RETAIL BUSINESS PLAN PROJECT

KORISSA BAILEY ARAMARK DIETETIC INTER 2016-2017 HARRINGTON HOSPITAL,

SOUTHBRIDGE, MA

STATEMENT OF PURPOSE

To provide interns with hands on experience

with how to conduct a retail business plan,

with marketing and planning initiatives, and
how to interpret the results.

MISSION STATEMENT
ARAMARK CORPORATION

Harrington Hospital
To deliver optimal healthcare to the residents and communities of
South Central Massachusetts and Northeastern Connecticut. We are
committed to Total Local Care (TLC), providing personalized,
compassionate care, and advanced technology close to home. Our
vision is to continue a long tradition of caring and expand our
comprehensive inpatient and outpatient services along with community
outreach programs. 1

to deliver experiences that enrich and nourish lives2

** Both of these missions are customer based,

and focus on delivering the best possible
experience to their customers. **

1. About Harrington. Harrington Healthcare Systems Website. http://harringtonhospital.org/about-harrington/. Published 2016. Accessed
October 10, 2016.
2. We Dream. We Do. Thats the Aramark Difference. Aramark Web site. http://www.aramark.com/about-us/our-difference. Published 2016.
Accessed October 10, 2016.

BUSINESS PLAN GOALS AND OBJECTIVES

Goal #1: Increase retail sales during breakfast in the Harrington

Hospital Caf.
Objective: To increase breakfast sales by 5% from 8:00-10:30AM
compared to the previous three Wednesdays in October. Total Breakfast
sales goal: $457.65, 5% increase: $21.79.
Goal #2: Increase the total number of customers purchasing
breakfast in the Harrington Hospital Caf.
Objective: To increase the number of customers purchasing food in the
caf by 5% from 8:00 AM- 10:30 AM compared to the previous three
Wednesdays in October. Breakfast customers goal: 188 customers.

COMPANY SUMMARY- HARRINGTON HOSPITAL

Founded in 1931 in Southbridge, MA

Non-Profit hospital, run by a board of

directors
114 bed acute care hospital that offers a
wide variety of services.
Extension services located throughout
South Central MA and Northeastern CT.
Focuses on their motto of delivering Total
Local Care

1. About Harrington. Harrington Healthcare Systems Website.

http://harringtonhospital.org/about-harrington/. Published 2016. Accessed October 1
2016.

COMPANY SUMMARY- ARAMARK CORPORATION

Aramarks service standard of excellence foundation

was established in 1936 by a man named Davre

Davidson, who sold peanuts out of his car.
In 1959, the Davidson brothers and William

Fisherman decided to merge their two vending

companies to form the ARA (Automatic Retailers of
American)
Houses over 270,000 employees and operates

within 22 different countries

Variety of services including food services, facility

services and uniform services throughout many

different industries
4. About Us: Corporate Responsibility. Aramark Website.
http://www.aramark.com/about-us/corporate-responsibility. Published 2016.
Accessed October 13, 2016.

Mission and responsibility of enriching and

nourishing lives

MARKET ANALYSIS
SMOOTHIES EMERGING TRENDS

Steady increase in popularity and growth

Preventative food habits healthy eating
Nutritious and delicious
Jamba Juice, Booster, and Smoothie King, all

going global.6
Organic and Non-GMO trends, Vegan &

Vegetarian
Industry brings in $2 billion in revenue, 49,264

employees, 1,639 businesses and a 2.8%

annual growth rate.7
6. Technavio Announces Top Three Emerging Trends Impacting the Global Smoothies Market
Through 2020. Business Wire Website.
http://www.businesswire.com/news/home/20160622005037/en/Technavio-Announces-Top-Emer
ging-Trends-Impacting-Global
. Published 2016. Accessed October 25, 2016 .
7. Juice & Smoothie Bars in the US: Market Research Report. IBIS World Website.
http://www.ibisworld.com/industry/juice-smoothie-bars.html. Published 2016. Accessed

COMPETITORS
CORPORATE AND LOCAL

Elm St Caf
McDonalds
Starbucks
Dunkin Donuts
Subway
Various Pizza Shops
Various Chinese
Restaurants

MARKET ANALYSIS
COMPETITIVE PRICING

Smoothies

HH Caf

Starbucks

Dunkin
Donuts

McDonalds

Average of
Competitors

????????

$4.25

$3.29

$2.79

$3.44

HHC PRICE: $3.00

15% lower than

competitors
28% average mark-up

SWOT Analysis

SWOT ANALYSIS
Positive
Internal
Factors

Strengths
Accessibility for employees
Variety of hot entre and soup options
Full deli available, as well as sandwich
special daily
Safety and sanitation standards set by
Aramark Corporation
Variety of packaged snacks and gluten free
options
Weekly menu posted every Monday in the
cafeteria
Daily salad bar with different rotating
options
Grab and go stations with pre-made
sandwiches, salads and desserts
Daily combo offerings, in addition to a la
carte
Variety of payment options (cash, credit/
debit card, payroll deduction with badge)
Great customer service
Low prices compared to competitors

Negative
Weaknesses
No outdoor marketing to show where
cafeteria is located or entice others to
eat there.
Unattractive cafeteria and retail space
Staffing shortages
Layout of cafeteria creates traffic in
certain areas
Small kitchen space, limits stations and
offerings
Small eating space and shortage of
tables and chairs for customers to sit
No hot proteins offered for salad bar
Limited to Aramark recipes in Prima
Web
Same recipes due to a 3 week rotating
menu, lacks variety
Poor social media presence
Limited financial resources
Limited variety of healthy snack options
Paper products and plastic silverware

