Business Management Retail Plan

Garden Terrace, Phoebe Putney Memorial Hospital

October 19th, 2016
Ryan Schwarz
ARAMARK Dietetic Internship

Table of Contents
1.0 Executive Summary 3
1.1 Mission Statement 4
1.2 Objectives 4
2.0 Company Summary 5
3.0 Market Analysis 7
3.1 Market Segmentation 10
3.2 Target Market 12
4.0 Promotional Event Concept 13
5.0 Strategy and Implementation Summary 13
5.1 Marketing Strategy 13
5.2 Sales Forecast 17
6.0 Resource Summary 17
6.1 Employee Resources 18
6.2 Equipment Resources 19
6.3 Food Resources 19
6.4 Financial Resources 20
7.0 Evaluation 21
8.0 Appendix 25
8.1 Promotional Flier 25
8.2 Table Toppers 26

1.0 Executive Summary

The purpose of the business plan outlined in this report was to promote an infrequent

menu item in the cafeteria at Phoebe Putney Memorial Hospital to increase lunch time sales.

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 The Garden Terrace Caf where this item was promoted is located in Albany, GA on the main

floor, with the majority of its customers being employees of the hospital. Therefore, the event

was promoted in an attempt to increase customer interest in the cafeteria in order to gain new

customers as well as retain existing ones.

The promotional item was a loaded beef and cheese nacho meal that was sold at the

exhibition station. The goal was to increase customer count at this higher priced station by

50% and increase the total cafeteria count by 1%. As a result of the exhibition station,

another objective was to increase the check average of the customers by 2% and therefore

increase the total sales of the cafeteria by 3% during lunch. The marketing strategy,

advertising techniques, resource utilization, and results of the event are explained in detail

throughout this report.

The outcome of this promotional event was measured against the average of the last three

weeks sales on the same day of the week. The nachos were a big seller with a large turnout

and all financial goals were met. The customer count to the exhibition station actually

surpassed the 50% goal to 118% above average. The total customer count in the cafeteria also

surpassed the goal of 1% to a 2.3% increase. Additionally, there was a 2.8% increase in the

check average of the customers, meeting the 2% goal. Lastly, there was a 5% overall increase

in cafeteria sales during the lunch hour, surpassing the 2% increase goal.

1.1 Mission Statement

The Phoebe Health System has a mission to: deliver the best possible care and exceed

the expectations of all we serve.1 Their corresponding vision is to have: World-Class Health

Care with Hometown Commitment.1

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 The mission of Aramark is to: Deliver experiences that enrich and nourish lives.

(Aramark intern policies document, 2016) Although the verbiage may be different, the values of

Aramark closely resemble those of Phoebe. The Aramark (Phoebe) values include: selling and

serving with passion (commitment), putting the front line first (relationships and reputation), set

goals, act, and win (excellence and efficiency), with integrity and respect always (people).1 These

are two different organizations, one being health care and one being food and nutrition, and their

core values converge into the same ideas. This allows for great compatibility and collaboration

between the organizations and their efforts to reach their goals.

1.2 Objectives

Goal 1: Increase the customer traffic to the exhibition station and cafeteria in general.

Objectives:

Promote Loaded Beef and Cheese Nachos between 11am and 3pm on October 19th to

increase the customer traffic to the exhibition station from 96 to 144 people (50%

increase), compared to the average of 3 previous Wednesdays (9/21-10/5).

Promote Loaded Beef and Cheese Nachos in the exhibition station to increase overall

customer traffic in the cafeteria from 841 to 849 people (1% increase) during the lunch

hour (11am to 4pm).

Goal 2: Increase the check average of the customers.

Objectives:

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 Promote the Loaded Beef and Cheese Nachos to increase the sale of the higher priced

exhibition station item and increase the check average by 2% compared to the average of

3 previous Wednesdays (9/21-10/5) during the lunch hour.

Goal 3: Increase the total sales in the cafeteria.

Objectives:

Promote the Loaded Beef and Cheese Nachos over the lunch hour (11am-4pm) on Oct.

19th to increase lunch sales by 3% by increasing interest in the exhibition station and the

cafeteria in general.

