Grille and 51 Main continue to lose money

In the 2010 fiscal year, the Grille lost $200,000, while 51 Main lost an additional $90,000. Improvements in profitability, the opening of Crossroads Café and the continued needs of the College for social spaces are all informing the ongoing conversation over dining at the College.

According to Patrick Norton, treasurer and vice-president of the College, these losses were an improvement compared to previous years. He predicts similar or slightly decreased losses this year, though he emphasized that dining services should be profitable.

“In the long run, losses are unacceptable,” he wrote in an email. “We are working to achieve at least break-even.”

Since its opening in 2008, losses at 51 Main have been offset by a donor, thus not affecting the College’s finances. This support extends through next year, and may be renewed, said President of the College Ronald D. Liebowitz

The student-run Crossroads Café, which started just last March, may set an example for the older dining services in terms of financial success.

“The directive was not to lose money,” said Crossroads Manager David Dolifka ’13. “In the end we can’t lose money for the College. It’s not our money to lose and I think we understand that.”

Dolifka and Norton agree that it’s too early to discuss Crossroads’ profitability. However,  Dolifka’s earliest estimates show that student labor and food costs add up to only 75 percent or revenue. In other words, aside from costs outside of labor and food, they could potentially post a 25 percent profit.

“I guess that means on the surface that we’re not losing money and it means that our model is … sustainable,” he said.

Possible profits from Crossroads Café would not return to the College, and could not offset losses at the Grille or 51 Main.

“We’re not at the stage yet where we can talk about giving money away, [but] any money that we make will go to charities and student organizations,” said Dolifka.

But Crossroads may even help the Grille by bringing more customers into the building. Dolifka sees this expanding in the future.

“We really want to have events here like a continuation of the socioeconomics at Middlebury discussion, or coffee houses like they have on Tuesday night,” he said. “That’s something that we haven’t really been able to pursue heavily yet, because we need to make sure that the cash register is working and that the food is hot. But I would say, next semester, be on the lookout for a lot of things going on downstairs in the space.

David Cannistra, the College’s general manager of retail operations, agrees that Crossroads is bringing business to the Grille.

“[Service cuts] have helped our bottom line, but I don’t know if they’ve helped make this the center of the school. I’m trying to find out where the Grille fits in. I want to create an atmosphere … and I think that Crossroads helps create that atmosphere,” he said.

Both Cannistra and Dolifka agree that more concerts, fundraising and other social events should come to McCullough.

In November 2009, Liebowitz raised the issue of 51 Main’s profitability on his blog, prompting a near-unanimous outcry of support in the online comments. He announced in January 2010 that 51 Main would remain open.

“The kind of programming that goes on at 51 Main differs from what is available on campus and in town,” Liebowitz wrote in an email. If the College wants to create a truly diverse community, he added, the social outlets must be equally diverse.

Day Williams ’14.5 echoed Liebowitz’s comments, emphasizing the value 51 Main adds to the College’s social scene.

“We need places like 51 Main, because we don’t have a city nearby. It’s nice because it is off campus but its close. That is important,” she said.

Liebowitz made a similar argument in favor of continuing to support the Grille.

“It would be hard to imagine the College without a place like the Grille,” he wrote in an email. “Faculty and staff just can’t go downtown and to eat, and so having a place on campus is very important.”

The lack of profitability at these operations, though, are not a simple result of poor management. Liebowitz sees the current dining model and the auxiliary dining services’ financial woes as linked.

“[The three retail operations] are at a competitive disadvantage because [they] operate fully outside the meal plan,” he wrote. “[At most schools] students can use their meal plan payment [points] to eat at the equivalent of the Grille, 51 Main and the [Crossroads Cafe] instead of dining halls.”

Liebowitz said that he plans to collect more student feedback on the meal plan issue.

“We need to follow up and see what students finding most important about our current plan and what they would like to see … including not changing our present plan.”