3039yearsold,21%were4049
yearsold,18%were5059yearsold,12%were60+yearsold.Ofthesurveyresponders,29%
statedtheymadeafoodpurchase12timesaweek,44%statedtheymadeafoodpurchase23
timesaweek,15%statedtheymadeafoodpurchase45timesaweek,4%statedtheymadea
foodpurchasemorethan5timesaweek,and8%statedtheydonotmakeanyfoodpurchases
duringtheweek.Surveyresponderswereaskedhowmuchtheytypicallyspendforlunch.9%
statedtheyspend$0to$3.37%statedtheyspend$3to$5.39%statedtheyspend$5to$7.11%
statedtheyspendmorethan$7.2%statedtheybringtheirownlunch.2%statedtheyskiplunch.
1

3.2TargetMarket
Basedonthesurveyresults,thetargeteddemographictendstobeCaucasian3049yearoldswho
visittheFourSeasonsCaf23timesperweekforlunchorameal.Theyaremostlikelya
hospitalemployeeandwillingtospend$37fortheirmeal.

1 See Appendix 1 for charts of survey results

10

4.0PromotionalEventConcept
BothMapleGroveHospitalandNorthMemorialHospitalaretryingtoimplementan80/20rule
withthebeveragesbeingsold.Theywouldideallylike80%oftheirbeveragestobelowcalorie,
lowsugarhealthieroptionsforcustomersandkeep20%asregular,fullsugarbeverages.Sofar,
MapleGroveHospitalhasaratioof84/16beyondthe80/20expectation.Therehasbeensome
pushbackfromcustomersregardingthebeveragestheyareusedtopurchasingdailyandthe
differentoptions.AstheFourSeasonsCafremovesahighsugarbeverage,theyreplaceitwitha
healthierandsimilaroption.Thisisnotaprogramthatisformallybeingannouncedtothe
hospital,butcustomersthatmakethesamepurchasesdayafterdayhavenoticed.
Thegoalofthispromotionaleventistointroduceafamiliardrinkinahealthierwaywithoutthe
addedsugar.TheWildBerryPowerSmoothieisintendedtoprovideahealthieralternativefor
customerstopurchaseratherthanafullsugarsodaorjuicewithaddedsugars.Forallcustomers
thatpurchaseaWildBerryPowerSmoothie,asurveywillbeadministeredtomeasurethegoals
andobjectivesanddatafrombeveragesbeingsoldonApril7thcomparedtoMarch31stwillbe
considered.
ThedieteticinternwillworkwiththeMapleGroveHospitalMarketingTeamtocreate
promotionalmaterialsforherevent.Alargedisplayboardandadvertisementwillbeputoutside
theFourSeasonsCafentrancetoletcustomersknowofthenewbeveragespecial.

5.0StrategyandImplementationSummaryMarketingStrategy

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Asmentionedabove,thedieteticinternwillworkalongsidetheMapleGroveHospitalMarketing
TeamtoadvertisefortheWildBerryPowerSmoothie.BecausetheMapleGroveHospital
MarketingTeamhasstrictguidelinesforwhatcanandcannotbepostedaroundthehospital,
includingtheappearanceoftheadvertisement,thedieteticinternwillenlistthehelpofthe
GraphicDesignTeamtodesignaposterthatisappropriatewiththeMapleGroveHospital
advertisingguidelines.ThedieteticinternwillbeincontactwiththeGraphicDesignTeamand
theMarketingTeamtoletthemknowwhattheadvertisementshouldsayandtheteamswill
designaposterwiththecorrectformatting.
TheposterwillsayChooseHealthierBeverageswithdetailsincludingthenameofthe
smoothie,thedatethesmoothiewillbesold,thetimeframethesmoothiewillbesold,wherethe
smoothiewillbesold,thepriceofthesmoothie,andthebenefitsofthesmoothie.
The4Psofmarketingproduct,price,place,andpromotionwillbeevaluatedwhen
implementingthisretailpromotion.TheproductistheWildBerryPowerSmoothie,which
includedfrozenblueberries,frozenraspberries,halfabanana,ahandfuloffreshbabyspinach,
unsweetenedalmondmilkandtoppedwithfreshblueberriesandchiaseeds.Thecostofallthe
ingredientstoproduceonesmoothiewas$1.98.Therewasa76%markuponthesmoothiewhen
sold,sothefinalsellingpricewas$3.50stillstatingcompetitivewiththesurrounding
competitionandoptions.Thesmoothiewaspackagedinaclear14ouncecup,sothatcustomers
couldseethesmoothieandtheappealingcolorofthedrinktoenticethemtobuy.Thesmoothie

