social architecture tm are you maximizing student engagement & potential revenue opportunities?

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Social Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities? Presented by: Mark Kraner, George Mason University David Porter, Porter Khouw Consulting

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Social Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?. Presented by: Mark Kraner , George Mason University David Porter, Porter Khouw Consulting. Your Hosts. Mark Kraner Executive Director of Campus Retail Operations George Mason University. - PowerPoint PPT Presentation

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Page 1: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Social ArchitectureTM Are You Maximizing Student Engagement & Potential

Revenue Opportunities?

Presented by: Mark Kraner, George Mason University David Porter, Porter Khouw Consulting

Page 2: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Your Hosts

Mark KranerExecutive Director of Campus Retail OperationsGeorge Mason University

H. David Porter, FCSI, AuthorPresident & CEOPorter Khouw Consulting, Inc.

Page 3: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Key Points

Page 6: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

How To Determine the Optimum Dining Program

Page 7: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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 (as applicable)?

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Page 8: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Multi-year, complex & large contracts require expert guidance.

With so much at stake, it's critical to use independent & objective experts to facilitate a proven process and negotiate on your behalf.

If you represent yourself, you have a fool for a client.

Seek Independent Insights

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Page 9: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Determine Who You Are• What makes your campus unique?

• Demographics

• Geography

• Culture

• Traditions

• Preferences

• Growth plans/enrollment

• Political environment

• Financial realities

GOAL: To expand & enhance the student dining experience.

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Page 10: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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?

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Page 11: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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 D

Page 12: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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.

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Page 13: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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?

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Page 14: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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

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Page 15: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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 much can you anticipate growing your bottom line in a five-year period? D

Page 16: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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

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Page 18: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Evaluate what changes (i.e. expansions) would need to be made to the venues below based on campus growth: Johnson Center Southside Eisenhower/Ike’s SUB I

Propose alternate program to ensure that the growing number of residential students will have the optimum foodservice & meal plan options over the next five to 10 years.

Competitively rebid the foodservice operations.

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Case Study: George Mason University

Scope of Services

Page 19: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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 other campus retail venues, Mason will need to: Expand the Johnson Center 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.

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Status Quo Summary

Page 20: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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

Expand 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 revenuesM

Alternate Optimum Anytime Dining Demand Management Solution

Page 22: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Aquia/Northwest Neighborhood

Shenandoah/President’s Park Neighborhood

Rappahannock/Northeast Neighborhood

Campus NeighborhoodsBuilding Community

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Page 23: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Optimum Residential Dining At Mason

Pilot House

• Hours: 24/7

Southside Dining Commons

•7 a.m.-9 p.m. Monday-Friday & 11 a.m.-9 p.m. Saturday & Sunday

New Residential Dining Hall in Presidents Park

• Opens for Anytime Dining: Fall 2014

Ike’s

• Opens for anytime dining Fall 2012 Hours: 24/7

• Ike’s converted back to programming space in Fall 2014

New NW Dining Hall

•Opens for Anytime Dining: Fall 2015

•24/7

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Page 25: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Increase revenue of $130,000,000 over next 10 years.

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Optimize Revenue Potential

Page 26: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Students presented new OPTIMUM dining program to Board of Trustees &

received approval...

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Securing An Optimum Contract With A Focus on Social Architecture TM

Page 27: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Tell contractors what the optimum dining program is going to be….

Then ask them to bid on it…..

Encourage elaboration….

Don’t Ask……Tell

Page 29: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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

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Page 31: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Pre-bid Conference – Operator Selection

Describe process to date.

Highlight key elements of the RFP.

Collect questions. Tour all dining venues &

campus.

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Page 32: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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. D

Page 33: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Financial Review Vendor 2Daily 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

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Proposal Evaluation

Page 34: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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.

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Page 35: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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

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Page 36: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

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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Page 37: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

Recap of Key Points

Page 39: Social  Architecture TM Are You Maximizing Student Engagement & Potential Revenue Opportunities?

• Mark Kraner: [email protected]• David Porter:

[email protected]– Twitter: @pkcdavid– LinkedIn: H. David Porter

Thank You! Questions?