OKTOBERFEST - JESSica LACONTORA, RDN, LDN,CSCS · Market Segmentation Ocean County contains one of the largest populations of over 55 communities in NJ. Target the retired of fixed

OKTOBERFESTManagement Business Plan Project

Jessica LacontoraARAMARK Dietetic Internship

Southern Ocean County Medical Center October 26, 2012

Wednesday, December 26, 2012

Statement of Purpose

This project grants the intern an opportunity to develop a business plan related to the implementation of a retail theme day

Skills covered: exploration of company, contract services provided, market analysis, marketing strategy, financial planning, and implementation of resources required for successful plan


Mission StatementMeridian Health is committed

to improving the health and well-being of the residents of New Jersey by providing quality, patient-centered health care services delivered in hospital, community and in-home settings, and to advancing medicine through clinical education and research.

“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…in a global company built on pride, integrity and respect”


Business Objectives

3. To increase the average check value by 10% for Oktoberfest when compared to the average check for the past three Thursdays.

1. To increase cafeteria sales for lunch by 7% on Oktoberfest as compared to a the average of the past three Thursdays.

2. To increase the number of customers in the Beach Plum Cafe by 5% by promotion of Oktoberfest event vs average past 3 Thursday customer count.


Company Summary Southern Ocean County Medical Center is part of the Meridian

Health family which includes 6 hospitals, 95 locations, 1,700 hospital beds, 12,000 members and over 2,100 physicians on staff.

SOMC is located in Ocean County, New Jersey. It has176 beds and currently is midway though a renovation to expand the emergency room.

ARAMARK services at SOMC include food management, catering, retail and facilities. They provide recipes, retail promotional signs, safety and sanitation forms, organizational tools and other management tools in a straight fee contract.

ARAMARK GoalsIncrease Efficiency

Increase Customer Satisfaction Reduce Operation Cost

Increase Profit from Retail

Reduce Patient Services Expenses

Reduce Labor Costs

Improve Employee Satisfaction

Improve Safety


Market SummaryNYC

SOMCPhilly

Local Demographics

Competition

Target market

SWOT


http://en.wikipedia.org/w/index.php?title=File:Map_of_New_Jersey_highlighting_Ocean_County.svg&page=1























































































Market Analysis2010 Statistics Stafford

Township, NJ New Jersey

Total Population 34,089 8,733,304

Square Miles 46.53 7,417.34

Population Density 732.60 1,177.40

Population Female 51.07% 51.11%

Median Age 40.20 37.40

3%4%1%1%

91%

WhiteAfrican AmericanAsianHispanicOther

Local Demographics


Market Segmentation 91% of employees buy at least one meal/week 42% eat in the café 2 or 3 times/ week 33% of the employees eat lunch everyday 35% of employees who bring their lunch to work. 2% are choosing to leave campus and eat off site

Customer Close Up Survey (2010)

Off-SiteSkip

Bring

On-Site

On-SiteBring SkipOff-Site


SWOTSTRENGTHS

•Only on-site dining option•No dining available in walking distance•Skilled chefs produce quality products on site•Employee discount and competitive prices•Fresh new ideas, cycle menu•40 years in location and customer loyalty

WEAKNESSES•Not easily accessed by or advertised to public•Lack of marketing efforts to local workforce and retired community•Fall brings a reduction in patients, customers and sales•Limited seating•Lack of retail mobility in Cafe•Clients not willing to experiment•Retail prices are low

OPPORTUNITIES•Able to try new products that have already been analyzed by ARAMARK•Flexible staff is willing to experiment and prepare new menus• Repetitive patient menu allows time to expand retail menu•Price increase available due to extremely low level•New ER will increase customer base

THREATS•Café closed between 2:30- 4 pm daily•large number of local fast food and affordable establishments•Hospital Circle service will pick up food from local restaurants•Lack of parking near Cafe•Population suffers from economy recession


Market Segmentation Ocean County contains one of the largest

populations of over 55 communities in NJ. Target the retired of fixed income members of the

community Volunteers voucher $5.50

Reduce cost of foods and home station Employees meals discount excludes tax from

their sale Increase average check of employees

Visitors make up about 40% of the sales and pay full retail price with sales tax Increase visitor sales by advertising outside the

hospital


Beach Plum Café Seasonal Menu -4 week rotation Serves - 180 diners 6 Stations

Grill Simmer Crisp Build Exhibition Home


Competition SOMC

Surrounded by 3 highways Housing developments Golf course Large shopping centers - retail giants, restaurant chains and fast

food operations Within 5 miles

Subway, Sonic, McDonald’s, Applebee’s, TGI Fridays, Manhattan Bagel, Mikado Sushi and Hibachi, Chinese restaurants, Muscle Maker Grill, KFC, Wendy’s, Pizza Hut, & Shoprite.

