Management Business Plan Project

St. Marys Hospital

3/10/2016
Lisa Homiak
ARAMARK Dietetic Internship

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 Summary ..Page 6
3.1 Market Segmentation ..Page 9
3.2 Target Market ...Page 9
4.0 Promotional Event Concept ...Page 9
5.0 Strategy and Implementation Summary ..Page 10
5.1 Sales Forecast..Page 11
6.0 Resource Summary ....Page 11
6.1 Employee Resources ..Page 11
6.2 Equipment Resources ....Page 12
6.3 Food Resources ..Page 13
6.4 Financial Resources ...Page 13
7.0 Evaluation ....Page 13
8.0 Appendix ..Page 15

Section 1.0 Executive Summary

In order to keep up with changing customer demands and increase food sales, retail
promotions can be utilized. The purpose of this retail business plan is to see if in fact
promotions do increase sales so we can continue to be successful with these down the
line. There are a lot of details that go into implementing a retail promotion, which we will
review in this report. This plan was created after reviewing the current sales data of
sandwiches sold at the caf deli of St. Marys Hospital, targeting one that is not a top
seller comparatively.
The Food and Nutrition Services Department at St. Marys Hospital in Grand
Junction, CO provides food and beverage sales in numerous areas. My business plan
involves the Caf sales. Along with a grill station, hot meal home station, express graband-go options, soups, brick oven baked pizza, and a salad bar, the deli station
provides made-to-order sandwiches. The lower selling sandwich of focus for this plan
sold 8 times during the business period starting 3/14/2016 3:00 AM and ending
3/20/2016 2:59 AM (one weeks time). This averages only 1 sandwich per day the caf
deli is open, which is 7 days per week.
When implemented, this plan will increase revenue sales of the specific sandwich by
50%, increasing overall profit to show the success of promotional advertisement. The
objectives were developed to increase sales of an already existing item, without
changing anything about it. A marketing analysis and SWOT analysis were performed to
determine the best plan of action for the promotion. Multiple marketing strategies were
devised to carry out the promotion over several days. The sales data from the

promotion time period showed results that exceeded the first objective at a total of 20
sandwiches sold, making it a 150% increase in sales. The second objective was also
met during the taste testing, and feedback was relayed at this time as well. From this
experiment we can infer how to address the need for future sales promotions.
1.1 Mission
Both St. Marys Hospital and Aramark have mission statements to express what
their purpose is.
St. Marys Mission Statement: We reveal and foster Gods healing love by improving
the health of the people and communities we serve, especially those who are poor and
vulnerable.1
St. Marys Values: caring spirit, excellence, good humor, integrity, safety, and
stewardship.1
Aramarks Mission Statement: United by a passion to serve, employees deliver
experiences that enrich and nourish the lives of millions of people in 21 countries
around the world every day.2
Aramarks Values: insight, innovation, impact. Customer service business that
delivers an impact across food, facilities, and uniforms, wherever people work, learn,
recover, and play.2
1.2 Objectives
Goal: Increase caf deli sales
Objectives:
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1. To increase the number of turkey apricot slaw ciabatta sandwiches sold by at

least 50% compared to the sales of the previous week (3/14/16 to 3/20/16)
through implementation of a promotional event.
2. To match the number of people who buy the turkey apricot slaw ciabatta
sandwich the week after the promotion compared to the average of 7
sandwiches sold per week based on the two weeks prior to the promotion week.
2.0 Company Summary
According to the St. Marys Hospital website, it is a 346-bed regional medical
center that includes a Level II trauma center, neonatal intensive care unit, and air
medical transport program.1 Patients come from western Colorado and eastern Utah.
St. Marys is part of SCL Health; Sisters of Charity of Leavenworth, a Catholic religious
institute. The Aramark contract is currently near the end of its last fiscal year, and is
bidding for the next contract. The food service department is responsible to both an
Aramark and hospital budget, which are totally separate from one another. The contract
says they cannot do a flex budget, so they must meet or come in under budget (the
hospital takes profits and losses, not Aramark). There is a weekly adjustment for the
Aramark budget, and GNP (guaranteed net profit) worksheet filled out monthly. There is
also an Aramark budget for Mind Springs Health, who offers a complete continuum of
care for those dealing with behavioral health or substance abuse issues. The food
service department is responsible for providing food to Mind Springs, the retail caf,
patient services, and catering hospital meetings or events. Small pastry items, such as
scones, are also prepared for Java City sales. Java City is a coffee shop just outside of
the caf that offers hot and cold specialty drinks as well as pastries.
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3.0 Market Analysis Summary

