TRANSITIONING TO SELF-OPERATION
OVERVIEW
While many institutions operate their food service by signing a contract with an outsourced food service
management company such as Aramark, Chartwells, Sodexo, or others, there are also many institutions
who choose to run their own food service operations, which is referred to as self-operation, or self-op.
These self-op institutions hire and manage their own employees, manage inventory, develop recipes, and
more. There are several cases in the United States where an institution that has previously outsourced
their dining operations has chosen to switch to a self-operated model. Two examples of this are shared
below, one from Sewanee, The University of the South and one from the University of California Santa
Cruz (UCSC).
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INSTITUTIONAL PROFILE: Sewanee, The University of the South
Interview conducted with Executive Chef Rick Wright, in December 2015
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Type: 4-year, private not-for-profit higher education institution
Location (Rural): Sewanee, Tennessee
Total Number of Students: 1,714
Tuition & Fees 2014-15: $37,100
On-Campus Room & Board Fees 2014-15: $10,6001
Year of Switch to Self-Operated Dining: 2011-12
“Having a self-operational dining hall means that McClurg Dining Hall is University-run and no
longer run by a food service company. McClurg employees are now University employees; they
receive better benefits and retirement packages than before. Going self-op has also given Chef
Wright more flexibility in purchasing, where he can focus on quality, nutrition, and satisfaction,
as profit is no longer the main driver. Sewanee also no longer has to adhere to set menus and
recipes, but can design menus to serve food that fits the needs and tastes of the students.” 2
THE STORY BEHIND THE SWITCH
Why switch?
1
National Center for Education Statistics. Accessed 12/10/15. Available at:
https://nces.ed.gov/collegenavigator/
2
http://sustain.sewanee.edu//stories/self-op-dining-a-year-in-review
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Focus on Mission - Provide a greater focus on organizational goals and mission rather than a
focus primarily on profit, while still supporting fiscal responsibility.
Students First - University leadership posed the question: “How can we best provide service to
our students?” In thinking about that question, they recognized that the eating patterns
developed by students on campus were going to follow them for the rest of their lives.
Autonomy in Food Procurement - The University wanted to reduce the red tape associated
with institutional food procurement and prioritizing suppliers that were based in the community.
Employee wages - The University wanted to maintain more control over the human resources
aspects of food service department. While their FSMC had been using the federal minimum
wage for food service workers, the University had an interest in offering a livable wage. After the
switch took place, all food service employees were given a 10% raise.
History
Prior to the transition to self-operated dining, the management at Sewanee had contracted with several
different companies, with the last FSMC holding the contract for the previous twelve years. Of a $6
million account, the FSMC received $400,000 in profit annually. The University operated with a “full
board program” in which the FSMC received 100% of the agreed upon total regardless of actual
participation in the program. For example, if 70% of anticipated students participated in the meal
program, the institution still paid the FSMC at 100%. Therefore, any percentage that wasn’t used became
profit for the company. The University wanted to recoup these monies and reallocate them to labor and
local, sustainable food sourcing.
Who Made the Transition Possible?
The transition to self-operation took several months, culminating in the expiration of the University’s
contract with the FSMC in July 2011. Two key administrative positions supported this effort and helped to
ensure its success. This included the V.P. of Administrative Services, Frank Gladu, who left a position at
Vanderbilt Dining to help support this switch in 2010, and Vice-Chancellor John McCardell, Jr., who was
the former president of Middlebury College. In addition, the Universitys’ affiliation with National
Association of College and University Food Service (NACUFS) allowed them to access a network of other
facilities and resources to support them in their transition. The institution is now in its fourth year since the
transition to self-operated dining.
What Has Changed Since the Transition?
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There is higher participation in the meal program than before.
The institution has not had to increase their board rate.
More money stays with the University.
They purchase from 15 different farmers and have a new process to accept bids from vendors.
They prioritize building menus that allow for local and seasonal options. They currently have a
goal of 20% local and will be aiming for 30% in the next few years.
They are utilizing the Real Food Challenge Calculator.
They have higher retention for their kitchen staff (3-4 years), and have different insurance and
benefit programs in place.
