Management Business PlanCafé 1400Baylor All Saints

Fair Food Week!Featuring Turkey Frito Pie and Philly

Cheese Steak SandwichesLindsey Mathes

Aramark Dietetic Internship

Purpose

To provide the intern with an opportunity to develop a business plan aimed at the implementation of Aramark’s promotional menu items.

To allow for the exploration of the company, services provided, market analysis, marketing strategy, financial plan, and resources necessary for a successful implementation.

Mission Statement

Aramark

To deliver experiences that enrich and nourish lives

Baylor All Saints

Provide exemplary care to our communities at every opportunity.

Goal and Objective

Goal:Increase sales in Café 1400 as a result of

the promotion of two new meals.

Objective:Increase sales on Tuesday, October 7th

and Thursday October 9th by 10% from previous Tuesday and Thursday through the promotion of two new menu items.

Company Summary: Aramark

Delivers award-winning services in 22 countries to healthcare institutions, universities, school districts, stadiums and arenas, and businesses.

Has been recognized as one of the top three most admired companies in its industry since 1998.

Recognized as one of the World’s Most Ethical Companies in 2013.

Has been a partner with Baylor Scott and White for the past 14 years.

Provides several services at the account, which include catering, retail, environmental services, patient transport, and patient food.

Company Summary: Baylor All Saints

Carries a history of providing outstanding, compassionate care to the communities it serves.

Has been putting money towards the improvement of Fort Worth and surrounding communities for the past 100 years through patient care, education, research, and community service.

More than $300 million dollars has been invested into the health of their communities by providing free health education classes and screenings, advanced treatment methods for incurable diseases, and offering care to those unable to pay or without health coverage.

Thrive Program: Baylor All Saints

BAS has created a health and wellness program called Thrive, which requires all food produced by Aramark and sold throughout the hospital meet the Thrive guidelines.

Thrive Guidelines

Packaged Snacks:  Only 1 serving size

allowed per package, and must meet the following:

<200 calories <20% calories from fat <200 mg Sodium <20 g  Sugar

Total/ Day

Main Dish

Side/Snack

Dessert Beverage

Calories 2,200 400 200 100 0

Fat 73 13 10 5 0

Market

Market AnalysisCompetition, SWOT analysis

Market Segmentation

Target Market

Market Analysis: Competition

Baylor All Saints is situation in close proximity to several restaurants making competition a daily concern with which to compete. Additionally, Café 1400 very often loses customers to the hospitals cafeteria.

Nearby competition includes:Firehouse Subs, Subway, Hoagies Heros,

King Tut, Paco and Johns, Spiral Diner, Benito’s, Landmark cafeteria

Competition: Side-by-Side Comparison

Restaurant Dining Style Meal Cost

Café 1400 Counter Order $ 4.99 -$ 5.99 ($ 6.99 combo)

Firehouse Subs Counter Order $ 5.99/medium sub ($8.13 combo)

Subway Counter Order $ 3-$ 5/6-12”sub

King Tut Sit-down $ 5/gyro

Benito’s Sit-down $ 5.95/enchiladas

Paco and John’s Mexican Diner

Sit-down $ 3/taco

Spiral Diner Sit-down $ 7.50/sandwich

Hoagies Heros Sit-down/Counter Order

$5.95 Spaghetti and Meatballs, $4.95/6” sub

SWOT Analysis: Café 1400

StrengthsNew, modern, invitingLocated in the main lobby of the hospitalOffers seating by windowsCompetitive pricingMade-to-order mealFresh, high quality ingredientsGood customer serviceFully staffed and well managedCustomer loyaltyGood reputation/awarenessPayment optionsHospital employee discount

WeaknessesWait time- Made-to-order takes timeLanguage barrier of employees- possible perception of poor customer serviceCultural differences- Use of wilted lettuceCooking Light Menu- Sales droppedDistance from floors- added time to travelThrive- complaints that certain items aren’t carried

OpportunitiesAdditional food station- Baked potato barEducational opportunityMarketing/advertising

ThreatsLandmark CafeteriaLower competitive pricesIncrease in raw food costBrining meals from home30 minute lunch breaks

Market Segmentation

Based on a 2011 survey done on on-site dining at Baylor All Saints, key findings indicate:

Consumers have positive responses to their dining experiences- Net Promoter Score of 66%.