2.0 Company Summary

Phoebe Putney Memorial Hospital started from a small facility in August of 1911, and

has grown immensely over the last century. Thanks to Judge Francis Flagg Putney who donated

$25,000, a very large sum at the time; the Ladies Hospital Aid Society of Albany, GA was able to

construct a hospital to serve the ill citizens of Southwest Georgia.2 His donation came with the

following three contingencies: 1) That the hospital be named after his mother Phebe Putney,

2) That the hospital serve all citizens of the community, regardless of race or ability to pay, and

3) That the hospital be a brick building in order to withstand the greatest threat to structures at

the time fire.2 This non-profit medical center has grown into an exceptional 4,500 member

health system through expansions at the main campus as well as through allocation of specialized

practice centers over the years.2

The foodservice department at Phoebe Putney has always been managed under the

Phoebe Health System. It was only recently, July 31st of 2012, when Aramark came in and started

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managing the Phoebe foodservice and nutrition department. Aramark provides three services at

the Phoebe Putney Account including retail, patient services, and catering. The Doctors Lounge

as well as Family Tree and Act Two Day Care Facilities are simply treated as another service site

under the retail services rather than catering. Aramark maintains a Guaranteed Net Budget

Contract between Phoebe and themselves, with a goal to service the community health care

needs and maintain their yearly budget. Aramark has a strong ability to implement new programs

and processes at this account; for example, Phoebe Putney has lead the nation in the roll out of

the new Chef Series program.

Similarly, the Aramark Corporation has also been growing for nearly a century, but it

wasnt until 1994 that they acquired this title. Aramark, formerly known as the Automatic

Retailers of America (ARA), started its beginnings in 1932 when Davre Davidson began serving

peanuts from the trunk of his car. Ten years later, he and his brother began the Davidson

Brothers vending company which ranked as one of the largest in California. The brothers later

combined forces with the vending company of William Fishman and created the ARA in 1959.

Over the years, they acquired larger food service organizations, served for the Olympic Games,

and transitioned to ARA Services in 1969. Just years later, they went global into Europe and

Japan and added a uniform and apparel department to their organization. They continue to

expand and have provided food service aide to disaster victims and even joined forces with the

American Heart Association.3 Today, Aramark is a quickly evolving corporation with over $17

billion in sales last fiscal year and 270,000 employees around the world.

3.0 Market Analysis

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 The Phoebe Putney Memorial Hospital owns many of the surrounding buildings which

consist of dialysis clinics, rehabilitation facilities, human resources departments, day care

services, and much more. Therefore the only restaurants, fast food or otherwise, are multiple

blocks or more down the road. Taking this into consideration, along with the fact that sidewalks

are scarce, it can be a challenge to safely and quickly leave the facility for food and make it back

in time to report back to work after the thirty minute lunch break. However, it is still possible.

The closest competitors include Subway, McDonalds, Burger King, Zaxbys, and Wendys, all

within a 2.5 mile radius.4 The Hospital also has a Starbucks on site which may compete by

offering some pastries and deli sandwiches or premade salads. The majority of the surrounding

restaurants are fast food and often serve burgers and fries, subs, and premade salads. The hospital

competes by offering comparable items and serving from a grill, hot line, salad bar, sub and

sandwich deli station, and specialty items daily. The prices at the hospital are often lower than

those of the competitors and many of the customers also get discounts for being employees.

With fall underway, the hot new trends include seasonal items such as pumpkin spice,

pumpkin pie, apple crisp, fritters, cobblers, and hearty soups. Outside of seasonal trends, others

include a push for healthier items and food made in front of the customer to their liking which

makes it more personalized. Fried chicken is not so much a trend as it is a staple food here in the

South and if people are not eating at the hospital facility, they may be off purchasing fried

chicken meals at competitor locations.

Subway is the closest in comparison to the hospitals sub and sandwich station, offering a

6-inch Sub of the Day for only $3.50 whereas the wraps/subs at the cafeteria are $5.79. Subway

also offers salads and their Buffalo Chicken Salad goes for $6.20 and the cafeteria runs it as an

exhibition item for $5.99.5 Additionally, the cafeteria has their own salad bar priced at

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$0.41/ounce. However, there may not be everything that the consumer wants such as bacon, but

it also allows for flexibility to make it how they want it. Subways 6-inch Turkey sub is sold at

$4.95 which is cheaper than the cafeteria price. However, if the combo meal is purchased, it is an

additional $2.40 for each order which would bring the total to $7.35 which is more than the

cafeterias combo option offered at $6.99.5 It is important to also keep in mind that many

customers in the cafeteria are employees and are getting between 10% and 25% off their bill.

