Management Business Plan

Chicken Wrap with Mango Chutney at Central DuPage Hospital

&

Statement of Purpose The purpose of this Management Business Plan is to

promote a retail menu or menu item based on Aramark’s retail category cycle menu

The goal of this business plan is to increase awareness and sales of the healthy proprietary meal options made available by the National Brand Licensing Guide between Aramark and Cooking Light.

The promotion focused on the Chicken Wrap with Mango Chutney

Mission Statement – Cadence Health

CDH is part of

whose culture is defined by a deep commitment to provide

compassionate care to every patient, every day

Mission Statement – Cadence Health

The mission of is:

"To provide excellent, compassionate care for

patients and their families, and to promote community

health and wellness."

Mission Statement – Cadence Health

Cadence Health operates by the ICARE values: Integrity. We do what's right. Compassion. We are caring and kind to our

patients, their families and each other. Accountability. We take ownership for our actions

and commitments. Respect. We show consideration and treat

everyone with dignity. Excellence. We are dedicated to providing

outstanding, equitable care every time, with the highest standard of safety and quality.1

Mission Statement – Aramark

The mission statement of

“Deliver Experiences that Enrich and Nourish

Lives."

Business Objective #1 Goal: Increase the sandwich recognition and

health awareness of customers in the Café by providing samples of Cooking Light's proprietary sandwich recipe and displaying the Cooking Light promotional materials and nutritional information.

Objective: 50 customers will sample the Chicken Wrap with Mango Chutney on October 21st, 2014 and be aware the recipe is healthy and sourced from Cooking Light magazine, a long-established health, nutrition and fitness authority.

Business Objective #2 Goal: Increase sales by promoting Aramark's

National Brand Licensing Agreement with Cooking Light, which provides access to proprietary recipes and promotional materials.

Objective: Increase the sales of the Chicken Wrap with Mango Chutney by 100 percent or to a total of six sandwiches as compared to the historical average daily sales figure on October 21, 2014.

Company Summary Ownership structure of CDH

changed twice in the past three years

In 2011, CDH merged with Delnor Hospital located in Geneva, IL, to form Cadence Health

In Sept 2014, Cadence Health merged with Northwestern Memorial HealthCare and will operate as Northwestern Medicine

Company SummaryAt CDH, Aramark provides:

Retail Food Service Patient Tray Service Catering Environmental Services

Cost Plus Contract 5-year contract Expires: August 31, 2018 Partnered for 15 years

Company Summary Aramark Local Presence:

130 client partners 4,500 employees Edwards, Advocate, NorthShore & University of

Chicago Medicine Ararmark’s National Presence:

1,000 hospitals worldwide FORTUNE Magazine’s “World’s Most Admired

Outsourcing Companies” Ethisphere Institute’s “World Most Ethical

Companies”

Market Analysis CDH is located in western suburbs of

Chicago Metro Area

Winfield, Illinois 2013 population: 9,400 Adjacent to Metra Union Pacific West

line Provides access to 19 communities

from Chicago to Elburn

Market AnalysisPrimary service area located in

DuPage County: Winfield West Chicago Carol Stream Glen Ellyn

Competition - Caliendo’s

Caliendo's Restaurant and Bar SWC Winfield and High Lake Road directly across

from CDH Locally owned Serves: specialty sandwiches, burgers, wraps,

Panini’s, Italian, pizza and desserts Open: 11:00 - 2:00 am, seven days a week $6.00 lunch and dinner specials (dine-in only)

offered Monday thru Friday from 11 am to 11 pm. Price range: $7.00 to $15.00

Competition – Caliendo’s

CDH

Calando's

Competition - Giagnorio’s Deli

Giagnorio's Deli

Located 0.2 miles south of CDH along Winfield Road

Open: 11 am to 3 pm, Monday - Friday

Offers: soups, salads, sandwiches and desserts, heat and eat later menu

Prices: $4.95 to $6.95 for a sandwich, $3.25 to $4.50 for soup and $6.50 for a salad.

Offers three daily soup/salad and sandwich combinations.

