Dining Services in Baker University Center suffered a net loss of more than $1 million in its first two quarters of operation, according to a Housing and Dining Services report.
The loss, a reflection of factors such as rented storage space needed to meet intense demand and adapting operations on the go, totaled $1,007,750 for the fiscal year that ended in July, said Christine Sheets, assistant vice president for Auxiliary Services.
Sheets emphasized, however, that the numbers are based on only six months of income and twelve months of expenses because of an extra planning and developing stage before the opening of Baker Center.
It is forecasted in our budgets in 2007-08 that all retail operations in Baker University Center will recover the first year's net loss
Sheets said.
The actual loss of over $1 million dollars was less than an estimated $1.3 million loss cited in a March 2 Dining Services memo.
That data was not right on Sheets said. When you have a number of parameters and you're guessing on all of them to come into something that's perfectly matched it's not possible.
Since the opening of West 82, the food court on the first floor of Baker Center, in January through May 22, gross sales exceeded $1.5 million dollars. More than 60 percent of the sales came from Dining Dollars, which created excessive traffic. Sheets identified the overcrowding created by Dining Dollars as one reason for the limited cash and credit card sales.
The operations had a 60 percent turnover rate in fulltime staff because of the hard working conditions caused by the lunch rushes, according to the report.
All the Dining Services operations in Baker Center ' Bobcat Essentials, Latitude 39, Front Room and West 82 ' had negative net revenue during the first two quarters of operation, according to the report.
Despite the first-year loss, Sheets said Dining Dollars accomplished its intended purposes of stimulating interest in Baker Center services and offering alternatives to the meal plan holder.
The start-up costs for West 82 were approximately $341,470, or about $48,780 for each of the seven dining options, and consisted of labor, equipment, utensils, signage, technology and supply items.
If you start up a restaurant and you have a deficit of $48
780
that's pretty good
Sheets said. Each one technically has their own menu sets
their own staff trained
their own production line.
Dining Dollars, developed at the inception and planning of Baker Center, were available for all meal plan holders during Winter and Spring quarters.
Because of overcrowding, Dining Dollars were not accepted during peak lunchtime hours beginning April 2. Dining Services then announced in May the program would be further scaled down to an introductory nature for incoming freshman in the amount of $50 for Fall Quarter only.
When we were approved to say 'Dining Services will manage Baker University Center's food venues
' we said right out in the very beginning there is not enough space here and we will have to make it an introduction.
Sheets said early estimated losses for Dining Services did not influence the decision to ban the use of Dining Dollars in peak lunchtime hours during spring quarter 2007.
Delivering the best service possible to customers was the main factor in limiting lunch hour usage and that meant easing traffic, Sheets said.
Planned as an introductory program that would be temporary, Dining Dollars will no longer be offered after this quarter, Sheets said.
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