Social ArchitectureTM: Are You Maximizing Student Engagement & Capital Return From Your

Manual Foodservice Contract?

Your Hosts

Key Points

What is Social ArchitectureTM?

What is Social ArchitectureTM?

• Evaluate what changes (i.e. expansions) would need to be made to the venues below based on campus growth:

– Johnson Center

– Southside (should Southside be expanded into Skyline)

– Eisenhower/Ike’s

– SUB I

– Propose alternate program to ensure that the growing number of residential students will have the optimum foodservice and meal plan options over the next five to ten years.

–Competitively rebid the foodservice operations.

Case Study – George Mason UniversityScope of Services

Status Quo - Summary

• PKC’s initial study showed that In order to provide service to approximately 28,000 campus community members in the future with no change to the meal plans or the other campus retail venues, Mason will need to:

– Expand the JC food court by 21,538 sq. ft.

– Expand Southside by 3,317 sq. ft.

– Expand Ike’s by 10,328 sq. ft.

– New NW Dining Venue – 11,264 sq. ft.

Alternate Dining ProgramDemand Management Solution

• If an aggressive JC expansion is a non-starter, PKC recommended considering a solution that requires reduced expansion of JC Food Court & Ike’s AND significantly increases student involvement & reinforces neighborhood living and dining.

• This plan would allow Mason to:

– Offer value-added meal plans that would provide anytime dining in three neighborhood dining venues by 2017 (two by 2014).

• Southside plus new Shenandoah and Aquia venues.

– Expanded hours of operation seven days a week.

– Grow capacity in the JC Food Court by encouraging residential students to dine together in their neighborhoods, thereby increasing business from customers currently driven out of the JC Food Court by meal equivalencies.

– Increase annual revenue.

The DNA of a Successful Anytime Dining Program

Campus NeighborhoodsBuilding Community

Aquia/Northwest Neighborhood

Shenandoah/President’s Park Neighborhood

Rappahannock/Northeast Neighborhood

Unlimited 24/7 Access Anytime Dining Meal Plans

Securing an Optimum Contract with a Focus on Social ArchitectureTM

Optimum Contract Process

Financial Review Vendor 2

Daily Board Rate FY '08 Alt 2 (10 yr.) Base Base BasePlatinum Daily Cost 21.56$ 19.85$ 21.90$ 21.94$ Platinum Annual Cost 5,109.72$ 4,704.45$ 5,190.30$ 5,199.78$ Gold Daily Cost 21.51$ 18.97$ 20.31$ 21.94$ Gold Annual Cost 5,097.87$ 4,495.89$ 4,813.47$ 5,199.78$ Silver Daily Cost 21.45$ 18.09$ 19.70$ 21.94$ Silver Annual Cost 5,083.65$ 4,287.33$ 4,668.90$ 5,199.78$ Non-Traditional Annual Cost 2,263.35$ 1,050.00$ 2,163.50$ 2,500.00$ Total Board Plan Participants 1,013$ 1,332 940 956 Total Board Sales FY '08 4,599,720$ 5,284,973$ 4,021,109$ 4,468,896$ Retail Sales FY '08Venue 1 75,009$ 47,850$ 53,930$ 40,385$ Venue 2 508,985$ 288,446$ 326,097$ 252,112$ Venue 3 31,734$ 48,257$ 28,566$ 24,682$ Venue 4 245,481$ 135,887$ 28,290$ 116,658$ Venue 5 190,692$ 150,377$ 169,347$ 267,998$ Venue 6 42,037$ 18,113$ 24,874$ 16,665$ Conferences 139,500$ 283,866$ 344,107$ 340,545$ Catering 1,264,575$ 402,500$ 1,032,332$ 808,756$ Total Retail Sales 2,498,013$ 1,375,296$ 2,007,543$ 1,867,801$

Annual Revenue FY '08 7,097,733$ 6,660,268$ 6,028,654$ 6,337,697$ Revenue over the term (4 1/2 yrs.) 32,772,959$ 31,406,643$ 29,880,761$ 29,303,636$

Commission FY '08 1,561,501$ 1,465,259$ 1,326,304$ 1,500,004$ Commission for the Term (4 1/2 yrs.) 7,210,050$ 6,759,815$ 6,573,766$ 6,750,130$

Cost of Goods Sold FY '08 1,726,593$ 1,931,834$ 1,621,024$ 1,277,982$ Total Payroll FY '08 2,862,709$ 2,169,561$ 2,009,425$ 2,662,958$ Total Expenses 5,497,051$ 4,976,081$ 4,556,613$ 4,712,436$ Capital Obligation Payback 410,000$ 410,000$ 410,000$ 410,000$ Capital Investment 1,764,972$ 1,100,000$ 825,000$ 390,000$

Vendor 4Vendor 3Vendor 1

Proposal Evaluation

Optimum Contract Process

Recap of Key Points

Thank You!Questions?