Hardees offers a double cheeseburger combo meal for $4.99 while the same meal at the

cafeteria would cost $5.98.6 Krystal offers two small bacon cheese Krystals for $2 which is

comparable to one of the cafeterias full size burgers at $3.89.7 Kentucky Fried Chicken offers $5

Fill Ups including a chicken bowl, chicken breast, or drumstick and thigh meal that come with a

medium drink and a cookie. At the cafeteria, a similar meal consisting of fried chicken, mashed

potatoes, a cookie and a drink would cost about $6.70.8 Little Caesars offers a $6.00 large pizza

or pizza by the slice for $1.59.9 At the cafeteria, pizza by the slice goes for $3.49 for a large,

thick slice.

If the consumers were wanting breakfast food for lunch or brunch during the work day,

the cafeteria may be losing business to those customers because the cafeteria no longer serves

breakfast food after 10am. Therefore, these customers would be going to places like Burger King

or McDonalds that offers breakfast longer, or even all day.

Internal Analysis

Strengths: The factors contributing to giving the hospital an advantage over the

competition include the location of the facility, the price, employee discounts, and nutritional

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value of the food. As mentioned before, the hospital does not have very many dining locations

within immediate reach of the facility. Thirty minutes is not a lot of time to leave the facility, eat,

and come back. Therefore, many people end up staying to eat on site or bring their food from

home. Also, the food at the hospital is typically lower priced than the combo meals at say

McDonalds or Wendys upwards of $8 whereas the cafeteria is around $5 per meal combo,

especially after employees receive their 10-25% discount. Lastly, the cafeteria offers a salad bar,

sub and sandwich station, and many veggie options of a normal hot line entre meal rather than a

fast food joint with burgers and fries. Although grill options are available in the cafeteria, there

are many options to help eat healthier if the consumer were to desire that.

Weaknesses: The cafeteria is a traditional old school cafeteria style and people are more

interested in modern style and ambience. Also, the cafeteria is not open 24 hours and so there are

some people that get missed. Additionally, the promotional event offered something new so the

unused items may not necessarily be normally ordered items and may not be used efficiently or

in the most cost effective way. The item is being promoted on a fried chicken day which is a big

seller, especially in the South. Therefore, the item will have decreased numbers from that and

will be competing with the deli, salad bar, and grill rather than the hot line. Lastly, there are strict

advertising policies preventing the posting of fliers in elevators or common areas which is a big

loss of high traffic promotion.

External Analysis

Opportunities: If the promoted product goes over well, this may be incorporated into the

regular cycle menu and increase the check average for not only the promoted week but each

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week it is served. Also, it is a finger food so there is likely to be less utensils used and a slight

savings there, even though a few more napkins may be used. Also, increased variety may

increase customer satisfaction. On another note, it is fall and that means football season. The

nachos may be accepted very well and rolled out as a seasonal item to be a fan food. The other

intern is rolling out a new item the day before which will increase interest in the station and

views of the coming tomorrow sign for the nacho product. Therefore, the nachos may absorb

some of the interest created from her promotion.

Threats: The item is not nutritionally conscious which is important to some consumers.

Payday is on Thursdays biweekly and the item is being served the day before payday. Previous

sales show that the customers spend more in the days and immediate week following payday

compared to the end of the pay period. Visitors typically come to visit patients after work and

therefore may stop by the cafeteria for dinner rather than lunch and so the item will not be served

during that time and may miss some of that market.

3.1 Market Segmentation

Due to the fact that the cafeteria is located in a hospital, about 99% of the customers are

employees while a few visitors and actual patients do come through as well. Based on a study by

John Roedl, the General Manager, and his colleagues in March of 2016, the staff at Phoebe

Putney Memorial Hospital who responded to the survey consist of 35% Nurses, 27%

Admin/Clerical, 11% Technical, 10% Support, 7% Patient Services, and 10% other disciplines

sprinkled throughout. (Chart 1) About 85% of the staff say they work during the day and

therefore, during the lunch hour; and nearly 65% work 5 days a week with only about 20%

working 3 days or less each week.

