As the administration debates internally the merits of renewing its dining contract with ARAMARK Corp., in June, several of the University's neighboring institutions are also examining and explaining the advantages and disadvantages of their own dining systems.
Duke Student Government and the Duke University Student Dining Advisory Committee have voted no confidence in ARAMARK for the past three years, and Jim Wulforst, director of dining services, has said the conglomerate is a "company that can't do its job." Executive Vice President Tallman Trask noted that ARAMARK has not "fulfilled students' needs."
In contrast, dining administrators at the University of North Carolina at Chapel Hill and North Carolina State University said their facilities are highly rated by students.
UNC has a comprehensive contract with ARAMARK, whereas NCSU runs its dining facilities privately.
The two models are competing options some University officials and students are putting on the table as possible first steps toward better dining at Duke.
UNC lauds ARAMARK
Just eight miles down Tobacco Road, UNC entrusts all of its dining operations to ARAMARK. The conglomerate only runs six locations at Duke.
Mike Freeman, director of auxiliary services for UNC, explained that he needed "a company that has depth" to aid him with research, development and training of employees.
"We like the idea of putting [campus dining] under one vendor," Freeman said, noting that in 2001 he looked at all "the major players"-including Sodexho USA and Chartwells-before ultimately choosing ARAMARK.
Freeman maintained that those three companies-by far the largest college dining providers in the country-have similar business models.
"They have all gone through growth spurts and periods of time when they've lost accounts," he said.
The key to a successful relationship with a major conglomerate is to strike a balance between maintaining control over food quality and antagonizing the management company, Freeman said.
"The university can set it up so they have the oversight," he said. "Remember, the companies are in it to make money, too."
Because UNC has a voluntary meal plan and nearby Franklin Street offers a variety of privately owned restaurants, making on-campus food competitive with off-campus vendors is crucial, Freeman said.
"Students vote with their feet," he explained. "If we don't give them what they want at a price range they think is fair, they'll find somewhere else to go."
Finicky finances
Freeman said there are several safeguards in place to ensure that ARAMARK continues to provide cutting-edge services at UNC.
The company is required to pay the university approximately $30,000 per month as a "use fee" that is reimbursed if the dining program ends up in the black.
"If I have a bad year, then ARAMARK has to pay me back their use fee," Freeman said. "Basically they would work for free."
Another precaution that Freeman took when ARAMARK was chosen as UNC's main provider was to secure the right to demand specific, high-quality foods for all on-campus eateries.
"We made them buy premium meat. They can't buy just a flank steak or low-quality deli meat," he noted.
UNC's contract with ARAMARK is set up as a "fee account," which means that the conglomerate receives 2 percent of the university's gross dining revenue, Freeman explained.
The university also reimburses ARAMARK for all food costs; in turn, UNC is responsible for the profits or losses in the account.
Freeman said that overall, the dining system is successful.
"Other than the first year, UNC has never to-date lost any money," he noted.
More than meets the eye
There are distinct differences between UNC's ARAMARK contract and Duke's contract with the company.
The conglomerate's contract with UNC runs for 10 years, while Duke's only lasts for five-meaning it is up for renewal this summer. Wulforst told The Chronicle in January that he personally think Duke's term is too long.
Additionally, the overall financial arrangement between Duke and ARAMARK is centered on a different philosophy than the one underlying UNC's dining system. "ARAMARK pays us to be here on campus as opposed to us paying them," Wulforst said.
A broader financial picture also reveals differences between the two schools' dining services.
In 1998, UNC borrowed $14 million to renovate one of its major dining halls, and last year it borrowed another $22 million for its new flagship "Ram's Head" eatery, Freeman said.
Every UNC student currently pays $37 per semester to help ameliorate the debt.
Even at that rate, however, it could take another 25 years until the debt is off the books.
Freeman acknowledged that UNC's dining model is not designed to "make a lot of money."
Wulforst noted that Duke's dining is largely self-sufficient.
"We try to run ours like a business that pays its own way," Wulforst said.
Karen Cutler, communications director for ARAMARK, noted that the company does not have a singular model that it applies to all of its accounts.
Rather, it develops an individual approach to each campus, she said.
"We follow the direction of our clients," Cutler said. "That's why we're there."
Although Freeman is satisfied with UNC's model, one Duke student leader is skeptical that the neighboring school's approach would be the correct choice for the University.
Senior Andrew Wallace, co-chair of DUSDAC, said he has eaten at UNC's Ram's Head, which is operated by ARAMARK.
He said he was "significantly underwhelmed" by the overall experience.
"The whole place looks beautiful, but the food is just average," Wallace explained. "It's a lot of glitz and glamour for not a lot of actual delivery."
UNC is not focusing on the correct priorities, Wallace added.
"They're putting a lot of money on the wall and not a lot on the plate," he said.
Wulforst declined last week to directly compare Duke to other institutions.
He noted in January, however, that in his mind, the most important consideration in any university dining system should be food quality.
"Nine years ago, the Marketplace was all about 'look at this beautiful facility,'" Wulforst said.
He added that he has worked to redirect the administration's focus toward the goal of better food quality.
A private perspective
Across the Triangle in Raleigh, NCSU has a different approach to its student dining experience.
Unlike UNC or Duke, NCSU dining has been privately run for the past 28 years, explained Arthur White, associate vice chancellor for student affairs.
Before ARAMARK was hired by Duke in 2001, the University's dining system was composed of a group of private vendors, much like NCSU's is today. Low-service quality by the independent operators, however, spurred Duke administrators to seek the oversight of a management company.
But at NCSU, dining operations have been "much more successful" without a conglomerate, White said.
"They don't have anything to offer except management," he said. "I don't understand it. It doesn't make sense. It just separates the university from ownership."
White said that, to his knowledge, NCSU does not have a lower level of student dining satisfaction than any other school in the area.
What sets NCSU apart is that it operates with a $2- to $3-million profit every year, White noted.
With the extra money, White said he is able to invest in remodeling existing facilities and to open new locations without worrying about debt service.
"We build our own buildings, pay our own loans and pay rent in the buildings we're in," he said."We have not lost money in the last 20-something years. I don't think Chapel Hill or Duke can say that."
Duke needs to renovate some locations that are "tired and old," Wulforst said. He added that improvements cannot be made until his department generates more funds.
For now, however, dining services' future remains unclear, as the jury is still out as to whether University ownership of dining or a conglomerate-ARAMARK or another company-is the right choice for Duke.
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