They have added Human Resources staff dedicated to the food service department.
The operational budget is the same, but it is now spent differently.
They became a member of a group purchasing organization (GPO) to assist with managing some
of their food costs.
RECOMMENDATIONS & CONSIDERATIONS FOR SELF-OP
"There was a lot of talk about how hard it would be, but it really wasn't that hard."
- Rick Wright, Executive Chef
● Prepare staff to allocate time to the transition. During the transition and initial implementation of
the new program, management will need to be present.
● Gather support from leadership and staff within the organization prior to the shift.
● Consider adding staff to the Human Resources Department to assist in developing a new set of
practices and policies for food service personnel.
● In sourcing more fresh and local food, conduct trainings for production staff to develop their ability
to process whole foods (ex: whole chicken, fresh produce).
● Allow time to develop relationships with new suppliers and local farmers. Local producers and
new vendors may be concerned that the institution will not follow through and purchase
consistently.
● Be prepared for the potential loss of employees in the transition. Only one senior management
level person chose to stay throughout the transition at Sewanee.
● Take advantage of the opportunity to connect the food program with the organization’s values.
Sewannee sent a daily email to staff and students with the menu for the day, including nutrition
information and food system topics like food justice.
RESOURCES
An overview of the switch to self-op at Sewanee:
http://sustain.sewanee.edu//stories/self-op-dining-a-year-in-review
A walk-through tour of Sewanee’s McClurg Dining Hall: http://food-management.com/colleges-ampuniversities/walk-through-tour-sewanees-mcclurg-dining-hall#slide-0-field_images-24061
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INSTITUTIONAL PROFILE: University of California Santa Cruz (UCSC)
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Type: 4-year, public higher education institution
Location (Small City): Santa Cruz, California
Total Number of Students: 17,866
Tuition & Fees 2014-15: $13,397 (in-state), $36,275 (out-of-state)
On-Campus Room & Board Fees 2014-15: $14,7303
Year of Switch to Self-Operated Dining: 2004
“Dining Services, started in 2004 after the campus ended its contract with integrated food and
facilities management giant Sodexo, has become one of the most cutting-edge campus food
service divisions in the nation, constantly seeking out and incorporating innovative methods to
increase sustainability and reduce waste.”4
3
National Center for Education Statistics. Accessed 12/10/15. Available at:
https://nces.ed.gov/collegenavigator/
4
http://news.ucsc.edu/2009/04/2852.html
THE STORY BEHIND THE SWITCH
Why switch?
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Balance of Mission and Fiscal Management- When the University’s food service was
contracted out, it did not seem to fully align with the University’s mission and interest in putting
students first. Becoming a self-op allowed the University to ensure that its values were prioritized
by implementing a plan that aligned the mission of dining services and that of the University and
contributed dollars back to campus.
Food Service Worker Rights - In 2003, a student protest in collaboration with the AFSCME
labor union highlighted social justice issues. It became clear that the pay, benefits and retirement
packages of food service employees paled in comparison to what they would receive as
University employees. The long-range satisfaction of employees and students benefits the entire
campus.
Local and Sustainable Food Procurement - Student activists elevated their interest and need
for more local and Organic foods.
History
Student activism played a large role in the shift to self-operated dining at UCSC. In 2003, Students for
Organic Solutions (a group at UCSC), brought stakeholders together to discuss the campus food system
as a part of their annual Earth Summit. They were interested in identifying ways to create change in the
system, including purchasing more organic produce from local farmers. At the same time, students were
also expressing frustration with the contracted FSMC’s labor practices.
The discussions continued at the next Earth Summit, and as a result, the participants formed a Food
Systems Working Group. This group created purchasing guidelines for the campus that focused on local,
organic, and worker-supported food procurement. The Systems Working Group noted that the FSMC had
been on campus for nearly 40 years and many employees had worked for them for nearly 20 years. Yet
these employees would have been paid higher wages and had access to more benefits and better
retirement packages if they had been employees of the University itself. This discrepancy attracted the
attention of the Vice Chancellor, who agreed with the student claims. In addition, he recognized that the
campus population had grown, with a greater number of students were now living on campus. His goal
was for the dollars from dining services and the University mission to focus on students as their highest
priority. Steps were then taken to move towards self-operation starting in September 2003 and UCSC
ended its contract with their FSMC in June 2004. The Food Systems Working Group has been
instrumental in the success of Dining and ensuring alignment with student and campus priorities.
