The Board of Supervisors approved in July an extension of the University dining contract with Chartwells dining company to remain on campus until 2022, renovate the dining halls and diversify options for on-campus food.
The extension modifies a contract originally signed in 1997, increasing the cost of the lease and the money spent on dining hall renovations.
Chartwells manages LSU Dining, which includes all campus dining halls and the renting or subleasing of all food services on campus including the Tiger Lair and McDonald’s in the Union, the Minimart and the recently-closed Vieux Carre cafe.
Chartwells is a member of the Compass Group of North America, a company that provides food services for schools and companies.
Under a stipulation in the original contract, the contract was extended past the original 10 year expiration date instead of placing the contract up for public bid.
“We have a good working relationship, and that is what we wanted to extend,” said Mark Kraner, Auxiliary Services director.
David Heidke, LSU Dining director and Chartwells employee, said the original contract was signed after a public bidding process in which four companies bid. Chartwells was awarded the contract after placing the lowest bid.
The lease for use of University facilities will be increased from $165,000 to $169,000 a year. The price will continue to fluctuate based on how many square feet Chartwells manages.
As part of the contract, Chartwells has agreed to invest $15 million to renovate dining facilities on campus.
Kraner said construction will begin in January 2006. The first building to be renovated will be the Laville Dining Hall, located behind East and West Laville residential halls and previously the home of Laville Food Emporium and Domino’s Pizza. Interior work to remove asbestos and lead pipes has already begun.
The Laville Dining Hall will be completed in December 2006, after which the Pentagon Dining Hall will be closed for eight months for renovations.
Kraner said after Laville and Pentagon Dining Halls’ renovations are complete, the Highland Dining Hall will be permanently closed and torn down to build a parking garage.
Auxiliary Services has continued to pursue more dining options on campus, Kraner said. An Einstein Bros. Bagels will open in Johnston Hall in October.
While it was previously reported a deal had been established between Chartwells and Starbucks to open a coffee shop in Middleton Library, Kraner said he is no longer sure what company will be providing coffee in the library. It could be Starbucks or CC’s Coffee.
The University gets a percentage of every dollar Chartwells makes from dining costs and subleases.
The commissions will remain the same as in the previous contract: 3 percent on meal plans, conferences and camps and 4 percent on catering and non-brand restaurants.
A news release from the University said it expects to receive $2 million in revenue from Chartwells.
Kraner said the majority of the funds collected from Chartwells go to infrastructure, and that auxiliary buildings such as Laville, Pentagon and Highland Dining Halls are self-supporting.
Contact Ginger Gibson at [email protected]