The Columbine Caf is open daily from 6:30 am to midnight. Visiting hours vary
based on different areas of the hospital, with visitation encouraged as an important part
of the patients care in the family-centered environment. The main hospital entrance
remains open from 8:00 pm to 5:00 am. Java City is open Monday-Friday from 6:00 am
to 4:00 pm. There is regularly brewed coffee available in the caf as well. Vending
machines are accessible 24 hours a day. The gift shop sells snacks Monday Friday
from 9:00 am 5:00 pm (open until 7:00 pm on Wednesdays). All of these services are
located adjacent to each other on the main floor lobby area.
There is really only one competitor restaurant available within walking distance
(0.2 miles) from the hospital, called 7th Street Deli. They sell specialty sandwiches,
soups and salads. All sandwiches are served with potato chips and a kosher dill spear
pickle. The Turkey with the Works and Santa Fe Turkey sandwiches are very similar to
the Turkey Apricot Slaw Ciabatta, being sold at $7.95. They also offer a combo meal
deal for $7.25 with a half sandwich plus a cup of soup or side salad, and a combo meal
for $4.25 with a half sandwich plus chips and a drink.3
Which Wich is 0.5 miles away and offers hot or cold sandwiches, chips and
drinks. Turkey sandwiches come in 3 different size options: Small (7 in) $5.50, Medium
(10.5 in) $8.25, Large (14 in) $10.75. Chips sell for $1.25, and drinks range from $1.75
to $2. An interesting option they offer is a skinny which where they will scoop out the
middle of the bread to cut down on calories.4

Zoup! Is just down 7th Street about 1 mile from the hospital and also offers
sandwiches, soups and salads. They sell a Southwest Turkey sandwich for $7.75 and a
Turkey Club at $7.95. They also market a half sandwich option and soup or half salad
combo options. The half sandwiches range from $5.95 to $6.75, the combos range from
$9.10 to 11.75 for soup and $10.40 for half salad. They offer chips sold separately from
$1.39 to $1.89. So, if you wanted a sandwich and bag of chips, it would be around $9 to
$10.5
McAlisters Deli is 0.9 miles down the road, just past Which Wich. They offer a
deli classics turkey sandwich for $6.49 and a Southwest Turkey Melt for $7.49. They
also offer hot sandwiches. Chips are sold at $1, and a cup of soup or side salad can be
added for $1.99. Other sides are available such as coleslaw, potato salad, mac and
cheese, and baked potatoes. They do offer Lite Choose Two combination deals for an
added $1 onto the normal whole sandwich price. For under 600 calories, you can
choose 2 of the following: a half sandwich, salad, spud or cup of soup.6
Another very well known chain sandwich retailer is a bit further from the hospital;
Jimmy Johns is 2.6 miles away. They offer more or less meat options on their 8 sub
sandwiches. A plain turkey sub is $3.99, and 8 Turkey Tom sub is $4.99, and a giant
club sandwich (extra meat) is $5.99. They charge an additional $0.50 for 9-grain wheat
bread instead of the French bread. While they do not offer any combo deals they do sell
chips ($1.03 to $1.60) and drinks ($1.70 to $1.95). They also offer big pickles for $1.30
each.7

FNS (Food and Nutrition Services) employees of the hospital receive a meal card
that covers one meal per day worked, up to $6. This amount was recently increased
from $5 to $6. The amount must be spent at one purchase only, and cannot be used on
convenience items that were not prepared by staff (candy bars for example). Chips are
allowed as they are seen as a reasonable side to a meal, despite not being prepared in
house.
All hospital employees also receive a discounted price on all caf items
compared to what the general public (visitor) is charged. The deli sells sandwiches to
the public for $5.99; however, with the employee discount the price is only $4.49.
Always available but not widely advertised is a combo deal, in which you can add chips
and a drink to your meal for an extra $1.88. So as an employee you can get a sandwich,
chips, and a beverage for $6.37. Thats only a $0.37 out of pocket cost for those who
possess the FNS meal card.
A SWOT analysis was completed to identify internal and external factors.
Strengths Convenient for employees with limited time (customer loyalty), Voice
of the Customer survey showed desire for more healthy options (healthy)
Weaknesses disliked ingredients, multiple other sandwich choices available
throughout caf
Opportunities trend of buying what you couldnt make at home (changing
customer tastes), less expensive than competitor prices
Threats nearby restaurants with specialty sandwiches