SWOT Analysis

SWOT ANALYSIS
Positive

External Opportunities
Factors
Compete with local offerings not

currently available to hospital

customers
Lack of variety of competitor foods in
the area
Capture the market segment that
purchases specialty beverages with
competitors
Respond to emerging trends by using
infographics to advertise menu items
Change in customer preferences
(desire for healthy food, ethnic
cuisine, local sourcing, smoothies)
Weaknesses of competitors (lacking
customer service, high prices,
unskilled labor)
Badge swiping to take the cost of the

Negative
Threats

Competitors may lower prices or

increase offerings
Number of employees may change
due to the volunteer nature of
hospital
Staffing issues (finding and hiring
skilled labor, competitive pay)
Possible increase in prices of raw
goods
Weather conditions, especially in
the winter
Budgeting issues (including the
need for more resources in the
kitchen as far as workers)
Emerging trends, constantly
changing peoples food interest,
may cause some foods to waste

MARKET SEGMENTATION
PRE-LAUNCH SURVEY

92% of cafe
customers are
hospital employees.

MARKET SEGMENTATION
PRE-LAUNCH SURVEY

31% of customers who eat

in the caf 2 or less times or
rarely prefer a smoothie for
breakfast.

MARKET SEGMENTATION
PRE-LAUNCH SURVEY

Preferred Daily Breakfast Meals

21%

36%

Omelet/Eggs
Smoothie
French Toast/ Pancake
Bagel/Pastry
Yogurt/Oatmeal

12%

11%
21%

20% of
customers prefer
smoothies for
breakfast

TARGET MARKET
The promotional event will target those customers looking

for a more nutritious and healthy breakfast option, to help

deliver Aramarks motto of enriching and nourishing
lives.
The event will take place during the Hospitals allotted
breakfast time from 8:00 AM- 10:30 PM to help increase
breakfast sales by 5%.
This event will target specialty beverage drinkers in the
Harrington Hospital Cafeteria.

MARKETING STRATEGY
Promotional Flyers were hung

up all throughout the hospital,

including elevators and
bathrooms.
Michael Cole (Dir) sent out the

flyer to all of the employees

through and email blast.
Conducted pre-smoothie

survey in cafeteria to gage

interests of the clientele.

MARKETING STRATEGY

Nutritional Information and

ingredients posted at smoothie
station

EQUIPMENT RESOURCES

Equipment Resources
1 blender
Refrigerator
Ice machine
Black presentation table
Plastic lids
Styrofoam cups
Straws

FOOD RESOURCES

Bananas, market price

Frozen Raspberries
Frozen Blueberries
Yoplait low-fat 1% vanilla yogurt
Fresh Strawberries
Pineapple Juice
Fresh baby kale
Fresh green apples
Dark chocolate Silk almond milk
PB2 protein powder
1% low-fat milk

EMPLOYEE RESOURCES
Contributing Employees
Dave Langevin
Kirsten McEvoy
Tyler Reinhart
Donna Gendron
Jennifer De Los Santos
Yollimar Suarez
Michael Cole
Tabitha Murphy
Korissa Bailey

FINANCIAL RESOURCES

Total
Event
Budget:
$166.46

BREAK-EVEN ANALYSIS
Sales
Smoothie Sales Price

$3.00

Number of Smoothies Sold

90
Variable Costs

Labor Per Smoothie

$1.10

Raw Food Cost

$1.25

Equipment Cost

$0.15
Total

$2.50
Fixed Costs

Marketing Cost

$2.10

Risk Insurance

$14.32
Total

$16.42

Breakeven Analysis in
number of units sold: FC/(SPVC)=
$16.42/($3.00-$2.50)= 33
smoothies

Break-Even
Point= 33
Smoothies

EVALUATION
Goal #1: Increase retail sales during breakfast in the Harrington Hospital Caf.
Objective: To increase breakfast sales by 5% from 8:00-10:30AM compared to the previous three

Wednesdays in October. Total Breakfast sales goal: $457.65, 5% increase: $21.79.

--Goal

Reached !!
Sold 57 more smoothies than needed to break even, to bring in a net profit of $171.00

Goal #2: Increase the total number of customers purchasing breakfast in the Harrington
Hospital Caf.
Objective: To increase the number of customers purchasing food in the caf by 5% from 8:00 AM-

--Notcustomers
Met goal: 188
10:30 AM compared to the previous three Wednesdays in October. Breakfast
customers.
** Would have needed 9 more customers to achieve goal #2 **

EVALUATION
Possible Reasons for not meeting goals:
Ran out of supplies half way through the event
Customers came in looking for smoothies when there were

none left
Location of the expo was before the checkout line, after
customers had already ordered and received their hot
breakfast, instead of being at the entrance of the caf
Work day schedule, could have had a lot of appointments or
surveys early in the morning
Short time frame to purchase

POSITIVE OUTCOMES
Customers voiced how much they loved the

smoothies
Increased breakfast sales
Customer satisfaction (variety)
Quick and Easy
Some customers purchased two, one for breakfast

and one for lunch

100% of customers said the would purchase their

smoothie again
87% thought the smoothie was reasonably priced,

and the other 13% said that it was too expensive, but
they would purchase it again because of the quality.

Future Consideration:
Purchase more product, better to
have too much than not enough,
may have been able to sell
double the amount of smoothies.

CONCLUSION

There is definitely an interest in

smoothies for breakfast at

Harrington Hospital.
Having smoothies on the menu may
help to increase breakfast sales.
By adding smoothies to the menu, it
give customers healthier options
and more of a variety

THANK YOU!
ANY
QUESTIONS?