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June 6, 2017
Food Service Management
Feasibility Study
Goals
Lutheran Health Networks Nutritional Services department has been undergoing many
changes in the last few months. During these changes the employees have had to be very
flexible, as change is never easy. The biggest change this department has been faced with is
being bought out by the Morrison Health Group. This has required them to change just about
everything that they were originally doing before. As their mission statement reads, The
Nutritional Services Division is dedicated to providing its customers with safe, quality, and
nutritious food. We are committed to being responsive to the changing needs and expectations
of our customers while operating in an ethical and fiscally responsible manner. With change
comes trial and error but as I have witnessed, this department has been very responsive to the
Much as any business, one goal here is that there is a profit made at the end of the day.
One particular problem that I have been asked to look at is the need for an improved Latin
Wednesday. This micro concept has been ran for the past several months out of one of the
hot bars in the middle of the caf. This happens to be an extremely popular option so much so
that we generally run out of food and do not end up with much of a profit. With a
Nacho/Walking Taco Lunch Cart offered everyday opposed to just Wednesday, we could
increase the profit margin, attract more customers, and help alleviate the rush by spreading it
Community-Level Factors
Katie Haney
June 6, 2017
Food Service Management
Lutheran Hospital has approximately 400 beds and serves over 6,000 meals per day
composed of patient meals, guest, and faculty and staff meals. Recently there has been several
changes in economic factors among Lutheran Health Network. Currently, the patient census in
lower than normal due to doctors canceling elective surgeries as a form of boycott. One
problem that they are currently facing is limited funds, lack of renovation, as well as several
other problems because of the current owner of this facility. With tensions high, the caf
remains open the majority of the day and serves a large percentage of employees and visitors
as we know they are unlikely to leave for meals. Currently, there are several micro concepts
ran throughout the week in the middle hot bar offering a large variety of options. As I have
witnessed, Latin Wednesday is most popular and also most demanding to work, as I have also
witnessed. After working two Latin Wednesdays , I came across several problems, one of
which being the supply and demand. This is when my idea of a Nacho/Walking Taco Lunch Cart
came to mind.
Site-Specific Factors:
One location that might work for a Nacho/Walking Taco Lunch Cart would be near the
microwave station. Having a lunch option slightly out of the caf itself could improve the
congestion of people during the lunch rush. Being that this area is before one actually walks
into the caf, it would draw some traffic in that direction and slowing the rush in the caf even
if they do not go with the Nacho option. While having this option available through the week it
is likely that we would see approximately 300 people each day. The caf alone normally serves
1200 people each day however being that there is so many different options adding another
would further break down the demand for any one station alone. As far as competition goes,
Katie Haney
June 6, 2017
Food Service Management
we no longer do lunch vendors so we would not have to worry about that but we do have Tim
Hortons upstairs near the main lobby. Recently a Bon Bons coffee shop opened but has limited
hot food items to offer. I do not feel as if there is much competition with the caf and its large
approximately 300 people who would buy a walking taco. Last Wednesday we sold to 347
people. Given that this Walking Taco Cart would be offered throughout the week we may serve
more or less people each day. As we have observed, this is the most popular micro concept and
something that people want more than once a week, satisfying our site-specific factors. Some
community member and something that they know will taste good to them. For the
ingredients, we could cut back from what was offered on Latin Wednesdays because this is
now something offered five days a week instead of just one. For convenience and cost of labor
prepackaged chips would be our best option, although slightly more expensive than buying
large bags of chips and putting them into bags ourselves I find that it is worth the investment.
We could offer two meats (chicken/beef), three toppings (lettuce, cheese, tomatoes), and three
condiments (sour cream, hot sauce, mild salsa). All of this would actually go into the already
bagged chips therefore we would not have to worry about serving tray/Styrofoam containers.
Or
($0.15/ounce)
cup shredded chicken (4 oz) $0.60 $0.81
Shredded Lettuce (2 oz) ($0.05/ounce) $0.14
$0.10
Shredded Cheese (2oz) ($0.13/ounce) $0.87
$0.26
Tomatoes (2oz) ($0.04/ounce) $0.11
$0.08
Sour Cream (1oz) (0.08/ounce) $0.11
$0.08
Hot Sauce (1 oz) (0.14/ounce) $0.19
$0.14
Mild Salsa (1 oz) (0.04/ounce) $0.05
$0.04
$1.59 hamburger $2.67 hamburger
$1.47 chicken $2.51 chicken
As you can see, the average cost per serving is less than two dollars and the customer
cost is less than three. It would be easiest to charge three dollars even for the walking taco
itself, regardless of the meat the customer pick. People likely do not carry extra change, it is an
easy amount to remember (for the next time they visit), and it is enough that we would make a
profit from it. The only other additional cost would be paying for an employee to staff the
Walking Taco Cart. We already have the serving utensils, hotel pans, and catering products that
would assist us in keeping these items cold/hot. We would have an employee staff the cart
from 11-1, Monday through Friday and allow 30 minutes for prep on the cart (8.75/hour for 2.5
Katie Haney
June 6, 2017
Food Service Management
hours 5 days/week). This cart would not need to be staffed by no more than one person. At
satisfaction surveys. If there is one thing that I have learned it is that food service is largely
customer service based. I think that is something that the customers would greatly enjoy and
because it is fairly simple and something that would satisfy them (without little complaints). As
far as the feasibility of this cart goes, I think that it would be something that should wait until
after the renovation of the caf which is likely to happen within the next few months. As I
mentioned above, change is hard for people so changing a lot at once may not be ideal. I do
believe that this project is feasible but I would probably charge close to four dollars so that our
Latin Wednesday problem, all while making a profit. We would not need to invest in any
extra equipment, utensils, or serving containers as we already have all of that within the
kitchen. Although the serving size of a single serve bag of chip is relatively small to what they
get during Latin Wednesday, I think that the dramatic price difference, $7 versus $4, would be a
This is a project that I think could be worth trying. As we know Latin Wednesday has
been a big hit, but it is something that we have struggled with tremendously to keep up with. A
Katie Haney
June 6, 2017
Food Service Management
walking taco cart might be the solution that we need to slow things down, make a profit, while