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Food and Beverages at Southwestern University

In: Business and Management

Submitted By paulirio
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CASE STUDY No. 1:
FOOD AND BEVERAGES AT SOUTHWESTERN UNIVERSITY
FOOTBALL GAMES

GROUP 3:
Bascos, Regina
Domingo, Eina
Gali, Geralyn
Lirio, Pau
Plaza, Mayet
Tecson Carla

I. CASE BACKGROUND

Southwestern University (SWU) is a state college and long time football power house as one of the top 20. With its goal of reaching the no.1 ranking, in 2010 they hired the legendary Bo Pitterno as head coach. After just announcing the new coach’s arrival, from an average of 25,000-29,000 season tickets increased by 10,000. Despite the yearly increase in attendance, the no. 1 ranking remained elusive.

Continuous growth in attendance then brought more challenges to the Southwestern University such as the need for bigger stadium and complaints on seating, parking, long lines and concession stand prices. Thus, the University President, Dr. Marty Starr concern was not only on the cost of expansion versus acquisition of new stadium but also on the ancillary services. He wanted all various support activities such as parking lots, game programs and food services to be handled as profit centers. Dr. Starr instructed the Stadium Manager, Hank Maddux during their recent meeting to develop a break-even chart and related data for each of the centers. Among the ancillary services, Dr. Starr wanted to have first the break even report for the Food Service area ready on their next meeting. Table 1 containing the estimated selling per unit and variable cost per unit as well as expected percent of revenue for each food item was developed by Maddux based on historical data. Estimated fixed costs related to the Food Service operation were also provided.

II. STATEMENT OF THE PROBLEM

The main statement of the problem: 1. How will SWU Management be able to manage the cost of expansion versus acquiring new stadium?
2. How will the ancillary…...

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