Competition – Giagnorio’s Deli

CDH

Giagnorio’s

Competition - John’s Tavern

John's Restaurant and Tavern

Located at the southeast corner of Winfield and High Lake Road, just south of CDH

Provides an extensive menu: appetizers, deli sandwiches, burgers, entrees, soups, salads, Friday and Saturday night specials and a full service bar

Tradition in Winfield since 1921

Sandwiches and burgers range from $7.95 to $10.95, soup from $2.95 to $3.95, salads from $8.95 to $12.95 and entrees from $10.95 to $15.95

Open: 9:00 am to 1:00 am

Competition – John’s Tavern

CDH

John’s Tavern

Competition Pricing

SWOT Analysis

S: StrengthsW: WeaknessesO: Opportunities

T: Threats

S

Strength

Offers variety

Strength

Convenient location

Strength

Limited competition

Strength

Lower Pricing

Strength

Strong managem

ent

Strength

Pleasant dining

environment

W

Weaknesses

Location on NW Side of

Hospital

Weaknesses

Access to café could be

confusing

Weaknesses

Number of employees

Weaknesses

Same 4-week cycle menu each month

Weaknesses

Temperature

Weaknesses

Minimal Garbage

O

Opportunities

Improved use of marketing

materials

Opportunities

Changing customer

tastes

Opportunities

Expand Cooking

Light options

Opportunities

Opportunities

Opportunities

T

Threats

Limited Financial resources

Threats

Decreasing margins from raw food price increases or

product shortages

Threats

Changes in economy which…

Threats Threats

New competition

within walking distance of

CDH

Threatscause more CDH

employees to bring meals

from home or dine at

competitive food

establishments

Market Segmentation

Hospital Employee

Non-Hospital Employee

Male

Female

Medical Staff

Non-Medical Staff

0 10 20 30 40 50 60 70 80 90

77

23

30

70

49

51

Informal Customer Demographic Survey at the Cafe at CDH

Percent

Cla

ssifi

cati

on o

f C

afe

P

atr

ons

Target Market

70% Female Average Age: 40 yrs old 80% Employees of CDH

Consistent with Cooking Light’s Consumers:83% Female25 to 54 years old

Marketing Strategy

Merchandising StrategyFocus on quality & freshnessSampling to create impulse buys

Marketing Mix

Product, Price, Place & Promotion

Product: Chicken Wrap with Mango

Chutney

Marketing Mix

Price: $4.95 Place: The Café at CDH

Marketing Mix

Promotion Promotional Materials

Display Plate Sampling during Promotional Event

Marketing Mix

Marketing Mix

Resources Employee Resources

Julie Brown, Retail Manager Rich Jirsa, Purchasing Manager Assembly Chef Dietetic Intern

Equipment Resources Refrigerator, hotel pans, kitchen scale, #20

scoop, 4 oz spoodle, knife, spatula, cello wrappers and Cooking Light stickers

Resources

Food Resources 5.5 x 8” naan bread 2.5-oz grilled chicken breast, sliced #20 scoop of mango chutney sauce 4-oz spoodle of spring lettuce salad

mix

Resources

Break Even Analysis for Chicken Wrap

Sales Price per Wrap $4.95

Variable Costs Raw Food Cost Additional Associated Operating Costs Based on Total Food Cost Percentage of 30% {($4.95 * 0.30) - $1.29}Total Variable Costs

$1.29

$0.20$1.49

Indicated Profit per Wrap $3.46

Fixed CostsSample Packaging 50 2-oz cups at $0.013/each 50 2-oz lids at $0.011/each Cost of Sample Wraps = (6 @ $1.29)Additional Labor for Sample Wraps and Excess Production above Par Levels = 30 minutes @ $10.50/hr Labor for Employee Passing Samples = 30 minutes at $10.50/hr Additional Promotional Materials

$0.65$0.55$7.74

$5.25$5.25$1.00

Total Fixed Costs $20.44

Break Even Point: ($20.44/$3.46) = 5.91

Wraps

Evaluation Goal/Objective #1: Accomplished

Greater than 50 samples of the Chicken Wrap with Mango Chutney were distributed during the lunch hour on October 21, 2014

Goal/Objective #2: Accomplished Sales of the Chicken Wrap with Mango Chutney were

increased by 400 percent as compared to the daily historical sales figure on October 21, 2014

Promotional Event was successful and well received Expanding the daily Cooking Light meal options is

concluded to be reasonable and achievable