Management Business Plan

Holy Redeemer Health System

Heather Pavlik
ARAMARK Dietetic Internship
October )*, #$%&

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TABLE OF CONTENTS
1.0 Executive Summary

1.1 Mission Statement

1.2 Objectives

2.0 Company Summary

3.0 Market Analysis

8
8

3.0 Market Analysis Summary

3.2 Market Segmentation

10

3.2 Target Market

13

4.0 Promotional Event Concept

14

5.0 Strategy and Implementation Summary

15

5.1 Marketing Strategy

15

5.2 Sales Forecast

17

6.0 Resource Summary

18

6.1 Employee Resources

18

6.2 Equipment Resources

19

6.3 Food Resources

20

6.4 Financial Resources

21

7.0 Evaluation

22

8.0 Appendix

24

Appendix A: Marketing Materials

24

Appendix B: Budget & Breakeven Analysis

28

Appendix C: Miscellaneous

30

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1.0 Executive Summary

Running a successful and profitable retail operation is no small task. Customers want
quality food, convenience, and unbeatable prices. ARAMARK has been committed to
satisfying their clients needs at the Holy Redeemer caf for over 10 years. ARAMARKs new
monthly promotional strategies bring relevant offers to consumers in every account. Each of
the monthly promotions and add-ons are designed to drive revenue, increase check average,
and increase traffic at retail locations while adding excitement to menus.
The caf at Holy Redeemer Hospital offers on-site dining seven days a week for
employees, patients, and visitors during the breakfast, lunch, and dinner hours. The caf is
committed to customer satisfaction by offering excellent service and a variety of options at
affordable prices. Market research has shown that almost half of the Holy Redeemer
population is choosing to dine on-site with us. The purpose of the promotion for this business
plan was to provide a healthy sandwich option for customers in the Holy Redeemer cafeteria
and to increase sales during lunch service.
Sales of the Middle Eastern Veggie Sandwich far exceeded projections. 21 sandwiches
were sold, resulting in a 40% increase in deli sandwich sales compared to the previous two
Wednesdays. Sandwiches were sold out within the first two hours of lunch service. Positive
feedback was received from customers, employees, and management staff who had the
opportunity to purchase the sandwich. The implementation of this promotion was a success.

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1.1 Mission Statement

The mission statement of ARAMARK is as follows:
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.
The mission statement of Holy Redeemer Health System is as follows:
As a Catholic Health System, rooted in the tradition of the Sisters of the Holy Redeemer, we
Care, Comfort, and Heal following the example of Jesus, proclaiming the hope God offers in
the midst of human struggle.

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Holy Redeemer is a community-based integrated health and social service delivery and
financing system sponsored by The Sisters of the Holy Redeemer. In a caring and
compassionate manner, we will create innovative programs and services to enable people to
live their lives to the fullest, while exceeding the expectations of all we serve. This will be
accomplished by excelling at partnering and using resources effectively.
The mission statement of the Food and Nutrition Department at Holy Redeemer Hospital is as
follows:
The Food and Nutritional Services Department is motivated by the mission statement of the
Holy Redeemer Health System and the conviction that, in all our efforts, we minister to the
needs of our brother and sisters in Christ.

1.2 Objectives

Goal: To increase sales
Objectives:
1. To increase sales of the Middle Eastern Veggie Sandwich on Wednesday, October 16th
by 7% compared to the average sales of the deli special on the two prior Wednesdays
2. To sell 16 or more of the Middle Eastern Veggie Sandwiches during lunch service on
Wednesday, October 16th

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2.0 Company Summary

Holy Redeemer Health System (HRHS) is distinctive among health care providers with
its HealthCare, HomeCare, and LifeCare divisions. Holy Redeemers unique health care model
allows its patients, residents, and clients to access the optimal level of care no matter where
they are in life. The Sisters of the Holy Redeemer began the health care system in the
Philadelphia region in 1924 with the goal to provide high quality, compassionate care. Today,
Holy Redeemer offers a wide range of healthcare and health-related services, including an
acute care hospital, home healthcare, hospice services, nursing facilities, personal care, an
independent living community for seniors, low-income housing, an active living community,
and a transitional housing program for homeless women and children. Holy Redeemer Health
System is a Catholic healthcare provider with corporate offices in Meadowbrook,
Pennsylvania, just north of Philadelphia. Holy Redeemer Health System serves southeastern
Pennsylvania and 12 counties in New Jersey, from Union County to Cape May County.
Holy Redeemer Hospital is a 242-bed hospital with a staff of more than 500 physicians.
As part of Holy Redeemer Health System, Holy Redeemer Hospital is more than just a hospital;
it also provides comprehensive outpatient community-based diagnostics, home health
services, and rehabilitation programs that bring compassion and caring directly into the
community. The physicians and surgeons are well known for their expertise and have earned
the hospital an outstanding reputation for medical excellence.
ARAMARK Healthcare has been with Holy Redeemer Health System (HRHS) for over a
decade. In November of 2002, Holy Redeemer switched from a self-operating food service

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system by signing a contract with ARAMARK Healthcare. ARAMARK has had a Management
Services Contract with Holy Redeemer Health System since 2002. This type of contract is an
arrangement in which ARAMARK manages patient and non-patient departments at HRHS
including the hospital and medical center, St. Josephs Manor, The Lafayette Redeemer, the
fitness center, the childcare center, 1602, and Townsend Road. The management services
provided include food services, environmental services (EVS), and linen distribution services.
ARAMARK is reimbursed for labor costs, reimbursable costs, food fees, EVS fees, and linen.
ARAMARK provides and pays sufficient personnel for the management of EVS and food
services, including the general managers, directors, shift managers, production managers,
executive chefs, and a controller. ARAMARK manages all purchases of food, supplies, and
services through a purchasing program.
HRHS provides and pays for all service employees that ARAMARK deems reasonably
necessary pursuant to the agreed upon budget. HRHS is also responsible for all salaries, payroll
taxes, and other taxes, benefits, fees, and other charges or insurance. All facilities, equipment,
and services, such as office space, storage, utilities, warehouse, and distribution space are also
provided by HRHS. The clinical nutrition staff, including registered dietitians, are provided by
Holy Redeemer Health System and are not ARAMARK employees. The most recent contract
between HRHS and ARAMARK was signed on October 1, 2009 and will continue for a period of
5 years. The contract will then be renewed automatically for consecutive 120-day periods until
the contract is either extended or terminated.

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3.0 Market Analysis Summary

Holy Redeemer Hospital and Medical Center is located just outside of Philadelphia in
Meadowbrook, Pennsylvania. Unfortunately for customers, but fortunately for the retail
operation, there are very few off-site eateries within walking distance. The closest
establishment that offers sandwiches similar to the Middle Eastern Veggie Sandwich is located
about a mile away or about a 20-minute walk from the hospital. The AllWays Caf offers a
variety of starters, salads, hot and cold sandwiches, Paninis, wraps, and hot entrees to eat-in or
take-out. Meals range in price from $4.50 to $14.00, which is much higher than an average
lunch meal in the retail cafeteria at Holy Redeemer.
Other comparable healthy dining options near Holy Redeemer include Salad Works and
Panera Bread. Both of these eateries operate in a similar fashion in which the customer places
their order at the counter and their name is called when the food is ready. Customers can opt
for dine-in or take-out at both of these dining locations. Prices at Panera Bread range from
around $0.99 for a plain bagel to about $11.00 for signature items. Prices at Salad Works range
from $2.99 for a small soup to $8.39 for a salad, sandwich, or Panini.
Other eateries nearby with food options in a reasonable price range include Wawa and
Franconis Pizza. Wawa is a large chain convenience superstore located about two miles away
from the hospital, or about a 30-minute walk. Items available at Wawa include everything from
non-perishable snacks to made-to-order hoagies and an average lunch costs about $5.00 to
$10.00. Another popular lunch spot located only a mile from the hospital is Franconis Pizza.
Most employees do not have enough time to go out for a sit-down lunch, but many do choose

