Relationship with Aramark is complex

Four years ago, UNC students were complaining about the quality of the food served in dining halls.

Carolina Dining Services switched contracts to the food service provider Aramark Corp., hoping to please students tired of mass-produced meals.

Today, students have a different complaint.

Rumblings of the unionization of dining employees have reached a head with the arrest of Vel Dowdy, a popular worker at Lenoir Dining Hall who was arrested and charged with felony embezzlement for, officials claim, giving away meals.

And students are calling for the University to exert more power in its relations with the private corporation that feeds its students.

But though UNC wields considerable influence over the financial aspects of its contract with Aramark, UNC officials say they don’t have much sway over personnel.

“We would not step in on how they treat employees,” said Mike Freeman, UNC’s director of auxiliary services. “Aramark is not allowed to talk to me about most of their personnel issues.”

During the first two years of Aramark’s 10-year contract with UNC, the corporation had no profit to show for its work. Last year, it made less then $30,000.

Though UNC grossed $16 million in dining services last year, it banked only $500,000. Most of that money, Freeman said, went back to building maintenance.

But dining officials said they knew the switch to Aramark was not going to be a big money-maker.

Carolyn Elfland, associate vice chancellor for campus services, said the care with which Aramark prepares food costs more than the practices used by previous providers.

“We knew when we went to that mode it was more expensive,” she said. “But the goal was student satisfaction with the food.”

While officials said the corporation has probably lost money in its three years with UNC, the contract is still important to Aramark.

“We are a big school, a well-recognized school, and from that perspective, whoever is our contractor is glad to have Carolina in their portfolio,” Elfland said.

Aramark spokeswoman Kate Moran declined to discuss the contract but underscored that Aramark values its relationship with UNC.

UNC’s partnership with the corporation is in some ways unique, since the bulk of the loss is on the University’s dime, not Aramark’s.

The contract with the group is a fee-based contract, Elfland said, under which UNC pays Aramark for operations and a management fee as well as local bills.

UNC pays Aramark a base management fee of 2 percent of gross revenue only if UNC is takes in at least $500,000 during the year, Elfland said. Aramark must pay a space-use fee of $500,000 to UNC each year.

Neither side is guaranteed the full amount of the fees: Payment depends on the amount of money the agreement brings in.

Aramark also can receive incentives for its services if it achieves certain goals annually defined by UNC and the company. Annual incentives fees are 1.5 percent of gross revenues, which are defined as the annual gross sales that can be directly attributed to Aramark’s operations.

UNC officials made it clear that their jobs lie in making sure Aramark meets contractual obligations, not policing employee relations.

The true sense of urgency is making sure officials hear students’ voices, said Margaret Jablonski, vice chancellor for student affairs.

“It is also our obligation to listen to students when they have concerns, and that is what we have been trying to do by trying to connect students directly with senior management in Aramark.”

Contact the University Editor at udesk@unc.edu.