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 Chart 1 Employee Distribution

Customer Distribution

Other; 10%
Nurses; 35%
Patient Services; 7%
Support; 10%
Technical; 11%

Admin/Clerical; 27%

The vast majority of the respondents (about 75%) express a bit of fluctuation in their

eating habits. That is, 75% say they buy a meal through the dining service 3 days or less each

week. However, there is also upwards of 85% that say they buy their meal away from the

hospital 3 or less days each week. Furthermore, the same proportion, not necessarily the same

people, bring a meal from home no more than 3 days a week and an astounding 90% say they

skip a meal or dont eat during their shift 3 or less days a week. When looking at the big picture,

the survey results display that a person may typically eat at the cafeteria 1 3 times a week, eat

away from the hospital once a week, bring a meal from home 1 - 3 days a week, and frequently

skip a meal or not eat once a week. However, through observation in the previous weeks, it was

noted that there are a large number of repeat customers who come in almost every week day.

Therefore, there is a mix of repeat customers and those coming in only a couple times a week to

the cafeteria.

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 Seventy-five percent of those surveyed spend between $4.00 and $7.00 on their average

lunch, regardless of where they eat. Looking closer, more people stay on the lower end (about

45%) and only spend between $4 and $5.99, while the other 30% tend to spend $6 to $7. There is

only 10% on either side that spend less than $4 or more than $7. This is consistent with the fact

that the check average for the previous three Wednesdays was $5.41 after discounts.

About 60% of the respondents from the survey say that better taste, quality, and selection

are very important reasons why they bring their meals from home. While saving money, eating

healthier, and not having much time to eat lunch are also important to them, the nachos may be

able to address the need for great taste and increased selection and variety in the menu.

According to the survey respondents, there seems to be about 70% interest in eating healthier

foods or watching what they eat and also having nutritional info clearly marked. However, there

is still the other 30% that do not worry so much about it and a few people who are swayed by

tasty items and make exceptions in moderation.

3.2 Target Market

Given that a large portion of the employees are Nurses or Clerical Staff and from

observation during the lunch hour, it was deduced that the target market is mostly women

between the ages of 30 and 60. From observation, it was observed that about half of the market is

African American and about half is White with only a few Indians, Asians, and others mixed in.

The location of this hospital in South Georgia exudes its own culture about food. People enjoy

fried food in the South and nachos is something that may go over very well because of this. The

target market encompasses those spending between $4 and $7 for lunch and the nachos are

actually on the lower end at $5.99 which may increase its acceptability.

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4.0 Promotional Event Concept

After analysis of the market demographics and information, it was determined that the

item to be promoted would be a Loaded Beef and Cheese Nacho at the gourmet station in the

hospitals cafeteria. The item consisted of corn tortilla chips, taco meat, pinto beans, cheese

sauce, salsa, sour cream, and jalapenos in a clear plastic 12oz to go container. Due to the fact that

it is a finger food item, it was predicted that more napkins would be used than eating utensils for

this given meal. It was offered at $5.99 and available to combo with a 24oz fountain beverage at

$6.99. Also, there was an option for double meat for $7.99 and the double meat combo for $8.99.

The promotional event targeted existing customers as well as a few non-existing ones, to visit the

exhibition station and therefore increase the check average and increase total sales as a result.

5.0 Strategy and Implementation Summary

5.1 Market Strategies

Target Market Strategies

Southern people enjoy eating good tasting, fried food. A good old nacho with taco meat,

beans, and cheese is sure to grab about 25% of the customers and maybe more. Also, the market

is mostly full-time employees working 5 days a week Monday through Friday. Previous sales

analysis has shown that Mondays and Fridays are the slower days of the week for the cafeteria.

This may be due to people starting off the week right in their mind and bringing a lunch from

home. This could also very likely be due to people taking Mondays/Fridays off because it

extends their weekend. Whatever the case, this was taken into account and the nacho product was

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offered on a Wednesday. The promotion was largely intended to capture the existing customers in

an effort to increase their check average with this specialty meal as well as obtain the attention of

new customers up on the floors by posting and handing out fliers. This could possibly increase

interest in the cafeteria and cause new people to check it out which may lead to their extended

use of the cafeteria on a regular basis in the future.

