The spring reopening of the McDonald’s in the Student Union may help increase the University’s revenue from food sales, which has dropped more than 40 percent in the past few years.Early calculations indicate the Union’s amount of commission from food sales will be about $264,000 for the current fiscal year, which ends June 30 — a number that has been steadily decreasing since the Union’s downstairs McDonald’s closed for renovations in early 2007. The 2008 amount was $340,000, down from $390,000 in 2007 and lower still than the 2006 amount of $446,000. Chartwells — a facet of the $8.2 billion organization, Compass Group North America, responsible for providing the University’s food service — eagerly awaits the reopening of McDonald’s most of all.Kristine Andrews, communications director for Chartwells Higher Education Dining Services, said company policy prohibits the disclosure of financial information. Dave Besse, Union business manager, said McDonald’s sales comprise a huge chunk of food revenue.”When McDonald’s is in full swing, their 2 percent [commission for the University] is probably as much as all the other percentages put together,” Besse said. “I think McDonald’s is about 25 percent generally of our revenue from Chartwells.”Food revenue is down because of the construction, but Besse said they “anticipated it, and [they] have adequate funds to be able to cover it.”Ken Bueche, Union associate director, said the Live Oak Lounge — the portion of the Union that will feature both McDonald’s and Einstein Bagel — should be open by the end of the spring semester.The construction of the Lounge has experienced numerous setbacks, including delays from Hurricane Gustav, fire code laws and the effort to work around the existing Union structure.”Sometimes utilities weren’t routed in actuality like the ones in the drawings we had,” Bueche said. “It was designed around the drawings.”But the interior renovation efforts — which Bueche said are nearly finished — haven’t moved at the same rate because the size of the building requires three fire exits. Original plans for the renovation featured two exterior exits and an exit through the stairwell in the Union.”There’s a fire door that separates the Live Oak Lounge,” Bueche said. “If the alarm went off, the door would automatically close. You can’t count it as a third exit even though it’s there.” Architects for the Lounge, which will feature video screens, large-projection televisions and high-end finishes, designed it to function for 24 hours if the need should arise. Bueche said all-night operations will depend on demand.”If students really want it 24 hours, and they’re using it 24 hours, then it’s designed to be open,” Bueche said.The overall budget for Union renovations, which was originally planned as a six-phase renovation, started at $46 million. LSU Dining made more than $13 million in sales during the last reporting period, the fiscal year that ran from July 1, 2007, to June 30, 2008.The University receives 2 percent commission on branded food — food found at places like Chick-fil-A, Pizza Hut and Blimpie — and 12.5 percent for non-branded food sales made in Tiger Lair, the Magnolia Room and from catering. The contract gives the University between $0.2 and $0.12 for every dollar spent.The remaining portion of sales — between 87.5 percent and 98 percent — goes to Chartwells. Chartwells uses that portion to pay for operations — food, utilities, gas and employee salaries. The University announced in July 2005 that Chartwells also invested $15.3 million in University dining, said University Auxiliary Services Director Jason Tolliver. A portion of the $15.3 million, along with University Auxiliary Service’s share of the commission, went to renovating the Laville Food Emporium into 459 Commons and renovations of the Pentagon Dining Unit, Tolliver said. “[That] $15.3 million is one of the largest investments that Chartwells has ever made,” Tolliver said.Meanwhile, the contract mandates the University is responsible for everything surrounding the actual leased premises. The portion of the money that does not pay for dining operations goes to the reserve — money set aside to pay for repairs, renovations or in the event that University dining should have to operate free from the Chartwells contract that has been effective since 1997.Of the commission percentage the University receives, 10 percent goes to University Auxiliary Services while the remaining 90 percent goes to the Union.Dining Services also works to keep the prices competitive with off-campus eateries whenever possible, said David Heidke, Chartwells resident district manager and LSU Dining director. For instance, Heidke said the combo option at Blimpie is the best combo Blimpie option in town.”That’s what our staff has done a good job with every year is trying as much as possible to offset price increases,” Heidke said. “We can’t just pass everything onto the students.”But while prices at some of the Union’s eateries are flexible, Heidke said prices at Chick-fil-A locations throughout the country are required to be the same.——Contact Lindsey Meaux at [email protected]