integrating independent operators into your campus dining program

Integrating Independent Operators Into Your Campus Dining Program

Eric Bymaster, Associate Vice President, Emory University

Dave Furhman, Senior Director, Campus Dining, Emory University

Emory Campus Dining

• Emory Dining program snapshot:– Campus Dining a unit of Campus Life Division– $22M/annual sales– Contracted with Sodexo– 1 residential operation– 14 retail outlets• Including an 11 venue food court

– 5,800 meal plan enrollments

Emory Campus Dining

• Background– Campus community exceptionally diverse and

becoming increasingly so:• 17-20% undergraduates from outside U.S.

– Mainstream dining program, no strong differentiators

– Mix of national brands and Sodexo “House” brands

– No local ties to independent community operators

Emory Campus Dining

• Background cont’d.– Divisional Strategic Plan called for significant

increase in community development and support– Campus Life Vision and Mission revised– Dining Vision developed directly from divisional

objectives, vision and mission

Emory Campus Dining

• Create a Campus Dining Brand unique to Emory University– Unlike any other campus program

• Create economic opportunity for local independent operators– Financial benefit and inclusion from campus

• Provide campus community with greater choices including menu options, flavors, price points– Global, regional and local flavors and specialties

Emory Campus Dining

• How to identify and choose viable candidates?– Speak with students, faculty and staff on what they want to see– Identify specific business unique to the location

• How to evaluate and manage risk?– Financial considerations– Have your contracted provider manage all standards and

proceed with the independent via a sub-contracted agreement• How to ensure success?

– By providing establishments the local community want.– Marketing– Being a good business partner with each independent

Emory Campus Dining

• Building the program– Financial– Variety– Upfront costs/build-out– Commission structure– Contractual requirements

Emory Campus Dining

• Managing expectations– Reduced volume purchasing– Reduced capacity for commission– Contractual structuring

Analysis ExampleScenario A

Initial Investment 100,000$

Commissions 10%

Projected Annual Sales CommissionPayback Period

(years)Low 350,000$ 35,000$ 2.9

Medium 400,000$ 40,000$ 2.5High 450,000$ 45,000$ 2.2

Scenario BInitial Investment 200,000$

Commissions 10%

Projected Annual Sales CommissionPayback Period

(years)Low 300,000$ 30,000$ 6.7

Medium 350,000$ 35,000$ 5.7High 425,000$ 42,500$ 4.7

Independent Contractor Return

Emory Campus Dining

Emory Campus Dining

Emory Campus Dining

• D.B.A. BBQ– Local Atlanta operation, no other units

• Twisted Taco– Regional Atlanta chain

• Highland Bakery

• Food Trucks– Yumbi– Vietnomies– Nectar– Loaded Burger

Emory Campus Dining

• DBA– The Good: Maintained positive fiscal results– The Bad: Separate goals and objectives with a lack

of communication– The Ugly: Decided to part ways after a year of

service

Emory Campus Dining

• Twisted Taco– The Good: Maintains positive fiscal results with a

continued commitment to serve the Emory community

– Provides a wide variety of options from a flavor and pricing prospective

Emory Campus Dining

• Highland Bakery– The Good: Tested and proven brand• Proven success at Georgia Tech• Local brand recognition and equity

– The Bad: Struggle to negotiate build out• Emory unaccustomed to working with small

independent operator

Emory Campus Dining

• Food Trucks– The Good: Provides variety across campus• Variety of menus and price points• Shifts operational risk• Provides service at untraditional hours• Ability to try new locations • Independent spirit

– The Bad: Independent Spirit• Seasonal challenges• Realities of campus calendar

Emory Campus Dining

• Key Learnings– Avoid being the first – Ensure the vendor understands the intricacies and

realities of the academic calendar– Communicate the importance of consistency and

timeliness– Establish and communicate operational and

sanitation standards– Choose operators with proven menus and track

record