The Stafford Diner, Joeys Pizza and Wawa are the closest competitors to the Beach Plum Café.

New food trends Low fat, low calorie options - Healthy Advantage Gluten free items – Café does not advertise which food choices are

gluten free and may open up a greater market


Competitive Pricing

Beach Plum cafe are competitively lower then Wawa, Joey’s and Stafford diner

With only 2% of customers eating off campus daily the challenge is appealing to those who pack a lunch 3-5 days a week.

The Beach Plum Café

Joey’s Pizza Stafford Diner

WAWA

Panini 3.79 7.50 8.25 4.79Chicken Caser Salad

4.69 8.95 8.75 4.99

Pizza slice 1.35 2.00 - -Bar pie 3.60 11.00 - -French Fries 0.85 2.95 3.25 -Cheese steak 3.35 7.50 7.95 4.79Turkey Club 3.79 6.95 7.95 3.89Hamburger 2.45 5.50 5.25 -Wraps 3.99 7.50 8.25 4.29Chicken Fingers

3.49 5.95 5.25 4.69

Dessert/pie 1.99 4.95 3.50 1.99Large Coffee 1.15 0.95 1.10 1.00Fountain Soda

1.05 1.89 1.50 1.25


Target Market The Beach Plum Café mostly feeds employees & volunteers Visitors - smallest population but generates 40% of sales Target market

Equal mix of males to females Equal mix of blue collar to white collar Age average of 42 years old Important to consider the volunteers when generating a

menu because they must be fed on the $5.50 voucher and therefore menu item price has a ceiling

Event will be dedicated to increasing the average check for visitors and employees while keeping the price down on menu items.


Marketing Strategy

Fall Comfort Food Oktoberfest Theme

Authentic Special Beverages German Dessert Pretzels Advertise Theme


Marketing PlanProductPricePlace

Promotion


Product Budget friendly German foods at 5 of the 6 stations in the café Goal was to make the meal options exciting, traditional and inexpensive.

Grill - Kielbasa pretzel melt Simmer - Westerland fish soup & German corn chowder Home -Schweine-Schnitzel (breaded fried pork), Berlin style chicken

fricassee, braised red cabbage, spinach filled pancakes, potato pancakes and sautéed spaetzle

Desserts- Banden apple roll, lemon tart, and German chocolate cake Build- German hot dog & onion salad, and cold german potato salad Pretzels Specialty beverages - Hot apple Cider, Root Beer

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Price Items competitively priced so that customers

would not be influenced to purchase Oktoberfest choices

Free samples of the home station items Meal prices continue to be at or lower then

competition.

18


Place Fresh clean appearance Seating for small or large groups Café layout is strategically mapped Oktoberfest items and decorations were placed at 5 of 6 station Dessert table & Pretzel twists were grab and go Samples given in font of home station The Beach Plum is accessible to employees, visitors and volunteers

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PromotionPromotion material posted -Friday the week before the event. Marketing materials were distributed using the hospital email system with weekly menu, through the hospital mail system, and posted near Beach Plum Café, elevators, gift shop, lobby and at the front desk.


