CDS suffers loss in total revenue
The loss of Brady Food Court played a main factor in the revenue decline.
Dec. 08, 2009
Campus Dining Services retail locations are experiencing revenue increases, but for the second consecutive semester, they're not making up for the loss of Brady Food Court.
"The major exception is at the student center because we closed Brady Food Court, T.A. Brady's and Mizzou Market-Brady Commons in December 2008," CDS Director Julaine Kiehn said in an e-mail. "The decrease from the Brady locations is greater than the increase in the other retail locations."
The retail locations, including the four Mizzou Markets and four on-campus cafes, brought in 23 percent less revenue from July 1 to Oct. 31, compared to the same time period last year. The majority of the loss comes from Brady Food Court's absence. Truman's Takeout made approximately $500,000 less than the restaurants in old Brady Commons last year.
Mizzou Market on Hitt Street, located near the newly opened Hawthorn, Dogwood and Galena residence halls, experienced the largest increase in revenue, making $183,314 more from July through October 2009. CDS spokesman Andrew Lough said the opening and closing of residence halls and other CDS locations have a large effect on locations' revenue across campus.
"The mix of offerings we have also plays a part in both individual and total revenue," Lough said. "The addition or expansion of locations may generate additional revenue, but may also shift revenue from other locations. While some shift is expected anytime a new location is added, we aim to have the total grow."
Lough cited several other causes for changes in revenue, both positive and negative, including larger freshman classes.
"Enrollment is always an issue we consider relevant to revenue," Lough said. "As enrollment continues to rise, we hope to see total revenue rise."
The economic recession might have also played a part in students' selections regarding meal plans and how often to eat in dining halls on campus, rather than dining out.
"Economic conditions have implications across the industry," Lough said. "As discretionary income changes, our revenue is affected. Dining plans offer a very economic option for purchasing quality meals."
Starbucks and Wheatstone Bistro, located in Memorial Union, also saw steep increases in revenue, bringing in approximately $56,000 more from July through October 2009.
Lough said CDS works to promote nearby dining locations to students based on where they live on campus.
"We continue to execute marketing plans to raise awareness of locations," Lough said. "We work with Residential Life closely to inform students living in residence halls of options, particularly in or near those buildings."
Kiehn said CDS projects the dining options offered in phase three of the new student center will more than make up for the loss of old Brady Commons.
"We expect the revenue at the new student center — when it opens in early 2011 — will surpass that of the former Brady Food Court, T.A. Brady's and Mizzou Market-Brady Student Commons," Kiehn said in an e-mail. "We will know in a little over a year."