Market Research Findings & Recommendations December 6, 2005

1. Market Research Findings & Recommendations December 6, 2005

2. Scope Of Work • Provide a market analysis in order to develop a viable and exciting program plan for the renovation of the UMC and its foodservice venues. • Qualitative market research • Site visit: October 3-5, 2005 • Personal interviews • Focus groups • Intercept interviews • Quantitative market research • Web-based survey • Environmental scan • Retail SWOT analysis • Market penetration analysis • Meal plan consideration • Confirm/challenge existing and future retail operations

3. QUANTITATIVE MARKET RESEARCH

4. Qualitative Market Research • Venues in the UMC • Alferd Packer Grill • Excellent location • Wide variety of foods • Dark and dated “capsule” • Inefficient customer throughput • Can’t quickly scan all options • Perceived as “expensive” • Current mix of options are customer friendly • Other foodservice options • Good mix, customer friendly • Sweet Spot is problematic • Baby Doe’s • Schizophrenic • Too much variety • Dull and dated • Inefficient customer throughput

5. QualitativeMarket Research • Seating areas • Inefficient seating (all four-tops and large rounds) • Noisy and uninviting • No soft seating • Unpleasant, non-customer friendly lighting • Other UMC issues • Limited quiet study areas • No 24 hour study lounge • Dated services • Bowling alley/game room • Ballroom • UMC does offer many student-friendly services • Bookstore • Travel agency • Credit union • Computer lab • E-mail stations

6. QualitativeMarket Research • Satellite operations • Challenging locations in some cases • Stocking issues • Overall ambiance is an issue • Make-shift serving areas • Customer throughput

7. Qualitative Market Research • Catering • Campus budget cuts have impacted business • Delivery challenges with dock area • Mixed customer feedback • “Sometimes the food is great, other times not so great” • Some dissatisfaction with the coffee and quality of baked goods • Some dissatisfaction with delivery/pick up • On time/too early/late • Complete order (sometimes missing plates, sugars, creamers, etc.) • Scheduling/catering office are separated • Communication challenges

8. Final Recommendations

9. UMC Farmer’s Marketplace Isn’t It Organic? • Alferd Packer Grill • Slumgullion Grill • Al’s Lodge – Meat Paninis • Al’s Fresco – Vegetarian Paninis • Al’s Garden – Salad Bar – Organic, Locally-grown Produce • The Tabor – Home-style Comfort • Feature Homemade Soup and Chili Bar • Feature UMC Herb Garden • Baby Doe’s Coffee House • Fair Trade Coffee • Celestial Seasonings Teas • Feature Scratch Bakery – Breads, Cookies, etc. • Fresh Mex – Illegal Pete’s? • Subway • Wok & Roll • Domino’s

10. UMC Farmer’s Marketplace • Gut rehab • Receiving • Storage • Production • Self Op and Commercial Service Areas • Dining Rooms • Elements of Design • “Boulderesque” • Colorful Task Lighting • Warm Natural Wood Tones • Natural Light • Funky Eclectic Merchandising • Aroma Influences - Scratch Bakery, etc. • HD Music • Warm and inviting • Customers can see all options/concepts in one visual sweep • UMC venues share a common kitchen • Each concept has its own registers

11. UMC Farmer’s Marketplace • Offer combo meals at each of the UMC food concepts • Mimic structure of off-campus competitors • Dollar menus • Farmer’s Marketplace Hours: 7 a.m.-4 p.m., Monday-Friday • Offer limited venues after 5 p.m. • Rotating All-You-Care-To-Eat Bar • Homemade Soups/Chili/Breads • Pizza/Pasta • Seating: • Create a central, comfortable and more efficient seating area • Large and small tables • Booths • Single counter seating • High-top tables • Promote FREE wireless internet access • Increase power outlet options • Consider noise reduction ceiling tiles to reduce/absorb noise.

12. Baby Doe’s • Locate at edge of new marketplace so that customers can see/smell the baked goods from the atrium entrance. • Create a coffeehouse-style atmosphere with wood finishes, colorful lighting, and a variety of seating options (tables, overstuffed chairs and couches, etc.) • Feature a display-style scratch bakery so customers can see and smell the freshly-made baked goods. • Streamline menu items to top sellers • Gourmet coffee • Celestial Seasonings Tea • Smoothies with vitamin and protein boosters • Bottled beverages including organic juices and energy drinks • Pre-packaged sandwiches and salads • Offer centrally-located touch screen ordering systems to increase speed of service • Hours of operation: • 7 a.m.-Midnight, Monday-Friday • 7 a.m.-9 p.m., Saturday and Sunday

13. Catering • Consider offering three tiers of catering: • Premium Service: For presidential and high-level catered events • Standard Service: For traditional luncheon meetings and similar gatherings • Budget Service: For groups with limited budgets (pick-up/no delivery or set up) • Re-evaluate current menu options. • Introduce new items to relieve customer boredom • Consider hosting a tasting event for catering customers to identify customer preferences • Invest in new catering equipment, especially serving equipment. • New coffee-holding equipment • New trucks (image is everything/mobile advertising) • Consider creating an on-line catering order form. • Consider combining the scheduling/catering office for one-stop shopping • Ensure that the Eatec system is fully operational, interfaces with the POS system and that all catering administrators are fully trained on the system.

14. Catering • Create a detailed training program for all new hires. • Focus on: • Customer service • Tours of all on-campus catering facilities • Catering protocol • Delivery/set up/clean up procedures, etc. • Evaluate current staffing levels to ensure high-quality service • On-time deliveries (not too early so food isn’t sitting out too long) • On-time pickups • Regularly survey catering customers to identify issues and opportunities • Follow-up calls after events • Electronic evaluation form • Periodic focus groups with regular customers

15. UMC Satellite Locations • Maintain current locations but give each one an extreme makeover • Merchandise food and beverage options in a more attractive manner to increase impulse sales and generate interest. • Use business systems to better forecast food needs so venues don’t run out of food. • Stream menu options to top sellers/customer preferences • Bottled beverages • Fresh whole fruit • Pre-wrapped sandwiches/wraps • Bagged snacks • UMC soup • UMC baked goods • Hot and cold beverages • Create better signage in the buildings where these venues are located to raise awareness/provide direction.

16. UMC Cannibal Cash • Introduce a UMC Meal Plan Option • Three buy-in levels • $375 per semester ($5 per day Monday-Friday) • $750 per semester ($10 per day Monday-Friday) • $1,125 per semester ($15 per day Monday-Friday) • Most undergraduate off-campus students said that they would be somewhat likely to consider purchasing this plan • Available to students and faculty/staff • Can be paid for at the registrar’s office at the beginning of each semester • Money can roll over between semesters • Offer special events/offers for UMC Meal Plan holders as added incentive to buy • All-you-care-to-eat meals (pizza, tacos, etc.) • Cooking classes • Food seminars • Tastings

17. Marketing • Create a marketing campaign to raise awareness of all UMC services. • Grow the Baby Doe’s brand by introducing an attractive, eye-catching label • Logoed cups, aprons, hats • Logoed pre-wrapped sandwiches, salads, baked goods • Develop promotions that attract business • Coupons • Frequent buyer cards (buy 10, get one free) • Table tents • Campus newspaper ads • Keep all marketing fresh, fun and exciting!

18. Retail SWOT Analysis INTERNAL • Strengths • Menu variety and selection • Authenticity (soups, chili, baked goods) • Superb location in the building • Affiliation with UCSU • Student workers • Staff dedication • Heavy customer traffic in and through the building • UMC is the center of everything non-academic • UMC is steeped in University history • UMC student services are located in this building • Biggest ballroom in Boulder • Herb garden • Diverse operations • Strategic mix of self-op & contracted foodservice operations • Weaknesses • Underdeveloped brand • Trying to be everything to everyone • Fluctuating business plan based on changing political leadership. • Lack of space (receiving, storage, production, service, dining) • Inadequate reserves for replacement of equipment • Institutional-like seating area (i.e. high school cafeteria) • Dated, dark inefficient design • Unappealing facilities • Poor sight lines between pedestrians and food venues • Tied into campus debt capacity issues • Tuition/student fee package • Lack of flexibility (organizationally) • Inefficient marketing • Lack of awareness of satellite locations • Challenges related to closing financially-struggling venues operated by UMC Food Services • Balancing business decisionsagainst student services issues.

19. Retail SWOT Analysis EXTERNAL • Threats • Flatiron Meal Plan (non-University) • Restaurants on the Hill • Commuter meal plans offered by CU Housing/Dining • Proposed conference center in Boulder • