Management Retail Business Plan

Vista Medical Center East

Summer Geers
ARAMARK Dietetic Internship

Table of contents

1.0 Executive Summary...3

1.1 Mission Statement..3-4
1.2 Objective..4
2.0 Company Summary...4-5
3.0 Market Analysis..5-8
3.1 Market Segmentation....8-9
3.2 Target Market9-10
4.0 Promotional Event concept....10
5.0 Marketing Strategy.10-11
5.1 Sales forecast.11-12
6.0 Resource Summary.12
6.1 Employee Resources..12
6.2 Equipment Resources....13
6.3 Food Resources.13-14
6.4 Financial Resources..14-15
7.0 Evaluation.15
8.0 Appendix..15-17

1.0 Executive Summary

When Aramark is in business for a profit and loss, there is always room to
increase profit. Taking this into account, this retail business plan was created to
increase total sales at the deli bar by 5% compared to the previous week. It was
decided that we would introduce a BBQ Turkey Cheddar melt to the deli bar for
an entire week. In order to be a success, the deli bar needed to make $345.00
dollars during the week of October 17th. With the help of a team, the deli bar was
able to surpass its goal and increase sales by 17%. Micros was used to track the
sales of the melt and deli bar.

1.1 Mission Statement

There are two mission statements that are followed by Aramark in this
establishment, one from Vista and one from Aramark

Vista Medical Center East:

We strive to be Lake County's choice for healthcare services. We
will collaborate with patients, physicians, the community, and others
to deliver quality care. We will be known for excellent service and
responsible stewardship as we strengthen our heritage of treating
each person with dignity, respect and compassion.
Our mission is to:

Strive for excellence in treatment and service;

Respond to the needs of those we serve and one another

Improve the health of the communities we serve; and

Use our resources wisely.

Aramark:
Deliver experiences that enrich and nourish lives

1.2 Objective

There were goals and objectives that were set for this business plan. They
were created with help from the Retail manager and the needs of the caf. The
only goal was to increase sales in the Down Under Cafe. In order to achieve the
goal, we needed to set objectives that would get us in the right direction. The first
objective was to sell 50 BBQ Turkey Cheddar melts for the week of October 17 th
in the Down Under Caf at Vista Medical Center East. The second objective was
to increase total deli bar sales by selling BBQ Turkey Cheddar melts by 5%
compared to deli bar sales from the preceding week.

2.0 Company Summary

Vista Medical Center was founded in 1891. The hospital system includes a
total of three locations: Vista Medical Center East, West and Lindenhurst. Vista
Medical Center East is the largest of the three locations with a full service
hospital and a level II trauma center. Vista Medical Center West offers an
emergency room, behavioral health, inpatient rehab, corporate health services
and full diagnostics. The last location is the Lindenhurst location. This is
comprised of a freestanding ER room, ambulatory care center, medical office

building and surgery center. Other facilities that Vista has to offer are the Physical
Medicine and Work Power Center, Imaging Center and the MRI institute. Vista
Health system has a total of over 400 physicians and 100 employees on staff.
These staff members care for the patients in a combined 310 beds. Vista has
plans to renovate their East campus so that each patient can be as comfortable
as possible during their stay by switching all of their rooms to private rooms.
Aramark signed a three year profit and loss contract with Vista Medical
Center in May 2014. Since joining with Vista, Aramark has offered a variety of
food and environmental services to the hospital. Java City, Starbucks and the
Down Under Caf are the three retail services in the system. Aramark also offers
Meals on wheels, patient services and meals for the doctors lounge. Aramark
shows strength in their flexibility with their ability to accommodate the needs of
Vista.

2.0 Market Analysis

There are competitors that could interfere with the sales at the Down
Under Caf. These competitors include Potbelly Sandwich Shop, Jimmy Johns
and Subway. All three locations serve sub sandwiches and offer various
selections including a turkey option. Potbelly sandwich shop has sandwiches for
sale ranging from $4.55 to $7.65. They offer a variety of services including a
drive through, and predetermined ingredients for their subs. You have the ability
to add to these sandwiches if you would like additional ingredients. On top of

sandwiches, they also offer a variety of deserts, chips, bottled and fountain
drinks.
Subway has sandwiches for sale ranging from $3.50 to $10.00. They offer
the flexibility to determine exactly what meats, vegetables, sauces and cheeses
that you would like to add to your sub. Similar to Potbelly, they also offer cooking,
chips and drinks. Certain locations even offer a drive through service. Jimmy
Johns is comparable to Subway. Their sandwiches range from $5.00 to $10.00.
Jimmy Johns offers fresh baked bread and subs with predetermined ingredients.
You have the option to get a sub without bread as well. If you are gluten free, do
not worry, they offer an unwich option where it is wrapped in lettuce instead of
the bread.
Although there are competitors, The Down Under Caf has an advantage
because they are in a convenient location being the basement of the hospital and
they have a wide variety of food selections to choose from. With the right
combination of quality food and exquisite service, Aramark has the potential to
maximize on these benefits.