12

waspromotedthroughtheadvertisementattheentranceoftheFourSeasonsCafandbyword
ofmouth.2

5.1SalesForecast
Witha76%markuponthesmoothie,thegoalistosell20%morehealthybeverageson
Thursday,April7thcomparedtoThursday,March31st.Regardinganumericalgoal,this
promotionaleventaimstoprovidea5%profitmargintocafsales.

6.0ResourceSummary
6.1EmployeeResources
TheonlyfoodservicesemployeesthatwillbeusedforthispromotionaleventincludeJosh
Turner,FoodServicesSupervisor.Hehelpedthedieteticinternorchestratetheeventandplan
outthelogisticsofkeepingfoodatpropertemperaturesandhowtoservethefoodinan
appealingway.

6.2EquipmentResources

2 See Appendix 2 for a picture of the board used to advertise the Wild Berry Power
Smoothie
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Inordertoputonthispromotionalevent,someequipmentwasneeded.Ablenderwasusedto
blendalltheingredientstogether.Three4ouncespoodleswereneededoneforthefrozen
blueberries,oneforthefrozenstrawberries,andoneforthefreshspinach.Allingredientswere
keptcoldinlargehotelpansoverice.Ateaspoonwasneededtotopeachsmoothiewithchia
seeds.Clear14ouncecupswereusedtoservethesmoothies.Ifrequestedbythecustomer,
smoothieswerecoveredwithaplasticlidandcustomersweregivenaplasticstraw.Fresh
ingredients,suchastheblueberriesandspinach,wereputinnicerbowlsanddisplayedinthe
fronttogivecustomersavisualofsomeofthehealthyandfreshingredientsthatwentintothe
smoothie.

6.3FoodResources
Alloftheseingredients,exceptthechiaseeds,werealreadyonhandatMapleGroveHospital
andareusedforotherdishes.AllingredientswereorderedfromSysco,butthechiaseedswere
purchasedfromanearbyTargetinasmallerquantity.Eachsmoothiecontainedcupoffrozen
blueberries,cupoffrozenstrawberries,1cupoffreshspinach,andcupofunsweetened
almondmilk.Eachsmoothiewasthentoppedwith1teaspoonofchiaseedsand56fresh
blueberries.

6.4FinancialResources

14

AbreakevenanalysiswasdoneontheWildBerryPowerSmoothieanditssales.3

7.0Evaluation
ThesuccessoftheWildBerryPowerSmoothieRetailEventwasdeterminedthroughsurveys
administeredbycashiersafteracustomerpurchasedasmoothie.Thesurveyaskedparticipants
thefollowingquestions:gender,howtheywouldratethesmoothie,howlikelytheyareto
purchaseanothersmoothie,whatbeveragetheywouldtypicallybuyinthecaf,andwhattheir
nextbeveragepurchaseinthecafislikelytobe.100%ofthesurveyrespondersidentifiedas
female.40%ratedthesmoothieastastyand60%ratedthesmoothieasverytasty.100%
statedtheywoulddefinitelypurchaseanotherWildBerryPowerSmoothie.40%ofresponders
statedtheytypicallypurchasewater.40%ofresponderssaidtheypurchasejuiceand20%stated
theypurchasemilk.Surveyresponderstypicallymadenopurchasesforregularordietsoda.For
futurepurchases,60%willbuywater,20%willbuyjuice,and20%willbuymilk.When
categorizingeachofthebeveragessoldintheFourSeasonsCafashealthyversusunhealthy,
139unhealthydrinksand125healthydrinksweresoldonThursday,April7thcomparedto147
unhealthydrinksand93healthydrinkssoldonThursday,March31st.
Regardingthegoalsandobjectivessetforthforthisretailbusinessplan,thefirstgoalwastosell
20%morehealthybeveragesonApril7thcomparedtotheThursdaybefore(March31st).This
goalwasmetandexceededas34%morehealthybeveragesweresoldonApril7thcomparedto
March31st.ThesecondgoalwastoachieveadequatecustomersatisfactionwiththeWildBerry
3 See Appendix 3 for Breakdown Analysis Summary
15

