With nonemergency medical care on hold to preserve resources for pandemic patients, hospitals are seeking new ways to recoup lost revenue through retail food.

Hospitals were advised to discontinue elective and nonemergency procedures, which are often lucrative and well-reimbursed by insurance companies, in late March, causing a collective loss of up to $50 billion per month. However, hospitals can create new, and much-needed, profit streams through retail food options such as catering, cooking demonstrations, coffee kiosks, grab ‘n go, food trucks and full-service restaurants. According to a survey, about 70 percent of hospitals reported their retail business growing in the past two years, with retail meals making up 60 percent of their business.

Hospitals that implement these trends help the bottom line, while serving patients, staff and the community long after the coronavirus pandemic.

Dining Destination
Gone are the days of bland cafeteria food. Consumer demand for nutrient-rich, locally-sourced meals are changing menu options. By improving the on-site dining and catering experience, foodservice directors transform their campus from a place people have to eat, to one where they want to eat.

Aside from patient rooms and cafeterias, 80 percent of surveyed hospitals say they offer catering services. The same survey showed 23 percent of big-budget hospitals use some form of locally sourced produce, dairy, baked goods, meats, beverages and seafood, while 70 percent plan to.

By serving healthful and delicious tasting food, foodservice directors help accelerate patient recovery, support nutrition education and reduce readmission rates. Hosting chef demonstrations and on-site cooking classes for the community is another way to promote healthy eating, which reduces risk for obesity, malnutrition and diabetes. This trend is growing, as 62 percent of surveyed hospitals already offer cooking demonstrations and nutrition education programs.

During normal conditions, some hospitals are opening their dining rooms or restaurants for community events like senior dining or after church programs, according to Beckers Hospital Review.

Others are investing in food trailers and trucks to promote healthy meals in the community. Hospital food trucks serve as an extension of the existing cafe to provide food to local businesses and clinics, add a new revenue stream, and serve as a “moving billboard,” according to Concession Nation.

Improving Grab ‘n Go
To increase retail purchases, many foodservice operators are constructing cafes and bistros for quick grab ‘n go options. These dining kiosks provide an invaluable service to essential workers changing shifts or staying energized, without having to leave campus.

If COVID restrictions have shut down or limited dining room capacity, cafes offer staff pre-packaged meals and snacks that adhere to sanitation guidelines.

To better support your staff’s busy schedules, consider offering a “coffee only” line versus a “food line,” so patrons can move more quickly. Another way to improve quick dining is by accepting alternative forms of payment. This can be through badges or payroll deductions, which frees staff from having to carry their wallet or extra cash.

Foodservice directors should also encourage their vendors to advertise “add-on” menu items that staffers can eat later for a snack. Add-ons create small increases in revenue that add up over time.

Foodservice promotion
Investing in new foodservice trends means nothing without marketing and promotion to get the word out.

Promote your retail food with posters in high traffic areas or through online newsletters. To keep staff dining on campus, instead of seeking out competitors, send out an email with the bistro specials, or a featured “drink of the day” at the cafe.

To encourage customer loyalty, some hospitals implement frequent buyer cards celebrate employees with a free meal for their birthday.

Driving revenue through retail foodservice is a viable option for hospitals during the pandemic and provides a valuable service in health and nutrition for the community. Implement these dining trends to see improvements in patient satisfaction, staff loyalty and community interest.