1. REINVENTING THE DINING PROGRAM AT SIMON FRASER UNIVERSITY NACUFS NATIONAL CONFERENCE 2013

2. Scope of Services  Fast track project  Qualitative& quantitative market research (February 2012)  1,400 responses to web-based survey  Interactive Work Session with SFU Team  Incumbent-only RFP rebid  Contract negotiations  New signed contract Summer 2012.  10-year contract with five, 1-year renewals

3. Campus Overview  Extremely diverse campus community  Student body:  23,741 commuters, 1,787 residents  Housing: 99% occupancy  Many students take classes on main campus (Burnaby) & in Vancouver  President Petter’s strategic vision is for SFU to be “the leading engaged university defined by its dynamic integration of innovative education, cutting edge research & far reaching community engagement.”

4. Dining Program Spring 2012  A la carte with one residential dining venue & multiple dining locations plus catering & vending.  MacKenzie Café  Tim Horton’s  Triple O’s  Simon C-Store  DAC  Food was perceived as “expensive.”  Athletes were not satisfied.  Provider had been on campus for 10 years.  Meal plan revenue had dropped approximately $250K since 2009.

5. Campus Dining Challenges  Limited hours of operation  Not aligned with student clock  Minimal service at 7 p.m. Monday-Friday & on weekends including at the residential dining hall.  Meal Plans  776 meal plan holders 43% of residential student participation  Drop off after first year  Zero voluntary participation  Meal plan designed to provide 2 meals/day, 5 days a week. “We assumed students would eat off campus on weekends.”  SFU lowered the price of the meal plan from $1,350 to $900 in the Spring to eliminated leftover meal plan money.  Consistently low marks in Globe & Mail and other surveys.

6. Campus Dining Challenges  Fairly high dissatisfaction with the dining program (value, hours, menu variety, meal plans, etc.)  30% of survey respondents in Fall 2011 survey were dissatisfied or very dissatisfied.  “Dining hall is sterile.”  Menu variety was lacking, customers were bored  “It’s basically impossible to eat three meals a day on the meal plan & not run out of credit before the semester ends.”  “Restaurant pricing without the restaurant experience.”  Dissatisfaction with catering/revenue was low.

7. PKC’s Goal  To develop the optimum dining program for SFU students, faculty, staff & visitors.  Questions we asked:  What is the optimum dining program for SFU’s unique campus?  How do we organize dining in order to optimize social engagement?  Do existing facilities need to be enhanced?  What will it cost?

8. How To Determine the Optimum Dining Program

9. Ask Yourself These Questions  What is the optimum dining program for our unique campus?  How do we organize dining in order to optimize social engagement?  Do we need to enhance facilities?  What will it cost?  How do we secure the optimum contract (as applicable)?

10. Designing the Optimum Dining Program at SFU  Complete a campus-wide master planning study.  Study current customer habits & preferences  Determine optimum program elements: Hours of operation Menu variety & selection Ambiance/amenities Meal plans Catering Vending  Completing this step help create the building blocks needed to create a strong customer-based, innovative dining program.

11. Areas to Consider When Thinking Ahead  How & in what venues will customers be able to use meal plan money?  How do current staffing schedules need to be modified to meet customer demand & extended hours of operation?  What menu offerings are going to be available in each venue? What kind of equipment layout/utilities will be needed?  What changes to the campus landscape (new building, new arteries through campus) could impact the success of the dining program?  Are our current facilities undersized & how large do they need to be to accommodate any changes in enrollment?  What impact will these proposed changes have on your department’s bottom line? Creating a campus-wide dining services master plan will help answer these questions!

12. Determine Who You Are What makes your campus unique? Demographics Geography Culture Traditions Preferences Growth plans/enrollment Political environment Financial realities GOAL: To expand & enhance the student dining experience.

13. Determine Who You Are  Ask these questions:  What is your retention rate?  What is your missed meal factor?  Is meal plan participation up or down?  Are the meal plans a good value or not? Can students use their meal plans when they want to?  Is there a lack of social connectivity on campus?  Does the program attract or subtract from student life on campus?

14. Market Research  Interview students & stakeholders.  Directors of admissions, housing, res life and advancement (retention)  Residential & commuter students  Faculty & staff  Catering customers & conference planners  Campus administrators  Determine customers’ perceptions regarding:  Hours of operation Monday-Friday & Saturday and Sunday  Menu variety  Meal plans  Methods of service  Locations  Ambiance  Speed of service  Customer service

15. OUT Market Research  Survey the campus community including students, faculty & staff.  Where are customers eating off campus/calling for delivery?  What time of day/night?  How do they pay for purchases?  What they do now is a better indication of what they will do.  Use market research determine where the program is lacking & where opportunities lie.

16. OUT Market Research  Evaluate your facilities.  Do they meet today’s standards or are they in a time warp?  Are they competitive with your cross applicant schools?  How much deferred maintenance exists?

17. OUT Optimum Dining Program  Develop the optimum dining program for YOUR campus.  Elements should include:  Concepts  Brands  Hours (Monday-Friday & weekends)  Menu variety  Meal plans  Methods of service  Methods of payment  Locations  Ambiance  Speed of service  Customer service  Catering service

18. OUT Optimum Dining Program  Financial consequences  How will meal plan participation change, especially with growing enrollment?  How much more labor will you need or how can the current labor be better utilized?  If you open new locations, how many operating days will they be open and what will the average check be?  How will your operating expenses change?  How much can you anticipate growing your bottom line in a five-year period?  Focus on growing revenues, not just cutting costs.