100% of participants eat at the hospital at least one meal per week.

On-site dining captures a 77% market share.

Market Segmentation:Survey Respondent Profile-

Status

80

4

312

1

Employees

Visitors

Patients

Students

Volunteers

Market Segmentation:Survey Respondent Profile- Job

classification

9

23

4

40

24

Executive/Director

Hospital Staff

Physician

Nursing

Other

Market Segmentation: Survey Respondent Profile

Days/Week

6% 0 days 9% 4 days

0% 1 day 55%

5 days

1% 2 days 7% 6 days

19%

3 days 1% 7 days

4.3 Mean Days

Age

18-24 13%

25-34 53%

35-49 26%

50-59 9%

Gender

Male 35%

Female 58%

Prefer not to answer

7%

Market Segmentation: Service Area Map

Demographic Snapshot 2014: Area Service

Total population- 1,372,028 Average Household Income- $70,511 Gender- 674,826 Males/ 697,202 Females Age distribution:

0-17: 27.5%, 15-17: 4.4%, 18-24: 9.4%, 25-34: 13.8%, 35-54: 27.2%, 55-64: 11.1%, 65+: 11.1%

Race/Ethnicity- White Non-Hispanic: 740,477/ 54% Black Non-Hispanic: 163,942/ 11.9% Hispanic: 396,987/28.9% Asian and Pacific Is. Non-Hispanic: 41,379/ 3% All Others: 29,243/2.1%

Target Market

According to the Survey Respondent Profile:

80% of the customers are Baylor employees

40% of the customers are nurses

53% of the customers are between the ages of 25-34

42% buy a meal on-site 4-5 days week

Consumers believe it’s reasonable to spend $6.43 for lunch and are spending $5.90 on-site; a gap of $.53.

Health conscious meals not primary focus

Nachos and Taco salads are most popular dishes

Strategy

The success of increasing sales in Café 1400 will be achieved by offering new, tasty meals that are uniquely made-to-order, priced competitively, and conveniently located in the main lobby of the hospital.

Flyers will sent out 3 days prior to and the days of the promo meals debut, advertisements will be placed throughout Landmark Cafeteria, free meal coupon will be passed out to nurses accompanying a secret shopper survey, and samples will be offered during service.

The Café’s reputation for good customer service, fresh, quality ingredients, and modern décor will help to draw others in, through word of mouth.

Marketing Plan

The 4 P’s

Product Made-to-order Fits with Thrive but doesn’t taste “light”Popular but uniqueDifferent from 28-day cycle menu

Place Café 1400High traffic areaWell knownConvenient

Price Priced at $ 5.99 or $6.99 with a 32-oz fountain drinkCompetitively pricedPriced lower than 2011 survey expected lunch price

Promotion Flyers sent to nurses stations and physician lounges, free meal coupons with customer survey, advertisements in Landmark Cafeteria and Café 1400

Sales Forecast

Analyzed sales for previous Tuesday and Thursday serving normal cycle menu:

Net revenue Tuesday 9/30: $1,546.11

Net revenue Thursday 10/2: $1,239.01

Goal is to increase sales by 10% during the promotional meal days:

