<p>When it comes to the campus dining experience, the bottom line directly affects the price and terms of meal contracts and service. This article about Aramark campus dining at UNC Chapel Hill might explain why it no longer is quite so easy or cheap to satisfy the customer and keep prices down:</p>
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Like it or not, dining on campus is big business.</p>
<p>Each year Carolina Dining Services brings in more than $18 million* - the majority coming from students' pockets - from meal plans and Lenoir Mainstreet sales.</p>
<p>And while student opinion drives many of the department's decisions, nothing trumps the bottom line.</p>
<p>Mike Freeman, director of Auxiliary Services, said dining services operates on a tight budget. "We become the constant entrepreneur."</p>
<p>The department must pay for all overhead costs and renovations itself, with the only external support coming from $1.8 million from a $37 per semester student fee. With almost $20 million in expenditures in fiscal year 2006, officials are pursuing changes to fill the gaps.</p>
<p>The University is the only school in the UNC system that does not require meal plans for any segment of the student population, which poses the biggest challenge.</p>
<p>"If we don't perform well, students won't buy," Freeman said.</p>
<p>Aramark, an international food and hospitality company, governs most of what happens in the dining halls. The company signed a contract to provide food services to the University in 2001, making UNC one of about 600 schools employing Aramark, according to spokeswoman Julie Camardo.</p>
<p>As described by UNC Aramark representative Fred Bissinger, the University gives Aramark a specific budget with which to purchase food and hire workers.</p>
<p>The University reimburses the company monthly for their expenses. Aramark makes profit by spending less than the budgeted amount, up to 2 percent of the total.</p>
<p>But though Aramark usually beats budget, the company also must pay the University a $500,000 annual space fee. This sum severely cuts into Aramark's profits.</p>
<p>Freeman said in the sixth year of the 10-year contract, Aramark had made less than $100,000 total profit.</p>
<p>Bissinger, resident district manager for dining services, was sent to Chapel Hill in July 2006 to try and solve the financial woes. He said he has been with the company for 18 years and that his focus is singular.</p>
<p>"Food service is a simple business," he said. "All you have to do is satisfy the customer."</p>
<p>Dining today</p>
<p>During the past six years, dining services has lost about $1 million. Though the department is not trying to make a profit, dining cannot accept losses for long.</p>
<p>"I'm living on a dime right now, but I do have the money to pay," Freeman said.</p>
<p>To try to reverse these effects, several changes were instituted recently.</p>
<p>Meal plans, which had been a semester-by-semester deal, now require a year-long commitment.</p>
<p>The price per meal also rose, and several management positions were eliminated.</p>
<p>Dining officials determined that 5,000 meal plans must be sold and maintained for the year in order for the department to break even.</p>
<p>In years past, dining would meet that goal for the fall semester but would fall below the mark in the spring with nonrenewals. This drove the recent change to a year-long commitment.</p>
<p>Dining services sold 5,442 meal plans for fall 2006.</p>
<p>Students still can cancel plans, but it now costs $250.</p>
<p>One of the main causes, Freeman said, is food waste. He said more than four tons of food were thrown away last year. Though dining officials have experimented with smaller plates and serving tinier portions, it remains a problem.</p>
<p>"How do you approach this?" Bissinger said. "Do you stand at the conveyer belt and say, 'Think of all the starving children?'"
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