Background
During 2017 ULHT were looking to review their existing retail catering offers at three hospitals (Grantham, Boston and Lincoln) to improve the services provided for patients, staff and visitors to the hospitals.
Over the years the self-operated retail outlets had been developed to the point where an external review and proposals on how the sites could be repurposed was required. There was a view within the Trust that external foodservice brand operators could drive improved sales and margin albeit this view had to be investigated, challenged and revised.
Litmus was appointed to carry out the review.
Brief
Litmus was appointed to carry out the initial review and undertook the following field work:
- Visited each hospital to assess the performance of the current retail operations and to understand fully the impact of future site developments on the available retail space and the overall retail opportunity;
- Reviewed current financial performance of retail, including the commercial returns to ULHT;
- Benchmarked ULHT returns against those of other NHS Trusts;
- Reviewed existing site plans for each location; and
- Held meetings with key stakeholders to understand future expectations.
Approach
Litmus worked closely with all ULHT stakeholders to assess the most practical and attractive route to achieve increased levels of service and financial return for the Trust.
Initial meetings were held with the Estates and Facilities team to understand their objectives for the study, initial thoughts, challenges and opportunities.
Each hospital was visited to assess the performance of the current retail operations, discuss opportunities with the onsite stakeholders, understand fully the impact of future site developments on the available retail space and how this would impact the overall retail opportunity.
Reviews undertaken
Analysis not only of the ULHT offer, but the wider market, to give recommendations in the context of the sector as a whole.
- Source and analyse existing site plans for each retail location.
- Benchmark the commercial return and performance of the current operation vs. other NHS Trusts.
- Full appraisal of offers available from new entrants to the market.
- Determine and present the best strategy for ULHT.
- Provide an overview for a potential tender process and outline implementation plan for ULHT to roll out.
Outcomes
Following the review report being presented and discussed with the Trust board, ULHT decided to tender the retail services at the three hospitals with a tender process led and facilitated by Litmus.
Litmus developed a list of providers for the tender, shortlisted this downto three, reviewed bid submissions and facilitated presentations to the Trust stakeholders to allow the Trust to make an informed decision.
One external brand provider was subsequently awarded the contract to provide retail services at all three hospital locations, which was implemented in early 2018.