SWOT analysis

Internal Factors

Strengths
- Constant interaction with

Weaknesses
- Located in the basement of

both the patients and

the hospital

employees on a regular basis

- Only offers limited menu

through our services to them

options selected by

- The option of different

ARAMARK

payment methods

- Hard to hire employees

Wide variety of meal options

- High number of staff No call

- Nutrition information

no shows/call offs

becoming available on most

- Safety and sanitation

selections

standards

- The selection of Made to

- Not open 24/7

Order meals

- Short Staffed when

- The introduction of new

NCNS/call offs are received

products such as the pizza

Expensive benefits

bar, BBQ Turkey Cheddar

- Poor Customer service

melt and the Yogurt bar

- Offers Gluten free options
- Offers reduced/free meals
to ARAMARK employees and
Doctors
- Offers reduced sodium
options
- Weekly food specials
- Grab and Go cooler for
External Factors

quick
Opportunities
- Greater patient knowledge

Threats
- Competition from other

- Patients taking ownership

restaurants and fast food

over their dietary choices

locations

- Increased Marketing

- Other places having

Attract more family members

excellent customer service

The Basement Brigade

- Convenience of other

- Develop a sense of

businesses having a drive

ownership/community of

through option

location

- Competitors offering more

- Cleaner environment

selections

- Greater employee
attendance
- Maximizing on Your Voice
counts

3.1 Market Segmentation

In order to determine what population the intern was working with, 30

surveys were distributed and analyzed (see appendix for survey). From the
surveys, the following data was compiled:

34% of the customers were visitors while the remaining 66% were

employees
34% of the customers were male while the remaining 66% were female
23% of the customers were 60+ years old
6% of the customers were 50-59 years old
17% of the customers were 35-49 years old

40% of the customers were 25-34 years old, this was the largest

percentage for age groups

13% of the customers were 19-24 years old
0% of the customers were under 18 years old
84% of the customers were pleased with the selection offered at the deli

bar while the other 16% thought that the selection needed revamping
73% of the customers thought that the deli bar was fairly priced while the
remaining 27% thought it was over priced.

3.2 Target Market

Taking the surveys into account, it was determined that the majority of
customers were women 25-34 years old. It would not make sense to target
customers 18 years and younger because there are no customers that young, at
least with the sampled population. The customers are looking for reasonably
priced options, if the options are too expensive they will purchase other things or
possibly even go outside of the hospital to eat. It is best to target to the Vista and
Aramark employees since they are the majority of the customers.

4.0 Promotional Event concept

When determining what to promote, a couple things were taken into

consideration. The main focus was to find a product that would be suitable for the
newly purchased Panini machine that the Down Under Caf invested in. Since
the Panini machine was at the deli bar, this only made since to utilize the deli bar

as well. The goal of this promotion was to increase sales and cut down on the
cost of purchasing products in order to do so. By choosing a Panini, the caf was
able to maximize on products they already had in stock.

5.0 Marketing Strategy

A Marketing strategy was put in place for this business plan based on the
4 Ps of marketing; Product, Place, Price and Promotion.
The first P, product, was determined based on the needs of the facility.
The Chef and Retail Manager wanted to select a recipe that did not need any
additional purchasing in order to implement. Since this location just introduced a
Panini machine to their caf, they knew that they wanted to promote the Panini
machine as much as possible, so the idea of the BBQ Turkey Cheddar melt was
born.
In order to determine the second P, place, this was rather easy. There was
only one place available to sell the BBQ Turkey Cheddar melts, the deli bar in the
Down Under Caf. When determining price, it was discussed with the retail
manager. The price needed to account for the discount that employees receive
without being too expensive. If the melt was too expensive, the customers would
not have purchased the melt. The price of the melt was $5.49. This price was
inputted into Micros the week before the Panini special. Once the product, place
and price were determined, there was only one thing left to do; promote,
promote, promote. There were flyers created that were posted in the caf to

10

promote the melt that included the dates the melt would be served and the price
it would cost. Since the employees are the main customers of the caf, word of
mouth was beneficial. Once one employee knew, all of the employees knew.
Incase the customers missed either the posters or word of mouth, samples were
given on Tuesday and Wednesday during the week of October 17 th.

5.1 Sales forecast

There was not any data to go off of from the previous week because this
was a new product that had not seen the deli bar yet. In order to determine how
many melts were needed for the week I calculated the break-even analysis and
then determined just how many melts needed to be sold to reach the goal of 5%.
I spoke with the Retail Manager and collectively it was decided that we would
forecast our recipe for 10 melts a day. This would help up reach our goal of
increasing deli bar sales.