3.1 Market Segmentation

Many employees eat in the caf. There are currently about 70 FNS associates
employed who receive the $6 meal card. The hospital as a whole currently employs
1,745 FTEs (full-time equivalent). The number of visitors per year is not tracked. In the
month of March, 2016 the caf had 33,035 customers. The retail revenue was
$151,591.76 and the daily check average was $4.59.
3.2 Target Market
The target market is the employees, and the visitors to the hospital. St. Marys
Hospital ranks as the second leading employer in Grand Valley, with Mesa County
School District being the top employer.8 The population of Grand Junction is 58,867
people, and the median household income is $47,598. The poverty level is 16.1%,
slightly higher than the national poverty level (14.9%). 9 As one of the top two employers
in the area, the employees are truly the target market, and visitors do not necessarily
have a lot of spending money.
4.0 Promotional Event Concept
The deli does very well with sales; however, the turkey apricot slaw ciabatta is
not a top contender. The sandwich has some less familiar, and therefore less pursued
ingredients including a curry sweet potato spread and Brussels sprout apricot slaw. The
other sandwiches available boast processed meats and cheeses, chicken wraps, and
appealing melts. This makes the turkey apricot slaw ciabatta less of a contender in the
face of popular and comforting foods. The grill across from the deli is also a huge draw
for chicken breast sandwiches and burgers. The aim of this one week promotion was to
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increase the sales of the Turkey Apricot Slaw Ciabatta by advertising it as a fast, light
yet filling, nutritious, and flavorful lunch choice that will not be on the menu much longer.
5.0 Strategy and Implementation Summary
The 4 Ps of marketing were implemented (product, price, promotion, place) in
the development of the promotion.
Product: The product was the turkey apricot slaw ciabatta sold during the week of
3/21/16 to 3/27/16. It was heavily promoted from Monday 3/21/16 Friday 3/25/16.
Price: The product was eligible for the employee discount. Besides being able to
use your employee meal card, the Healthy 4 U punch card was also put out as an
added bonus to purchasing the sandwich (Buy 10 Healthy 4 U meal items, get the 11th
free). The flyer mentioned the combo meal deal of adding low-fat baked chips and a diet
soft drink for $1.88.
Promotion: An online advertisement was utilized in the Columbine Caf online
weekly menu promoting the sandwich. A global e-mail was also sent out on Monday
morning to all employees letting them know about the highlights of the promotion. Signs
were created and posted in the caf as you walk in, at the deli counter, and were also
given to the patient services hostesss to deliver to the nurses stations for posting. Taste
tests of the sandwich were provided during the lunch hours of 11 am 1 pm on
Monday. Flyers were handed out with Healthy 4 U punch cards stapled to them on
Friday.

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Place: The caf deli was the place of the promotion, which is the first station in
the caf as next to the grab-and-go cooler and salad bar. The retail workers assemble
the sandwiches and salads made fresh to order in front of you.
5.1 Sales Forecast
The promotional event aimed to increase the sales of the sandwich by 50%
based on the previous weeks sales. This would mean selling at least 12 sandwiches,
compared to the 8 sandwiches sold the week before, for a 50% increase.
6.0 Resource Summary
The resource summary will review employee, equipment, food, and financial
resources utilized in this promotion.
6.1 Employee Resources
The promotion was discussed with the retail manager, Misty Rojo, who approved
the sandwich choice and helped pick out the week it would be promoted. Misty assisted
with attaining sign holders, sending out the global e-mail, and access to enter the online
menu promo information. She also gave the intern access to check the sales. The
recipe was already in place on the menu for the winter season, it would be switched for
a different sandwich once the spring season menu starts. The staff already knew how to
make the sandwich, and one employee assisted with teaching how to make it for the
taste testing. All deli staff was informed that the sandwich would be on promotion. It was
discussed with a second employee that they would need to prep the spread and slaw
over the weekend in preparation for extra use during the taste test on Monday. The

