Tuesday, February 17, 2009

More Road Trip Experience

I have spent 5 more days, and will continue over the next two weeks, visiting a variety of hospitals. I tried to focus my efforts on those that already have a coffee and gift shop offering.

The trend of having the "coffee stand" / vending operated by either a third party from outside of the system, or by the food services provider (Sodexo, Aramark, etc) under a total outsourcing umbrella seemed to be the overriding trend. In every case it was painfully obvious that these are not the core business interests for these folks. Some major flaws that speak directly to opportunity (REVENUES) lost would be.......

Vending:
  • An average of 40% empty slots on the vending machines. These are items that are the best sellers, obviously if they are out of stock, so we can't sell what is not there. If this were to occur on a regular basis, it could cost the hospital substantial revenue over a given year.
  • An average age of machinery that seemed to be over 20 years. Not to mention that the cleanliness of the equipment as a whole was NOT hospital standards by any means. I watched as people approached the machines and were turned away by the "look" of them. I know this because I was taking some quick surveys. More lost sales.

Coffee Shop:

  • Without exaggeration I witnessed, in every location, coffee offerings that were substandard compared to what the various systems have spent on the surrounding spaces. They were so contradictory, that they stood out for the wrong reasons.
  • They were not well kept in the least. They looked disorganized and unclean. Coffee stains on the front counters, the "back of house" (in full view) had cups, coffee dispensers and supplies scattered like there was a fire drill just moments ago and it was all left as is.
  • Most did not offer anything more than a basic coffee product by a third party brewer like Starbucks, Paramount or Douwe Egberts. This screams of high cost of goods by the way. No espresso, lattes or smoothies.
  • The worst violation of maximizing revenues was the fact that most of these offerings only operated on limited hours Monday-Friday and were closed weekends. A few only operated from 8a.m.-1:30p.m. At one such location I was standing in the gorgeous lobby, with 25-30 other people sitting in the comfortable chairs (these don't make money either) at 3:30 p.m. This was within 10 feet of the closed, filthy coffee cart.

I need to point out that the approach in offering such things needs to be campus specific and the need for hours may vary accordingly, but it does not take much to figure out when to be open.

The credibility for this initiative grows with every hospital I visit, as does my passion for capturing these badly needed revenues for the advancement of quality patient care.

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