Monday, July 20, 1998
Prices on the rise at on-campus restaurants
ASUCLA: Food services adjust costs because of hike in minimum
wage
By Neal Narahara
Daily Bruin Contributor
A price hike appears unnecessary while the students association
(ASUCLA) food services expect an increase in revenue.
However, on June 29, prices went up on nearly half of the food
items sold at ASUCLA restaurants.
"Price changes are made just to keep up with inflation," said
Patricia Eastman, executive director of ASUCLA.
With ASUCLA scheduled to renovate various campus restaurants,
such as the Cooperage and the Bombshelter, improvements are
expected to increase the contribution ASUCLA food services will
make to the recovery of the financially troubled student
association.
"We’re not trying to pass the costs of improvement onto the
foods," Eastman said.
With a near-monopoly in food service on campus and a relatively
captive population of students and faculty, price changes will
affect an estimated 4.5 million customers in 1998-1999.
One of ASUCLA’s missions is "providing an excellent value in
necessary products and services."
In accordance with this mission, price increases are made only
when necessary, ASUCLA officials said.
"We didn’t have a price increase last year," said Dave
Nirenberg, associate director of ASUCLA Food Services.
According to Nirenberg, price changes are determined in February
and go into effect immediately after summer commencement to
minimize disruptions in service.
"We’re not trying to hide price changes," Nirenberg said.
ASUCLA has tried to raise prices gradually to avoid the "sticker
shock" of a large price increase.
"In some cases, price changes did not fully cover cost
increases," Nirenberg said.
These price changes, however, have not gone unnoticed.
"Before, if you wanted a Coke, you could just bust out a dollar.
Now, you have to have change," said Amee Rainwater, a fourth-year
sociology student, referring to the increase in price of a medium
Coke from 99 cents to $1.05.
The cost increase was largely due to the rise in the minimum
wage, which rose from $5.15 to $5.75, Nirenberg said.
While ASUCLA student employees make more than the minimum, their
pay increases when minimum wage goes up.
"We would have had a lesser price increase if not for the
minimum wage increase," Nirenberg said.
One way ASUCLA measures how much students spend in their
restaurants is by calculating the average check total.
In their most recent budget, ASUCLA estimated an average check
of $2.80 for the 1997-98 fiscal year. The projection for the
1998-99 fiscal year is up four cents, at $2.84.
However, this is not necessarily reflective of the total costs
to students. This figure takes into account purchases as small as a
cup of coffee and averages them with more significant purchases,
such as a meal.
It also takes into account "buying down" by customers as a
result of higher prices.
"(For example,) a student with a fixed budget might buy a
burger, fries and a Coke two days, and a burger, fries and water
one day because of the price increase," said Nirenberg. "We lose
that sale."
The Office of Residential Life currently has no plans to
increase the value of dorm meal coupons in response to higher
prices. The coupons are worth $1.85 for lunch and $1.90 for
dinner.
ASUCLA goes through a complex process to determine new prices.
Price changes take into account prices of other food vendors and
projected food prices set by the FDA.
In the end, however, food service management has the final say
on food price changes.
"Students can expect us to continue to have high quality food
and to continue to innovate," Eastman said. "As we reinvent our
restaurants, you might even see lower prices."