Current Food Service Tenants Bamboo bowl approx 10 of annual sales lease terminated Feb 2015 Bocadillo approx 11 of annual sales lease ends June 2015 La Prep approx 55 ID: 459616
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Slide1
The Future of SSMU OperationsSlide2
Current Food Service Tenants
Bamboo bowl –approx. 10% of annual sales
lease terminated Feb 2015Bocadillo –approx. 11%
of annual sales
lease
ends: June 2015
La Prep –approx.
55%
of annual sales
lease ends:
June
2016
Liquid
Nutrition –approx. 8%
of annual
sales
lease ends: June
2016
Vending Machine
–approx. 2% of annual sales
l
ease ends: June 2016Slide3
Current SSMU-owned Food Services
Gerts (Gertrude’s Corner): approx. $50K in annual sales (6%)
The Nest: approx. $75K in annual sales (8%)Slide4
The ProposalTo remove all or some commercial tenants in the building and move toward SSMU-run food services within the University Centre Slide5
Pros/Cons of Commercial Tenants
Pros
Cons
Guaranteed
rent revenue (approx. $
200,000)
Less hands-on management required; plug-and-play business model
Loss
of variety and choice based on student needs or wants
Inflexibility with regards to SSMU-initiatives (e.g. banning water bottles, purchasing local)
Administrative and legal costs
(approx. $20K annually)
Cannot prioritize student employment
University has used this against SSMU as a bargaining chip
Loss of “our” space, and the ability to build the SSMU brandSlide6
Pros/Cons of SSMU-owned Space
Pros
ConsFlexibility and autonomy
in food choices offered in the building
Able to prioritize student employment
Economies of scale and purchasing power can be achieved for all operations, improving the financial position of
Gerts
and the Nest as well
Admin and salary costs can be shared by all operations
Better brand recognition for SSMU operations
Larger ability to create promotional deals to encourage foot traffic on 2
nd
floor
Possibility of Meal Plan cards becomes feasible (big
win!)
How to generate lost rent revenue
High
start-up costs
Higher risk
More managerial oversight from GM, VP FOPS, and Operations ManagerSlide7
Operational Budget
See excel spreadsheetSlide8
Financial Costs and Implications
Legal and Administrative
Costs
$19K (operating)
Equipment—2
nd
Floor Remodel
$26K (CERF
and operating)
Construction and Capital Improvements
$44K (CERF)
Total
$89KSlide9
Option One:Status Quo; continue to rent space in the University Centre out to commercial tenants
SRC would remain lunch counterStill plans to renovate cafeteria spaceSlide10
Option Two:
Move the Nest to the south side of the cafeteria; close this space off and create seating/study area specifically for the Nest Could still be bookable spaceFoldable wall allows flexibility for things like Activities Night, 4Floors, etc.
Would rely on kitchen for prep and storage spaceSlide11
Option ThreeMove the Nest to the La Prep space when the lease expires
Cafeteria space remains same square footageLaunch 3 operations in the 2nd floor cafeteriaSlide12
Moving Forward
Building director continues to terminate leases either as they reach maturity or as the opportunities becomes availableDeep cleaning of (some) current tenant spacesRenovation of 2nd
floor food area to accommodate shared cahier/payment modelOperations Management Committee consults students on desired food options
Ops Com and VP FOPS work with Operations Manager to draft menu, promote, etc.
Launch new operations as they become ready
(Bamboo Bowl space: September 2015, other tenant space TBD)