6.0 Resource Summary

6.1 Employee Resources

There was no way that I could implement these melts into the caf by
myself, there were a number of people who contributed to the success of this
plan. The first person who I spoke with was the retail manager, Andy who helped
me pick the recipe and put the recipe into Micros so that the cashiers could ring

11

the melt up once people purchased them. I also needed the help of the Chef,
William and Sous Chef Doug. Their roles were to help with ordering and pricing
of the products. The help did not stop here however; I needed the employees on
the front line to be involved if I was going to be successful. Kamika, DJ, and Jack
were the key to the production of the melt. Jack is in charge of stocking the deli
bar. With out him, I would have no product on the bar to work with. Kamika and
DJ were responsible for production of the melt and customer service while
creating the melts.
The first two days of the event, I handed out samples and assembled the
melts. I handed out a total of 64 samples. The samples increased customer
awareness and even helped with the sale of the melt. On days where there were
samples given, we had the highest amount of BBQ Turkey Cheddar melt sales.
6.2 Equipment Resources

In order to introduce the BBQ Turkey Cheddar Melt to the caf deli, there
were various pieces of equipment that were needed. Those pieces of equipment
are as follows:
Panini machine
Knife
2lb tray and paper liner
Spatula
Squeeze bottle (for BBQ)
Refrigerator

12

 Deli bar
Cutting Board
Tongs
2 oz Spoon
Gloves
Hairnets
Containers within Deli bar

6.3 Food Resources

The recipe was chosen because there were no additional products that
needed to be purchased. Everything was in house already (See Appendix for
recipe). The food resources needed were:
Sweet Baby Rays BBQ Sauce
4/1 gallon = case, $40.68
White Flat Bread
4/10 ct = case, $16.26
Cheddar Cheese
2/5lb = case, $26.03
Sliced Turkey Breast
2/10#=case, $3.427/lb
Red Onion
1/5lb = case, $10.20

13

6.4 Financial Resources

In order to determine the success of the business plan, it was important to

keep track of the financials. With the financial data, we were able to see exactly
how much was either made or lost during the duration of the BBQ Turkey
Cheddar melt.

Variable Costs:
Labor cost per meal: $1.02
Food cost per meal: $1.53 as indicated on recipe
Cost of equipment (tray/liner) per meal : $0.16
Total Variable cost: $2.71
Fixed Costs:
Marketing Cost: $18.28, ($0.45 per melt)
Selling Price: $5.49
Number of BBQ Turkey Cheddar melts sold: 41
Food cost: 28%
Break Even analysis: 6 BBQ Turkey Cheddar melts
(See appendix for all calculations)

7.0 Evaluation

14

The success of this business plan is determined by the breakeven

analysis point, sales during the weeks of October 10 th and 17th as well as the
amount of BBQ Turkey Cheddar melts. Deli bar sales the week of October 10 th
were $327.90. In order to meet the goal of a 5% increase the deli bar would have
had to profit a total of $344.30 for the following week. With efforts of the team
and increasing interest by sampling, the deli bar was able to make $384.40 in
sales during the week of October 17th. These sales increased a total of 17%. This
is over a 300% increase, well exceeding the goal of the business plan. Although
the objective to sell 50 BBQ Turkey Cheddar melts was not reached, sales were
still increased and overall this business plan was a success.

8.0 Appendix

The following calculations were determined to fine the break-even analysis

point of the project. All of the equipment and food costs were retrieved from this
Aramark locations ordering company, Sysco. In order to determine the cost of
labor, we took the hourly rate of the employees.

Labor: one hour each day at 10.50 an hour = $42.00. ($1.02 per melt)

Food: Raw food cost = $1.53 per Melt as indicated by recipe provided by
Aramark

Food Cost: 28% (raw food cost/cost of melt: $1.53/$5.49)

Equipment: 16 cents per melt (2lb tray $0.04 + tray liner $0.12)

15

Marketing: $18.28 ($0.45 per melt)

Samples: 8 melts cut into 8 slices = 64 samples.
4 melts for display

Breakeven analysis:
Fixed costs/(selling price variable costs) = Break even point

Fixed cost: $18.28

Marketing Cost

Selling price: $5.49 per melt

Varible cost: $2.14 per melt

Cost Per melt: $1.53 + Labor cost per melt:
$0.45 + equipment cost per melt: $0.16 =
$2.14 per melt

18.28/(5.49-2.14) = 5.5 BBQ Turkey Cheddar Melts

Promotional Flyers and survey

16

17

References
1. VISTA HEALTH SYSTEM. (n.d.). Retrieved November 4, 2016, from
http://www.vistahealth.com/uploads/public/documents/fact_sheets_new/Vi
staHealthSystemFactSheet.pdf

18