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patient services manager assisted with locating a table, and the caterer assisted in
finding the disposable linen for the table. The flyer and signage were created by the
dietetic intern, as was all other electronically submitted verbiage.
6.2 Equipment Resources
Equipment used to carry out the promotion:

Printer

Ink

Paper

Table

Disposable table linen

Refrigerator

1/6 size hotel pans

Chef knife

Cut Glove

Cutting board

Bread bin

Plastic plates

Spoons

Carrying tray

Cold holding table

Disposable gloves

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6.3 Food Resources

The stock was checked to ensure the required ingredients were plentiful; no
ordering was required. Extra prep of the slaw and spread were done to ensure we
would not run out during service. The ciabatta bread was stocked and test tasting was
limited to 5 sandwiches to keep cost down.
6.4 Financial Resources
Again, since the sandwich was sold daily already there were no expenses above
and beyond normal daily operations. The flyers and signs printed were covered in the
existing budget. There was no extra staffing required or extra equipment needed
beyond what was already available. The only extra expense would be for the taste
testers. Anyone is allowed to sample anything they are considering purchasing, but it is
not the case that we would go through 5 sandwiches in samples on any given day.
However, the increase in sales covered the cost of the samples. A breakeven analysis
was compiled to show that this was in fact the case (see Appendix D).
7.0 Evaluation
The outcome of the event illustrates the effectiveness of promotion to increase
sales. The goal of the promo was to increase caf deli sales for the week of 3/21/16 to
3/27/16. Two objectives were identified to meet this goal. The first objective was to
increase the number of turkey apricot slaw ciabatta sandwiches sold by at least 50%
compared to the sales of the previous week (3/14/16 to 3/20/16) through
implementation of a promotional event. The objective was not just met, but exceeded.
The number of sandwiches sold had to equal 12 in order to increase sales by 50%, and
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it would take 16 sandwiches to increase sales by 100%. 20 sandwiches sold, putting

sales at a 150% increase for the week. This increased the net revenue as % of the total
from 1.37% the previous week to 3.76% the week of the promotion. The items sold as
% of the total increased from 1.33% the previous week to 3.55% the week of.
The second objective was to match the number of people who buy the turkey
apricot slaw ciabatta sandwich the week after the promotion compared to the average of
7 sandwiches sold per week based on the two weeks prior to the promotion week. As
the week following the promotion did have slightly higher sales than the average of the
2 weeks prior to it, it is possible that the taste testing and mention of the item being
removed from the menu soon, in fact motivated some people to decide to buy the
sandwich the week after the promotion ended. People were hesitant to try the sandwich,
but most remarked that they did think it was pretty good and enjoyed it. Hopefully the
experience will encourage them to try something they normally wouldnt again in the
future. The table below shows the differences in sales around the promotion period.
2 weeks prior

1 week prior

Week of

Week after

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10

In summary, the promotion did exceed the goal of increasing sales, and was
therefore very successful. Several of the employees who stopped by the taste test
mentioned they saw the global e-mail and were curious about the promotion, which
illustrates that e-mails are a highly successful tool along with the other advertisements.
The samples are a way to draw attention as people are inherently drawn to free food;

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the samples went very quickly. Since it was not anticipated that so many people would
be willing to try the sandwich, more samples had to be made in the middle of the
sampling time frame allotted. Improvements for future taste tests would be prepping all
of the taste tests ahead of time and storing them in a cooler so when you run out of a
certain amount you can grab the pre-prepared samples quickly. Overall, future
promotions following similar strategies executed in this plan would be useful in
increasing sales of specific items.
8.0 Appendix
Appendix A Breakeven analysis
Food Cost

Sample
Sandwiches

Sandwiches
Sold

Gross Revenue

$1.66

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$91.60

Total
Profitable
Dollars
$91.60 - $41.50

Amount Spent:

$8.30

$41.50

$50.10 profit

$33.20

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Appendix B Global E-mail & Online Menu

Healthy 4 U Promotion: Eat Lean Turkey!

Turkey & Apricot Slaw Ciabatta

(Sliced turkey breast, apricot Brussels sprout slaw, lettuce, and sweet potato
curry spread on a ciabatta roll)
Have you tried this delectable sandwich yet? If not, here's your chance while it's
still on the deli menu!
This fast, filling, healthy and flavorful sandwich will leave your stomach and
taste buds satisfied.