Who Made the Transition Possible?
Student groups who were organizing for change were the primary driver for this switch. This led to the
development of an internal committee which played an essential role. This committee was made up
primarily of housing staff, human resources, IT, payroll, and students identified the necessary steps and
processes to move toward self-operation. Two consultants were hired who assisted in crafting a master
plan for the transition. They forecasted profitability dependent upon implementing mandatory meal plans
in the apartments on campus. They also noted that labor costs would increase, requiring a focus on
increased sales and savings in food costs. The University’s affiliation with the National Association of
College and University Food Service (NACUFS) assisted in engaging members and peers from other
campuses for consultation and assistance with planning. New processes were developed for staff
timekeeping, menu management, and accounting. Individuals from these departments did much of the
legwork to implement those steps. A second dining professional was hired to help manage the
operations in 2004.
What Has Changed Since the Transition?
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Implementation of mandatory meal plans in on-campus apartments. This decision also benefitted
the University by creating more reasons for first-year students to leave their apartments and
socialize, which had become an issue on campus prior to the mandatory meal plan. Apartment
residents have shown increased satisfaction with living on campus and with dining operations,
which has increased occupancy rates for the apartments.
The food service employees are now paid a higher wage.
UC Santa Cruz Dining was the first University in the country to have their Chancellor sign the
Real Food Challenge and set their own goal of purchasing 40% real food by 2020, doubling the
industry standard. Local and Organic purchases began once the new Director for Dining was
hired starting with buying coffee directly from third world co-operatives.
UC Santa Cruz Dining has grown to become the 33rd largest dining operation in the country.
RECOMMENDATIONS & CONSIDERATIONS FOR SELF-OP
“There’s
no “free ride”. Going self-op simply restructures how the institution and the students pay for the
services.”
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Don’t be afraid of the financial implications. It is challenging to forecast the impact, but you can
hire professional consultants and utilize existing resources to make your financial goals clear and
attainable.
Engage associations like NACUFS, as well as peer dining directors and management from other
institutions, for guidance and support.
Consider the following items when exploring a transition to self-operation:
○ What are your goals and priorities: social justice, local and organic, focusing on students
first, etc.?
○ What operation do you have now and where do they think you’ll be in five years?
○ What are the needs of your dining services (e.g. sales volume for meal plans and retail,
population served, your culture as a residential or commuter campus, and your
infrastructure, etc.)? You may find that there is a need to outsource smaller operations
with lower volume.
○ What fundamental changes need to be made to be profitable or break even? What items
are you willing to subsidize?
○ Are you willing to raise prices, increase residential population, implement mandatory
meal plans, add facilities, etc.?
Labor is more expensive when self-operated. Offsetting these increases requires making
operational changes through your meal plan program and pricing, reducing food costs or reducing
cost in other areas. UCSC saw an increase of $3 million in their labor costs as compared to what
the contractor was paying.
Planning for the full transition process may take a year.
You can anticipate most of the challenges and overcome them. Two anticipated challenges for
UCSC that were overcome were:
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Transitioning existing staff over to UCSC employment. This required creating employee
classifications, pay ranges and job descriptions, and implementing an interview and
hiring process.
Creating new infrastructure and processes including accounting, payroll, timekeeping,
vendor management, recipe development, equipment maintenance, training, etc. This
was done with assistance from various departments on campus and with input from
peers.
RESOURCES
An overview of the switch to self-op at UCSC:
http://news.ucsc.edu/2009/04/2852.html
Grist magazine article on student activism and University policies related to food on campus:
http://grist.org/food/can-the-university-of-california-green-cafeteria-food/
Zullo, R. “Ann Arbor Public Schools (AAPS) and the Privatization of School Support Functions:
Lessons Learned from Food Service.” University of Michigan. March 2010
http://irlee.umich.edu/Publications/Docs/AAPS-FoodServices.pdf