Millions of dollars left on the table from Texas A&M fall semester dining plans

[TexasTowelie]

Last semester at Texas A&M, millions of dollars were left on the table when thousands of meal plans expired at the end of the semester. Freshmen and sophomores forced to buy food from a private vendor are particularly upset with what they feel is wasted money.

It's not just students who are adjusting to a new way to dine on campus. A&M administrators and employees of Chartwells, the private company that took over dining in 2012, are still making changes to one of the largest outsourcing contracts at a public university. Last semester was the first time that Aggie underclassmen living on campus were forced to buy Chartwells' meal plans comprised of individual meals, called meal trades, and dining dollars, which act like gift cards.

An assessment by The Eagle of that semester found that more than one out of every five meals purchased, which expire at the end of the semester, went unused. That's about $2.7 million in unclaimed meals purchased by Aggies or their parents. The Chartwells data, obtained by The Eagle through Texas A&M, shows that 9,002 students purchased $11.8 million worth of meals. Texas A&M requires on-campus freshmen and sophomores to purchase a Chartwells meal plan, meaning if all 7,650 on campus did so, then 85 percent of business came through the mandate.

Chartwells representatives said expiring meals at the end of each semester is part of their business model and is an industry norm. A spokeswoman said the reasons for this vary, but include a large number of students leaving at the end of the semester, administrative hurdles and forecasting problems when planning for renovations and improvements.

More at http://www.theeagle.com/news/local/article_2174bef5-08a8-582f-a7cb-ab61c5b3108d.html .

[font color=maroon]I was aware that contractual arrangements for student meals have existed for years and that the vendors profited when students don't take full advantage of their meal plans; however, this is the first time that I ever saw a dollar amount associated with the unused meals on student meal plans. If a student is mandated to purchase a meal plan by the university, then there is some responsibility incumbent upon the university to ensure that the students are treated fairly.[/font]

[SheilaT]

1. When my older son attended Reed College

and they had a similar meal plan, students would often by extra food and place it in a specific place for off-campus students to pick up and eat. Or towards the end of the semester would have a party, buying the food with the unused portion of their meal plan.

[TexasTowelie]

2. If you read the article, it states that the students can only exchange meal trades

for four meals a day (breakfast, lunch, dinner, late night) and only one meal trade during any particular meal setting. Therefore, the students aren't able to cash in most of the unused meals during or at the end of the semester as you mentioned. It does make me suspicious as to what occurs if a student wants a second helping and whether they would be allowed to use another meal trade in that instance.

The money that is not used by the student by the end of the semester is forfeited and considered as profit for the food vendor. The food service contract is also not available for public inspection so there is no transparency as to how Texas A&M and the vendor handle various issues and disputes. BTW, the dining outsourcing is championed by A&M System Chancellor John Sharp, a Texas A&M alumni, former Texas comptroller and former Democratic candidate for governor. Sharp pushed for the privatization of state services since he was elected comptroller back in 1990 (e.g., private prisons), has privatized other functions at Texas A&M, and is a DINO as far as I'm concerned.

[exboyfil]

3. Meals at two of our state schools

Are all you can eat. It is like eating at Ryan's everyday (part of the reason the cost is over $7/meal) for 14 meals/sem. My daughter eats like a bird so it will be costing us money. I am not sure about the rules for taking food out. On the other hand they do make things like to go meals available under the plan which is convenient.

It is a flat fee per semester (can adjust number of meals and price, the more you buy the cheaper per meal. You lose your meals at the end of the semester.

They have a good number of offerings so it is difficult to not find something which you like. I would eat too much if I was on the plan I know.

[TexasTowelie]

4. It was similar when I went to college.

There was a 14 meal/week and a 21 meal/week plans. The food selection was somewhat limited with only three entree choices per meal and then there was a salad bar. My final year of college a DIY sandwich bar was added for the noon meal. They cracked down on letting us take food out of the cafeteria because a lot of students were taking sandwiches back to the dorms; however, they did allow us to eat extra helpings while we were in the cafeteria.

I can recall that on some weekends the primary entrees were considered inedible by many of the students. Towards the end of college I dropped to the 14 meal plan due to the poor meal selections on weekends and because I was able sleep in late so I would miss breakfast. Unfortunately the cafeteria would close at 6:45 so most of us were starving a few hours later.

When I go visit my alma mater I usually get a chance to eat in the cafeteria. Their food options are much better than anything I had when I was a student and the quality of food has also improved. They allow guests to eat in the Commons for about $7 and they allow for extra helpings so I consider it to be a decent bargain. I believe that they still allow the 14 meal and 21 meal plans.

Considering that some of the students are paying nearly $500 to $600 per semester for food plans that aren't used entirely, I believe that they are certainly justified in examining that expense and asking questions to those in charge. Apparently all of those missed meals significantly pad the bottom line of the food vendors though.

[pipoman]

6. This is referred to in the industry as "shrinkage"

Many large businesses bank on it with gift card sales, I bet we would all be surprised at the numbers for shrinkage at most every type of business offering gift cards.

[pipoman]

5. Out sourced food production is instutional laziness

Institutions have a budget for meal service. Outside food services need to be profitable. If the budget is used internally there is no corporate profit. If a vendor is used the same number of meals must be produced, but the value of each meal must be less to allow for profit of the service company. These vendors generally use cheap ingredients, cheap unskilled labor, and pre prepared foods. I've never heard of a institutional food vendor winning awards for quality or service.