ResourcesEquipment

laborFood

Financial


Equipment ResourcesCooking Equipment Small Wares

Fryer SpatulaRefrigerator/Freezer Steam table pan (full, 1/4 , 1/2)

Stand-up Mixer Scoops

Steamer Ladles

Stock pots Spoodle

Convection oven Tongs

Grill Shot guns

Coffee Urn (hot cider) Cutting boardsSteam Jacketed Kettle Slicing knife

Clam Shell Chef’s knife

Soup Kettle Large Mixing Bowls

Large Saute Pan Sheet Pans


Food

Resources

Food Item Amount Used Unit Price Total Price

Pork Loin 24# 2.26/# 54.24

Red Cabbage 2 10.00 20.00

Potatoes 1/5 20.63 4.13

Potato pan cakes 5/6 31.46 26.22

Pastry dough 1/2 31.05 15.53

Apples 1/5 38.68 7.74

Kielbasa 1 case 28.16 28.16

Onions 1/4 14.65 3.67

Peppers 1/4 20.31 5.08

Pretzel roll 1/2 39.60 19.80

Fish fillet 1/5 50.92 10.18

Shrimp 1/4 58.91 14.73

Spinach 1/4 35.29 8.82

Chicken ( 1/4) 3/4 55.13 41.35

Hot dogs 1/5 61.18 12.24

Bacon 2/15 53.48 7.13

Corn 1/6 31.27 5.21

Chocolate Cake 1/4 42.43 10.61

Total ------- ------- 294.84


Financial ResourcesThe budget for Oktoberfest was the same for a normal day

Total special food items ordered were $294.84

No extra labor resources were used

No money was spent on decorations or printed materials

Left overs will be used for dinner and next day meals

Total sales from the Oktoberfest = retail price x # sold (from production sheets) = $829.30

$294.84 (Food cost)/ $829.30 (total sales) x 100% = 35% food cost without labor and disposables.


Financial Data

Sales ForecastBreak Even


Sales Forecast To estimate the budget and number of meals sold averages

Customer count ( past average - 333.5) By factoring in the percent increase (5%=17 people) the goal

= 350 Total sales ( past average -$912.70)

With a 7% increase (64$) the goal =$976.70 Check history ( past average $2.74)

Goal with the 10 % increase ( $0.27) = $3.02


Breakeven AnalysisHome Station Unit

Sales

Sales price per unit 5.79

units sold 120

Variable Costs

Labor per unit (6 hrs, $14/hr, 120 units sold) 0.70

Raw food cost 1.60

Total VC 2.3

Fixed CostsInsurance and administrative fees estimated by Food Service Director 65

Total fixed costs 65

BE= 30/(3.69 - 2.305) = 18.62464183

Break even in number of units sold 19

Profit = (units sold - BE) x sale price 584.79

Financial implications for practice include a reduction in sales or revenue, decreased satisfaction of customers, increased operational costs, & increased labor hours.

These implications can be avoided if theme days are planned carefully.


Evaluation To evaluate the success of Oktoberfest retail business plan we compared the objectives

to the results. Objective 1- Increase cafeteria sales for lunch by 7% on Oktoberfest as compared to a

the average of the past three Thursdays The past average $912.70 - our goal was $976.70 Actual sales were $1105.88 = 18% increase in sales Attributed to a larger amount of desserts, sides and beverages purchased This shows that there is room for retail promotion improvements in the regular

cafe organization Objective 2 - Increase the number of customers in the Beach Plum Cafe by 5% with

promotion of an event versus the average past 3 Thursdays customer count. The average is 333.5 and at 5% increase is approximately 17 people which brings

the customer count goal to about 350 Customer count for Oktoberfest 329 Attributed to the volume of catered lunches at the hospital that day


Evaluation continued Objective 3- Increase average check value by 10% for Oktoberfest when

compared to the average check for the past three Thursdays Average total sales /average customer count = $2.74 +10%

increase ( $0.27) = $3.02. Actual average check value was $3.36 = 20% increase Attribute this increase to customers impulse buying dessert, hot

cider, pretzels and extra sides A notable increase in the purchase of entree with combo meal occurred

once the intern presented samples around the home station Staff received encouraging feed back that the Oktoberfest items were

authentic, appealing, and delicious28


Event Photos

Jessica Making Spaetzle


Build Station - Cold Salad

30


Westerland Fish Soup

German Potato Chowder

31


32


Grill Station - Kielbasa Pretzel Melt33


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Pretzel Roll and Twists


Thank You...Questions?

35


Documents

OKTOBERFEST - JESSica LACONTORA, RDN, LDN,CSCS · Market Segmentation Ocean County contains one of the largest populations of over 55 communities in NJ. Target the retired of fixed