Product Strategies

Since the pre-established menu for that day was offering fried chicken, which goes over

really well with the customers, the nachos were mainly running against the grill, the deli, the

salad bar, and the soup. The nachos are slightly higher priced than most of these stations which

makes it a great opportunity to increase check average. Also, the price was made to match the

price that has been offered in the past for this product to ensure that there were no discrepancies

or confusion.

Packaging Strategies

The product was served in 12oz clear plastic to go containers. The products ingredients

were monitored to be hot prior to assembling the meal by taking temperatures and feeling the

warmth coming from them. The product was placed in a clear container, therefore the product

was neatly arranged and in an appetizing way so that others who may see it at the desk or

walking down the hallway would be enticed into purchasing it. In other words, the outside and

edges of the container were kept clean to prevent a sloppy and messy look, especially since

nachos are known for being messy. People will notice if they see a messy container and may

choose another item that is easier to eat.

Pricing Strategies

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 The nachos were be priced at $5.99 due to its prior appearance at that price on the menu

and to avoid discrepancies. Also, it is a great price in relation to the survey data mentioned

earlier because it is in the high end of the people spending an average of $4 and $5.99 and on the

low end of the people spending $6 to $7 on average. This encompassed both of these markets

because of the original price and combo availability. Additionally, the location of the item being

at the gourmet station placed a customer expectation of a specialty item that is higher priced at

this station which may have increased the acceptability of the product and price.

Merchandising Strategies

By the use of the title, Loaded Beef and Cheese Nachos, it dramatized the value of the

item by drawing attention to everything that is piled on top rather than the perception of just

receiving chips and cheese. The product was served at the exhibition station which added an

increased attraction to the item because it is one of the stations that change the served item on a

daily basis and adds variety to the repeat customers. It was served in a large (12oz) clear

container to increase the value and appeal of the product and to account for its spacious volume.

Promoting Strategies

The strategy was to promote an infrequent item at the exhibition station to increase sales

and check average as a result of the customer purchasing this higher priced item and recognizing

the variety this station has to offer, therefore coming back in the future. There were also options

available to upsell the customer if they wanted a drink or double meat with their meal.

Advertising Strategies

Professional fliers were posted throughout the hospital and cafeteria to increase interest in

the exhibition station item and the cafeteria in general. Fliers were placed in employee break

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rooms on each floor and next to the exhibition station and menu for the week. Also, table top

brochures were placed on the tables throughout the dining area a few days prior to the event.

Advertising included easy to read fliers and signage with large print and simple fonts and color

schemes. (8.1 & 8.2 Appendix) The day of the product implementation, an example plate was set

out to stimulate appetite and appeal of the food as well as to give the customer a sense of what

they will be receiving in relation to the price. Also, all of the combo and add-on options were

easily distinguished on the signage in order to increase the customers ability to choose and know

their options for best value.

Customer Service Strategies

The service staff at the cafeteria were great at customer service. They were upbeat, happy,

and helpful when it came to customer service and make-to-order items. However, things may

happen, especially in a rush, and some people may have a bad day which may greatly affect their

treatment of the customers. By relaying the reasoning behind the products implementation to the

servers, it aided in achieving high customer satisfaction rates. An informal script was provided as

well to upsell the customer when handing them the finished product. For example it might say

something like, here you go, thanks, and if you grab a regular fountain drink or tea over there

(point to soda station) its just a dollar with this meal. Additionally, free tasting of any

ingredient in a sample cup was allowed if the customer wanted to ensure they enjoy the flavor of

the taco meat, cheese, etc. before purchasing the whole meal.

Communication Strategies

Part of the communication strategy was to have an upsell script as well as informing the

server what to do in certain situations before they arise. For example, if the customer asks for

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double meat, the server knows, as well as the cashiers, to label the item properly so that the

customer gets charged the additional amount. Furthermore, the server should relay the additional

cost to the customer to ensure they approve of it before adding it to their meal.