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to order take-out from this pizzeria. Franconis is an Italian pizzeria, offering sandwiches, pizza,
Strombolis, and other hot entrees. A standard lunch would cost between $5.00 and $15.00.
The Holy Redeemer cafeteria prides itself in its ability to offer quality food options at
reasonable prices compared to its competitors. A SWOT analysis for the Holy Redeemer
Hospital Cafeteria can be found below.
SWOT Analysis

Strengths

Only on-site dining option
No eateries in walking distance
Low prices
Quality products
Employee discount
Cycle menu
Friendly staff & management
Large seating area
Nutrition information displayed
New frozen yogurt machine
Fun promotions farmers market,
outside BBQ, raffles

Weaknesses

Opportunities

Raise prices
Improve marketing channels
New cuisines
New technology equipment,
registers, etc.
New distribution channels take out,
delivery, etc. from caf

Not easily accessed by public
Promotion on same day as popular
grill special Orals Wraps
Location/access difficult to find for
new visitors
Equipment & machine failures
frequent repairs
Lack of internal marketing

Threats

Caf closed 10:30 11:00 am
Eateries within driving distance
Economy & budgets
Decreasing profit
Weather

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3.1 Market Segmentation

According to the Customer Close-Up survey conducted in 2010, the majority of the
customers in the Holy Redeemer Hospital cafeteria are female employees. Of all cafeteria
clientele, 87% are employees, 3% are visitors, and 1% are patients, students, or volunteers.
Most of these customers are within the age range of 35 to 59 years old. As far as gender is
concerned, females account for 86% of patrons and males account for 13% of patrons. Of the
astounding 87% of customers that are employees, 24% are administrative staff, 19% are
nursing staff, and 19% are directors. Additional tables and graphs of the data from the
Customer Close-Up Survey can be found below.

Table 1. Survey Respondent Profile Status

Employees

87%

Visitors

3%

Patients

1%

Students

1%

Volunteers

1%

8%

Other

0%

20%

40%

60%

80%

100%

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Table 2. Survey Respondent Profile Job Description

Executive

1%

Director

19%

Physician

1%

Nursing

19%

Technical

8%

Support Staff

8%

Patient Services
Administrative

Researcher

Other

7%
24%
0%
12%
0%

5%

10%

15%

20%

25%

30%

Analysis of current dining behaviors of the cafeteria customers via the Customer Close-
Up Survey indicate that 45% of customers dine in the cafeteria, 5% dine off the hospital
premises, 46% bring their own meals, and 3% skip meals while at work. These numbers are
slightly lower than the findings from the 2009 Customer Close-Up Survey, as depicted in Table
3 below. This data suggests a strong need for the ARAMARK retail operation at Holy Redeemer
to attract more customers to buy their meals on-site, rather than dining off-site or bringing
their own meals. However, of the 45% of clientele that dine on-site, 76% are doing so 5 days
per week with an average of 4.7 mean days per week spent dining on-site. Dining behavior
data can be found below.

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Table 3. Dining Behaviors Market Share of Alternatives

Market Share

Total
2010

Total
2009

Difference from
2009 Results

On-site

45%

51%

-6%

Off-site

5%

6%

-1%

Bring

46%

38%

+8%

Skip

3%

5%

-2%

Because Holy Redeemer Health System is a Catholic health system, special attention is
paid to the religious orders that are associated with the hospital and/or reside on the hospital
premises. Holy brothers, holy sisters, and Pastoral Care are a few of the religious-affiliated
orders that occasionally dine in the hospital cafeteria. The brother, sisters, and other religious
are treated with the utmost respect when dining in the cafeteria and are given a discount on
meals. Hospital volunteers, employees, and members of senior wellness are also given a small
discount on meals purchased in the cafeteria.

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3.2 Target Market

According to the previously evaluated market analysis and data from the 2010
Customer Close-Up Survey, most of the customers in the retail operation are between the ages
of 35-59 years old. Of these customers, most are employees such as administrative staff,
nurses, and directors who have expressed a desire to purchase healthy, good-for-you meals in
the hospital cafeteria. Given this data, this promotional event will be directed toward meeting
the expectations and needs of this clientele by providing a healthy sandwich option at the deli
station for less than 500 calories.

