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Welcome to the Food Service Industry! An introduction from UNITE HERE’s Stir It Up Campaign and the Real Food Challenge. Operating cafeterias ourselves is kind of a pain. generic CEO or university president. Campus dining is big business. They’re huge.

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Operating cafeterias ourselves is kind of a pain

Welcome to the Food Service Industry!An introduction fromUNITE HERE’s Stir It Up Campaignand the Real Food Challenge


Operating cafeterias ourselves is kind of a pain

Operating cafeterias ourselves is kind of a pain.

generic CEO or university president


They re huge

Campus dining is big business

They’re huge.

In 2008 the university food service industry generated

$18 billion in sales in the US alone.

70% of that revenue went to private companies.


Operating cafeterias ourselves is kind of a pain

These companies provide a variety of services all over, not just on campuses.


Operating cafeterias ourselves is kind of a pain

It is the biggest contracted food service segment in North America

32% of the $41 billion generated by the private institutional food service industry in the USA in 2008 was in campus dining.


They re huge1

So the companies are huge

They’re huge.

2009 Revenue: $20.3 billion

2009 Revenue: $22.7 billion

2009 Revenue: $19.8 billion

2009 Revenue: $12.3 billion

Based in London

386,000 employees worldwide

Based in Philadelphia

255,000 employees worldwide

Based in Paris

380,000 employees worldwide


Operating cafeterias ourselves is kind of a pain

Quick Exercise:How does it break down in your city? What schools are self-operated? What company is at each school?Helpful hint: Compass Group owns Bon Appetit, Chartwell’s and Eurest, the company names you may be more familiar with on campus.


Operating cafeterias ourselves is kind of a pain

A lot of work needs to be done to bring justice to this industry. What’s wrong?


Operating cafeterias ourselves is kind of a pain

Working Full Time to Live in Poverty

(Overall Food Service Industry)

The Bureau of Labor Statistics shows that food service workers across the industry face very low wages. Here are some of the mean annual incomes for common classifications in the industry:

$23,870: mean annual income for “Cooks, Institution and Cafeteria”

$22,050: the 2009 federal poverty line for a family of four.

$20,420: mean annual income for “Food Preparation Workers”

$18,990: mean annual income for “Counter Attendants, Cafeteria, Food Concession, and Coffee Shop”

$18,330: mean annual income for “Dishwashers”


Operating cafeterias ourselves is kind of a pain

A Troublesome Supply Chain

Money

Food

Food Service Company

Food Distributor

To the casual student observer, the supply chain may look like this picture.


Operating cafeterias ourselves is kind of a pain

Instead, the more complicated supply chain may incentivize food that doesn’t meet “real food” standards.

Food Service Company

(Corporate office)

Weekly Compliance Numbers

Preferred / Exclusive Vendor Status

Bonuses, Promotions

$ - Volume discounts or “kickbacks”

Food Distributor

Food Service Company (Local Manager)

Money!

Food


Meanwhile a big squeeze impacts food and workers across the supply chain

Meanwhile, a BIG SQUEEZE impacts food and workers across the supply chain.

John Deere

Monsanto

Bank Loans

SODEXO

Aramark

Compass

Food Company /

Farmer

Labor

Environment

Quality

COSTS

PRICES


Meanwhile a big squeeze impacts food and workers across the supply chain1

Meanwhile, a BIG SQUEEZE impacts food and workers across the supply chain.

Capital Investment

Bank Loans

University demands

Commodity prices

Food Service Company

Labor

Environment

Quality

COSTS

PRICES


Operating cafeterias ourselves is kind of a pain

And Universities on the Hook

University food service contracts often contain capital investment clauses. This means that the food service company invests money—sometimes millions of dollars—into the infrastructure of the campus.

The university then has to pay back the company over a number of years. Until the money is paid back, the university is in debt to the company.


Operating cafeterias ourselves is kind of a pain

Universities are the perfect place to start to make the change we seek. Why?