PowerSmoothie,havinggreaterthan80%surveyrespondersreportthatthesmoothiewas
tastyorverytasty.Thisgoalwasmetandexceededas100%oftherespondersreportedthe
smoothiewastastyorverytasty.Onemajorlimitingfactoristhatonly5surveyswere
returned,whichgivesaverysmallsamplesizetoevaluate.
Onewaytoimproveonretaileventsinthefutureistohavemoreadvertisingandsendouta
hospitalwideemailwithpromotions/specialsfortheweek.Althoughtherearestricthospital
rulesinplaceastohowlongadvertisementscanbeputoutfor,itspossiblethatgivenenough
timeinadvancethatflyerscangouporthedisplaycanbeoutforlongerthanadayortwo.To
encouragemorepeopletorespondtothesurvey,thesurveycouldbegivenverballyandresults
couldberecordedonthespotorpencilscouldbeputneartheregistertoeliminateadditional
barriersbetweenpeoplereceivingthesurveyandreturningthesurvey.Anonlinesurveymay
simplifythingstooorhavinganiPad/tabletoutneartheregisterssocustomerscanevaluatethe
productimmediately.

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Appendix1

Figure1FourSeasonsCafDemographic

Hospital
employees
Volunteers
Visitors
Other

Figure2GenderResults

Female
Male

17

Figure3EthnicityResults

White/Caucasian

African American

Asian

Hispanic/Latino

Native American

Other

Figure4AgeDemographic

18-29 years
old
30-39 years
old
40-49 years
old
50-59 years
old
60+ years
old

18

Figure5FrequencyofFoodPurchases

1-2x/week
2-3x/week
4-5x/week
More than
5x/week
No food
purchases

19

Figure6CostofFoodPurchases

$0 to $3
$3 to $5
$5 to $7
$7+
Pack own
lunch
Skip lunch

20

Appendix2
Figure7WildBerryPowerSmoothieAdvertisement

21

Appendix3
Table1Ingredientpricebreakdown
Item
BerryPerfectIqf

Priceperunit
$29.98/case(2/5#

Pricepersmoothie
$0.43/cup

BlueberryWildMaineIqf

bags)
$25.77/case(2/5#

$0.37/cup

MilkAlmondBreezeOriginalUnsweetened

bags)
$31.54/case(12/32

$0.50/cup

SpinachBabyOrganic

oz.)
$12.77/case(1/4#

$0.32/cup

ChiaSeeds
BlueberryFresh

bag)
$9.99/bag
$41.90/case(12/0.5

$0.19/tsp.
$0.17/5berries

TOTAL

pint)
$151.95

$1.98/smoothie

BreakevenAnalysisSummary
Salespersmoothie
Numberofsmoothiessold

LaborperUnit
RawFoodCost
TOTAL
PaperandSupplies
TOTAL

22

$3.50
16

VariableCosts
$1.24
$1.98
$3.22
FixedCosts
$5.09
$5.09

LaborperUnit
Employee1:2hoursx$18/hour=$36
TotalLaborCost:$36
LaborCostperUnit:$36/16smoothies=$2.25

RawFoodCost
SeeTable1inAppendix3

FixedCost
SyscoCupPlasticClrPet1214oz.
10/70ctfor$50.85
$50.85/10=$5.09per70cups
$5.09/70=$0.07/cup

Breakevennumberofunitssold:
FixedCost/(SalePriceVariableCost)
FC/(SPVC)
23

5.09/(3.503.22)=18

24

References
1.MapleGroveHospital:Mission,Vision,Values.
https://www.maplegrovehospital.org/content2487.AccessedApril9,2016.

2.Aramark.AboutAramark.
http://www.aramark.com/aboutus/ourdifference.AccessedApril9,2016.

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