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winneganfakeThis is one of those reasons why American thinking disgusts me on a regular basis. After all, what could be better than a triple-shot latte and a big greasy double cheeseburger right after open heart surgery?
The Dallas Business Journal -- By Stephanie Patrick
742 words
03:28 am, 03/02/2004
The Dallas Business Journal -- Internal Content (I
English
Craving a juicy hamburger? Can't live another second without a cup of
gourmet coffee?
Don't let a minor inconvenience like being in the hospital get in your
way.
More and more Dallas-Fort Worth hospitals are resembling shopping-mall
food courts, with retail kiosks and counters offering everything from
Subway sandwiches and McDonald's fries to Starbucks coffee.
The trend "has a lot to do with customer satisfaction and our enduring
love of comfort food," said Johnny Sue Reynolds, a professor at the
University of North Texas School of Merchandising and Hospitality
Management. "When in times of stress, it feels good to go get a
McDonald's hamburger or something else familar."
For the hospitals, restaurants and food kiosks can help ease budget
pressures while pleasing patients, visitors and employees alike.
At the Presbyterian Hospital of Dallas kiosk, which sells Starbucks
coffee, java sales have been so strong that operator Blue Mesa Coffee
Co., a division of Dallas-based Mesa SW Restaurants, has proposals out
to operate similar kiosks at four other North Texas hospitals.
"We are trying to be on the forefront of the trend, and are targeting
every major hospital that doesn't have existing contracts for their food
services with a third-party provider," said Jim Baron, a co-owner with
his wife Liz Baron of Mesa SW.
"There's typically a fairly lengthy approval process," Baron added.
"These deals tend to take a long time to pull off."
Since opening the Presbyterian kiosk in October 2002, Blue Mesa has
gained space in the front lobby of the hospital's main building at a
reduced rent, with utilities provided. Jim Baron said it's a good
marketing opportunity that grosses about $200,000 a year.
The kiosk, which also serves light breakfasts and lunches, is open from
6 a.m. to 6 p.m. five days a week and is staffed by three of Mesa's
nearly 400 employees.
Jeff Light, administrative director of guest and support services at
Presbyterian, said the fact that Blue Mesa supplies everything,
including trained employees, made it an easy arrangement for the
hospital.
Richardson Regional Medical Center opted to open its own Starbucks
coffee counter a few months ago.
The hospital, which has been in an expansion and improvement mode for
the last year, is not "officially" a Starbucks franchise. But its
employees were trained by the java giant and are expected to sell 20
cups a day to meet operational and labor costs.
"To date, we sell an average of 60 drinks per day, peaking up to 85,"
said David Sted, director of food and nutrition services.
The hospital is looking to extend the counter's business hours, now 6:30
a.m. to 2 p.m., to close at 7 p.m.
In Fort Worth, meanwhile, JPS Health Network's long-term agreement with
McDonald's Corp. (NYSE: MCD) has proven lucrative, bringing in $24,000
in rent each year, plus a portion of the sales.
In 2003, the arrangement brought in $111,489 for Tarrant County's public
hospital system. The year before the arrangement provided $100,846, up
from $88,814 in 2001.
Irving-based VHA Inc. which researched the in-hospital restaurant trend
a few years ago, studied a Virginia hospital that saw its retail food
sales increase 18% to 20% three years after adopting a restaurant
atmosphere.
The growth in revenue allowed the hospital to offset food-service costs
and re-allocate some the revenue gains to more critical hospital needs.
The first national brand to join the Virginia hospital's food court was
Subway, which now has 73 hospital locations, said Kevin Kane, public
relations manager for Milford, Conn.-based Subway.
"The Subway brand recognition allows (patrons) to purchase food they are
familiar with, without having to leave the hospital," Kane said.
One local hospital with a Subway franchise is Methodist Dallas Medical
Center, which pays Subway a 12.5% franchise fee to sell its fare there.
While the agreement isn't a huge moneymaker for the Oak Cliff hospital,
it is popular with visitors and employees, said Tom Noble, vice
president of support services.
Methodist also has arrangements with Starbucks Corp. (Nasdaq: SBUX) and
Sonic Corp. (Nasdaq: SONC).
The hospital garners $2,000 a month from the Starbucks deal, but will
soon end the Sonic relationship because the fast-food site lost money
and had staffing problems.
