The University, rising gas prices and Sept. 11, 2001, are factors contributing to the increasing prices in vending machines across campus.
“We hate to see increased prices because students don’t have extra cash [in their pockets],” Donald J. LeBlanc, president of Canteen of Baton Rouge Inc., said.
Canteen, a division of Compass Group North America, maintains and stocks all of the vending machines on campus.
The company, which has a 10-year contract with the University, requested an increase on food items in vending machines.
LeBlanc said the request had to be made to Contracted Auxiliary Services, before July, in order to get the price increase.
The request was the first one submitted in two years.
“We can’t just arbitrarily raise the prices,” LeBlanc said. “We have to present it to Auxiliary Services.”
Mark Karner, Director for Contracted Auxiliary Services, said Canteen had to state their reasons for wanting an increase in prices.
The goal was to stay as close to the the market price as possible, Karner said. Prices were matched against those local convenience stores.
Karner said even though there was an increase in vending machine prices, they are still lower than those of stores such as Circle K.
The request added a nickel to gum, chips, and coffee products.
Snacks such as Cheez-its are now 60 cents, 5 cents more than in spring 2003.
All gum products are now 50 cents.
Mrs. Freshley’s product’s also were increased by 10 cents.
Despite the price increase, students can buy the same items at Circle K, Karner said, but unlike Circle K they do not pay the sales tax.
Canteen uses profits from the vending machines to pay the 9 percent sales tax, product cost, University commission and other expenses.
Kraner said Canteen’s request was driven by rising insurance rates, increasing gas prices, and the company’s need to cover the cost.
“I can’t say no to something, if the expenses are legitimate,” Kraner said.
Kraner said the increase is needed to help the company stay afloat in a bad economy and Canteen was “hit hard” by unexpected price increases
Kraner also said skyrocketing gas prices have contributed to the extra expenses.
When gas prices first rose, they quickly decreased, Kraner said. The current situation is different, because gas prices steadily have held for the past few weeks.
LeBlanc said his company has to be able to cover the cost of gas.
It has been a struggle to cover increasing expenses, especially when Canteen only receives only 2 to 3 percent profits from the machines, LeBlanc said.
LeBlanc said if an item sells for 60 cents, 40 percent of the price is paid to parent companies, such as Frito Lay, and Hershey to cover product cost.
LeBlanc also said Canteen is contractually obligated to provide the funds for any equipment or products requested by the University.
He said the company recently spent $200,000 for new equipment, such as snack and coffee vending machines.
Canteen also has paid $50,000 to make the machines accept Tiger Card, LeBlanc said. They also provided $12,000 to the University for Commission.
LeBlanc said the Canteen has spent nearly a quarter of a million dollars on the University.
The University is not obligated to pay anything for vending services provided to the campus, LeBlanc said. The contract Canteen has requires them to pay for maintenance and other things requested by students.
He said there was nothing Canteen could do about the contract, which they must uphold for 8 more years.
“We just have to live with what we have,” LeBlanc said.
Both Karner and LeBlanc said it is uncertain whether vending prices will continue to increase.
“It depends on the economy, and if gas prices will continue to rise,” Karner said.