Following two years of million-dollar losses, Baker University Center Dining Services is inching closer to a profit.
Reduced hours and staff, menu changes and new storage space have all contributed to the budget turnaround, officials say.
Baker Dining Services - which includes West 82 food court, Bobcat Essentials, The Front Room and Latitude 39 - projects a $176,766 budget deficit this year, following losses totaling $2,307,750 since the opening of Baker University Center in January 2007.
We are well on our way to achieving a profitable bottom line
said Gwyn Scott, executive director of Culinary and Dining Operations. I think that what we have to do is continue to deliver excellent customer service and good fresh new products.
Christine Sheets, assistant vice president of Auxiliary Services, declined to predict when Baker will turn a profit, saying revenue is dependent on many variables, such as student enrollment.
From Fall Quarter 2007 to Fall Quarter 2008, Baker Dining Services cut net losses in the food court by $222,019.
Research such as consumer surveys prompted the addition of combo meals as well as decreases in portion size, which allowed for some lower prices, Scott said. Controlling portion sizes also diminished the cost of goods.
Cost of goods in the food court has decreased by $106,608 from Fall Quarter 2007 to Fall Quarter 2008, while reassigning unneeded staff members to other university positions reduced wage and benefit costs by $246,940.
Baker Dining Services cut expenses further after the completion of a new storage space in September, an addition budgeted for $722,000. Previously, Ohio University rented a storage trailer - at a monthly cost of $883.95 - to compensate for the limited space in Baker.
Any dining venue takes at least three to five years to establish and become profitable
and we are in our second year
and I want people to realize we are doing an awesome job
Scott said.
During Fall Quarter this year, Baker Dining Services made $720,748 in sales compared to $881,571 during the same period last year.
Scott attributes the difference to Dining Dollars, a now-discontinued program that gave freshman 50 dining dollars during Fall Quarter 2007 to promote spending at Baker.
Although it was counted as income for Baker venues, the Dining Services department, which funded the promotion, incurred a loss from the additional operating costs, Scott said.
Despite recent success, Dining Services is contemplating closing Baker venues during summer and winter breaks next year, Sheets said. Staying open is profitable as long as revenue covers most costs, she said, concerned that closing may precipitate a loss in customers.
These are very
very tough times
Sheets said. It is our goal to remain in budget
and anything above that is icing on the cake.
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