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4.0 Promotional Event Concept

ARAMARKs new promotional strategy, developed by the Innovation Center, brings
relevant offers to consumers in all of their various accounts. Each of the monthly promotions
and add-ons are designed to drive revenue, increase check average, and increase traffic at
retail locations while adding excitement to the cafeteria menus. The October monthly
promotion features a Middle Eastern Veggie Sandwich with hummus and feta on a whole grain
ciabatta and will provide consumers with a healthy, better-for-you meal option. The sandwich
will be sold as a combination meal on Wednesday, October 16th at a price of $4.59 and will
include a 20 oz. fountain drink, potato chips, and a pickle.

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5.0 Strategy and Implementation Summary

5.1 Marketing Strategy

A marketing strategy is the basic foundation of a marketing plan that involves strategic

analysis of the internal and external factors. Internal environmental factors include the
marketing mix, or the 4 Ps, performance analysis, and strategic constraints. External
environmental factors include customer analysis, competitor analysis, and target market
analysis. A crucial element of a marketing strategy is to keep marketing and promotion in line
with the missions and objectives of all subsidiaries involved; ARAMARK, Holy Redeemer
Health System, and the Food and Nutrition Department at Holy Redeemer Hospital included.
Internal factors play a major role in the way an operation markets and promotes its
product. The marketing mix, also known as the 4 Ps, is one of these internal environmental
factors that includes product, place, price, and promotion. For the October promotion at Holy
Redeemer Hospital, the product was the Middle Eastern Veggie Sandwich. The October
promotion was held in the Holy Redeemer Hospital Retail Cafeteria on Wednesday, October
16th during the daily lunch service hours of 11:00am to 2:00pm, which was the place of
marketing. A price of $4.59 was charged for each sandwich combo and included the sandwich
itself, a 20 oz. fountain drink, potato chips, and a pickle. In order to satisfy the promotion piece
of the marketing mix, signage was placed upon the entrance to caf. A sample sandwich
platter was displayed in front of the deli counter with appropriate signage including a
description of the product, pricing for the meal combination, and nutrient information, such as
calories, fat, and sodium. Extra sandwiches were produced by the food service worker in the

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deli for the purpose of sampling the sandwich to potential customers during lunch service. The
extra sandwiches were divided into bite size pieces and placed on a serving tray with frilled
toothpicks. The samples were offered at the entrance to the caf and near the deli station in
order to drive sales.
A suggested timeline for marketing and promotion execution was created by
ARAMARK Healthcare and made available on Aramark.net. The suggested timeline was
altered slightly to meet the needs of the October promotion at Holy Redeemer Hospital.
Step 1: Prepare for Promotion September to October

Review implementation guide and cover letter with on-site team members

Receive program kit via FedEx during the week of September 16th

Step 2: Execute Promotion Wednesday, October 16th

Display ambient media in the designated areas within the hospital caf

Feature promotional menu item at the applicable station for a relevant time period
(Middle Eastern Veggie Sandwich at the deli station from 11:00am 2:00pm)

Step 3: Complete Promotion

Remove all October promotion ambient media from retail caf

Report any major successes of the October promotion to the Food & Nutrition
Department preceptors

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5.2 Sales Forecast

The first objective of the promotional event was to increase sales of the Middle Eastern
Veggie Sandwich on Wednesday, October 16th by 7% compared to the average sales of the
respective deli specials on two prior Wednesdays. To estimate the needs of the promotional
event, the amount of deli specials sold on two prior Wednesdays was analyzed. Based on the
data pulled from the system, there were 16 deli specials (Southwest Beef Wrap) sold on
Wednesday, October 2nd and 14 deli specials (Roast Beef and Cheddar Melt) sold on
Wednesday, October 9th. This totals an average of 15 deli specials sold on the two Wednesdays
prior to the Middle Eastern Veggie Sandwich promotion. Therefore, we aimed to sell 16 Middle
Eastern Veggie Sandwiches on Wednesday, October 16th at $4.59 per meal and bring in a total
of $73.44 in profit.

