REGENTS REJECT FRANCHISE OFFERS, APPROVE NEW FOOD SERVICE CONTRACT

Fast-food establishments like McDonald's and Burger King won't be setting up shop on the Southeast Missouri State University campus.

The Board of Regents Wednesday awarded a new food service contract to Morrison's Hospitality Group. University officials said the Alabama-based firm will offer its own food brands and added variety in an effort to improve campus dining.

Morrison's will begin food service operations at Southeast on June 1.

The regents awarded the contract on a 4-0 vote and in a related move hiked board rates for the 1995 fiscal year to pay for the increased cost of the new food service. Regents Mark Pelts and Patricia Washington were absent.

Some Cape Girardeau Chamber of Commerce members had expressed concern recently about the possible establishment of fast-food restaurants on the campus and the impact they might have on existing local restaurants, including fast-food places like Burger King, McDonald's and Pizza Hut.

Nationwide, name-brand food outlets are on many college campuses.

During the meeting, neither the regents nor university officials discussed the concern that had been raised by chamber members.

But afterward, two of the regents said the university had listened to the concerns of the local business community.

"We didn't feel the university should be in the franchise food business," said Donald Harrison, president of the board.

Regent Don Dickerson said, "We have no desire to hurt the local business community, goodness knows."

"Everyone needs to know we look at what is best for the community and the students," said Ken Dobbins, Southeast's executive vice president.

University President Kala Stroup said it was important to hire a food service company that's "sensitive to working with the whole business community."

A committee of university staff and students had looked at proposals from five vendors.

"During analysis of the proposals, some consideration was given to the possibility of including nationally franchised operations, such as Burger King and Chick-Fil-A," said Stroup.

"However, the university believes that students will be best served using Morrison's own food brands in its delivery of food services to our students.

"Morrison's company products are of high quality and are nutritious and will be appealing to our student population," said Stroup. "We believe this approach takes into consideration the concerns of the local retail community while addressing the needs of our students."

Dobbins said the three-year contract with Morrison's is expected to carry a price tag of about $2 million. The contract itself is still being finalized, officials said.

Morrison's replaces ServiceMaster, which had operated the university's food service since 1986. ServiceMaster was among the companies that was vying for the new food service contract.

SueAnn Strom, vice president of student affairs, said Southeast's students had been unhappy with the existing campus dining program.

Strom said the choice for a new vendor ultimately was between Morrison's and Marriott. But after looking at the cost factor, she said Morrison's was rated as the best choice.

Morrison's Hospitality Group is a subsidiary of Morrison Restaurants Inc., a company which was founded in Mobile, Ala., in 1920. Morrison's also owns the Ruby Tuesday restaurant chain.

Southeast's new board fees include a point system, which allows students to obtain some of their meals in the university's dining facilities outside the residence hall cafeteria environment, such as in the University Center.

Under the new rate schedule, the 20-meal-per-week plan along with $20 in points per semester will cost students $1,460 annually. The 15-meal-per-week plan along with $40 in points a semester will cost $1,325 annually. The 10-meal-per-week plan along with $60 in points a semester will cost $1,250 a year.

Earlier this year, the regents increased room charges for the 1994-95 school year.

As a result, students will pay anywhere from 7.6 to 11.8 percent more in room and board charges for the next academic year. Those percentages do not include the increased cost of living in the newly renovated Towers West dormitory.

Annual costs will range from $3,320 in the Greek and Dearmont residence halls for students on a 10-meal plan to $4,160 in Towers West for students on the 20-meal plan, officials said.

Dickerson said he was concerned about the ever-rising cost to students.

But Strom said many students currently don't eat all the on-campus meals that they are paying for in the board charges. Instead, they spend more money to eat off-campus, she said.

Dobbins said that when all the cost factors are considered, including a small tuition hike, "we are confident that most students will realize only a single-digit increase in the overall cost of attending Southeast."

In other business, the regents approved the hiring of NCHEMS Management Service Inc. of Boulder, Colo., to assist in development of a strategic plan for the university. The firm will be paid $27,900.

The regents also transferred the geography program from the College of Science and Technology to the College of Health and Human Services.