Universities are vital to the companies profits because

Universities are vital to the companies’ profits because…

$ $ $ $

$ $ $ $

1.) High volume sales and

2.) Guaranteed

revenue!!

Meal plan swipe


Operating cafeterias ourselves is kind of a pain

So, how do we influence the situation?

We may look at our campus food relationship like this:

Food Service Company

Food!

Us Students

Our Money, Our Suggestions


But a closer look reveals that our universities have the power

But a closer look reveals that our Universities have the power.

The School

Contract

~ ~ ~ ~~ ~ ~ ~~ ~ ~ ~

$$

$$

Food Service Company

Us Students

Food!

Suggestions


University contract process explained

University Contract Process Explained

REQUEST

FOR

PROPOSALS

“RFP”

The university will draft a RFP, which describes in detail what a company would be required to do. They issue the RFP to potential bidders – companies who could do the job.

Companies put together their proposals and submit them to the University. Their proposals describe in detail how they would run the operation, as well as financial plans.

The University makes a decision based on the proposals. There may be a committee of administrators that makes the final choice.


The good news we can have a lot of influence over our universities

The good news: we can have a lot of influence over our universities!


Operating cafeterias ourselves is kind of a pain

So, we have a lot of power. And, we’re not dealing with Wal Mart here. The big food service companies have actually shown an ability to cooperate in some campaigns. Students have had a real impact in making these changes happen.


Our power has huge potential

Our power has huge potential.

The Coalition of Immokalee Workers reached an agreement with Compass Group, Aramark and Sodexo through the Student-Farmworker Alliance’s campus-based Dine with Dignity campaign. At least with Compass the agreement didn’t just apply to campus cafeterias – it applied to all of Compass Group’s divisions!


Operating cafeterias ourselves is kind of a pain

Workers Unionize with UNITE HERE

Joining a union is one way campus dining workers change their working conditions. Standing together workers have won real improvements, including better wages, benefits and job security.

  • Wesleyan University:

    • $21.65 starting wage (first cook)

    • Free family healthcare benefits

  • Trinity College:

    • $21.50 starting wage (head baker)

    • Free family healthcare benefits

Connecticut campus dining workers and active

members of UNITE HERE


Operating cafeterias ourselves is kind of a pain

Students and Workers Stand Together!

UNITE HERE has been involved in many campaigns where students and campus dining workers stood together to fight for economic justice.

Hunter College: Students rallied with workers and threatened a boycott of the cafeteria in a campaign to protect full family health benefits.

Loyola University Chicago: Hundred of students supported workers in a successful struggle to win union recognition

UNITE HERE Local 100 members at Hunter College during a lunchtime work stoppage, 2009.


Student success winning real food

Student Success winning Real Food

Making just and sustainable food a purchasing priority means millions of university food dollars moving away from corporate giants and toward local, fair and sustainable farms and food suppliers.

  • University of California—Irvine

    • Aramark agrees to 20% Real Food by 2015 (apx $850K)

  • Brown University

    • Students audit food purchasing and win commitment to move from 15% to 35% Real Food by 2014 (apx $2 million)

Students rally outside at UNC Chapel Hill during the 2010 Southeast Youth Food Activist Summit.


Operating cafeterias ourselves is kind of a pain

Students Stand with Farmers

Student solidarity and a university commitment can make a huge difference in the lives of small farmers and grower cooperatives.

University of North Carolina—Chapel Hill:

Persistent lobbying by students forced Aramark to buck usual corporate policy and purchase local, grass-feed beef from Cane Creek Farm.

With more lobbying, purchases increased from 100lbs of beef/week to 400lbs. Now Eliza and Can Creek supply 5 colleges in the area.


Join a campaign near you www stiritupcampaign org www unitehere org www realfoodchallenge org

Join a campaign near you!www.stiritupcampaign.orgwww.unitehere.orgwww.realfoodchallenge.org


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