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6.0 Resource Summary

6.1 Employee Resources
Promotional concepts, implementation models, and a prospective date to run the
promotion were discussed with the retail manager, Ira Washerstein, prior to the execution of
the October promotion featuring the Middle Eastern Veggie Sandwich. Before execution of
the retail promotion, resources available on the Strategic Assets page of Aramark.net were
reviewed. These resources included an implementation guide presentation, culinary
documents, customizable caf templates, a FedEx tracking report, and FAQs. After reviewing
the implementation guideline materials on Aramark.net and the culinary documents indicating
food products needed, the production manager and executive chef, Todd Humphreys,
approved the recipe for execution. The purchasing manager, Joe Fiss, was next to be notified
of the promotion to ensure that the proper food products and supplies were ordered and
delivered on time from Sysco and J. Ambrogi produce.
Once all raw food products and necessary supplies were available, Claudy Deneus, a
food service worker at the deli station was informed. The intern worked with Claudy to update
him on the scheduled date of the promotion, provide him with the recipes for the sandwich
special, and ensure that he had all of the tools necessary to implement the promotion. The
intern provided proper signage to Claudy to be displayed near the sample sandwich platter,
educated him on the goals for sales of the sandwich special, and encouraged him to verbally
promote the product during the lunch hours.

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Maureen Sickels, Eileen Schneider, and Kristy Morris were the cahiers scheduled to
work on the day of the promotion. The intern informed the cashiers a few days in advance
about the scheduled day to run the promotion and provided them with the proper signage to
be displayed near the sample sandwich platter and at both entrances to the caf. The cashiers
were educated on the goals for sales of the sandwich special and encouraged to verbally
promote the product during lunch service. With the help of the retail manager, a button was
created in the register specifically for the Middle Eastern Veggie Sandwich combo meal. Each
cashier was instructed by the intern on the importance of using the newly added register
button for the sandwich special to generate accurate sales data.
Before the start of lunch service, the dietetic intern was responsible for assisting the
food service workers and cashiers in setting up all promotion-related materials. During lunch
service, the intern greeted customers at the caf entrance and offered samples of the
sandwich special. The intern was in charge of assisting customers and answering any questions
related to the promotion during lunch service.

6.2 Equipment Resources

The deli station food service worker utilized the equipment listed below in order to
prepare the Middle Eastern Veggie Sandwiches for distribution:

Refrigerator

Cutting boards

Sheet trays

Latex gloves, cutting gloves

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Chefs knife, bread knife, slicing knife

Spatula

Scoop

Food processor

6.3 Food Resources

After reviewing the Middle Eastern Veggie Sandwich recipe with the food service
worker, the retail manager, and the purchasing manager, inventory was checked to verify that
all necessary food resources were in stock. All food items needed to execute the October
promotion were already in stock and extra food did not need to be ordered. Below is a table
breaking down how food resources would be ordered if they were not already in stock:
Table 4. Food Resources Order Form
Food Item

Amount Ordered

Unit Price

Total Price

WG Ciabatta Bread

1 case 78 rolls

$39.53

$12.16

Hummus

1 case 4 packs

$24.46

$6.12

Baby Spinach

1 case 4 lb.

$15.80

$2.96

Tomatoes

1 case 25 lb.

$18.25

$1.10

Cucumber

1 case 12 count

$9.05

$1.51

Feta Cheese

1 case 10 lbs.

$26.55

$1.99

TOTAL (Raw Food Cost)

$25.84 ($1.07/meal)

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6.3 Financial Resources

The budget for the October promotion was equivalent to the regular operational
budget of the cafeteria. Each ARAMARK account that participates in the monthly promotions
provided by the Innovation Center pays a yearly fee of $399 to cover the costs of the
promotional materials mailed out each month, such as posters, signage, and newsletters. See
below for sales data and the breakeven analysis. All calculations are available in Appendix B.

