The University reimburses the company monthly for their expenses. Aramark makes profit by spending less than the budgeted amount, up to 2 percent of the total.
But though Aramark usually beats budget, the company also must pay the University a $500,000 annual space fee. This sum severely cuts into Aramark's profits.
Freeman said in the sixth year of the 10-year contract, Aramark had made less than $100,000 total profit.
Bissinger, resident district manager for dining services, was sent to Chapel Hill in July 2006 to try and solve the financial woes. He said he has been with the company for 18 years and that his focus is singular.
"Food service is a simple business," he said. "All you have to do is satisfy the customer."
Dining today
During the past six years, dining services has lost about $1 million. Though the department is not trying to make a profit, dining cannot accept losses for long.
"I'm living on a dime right now, but I do have the money to pay," Freeman said.
To try to reverse these effects, several changes were instituted recently.
Meal plans, which had been a semester-by-semester deal, now require a year-long commitment.
The price per meal also rose, and several management positions were eliminated.
Dining officials determined that 5,000 meal plans must be sold and maintained for the year in order for the department to break even.
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In years past, dining would meet that goal for the fall semester but would fall below the mark in the spring with nonrenewals. This drove the recent change to a year-long commitment.
Dining services sold 5,442 meal plans for fall 2006.
Students still can cancel plans, but it now costs $250.
One of the main causes, Freeman said, is food waste. He said more than four tons of food were thrown away last year. Though dining officials have experimented with smaller plates and serving tinier portions, it remains a problem.
"How do you approach this?" Bissinger said. "Do you stand at the conveyer belt and say, 'Think of all the starving children?'"
Changes for the future
Under Bissinger, more changes are to come, and some moves already have been made.
A meal plan was introduced this semester, available to graduate students, allowing them to purchase either flex money or a limited block plan to purchase food on campus.
Senior Laura CaJacob, chairwoman of the 15-member Student Dining Board, said dining is considering eliminating certain meal-plan options - particularly the seven-meals per week plan - and raising prices.
Bissinger said that prices will almost certainly be raised for next year, but that will be the last for a few years to keep students buying.
But there have been no talks of changing UNC's voluntary status.
Other changes will be made based on student opinion.
Bissinger said he is looking into adding a wing to the oft-crowded Lenoir Dining Hall, which would add about 300 new seats.
Another big change, Bissinger said, will be to the End Zone restaurant at Rams Head, which he said has been underutilized. Student surveys regarding the eatery already have been developed.
Bissinger said he might remove the arcade upstairs and convert it into lounge or meeting space.
Freeman said that Burger King at Lenoir Mainstreet most likely will not be back next year, possibly replaced with an in-house grill offering fresh-cut fries and specialty sandwiches.
A look around
Duke University charges $10.50 per meal, and all students living on campus must have a meal plan. Freshmen are required to buy a 12-meals per week plan, while other students can opt for any type of plan, including flex only.
At N.C. State University, only freshmen living on campus must have a meal plan. Meal plans are set up much like UNC's, but meals also can be used as a $4 equivalency at retail eateries.
Appalachian State University is the only system school without a set "meal." Though food available is similar to other schools', it is all sold a la carte.
Contact the University Editor at udesk@unc.edu.