5.2 Sales Forecast

All sales forecasts and evaluations were made in comparison to the averages of the

previous three Wednesdays during the lunch hour from 11am to 4pm. One objective of the

promotional event was to increase the number of people purchasing the exhibition meal by 50%,

giving a goal of 144 people. The second objective was to increase the number of people visiting

the cafeteria in general by 1%, resulting in a goal of 849 people. As a result, the third objective

was to increase the total sales by 3%. The fourth and final objective was to increase the check

average by 2% to $5.52. Given the large numbers and output at this facility, a seemingly

insignificant one or two percent can add up to some big increases.

6.0 Resource Summary

Planning for the promotional event started two weeks prior to the event and the intern

worked closely with the production and retail manager to establish a product and allocate

resources. The employees were informed of the upcoming event and their role in the process

during the safety huddles. The recipe was utilized to cross-check and ensure that all of the

needed equipment was available. The intern worked with the production manager to determine

how much food to order in relation to what was on hand and what would be used in the days

prior to the event. The computer software Horizon was then utilized to pull detailed reports and

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analyze the outcomes of the event. All of these resources played a vital role in the success of the

event and further details of each resource are explained in the upcoming sections.

6.1 Employee Resources

The promotional event item required about 16 hours of labor. That is, 6 from Chefs, and

10 from food service workers and the intern. Chef Arnold spent 3 hours bulk cooking the taco

meat and Chef Francis spent 3 hours cooking the pinto beans, and warming the cheese sauce.

Meanwhile, the intern spent an hour prepping the exhibition station with all of its items such as

jalapenos, chips, sour cream, salsa, ice baths, serving containers and utensils, and taking pre-

service temperatures. The intern and Adrianna, a food service worker, spent 3.5 hours each

serving the meal and replenishing ingredients for a total of 7 hours. Then, the intern spent 0.5

hours cleaning up the station and properly storing leftovers. The intern spent 2.5 hours prior to

the event creating promotional fliers and distributing them throughout the break rooms on the

floors and assembling table toppers for the dining area. Therefore, there was a total of 6 Chef, 3.5

food service, and 6.5 free intern labor hours.

6.2 Equipment Resources

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 Large equipment use includes an oven, steam kettle, steamer, and a steam well and hood.

Additionally:

Numerous pans for chips, meat, beans, and cheese sauce

Holding containers for jalapenos, salsa, and sour cream
A cooler and warmer up front
A scoop/utensil for each item (6) corresponding to serving portions
o 2 3oz spoodles, 1 perforated
o 2 2oz spoodles
o 1 8oz spoodle
o 1 tongs
210 clear plastic 12oz serving clams
400 napkins
Roughly 100 plastic forks
Roughly 60 24oz Styrofoam cups and plastic lids
About 10 32oz Styrofoam cups and plastic lids
71 plastic straws
Steam table
Ice machine
Roughly 50 hot sauce packets
A transportation cart
Hygiene materials: Sink, hairnets, gloves, and aprons
Measuring cups/utensils: can opener, strainer, spatula, 3 mixing spoons
A thermometer, timers/clock, tables and chairs.

6.3 Food Resources

The approved vendor was Sysco for everything including dry goods, produce, canned

beans, meat, chips, and even sour cream packets. Sysco delivers on Monday, Wednesday, and

Thursday at the Phoebe Main location. Since the nachos were being rolled out on a Wednesday,

all ingredients had to be delivered on or before Monday. With that in mind, the order was placed

on the Friday prior, the 14th of October, 2016, in order for it to be received on the Monday

delivery. The food items that were on hand in an adequate amount for the promotion were the

cheese sauce and everyday seasons and spices. Everything else needed to be ordered. All food

items and their respective prices are shown in Table 1 below.

