What Are The Elements of a Sound & Fair Foodservice Contract? Mark Kraner Executive Director of Campus Retail Operations George Mason University H. David Porter, FCSI, Author President & CEO Porter Khouw Consulting, Inc.

Fundamental Elements 2. Optimum Contract What are the steps to secure an optimum contract? What are the elements of an optimum contract? 1. Optimum Program What is the optimum program for your campus? What are the steps to determine the optimum program?

How To Determine the Optimum Dining Program

Scope of Work  Background request  Site visit  Market research  Focus groups & interviews  Web-based survey  Interactive Work Session  Financial Analysis  Preliminary Design  Strategic Plan Development  Operator Selection Services

Ask Yourself These Questions  What is the optimum dining program for our unique campus?  How do we organize dining in order to optimize social engagement?  Do we need to enhance facilities?  What will it cost?  How do we secure the optimum contract?

Contractor as Consultant?  Do not use your foodservice operator as your consultant.  Legal analogy….If you represent yourself, you have a fool for a client.

Determine Who You Are What makes your campus unique? Demographics Geography Culture Traditions Preferences Growth plans/enrollment Political environment Financial realities GOAL: To expand the student dining experience.

Determine Who You Are  Ask these questions:  What is your retention rate?  What is your missed meal factor?  Is meal plan participation up or down?  Are the meal plans a good value or not? Can students use their meal plans when they want to?  Is there a lack of social connectivity on campus?  Does the program attract or subtract from student life on campus?

Market Research  Interview students & stakeholders.  Directors of admissions, housing, res life and advancement (retention)  Residential & commuter students  Faculty & staff  Catering customers & conference planners  Campus administrators  Determine customers’ perceptions regarding:  Hours of operation Monday-Friday & Saturday and Sunday  Menu variety  Meal plans  Methods of service  Locations  Ambiance  Speed of service  Customer service

Market Research  Survey the campus community including students, faculty & staff.  Where are customers eating off campus/calling for delivery?  What time of day/night?  How do they pay for purchases?  What they do now is a better indication of what they will do.  Use market research determine where the program is lacking & where opportunities lie.

Market Research  Evaluate your facilities.  Do they meet today’s standards or are they in a time warp?  Are they competitive with your cross applicant schools?  How much deferred maintenance exists?

Optimum Dining Program  Develop the optimum dining program for YOUR campus.  Elements should include:  Concepts  Brands  Hours (Monday-Friday & weekends)  Menu variety  Meal plans  Methods of service  Methods of payment  Locations  Ambiance  Speed of service  Customer service

Optimum Dining Program  Financial consequences  How will meal plan participation change?  How much more labor will you need or how can the current labor be better utilized? Can you reduce labor?  If you open new locations, how many operating days will they be open and what will the average check be?  How will your operating expenses change?  How many can you anticipate growing your bottom line in a five-year period?

Optimum Dining Program  Identify necessary facility changes.  Facilities should be designed to functionally support the optimum dining program.  Do the current spaces need to enlarged or redesigned to ensure easy customer throughput & the ability to provide top- notch service?  How many customers does each facility need to support at the peak meal period? Will this change in the future?  How much will it cost to make changes? Before After

Optimum Dining Program  Once campus administrators agree on the optimum dining program, begin to prepare the RFP.

What is Social Architecture TM ? Gravitational PullEmotional ConnectionsSocial EnergySense of Community Social Environment on Campus

What is Social Architecture TM ? Recruitment Rates Retention Customer Satisfaction Voluntary Meal Plan Sales Brand Loyalty Alumni Relations

Securing an Optimum Contract with a Focus On Social Architecture TM

 We are not asking you what you think the program should be, we are telling you what the program will be and asking you to bid on it.  Encourage bidders to elaborate if they want to. Don’t Ask…DO tell…

Optimum Contract Process RFP Development Pre-bid Conference Proposal Evaluation Finalist Interview Contract Negotiation

RFP Development – Operator Selection  No program ambiguity  Clearly articulated financial goals  Foodservice Program  Location(s)  Menu variety & selection  Catering  Hours of operation  Technical Section  Appendices  Draft Management Agreement

Sample RFP Menu Profile: No Ambiguity!

Pre-bid Conference – Operator Selection  Describe process to date.  Highlight key elements of the RFP.  Collect questions.  Tour all dining venues & campus.

Bid Integrity Evaluation – Operator Selection  Evaluate each bid in accordance with scoring methodology.  Overall program  Training  Sustainability  Catering  Compare financial bids line by line to ensure integrity of responses.  Bid response vs. RFP requirements  Rank bidding contractors based on their responses to the bid specifications.

Bid Integrity Evaluation: Financial – Operator Selection

Bid Integrity Evaluation: Management Candidates  Require finalists to bring dining manager & catering manager candidates to the interview.  Interview these candidates separately from regional & district managers.  Determine candidates’ strengths & weaknesses  How involved were these candidates in preparing this response? How much do they know about your program?  Determine if his/her personality is the right fit for your campus.  The success or failure of a contracted campus dining program often is a result of the dining director’s and/or catering manager’s job performance.

Contract Negotiations  Secure executed agreement  Memorialize what has been bid  Construct of accountability  Proposed services/program elements vs. last minute changes—beware!  There is no scenario where an unsigned agreement benefits school.  Be prepared to walk away  Secure executed agreement  Start transition

Compliance Checks  No later than the end of Year 1 of the contract, rehire your independent advocate to evaluate how the contractor is/is not implementing all aspects of the dining program as outlined in the contract.  Conduct market research to determine customer satisfaction.  Eat in the facilities to determine menu variety, quality, cleanliness, etc.  Meet with campus administrators to gain insights.

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Thank you!  Mark Kraner:  David Porter:   LinkedIn: H. David Porter