10/7: Increase sales by $154.61

10/9: Increase sales by $123.90

Resource Review: Equipment

Refrigerator

Conventional oven

Hotplate

Stockpots

Sauté pans

Meat slicer

Tongs

Serving scoops- 1 oz

Cooking utensils

Serving dishes

Ladle

Hotel pans

Cutting boards

Knives- vegetable, bread

Scale

Resource Review: Turkey Frito Pie

17 pounds ground turkey

10.1 pounds onions

4.2 pounds green bell pepper

3.7 pound red bell pepper

1.7 oz jalapeno

5.6 oz fresh garlic

11.25 oz each cumin, chili powder, granulated sugar

3.75 oz Kosher salt

1.8 pounds tomato paste

1.9 pounds chicken base

11.25 quarts crushed tomatoes

11.25 quarts water

16.9 pound kidney beans

4.4 pounds fresh tomatoes

33.75 pound Fritos

1.4 pounds shredded cheddar

4.5 pounds sour cream

Resource Review: Philly Cheesesteak Sandwich

17 pounds flank steak

7.5 T each Kosher salt, black pepper

5.6 pounds Portobello mushrooms

5.8 pounds onions

9 oz fresh garlic

1.4 pound provolone

1.7 pounds Parmesan cheese

1 cup + 2 T olive oil

2 quarts + 3.25 cups 1% milk

1 cup AP flour

4 T Worcestershire

4 T lower-sodium soy sauce

6 t dry mustard

90 hoagie rolls

Resource Review: Italian Pasta Salad

6 pounds bow-tie pasta

4.8 pound tomatoes

2.7 pounds green bell peppers

4 pounds cucumber

2.7 pounds yellow bell pepper

9 cups sliced black olives

2.7 pounds celery

1 quart plus 2 cups Italian dressing

Resource Review: Labor

Production

Production manager: Tom Gordon

Purchasing: Lisa Criswell

Debra Ellis: prep cook

Retail

Retail manager: Sarah Greif

Marketing: Heather Griffin

Retail staff: Alfonso, Alejandra, cashier

Financial Data

Tuesday:

Turkey Frito Pie- $82.93 ($.92/serving), 1 FTE (8.75 x 8 hrs), prep cook (2 hrs x 8.75), additional employee (4 hr x 8.75)

Total: $205.43

Thursday:

Philly Cheesesteak Sandwich and Italian Pasta Salad- $174.50 ($ 2.29/serving), Italian Pasta Salad: $31.29 ($.35/serving), 1 FTE (8.75 x 8 hrs), prep cook (2 hrs x 8.75), additional employee (4 hr x 8.75)

Total: $297

Start-up budget

No specific budget set in place for promotional event. Café 1400 works off a monthly budget, from which they plan all meals served, promotional and normal 28-day cycle.

Monthly budget for total food cost: $11,180 (includes all food served at Café 1400)

Weekly budget: $2,795

Daily budget: $559

Marketing: $43/month

Food cost: 38%

Breakeven Analysis: Turkey Chili Frito Pie

Sale price per meal: $4.99

Number of meals served- 90

Variable Costs:

Labor per unit- $1.36

Raw food cost- $.92

Total: $2.28

Fixed Cost:

Marketing- $21.50

Breakeven Analysis

FC/(SP-VC)

= $21.50/$4.99 - $2.28

8

Breakeven Analysis: Philly Cheesesteak and Italian Pasta

Salad

Sale price per meal: $5.99

Number of meals served- 90

Variable Costs:

Labor per unit- $1.36

Raw food cost: $1.94

Total: $3.30

Fixed Cost:

Marketing: $21.50

Breakeven Analysis

FC/(SP-VC)

= $21.50/$5.99 - $3.30

8

Evaluation

The goal and objective of the promotion was not met despite all meals selling out.

Sales decreased on Tuesday, October 7th by $129.31.

Sales increased on Thursday, October 9th by $35.24.

Why?

Tuesday September, 30th- Taco salads were sold, which are the Café’s #1 sellers, cost is $5.99 vs. TCFP’s cost of $4.99

Compared total sales of Café 1400 vs. meal sales

Fewer “extras” were purchased, decreasing total sales

October is Thriller Food month!Join us in Café 1400 October 6th-10th.

We’re THRILLED to feature Fair Food in honor of The State Fair of Texas.

Tuesday: Turkey Chili Frito Pie

Thursday: Cheesesteak with Italian Pasta Salad

Meal: $5.99Combo: $6.99

(w/ 32oz Fountain Beverage)