"We are looking at other options," Noble said.
The Dallas Business Journal -- By Stephanie Patrick
742 words
03:28 am, 03/02/2004
The Dallas Business Journal -- Internal Content (I
English
Craving a juicy hamburger? Can't live another second without a cup of
gourmet coffee?
Don't let a minor inconvenience like being in the hospital get in your
way.
More and more Dallas-Fort Worth hospitals are resembling shopping-mall
food courts, with retail kiosks and counters offering everything from
Subway sandwiches and McDonald's fries to Starbucks coffee.
The trend "has a lot to do with customer satisfaction and our enduring
love of comfort food," said Johnny Sue Reynolds, a professor at the
University of North Texas School of Merchandising and Hospitality
Management. "When in times of stress, it feels good to go get a
McDonald's hamburger or something else familar."
For the hospitals, restaurants and food kiosks can help ease budget
pressures while pleasing patients, visitors and employees alike.
At the Presbyterian Hospital of Dallas kiosk, which sells Starbucks
coffee, java sales have been so strong that operator Blue Mesa Coffee
Co., a division of Dallas-based Mesa SW Restaurants, has proposals out
to operate similar kiosks at four other North Texas hospitals.
"We are trying to be on the forefront of the trend, and are targeting
every major hospital that doesn't have existing contracts for their food
services with a third-party provider," said Jim Baron, a co-owner with
his wife Liz Baron of Mesa SW.
"There's typically a fairly lengthy approval process," Baron added.
"These deals tend to take a long time to pull off."
Since opening the Presbyterian kiosk in October 2002, Blue Mesa has
gained space in the front lobby of the hospital's main building at a
reduced rent, with utilities provided. Jim Baron said it's a good
marketing opportunity that grosses about $200,000 a year.
The kiosk, which also serves light breakfasts and lunches, is open from
6 a.m. to 6 p.m. five days a week and is staffed by three of Mesa's
nearly 400 employees.
Jeff Light, administrative director of guest and support services at
Presbyterian, said the fact that Blue Mesa supplies everything,
including trained employees, made it an easy arrangement for the
hospital.
Richardson Regional Medical Center opted to open its own Starbucks
coffee counter a few months ago.
The hospital, which has been in an expansion and improvement mode for
the last year, is not "officially" a Starbucks franchise. But its
employees were trained by the java giant and are expected to sell 20
cups a day to meet operational and labor costs.
"To date, we sell an average of 60 drinks per day, peaking up to 85,"
said David Sted, director of food and nutrition services.
The hospital is looking to extend the counter's business hours, now 6:30
a.m. to 2 p.m., to close at 7 p.m.
In Fort Worth, meanwhile, JPS Health Network's long-term agreement with
McDonald's Corp. (NYSE: MCD) has proven lucrative, bringing in $24,000
in rent each year, plus a portion of the sales.
In 2003, the arrangement brought in $111,489 for Tarrant County's public
hospital system. The year before the arrangement provided $100,846, up
from $88,814 in 2001.
Irving-based VHA Inc. which researched the in-hospital restaurant trend
a few years ago, studied a Virginia hospital that saw its retail food
sales increase 18% to 20% three years after adopting a restaurant
atmosphere.
The growth in revenue allowed the hospital to offset food-service costs
and re-allocate some the revenue gains to more critical hospital needs.
The first national brand to join the Virginia hospital's food court was
Subway, which now has 73 hospital locations, said Kevin Kane, public
relations manager for Milford, Conn.-based Subway.
"The Subway brand recognition allows (patrons) to purchase food they are
familiar with, without having to leave the hospital," Kane said.
One local hospital with a Subway franchise is Methodist Dallas Medical
Center, which pays Subway a 12.5% franchise fee to sell its fare there.
While the agreement isn't a huge moneymaker for the Oak Cliff hospital,
it is popular with visitors and employees, said Tom Noble, vice
president of support services.
Methodist also has arrangements with Starbucks Corp. (Nasdaq: SBUX) and
Sonic Corp. (Nasdaq: SONC).
The hospital garners $2,000 a month from the Starbucks deal, but will
soon end the Sonic relationship because the fast-food site lost money
and had staffing problems.
"We are looking at other options," Noble said.