Sales
Sales Price per Unit

$4.59

Units Sold

21

Variable Costs
Labor per Unit (1 hr, $14/hr, 21 units)

$0.67

Raw Food Cost

$1.07

Total Variable Costs

$1.74

Fixed Costs
GRO Promotion ($399/year)

$1.10

Insurance & Administrative

$2.42

Total Fixed Costs

$3.52
Breakeven in number of units sold:

BE = FC/(SP VC) = 3.52/(4.59 1.74) = 1.24 Veggie Sandwiches

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7.0 Evaluation
To evaluate the success of the executed October promotion, the initial goals and
objectives were compared to data collected after the event. The main goal of the promotion
was to increase sales. The day following the Middle Eastern Veggie Sandwich promotion, data
was pulled from the system to obtain the number of specials sold and profit made. A total of 87
sandwiches were sold at the deli station on Wednesday October 16th and 21 Middle Eastern
Veggie Sandwiches were sold. The veggie sandwich sales accounted for 24% of all sandwich
sales on the day of the promotion.
The first objective was to increase sales of the Middle Eastern Veggie Sandwich on
Wednesday, October 16th by 7% compared to the average sales of the deli special on the two
prior Wednesdays. Data was pulled from the system to obtain the number of deli specials sold
on the two prior Wednesdays. The net sales of a Southwest Beef Wrap deli special on
Wednesday October 2nd was 16 and the net sales of a Roast Beef and Cheddar Melt deli special
on Wednesday October 9th was 14. This yields an average of 15 deli specials sold for a profit of
$68.85. 21 Middle Eastern Veggie Sandwiches were sold on the day of the promotion,
generating $96.39. This was a 40% increase in sales compared to the prior two Wednesday
sales of the deli special. Objective 1 has been met.
The second objective was to sell 16 or more of the Middle Eastern Veggie Sandwiches
during lunch service on Wednesday October 16, 2013. 21 Middle Eastern Veggie Sandwiches
were sold during lunch service on Wednesday October 16th. Objective 2 has been met.

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Being that all of the goals and objectives were met, the event was a success. Because of
the overwhelming success of the promotion, the retail manager decided to continue selling the
sandwiches the following day. On Thursday October 17th 25 sandwiches were sold, generating
an even greater profit than the day of the promotion. On Wednesday October 16th, the
promotion sandwich was sold out by 1:30 pm and on Thursday October 17th, the promotion
sandwich was sold out by 1:00 pm. All in all, outcomes of the October retail promotion were
positive and all goals and objectives were met.

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8.0 Appendix
Appendix A: Marketing Materials

Poster for Entrance Display (8.5 x 11)

Sign for Sample Platter (8.5 x 11)

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Fall Newsletter (Front)

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Fall Newsletter (Back)

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Appendix B: Budget & Breakeven Analysis

Breakeven Analysis

Sales

Sales Price per Unit

$4.59

Units Sold

21

Variable Costs
Labor per Unit (1 hr, $14/hr, 21 units)

$0.67

Raw Food Cost

$1.07

Total Variable Costs

$1.74

Fixed Costs
GRO Promotion ($399/year)

$1.10

Insurance & Administrative

$2.42

Total Fixed Costs

$3.52

Variable Costs Calculations
Additional Labor: 1 labor hour
1 labor hour = $14
Labor per Unit = $14 / 21 sandwiches = $0.67
Raw Food Cost: $1.07 (see calculation in 6.3 Food Resources)

VC = $0.67 + $1.07 = $1.74

Fixed Costs Calculations
GRO Promotion Costs: $399/year (52 weeks) =
$7.67 expense for one week of promotion

$1.10 expense for one day of promotion

Insurance & Administrative Fees: $2.42

FC = $1.10 + $2.42 = $3.52

Breakeven in Number of Units Sold

BE = FC/(SP VC)
BE = 3.52/(4.59 1.74)
BE = 1.24 Veggie Sandwiches

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Appendix C: Miscellaneous

Display Veggie Sandwich and Signage on day of promotion

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Assembly Instructions for Food Service Worker

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References

1. Our Business Purpose. ARAMARK Website. Available at:

http://www.aramark.com/AboutARAMARK/BusinessPurpose/. Accessed October 8,
2013.
2. Strategic Assets. Retail Promotions. ARAMARK.net Website. Available at:
https://www.aramark.net/sa/home/topic.aspx?id=645&contentid=76626. Accessed
October 8,2013.
3. Holy Redeemer Hospital and Medical Center Customer Close Up Survey, December
2010.