19. Optimum Dining Program  Identify necessary facility changes.  Facilities should be designed to functionally support the optimum dining program.  Do the current spaces need to enlarged or redesigned to ensure easy customer throughput & the ability to provide top-notch service?  How many customers does each facility need to support at the peak meal period? Will this change in the future?  How much will it cost to make changes?  For this project, PKC created demand analysis to determine square footage requirements & capital cost investments (including planned enrollment). Before After D

20. A New Vision for Dining at SFU

22.  Unlimited access featuring unlimited seconds & made-to- order food 24/7.  More cooked to order & display cooking (eatertainment)  Menu variety expanded to respond to customers’ requests for different types of food offerings including sushi  Extreme makeover!  State-of-the-art servery with interactive stations  Inviting seating area with a variety of options (booths, banquettes, high-tops, etc. )  Contemporary & inviting colors, lighting, merchandising  SFU colors & memorabilia  Add checker Anytime Dining 24/7 in Residential Dining Commons

23. Amenities  Free printing  Meal plan holders may print up to 20 B&W impressions per day at no charge to them  Digital menu boards  Text N Tell  Collabrative PC station  Cell phone chargers  Flat-panel TVs  Soft seating  High-top tables, counter seating, banquettes, community tables.  Free wi-fi  Fireplace with soft seating  Power outlets (lots)

24.  PKC recommended offering anytime dining here as well from 7 a.m.-10 p.m. Monday-Friday but SFU elected to keep this an a la carte food court for now.  Venue was completely remodeled into an International marketplace to reflect SFU’s diverse community.  New menu options include:  Freshly-made sushi  Pho bar  All Day Breakfast  Wood burning pizza oven  Traditional favorites Deli Salad Bar Stir Fry MacKenzie Cafe

25. Other Retail Options  Maintain Triple O’s.  Maintain Tim Horton’s in West Mall.  Maintain Renaissance Coffee locations.  Maintain lunch service at DAC.  Open café as planned in the Fraser International College.  Plan to create the Convocation/Library Café on East Campus.  Subway/Tim Horton’s  Up to eight registers for quick service  7 a.m.-10 p.m. Monday-Thursday& Saturday and Sunday, 7 a.m.-8 p.m. on Friday

26. Methods of Payment  Meal plan money/unlimited access  Dining Dollars  Cash  Credit/debit cards  Consider biometric hand readers

27. Unlimited 24/7 Access Anytime Dining Meal Plans  7 DAY PLATINUM PLUS: Eat 7 days a week all you care to eat plus $500 Super Savings Dollars & 8 VIP passes for use at the Residence Dining Hall. Cost: $2,200/semester.  7 DAY PLUS PLAN: Eat 7 days a week all you care to eat plus $250 Super Savings Dollars to use at Triple O’s, Tim Hortons, Subway, Mackenzie Cafe, Simon C's Store and the door rate at the Residence Dining Hall. Cost: $1,950/semester  7 DAY BASIC PLAN Eat 7 days a week all you care to eat. Cost: $1,680/semester  5 DAY PLUS PLAN: Eat 5 days a week; all you care to eat plus $150 Super Savings Dollars to use at Triple O’s, Tim Hortons, Subway, Mackenzie Cafe, Simon C's Store and the door rate at the Residence Dining Hall. Cost: $1,650/semester  5 DAY BASIC PLAN Eat 5 days a week; all you care to eat. If you order a 5 Day Meal Plan. Cost: $1,350/semester

28. Gravitational Pull Toward dining venues Emotional Connections Students & school Social Energy Universal Appeal Sense of Community Heartbeat/Living Room/Kitchen Design Meaningful Social Connections Last a Lifetime What Is Social Architecture TM ? WHITE OUT

29. Compelling Benefits of Social Architecture TM Higher Recruitment Capture Rates Higher Retention Rates Higher Quality Housing Higher Graduation Rates Higher GPAs Higher % Alumni Involvement

30. The DNA of a Successful Anytime Dining Program Anytime Dining Meal Plans Continuous Hours of Operation Extended Hours of Operation Menu Variety & Selection State-of-the-art Facilities Retail Approach Optimum Value

31. Value Proposition  Promotes less food waste/consumption  Provides ultimate in flexibility  Appeals to parents/easy transition from home  No leftover meals  Higher gross profitability  Lower food cost (21-28%)  Voluntary meal plan participation increases  Promotes food waste  Unnecessary spending  Less gross profitability  Meals must generally be consumed during certain time periods.  Leftover meals/dining dollars causes dissatisfaction  Does not appeal to parents Access Driven: Anytime Dining Consumption Driven: Meals Per Week/Semester

32. Moving Forward  Using the master plan as a guide, PKC completed an incumbent-only rebid of the campus dining contract.  New contract commenced June 1, 2012.

33. Results  Meal plan participation is up 30%.  SFU sold 840 meal plans in Spring 2013.  Commuter students are voluntarily buying meal plans.  For Summer 2013, up to 271 plans sold, expected to sell 100.  Housing & student retention is up.  Customer satisfaction has soared & overall participation is up.  SFU is considering building a second anytime dining venue in UniverCity in a condo complex based on the popularity of the Dining Hall.  The My Pantry area in the Dining Hall is very popular.  Overall remuneration significantly improved compared to previous contract.

34. Video

35. THANK YOU! Questions?