Highlights include:
You can use your Healthy 4 U punch card
Eligible for the associate discount
< 500 calories (428 calories, 7 g fat)
Multiple health benefits including high protein, beta-carotene, fiber, and
cancer-preventive components

You can make it a combo meal with a diet fountain drink and reduced fat bag
of chips for just $1.88

Appendix C Sign
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MIX UP YOUR USUAL ROUTINE - GET THE TURKEY APRICOT SLAW CIABATTA!

Does this leave you feeling weighed down all day and full of regret?

Then eat lean turkey for a light yet satisfying after lunch energy burst today!

Fast
No toasVng
Vme
No grilling
Vme
Quickly
made to
order at the
deli

Filling
Bread,
protein, and
ber that
won't weight
you down!

Flavor

Health

Curry
Sweet
potato
Apricot
Brussel
sprouts
Carved
turkey

Beta
Carotene
Fiber
Lean Protein
< 500
calories
Cancer
protecVve

FEEL GOOD ABOUT YOUR CHOICE TODAY, AND FEEL THE DIFFERENCE!
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Appendix D Flyer
Front side:

URE IDEAS

Turkey Apricot Slaw

Ciabatta
FEEL GOOD ABOUT YOUR CHOICE, AND FEEL THE
DIFFERENCE!

FAST
NO TOASTING TIME
NO GRILLING TIME
QUICKLY MADE TO ORDER AT THE DELI

FILLING
BREAD

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 MEAT
VEGETABLES

FLAVOR
CURRY
SWEET POTATO
APRICOT
BRUSSEL SPROUTS
CARVED TURKEY

NUTRITIOUS
VEGETABLES
BETA CAROTENE
FIBER
LEAN PROTEIN
< 500 CALORIES
CANCER PROTECTIVE

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Backside:

EAT A HEALTHY LUNCH

If youre going to eat a sandwich, why not make it as healthy as possible? This
sandwich packs a punch of flavor as well as health benefits. Ditch the burger,
processed fatty meats, pizza, and other less healthy bread entrees. Reach for
the one that will leave you feeling good about yourself, and still feels like a guilty
pleasure! Eat this lean turkey sandwich for a light, yet satisfying after lunch
energy burst today! This is your last chance to try this sandwich, as it will be
taken off the menu very soon!
Still not convinced, huh? Flip the page for some extra incentives:

1. Creamy sweet potato and decadent Greek yogurt are mixed with curry spice
and spread on both sides of the sliced ciabatta bread.

2. Cooked Brussels sprouts, apricot, and onion slaw is piled on for a bite of
texture and tang.

3. Next comes thick carved, succulent turkey breast. No dinky deli turkey meat
here folks.

4. Top that with a piece of fresh lettuce and the top bun. You are ready to dig in!
5. Hey did I mention this sandwich is eligible for your employee discount?
Thats right, no paying $5.99 for you employees.

6. There are so many health benefits to basically every ingredient of this

sandwich that it would be exhausting to read all of it. Just trust in the sandwich.

7. Feel like making it a combo? Go right ahead! Grab some low-fat baked chips
and a diet soft drink for an extra $1.88. Now thats a deal.

8. What have you got to lose?

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References
1. St. Marys Hospital website. http://www.stmarygj.org. Accessed March 20th, 2016.
2. Aramark website. http://www.aramark.com. Accessed March 20th, 2016.
3. 7th Street Deli website. http://7thstreetdeligj.com/. Accessed March 20th, 2016.
4. Which Wich website. http://www.whichwich.com/. Accessed March 20th, 2016.
5. Zoup! Website. http://www.zoup.com/. Accessed March 20th, 2016.
6. McAlisters Deli website. http://www.mcalistersdeli.com/. Accessed March 20th,
2016.
7. Jimmy Johns website. https://www.jimmyjohns.com. Accessed March 20th, 2016.
8. Grand Junction economic partnership website. http://gjep.org/business-andindustry/leading-employers/ . Accessed March 20th, 2016.
9. Areavivbes website. http://www.areavibes.com/grand+junction-co/employment/ .
Accessed March 20th, 2016.

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