RPS, there is a solution

It is well known to IU administrators that the food served and the prices charged on campus are not acceptable to students. Despite claims of working with students to create acceptable solutions, Residential Programs and Services, the department in charge of on-campus food, consistently manages to provide poor quality food at high prices. The root of this problem could exist in numerous places, but an analysis of RPS documents points to inefficiencies created by the structure of RPS.\nRPS administrators work with the best intentions, but they are inefficient. According to the RPS Rate Proposal 2002-2003, RPS expects to receive 65.8 million dollars and spend 59.2 million dollars during the 2002-03 school year, leaving RPS with 6.5 million dollars in profit. The outflow separates into 26.8 million for supplies and expenses, 24.7 million for salaries and wages and 7.6 million for food costs. According to Sandra Fowler, Director of Dining Services for RPS, a small percentage is budgeted for a reserve account to help fund major repairs/renovations needed in the future, an understatement considering that profit nearly parallels food costs.\nThe 24.7 million reserved for paychecks is the most glaring case of inefficient management. According to Buck Walters, the RPS housing director, RPS employs 1,649 people, 878 (53 percent) of these are part-time workers. Put into perspective, the number of RPS personnel is approximately 16 percent of the 10,043 students living in residence halls. The number of personnel is arguably excessive, let alone the enormous quantity of money budgeted for wages.\nAdding to this, the monopolistic nature of RPS prohibits effective market analysis. Two aspects lead to this conclusion. First, only a single group analyzes student tastes. Like any scientific investigation, multiple studies increase accuracy. Second, required purchasing does not create accurate feedback. Mandatory meal plans guarantee static income regardless of a product's desirability. This is exemplified by the willingness of students to buy gum at a 300 percent markup rather than forfeit their money, even though they find these prices absurd.\nBut these problems may be fixed if RPS outsources food preparation and service. I propose that RPS outsource each food court and cafeteria station to a different, independent company. Supply and personnel costs will be greatly reduced by effective management striving for the greatest possible profit. Outsourcing will also eliminate other expenses, such as franchise fees. Also, market analysis will improve from multiple, independent surveys.\nAbove all, there will be feedback created by supply and demand. Companies must now entice students with their products. Suddenly, food courts are competitive marketplaces with independent companies. Unlike the IMU, which is entirely outsourced to the Sodexho company, the proposed system does not transfer monopolistic powers; it eradicates them. Like any other market, this will force vendors to provide quality products at competitive prices. Meal plans still require purchases, but students are no longer forced to purchase from one company. With a choice of businesses to patronize, students could exercise the same powers given to them at any shopping center.\nThis translates into high quality, low cost food. If a product is below par, the newly established competition will assure its replacement or price reduction. The efficient management of private companies will further reduce food costs by reducing company overhead.\nIs RPS currently planning to outsource? Unfortunately for students, RPS is headed in the opposite direction. According to the RPS Rate Proposal, "part of the food preparation service and part of the food service staff are outsourced. The percentage of the food service staff that is outsourced will be reduced in the coming year." RPS needs to reevaluate and reverse its policy to outsourcing food preparation and service in order for students to receive better food at lower prices.