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 Table 1 Food Resource Analysis
Item (on Quantity Price/C Order Cases Actual
hand) S Cost Used Cost
Sour Cream 2 CS @ 100/1oz per CS $14.23 $28.46 1.5 $21.35
Ground Beef 3 CS @ 4/5LB pk per CS $43.20 $129.60 2 $86.40
75/25 Fine
Pinto Beans - 1 CS @ 6/#10 cans per CS $22.51 $22.51 1 $22.51
Low Sodium
White Corn 5 CS @ 8/16oz pk per CS $12.31 $61.55 3.5 $43.09
Tortilla Chips
Jalapeno 1 CS @ 4/1 Gal per CS $33.22 $33.22 0.33 $10.96
Pepper - Sliced
Salsa Medium 1 CS @ 4/136oz per CS $40.66 $40.66 0.5 $20.33
Thk&Chunky
(Cheese 1 CS @ 6#10 cans per CS $58.59 $0.00 1.17 $68.55
Sauce)
Total = Total =
$316.00 $273.19

Food cost per meal = total nacho food cost / number of meals sold

$273.19 / 210 = $1.30/meal

6.4 Financial Resources

In the table below (Table 2) the breakeven analysis displays the variable costs per meal

as well as the fixed costs for the promotional event. The Nacho meal was offered at a price of

$5.99 in order to stay consistent with the price that it was offered at months before. The price

was also profitable given the $2.08 cost/meal. This information was used to calculate the number

of units (meals) needed to be sold in order to break-even with the cost for the event. This number

came to 4 after rounding. Therefore, after 4 meals were sold, the fixed costs were paid for.

Table 2 Breakeven Analysis

Variable Costs/meal

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 Food $1.30
Labor $0.48
Equipment $0.30
Total $2.08
Fixed Costs
Marketing Cost $0.50
Cost of Display Meal & Equipment $1.60
Risk Insurance $12.12
Total $14.22
Breakeven = FC / (Sale Price VC) 14.22 / (5.99 2.10) = 3.66 or 4 units

7.0 Evaluation

The outcome of the promotional event was measured by comparing the sales totals for the

event against the average totals on that day from the previous three weeks. To analyze this data,

the computer system Horizon was utilized to gather the results of the event. The Items Sold

Reports, Internal Count Reports, and the Daily Audit Reports were used to pull the comparative

data for both the weeks past and the day of the promotional event. The examined measures

consisted of the total number of transactions, total transactions for the exhibition meal, total

sales, and the check average. All of these values were obtained from Wednesdays during the

lunch period from 11am to 4pm. Furthermore, data from the three Wednesdays prior to the event

were averaged (Table 4) and used to compare the results of the promotional event and measure

its success.

The results in Table 3 display the success of the event in which every goal for the event

was achieved. The first goal was to increase the transaction count from the exhibition station to

144 people but the actual result was 210 transactions, a 118% increase from average. A sub-goal

was to increase the overall transaction count for the lunch period to 849 and there were actually

860 transactions that day, a 2.3% increase. The second goal to increase the check average was

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also met by exceeding the goal of $5.52 with a $5.56 average, a 2.8% increase. The third and

final goal of increasing the overall lunch period sales by 3% was met with actual sales being a

5% increase. The promotional event met and exceeded all of the previously established

numerical goals.

Table 3 Results
Measurement Average Goal Actual Goal Actual
Last 3 wk Increase % Increase %
Exhibition meal count 96 144 210 50 118
Lunch Transactions 841 849 860 1 2.3
Total Lunch Sales 3 5
Lunch Check Av. $5.41 $5.52 $5.56 2 2.8

When considering whether the goals were set too conservatively, it was determined that

the goals were reasonable in relation to the large volume of the facility. That is, with such a large

output, the small goals of only one or two percent increases are actually substantial amounts.

Additionally, the promotional event only exceeded the averages of the past three weeks and not

the actual sales of all past days. For example, Table 4 shows that the Oct. 5th transaction count,

lunch sales, and check average were all exceeding the results of the promotional event.

Nevertheless, the promotional event helped increase the average and was a successful and

profitable event.

Table 4 Sales Data

22
 Date Exhibition Lunch Total Lunch Lunch Check
Meal Count Transactions Sales Average
9/21/16 114
9/28/16 71 828 $5.30
10/5/16 102 861 $5.60
10/12/16 833 $5.32
Averages 96 841 $5.41
10/19/16 (event) 210 860 $5.56

During the event almost everything went smooth. Should the event be promoted again, it

would be wise to stay consistent with everything that was offered. From the recipe, to the portion

sizes, to the serving containers and the service layout. Also, it is important to note that there was

another promotional event the day before the nachos which may have contributed to the interest

in the exhibition station and this specific promotional event through the utilization of advertising.

However, with everything that goes well, there is always room for improvement.

One example of this was due to miscommunication; there was a short time span of

approximately twenty minutes where the nacho cheese sauce ran out. This is a vital piece of the

nacho experience and although there was a shredded cheddar cheese available as a replacement

for the time being, there was an estimated loss of at least ten or more customers due to this error.

If this meal is served in the future, it will be extremely important to maintain constant

communication with the kitchen to ensure the proper ingredients are available as needed to meet

the demands. Additionally, it would be beneficial to contact the marketing team at least five days

in advance to get the promotional flier on the monitors throughout the hospital. Unfortunately

this five day grace period was unknown prior to this promotional event and was missed. Lastly, it

would increase sales even further in the future to upsell the customer and mention that the drink

is only a dollar more with the meal. This upsell technique was in place, however, not to the full

extent possible and it should be told to every customer, not only a select few.

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 Overall, the promotional event went very well with all financial goals being exceeded. In

the future, it may improve accuracy to include a more comprehensive average of past data rather

than just the previous three weeks. Additionally, no samples were provided as advertising for this

event. If samples were to be considered in the future, it is important to evaluate the difficulty

with providing such individualized toppings to everyone. Some of the additional ingredients

including beans, salsa, and jalapenos may need to be omitted from the sample, leaving just the

chip and cheese for tasting. Regardless of whether or not a sampling is provided in advance, the

loaded beef and cheese nachos are sure to be a big seller in the future.

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8.0 Appendix

8.1 Promotional Flier

Garden Terrace
Gourmet Meal

Wednesday, October 19
11 a.m. 2:30 p.m.

Come & Try Our:

Loaded Beef & Cheese Nachos
$5.99

Crunchy Corn Tortilla Chips

Seasoned Taco Beef
Beans
Pico de Gallo, Sour Cream & Jalapeos

Make it a Combo: $6.99

(Add a 24 oz. Fountain Drink)

Add Double Meat: $7.99

Double Meat Combo: $8.99

25
 Garden Terrace

Gourmet Meal
8.2 Table Toppers
Wednesday, October 19
11 a.m. 2:30 p.m.

Come & Try Our:

Loaded Beef & Cheese Nachos

$5.99

Crunchy Corn Tortilla Chips

Seasoned Taco Beef
Beans
Salsa, Sour Cream, & Jalapenos

Make it a Combo: $6.99

(Add a 24 oz. Fountain Drink)

Garden
Add DoubleTerrace
Meat: $7.99

Double Meat Combo: $8.99

Gourmet Meal

Tuesday, October 18
11 a.m. 2:30 p.m.

Come & Try Our:

Southern Buffalo Chicken Bowl

9.0 Resources $5.09

Juicy buffalo chicken tenders

Blue cheese mashes potatoes
Fried onions
Green beans
Ranch Dressing

Make it a Combo: $5.99

26
(Add a 24 oz. Fountain Drink)

Add Double Meat: $6.99

Double Meat Combo: $7.99

1. Phoebe Putney Health System. Mission of Phoebe Putney Health System.
http://www.phoebehealth.com/about-us/about-us-mission. 2016. Accessed Oct. 10, 2016.

2. Phoebe Putney Health System. History of Phoebe. http://www.phoebehealth.com/about-

us/about-us-history. 2016. Accessed Oct. 10, 2016.

3. Aramark. About Us. http://www.aramark.com/about-us/history. Accessed Oct. 10, 2016.

4. Google. Google Maps. http://www.googlemaps.com. Accessed Oct. 11, 2016.

5. Subway. Our Menu. http://www.subway.com/en-us/menunutrition/menu. 2016. Accessed

Oct. 11, 2016.
6. Hardees Restaurants LLC. Home. http://www.hardees.com/. 2010. Accessed Oct. 11, 2016.

7. The Krystal Company. Home. http://krystal.com/. 2016. Accessed Oct. 11, 2016.

8. Kentucky Fried Chicken. Home. https://www.kfc.com/menu/5-fill-ups/three-piece-tenders-

fillup. Accessed Oct. 11, 2016.

9. Fast Food Menu Prices. Little Caesars Prices. http://www.fastfoodmenuprices.com/little-

caesars-prices/. 2016. Accessed Oct. 11, 2016.

27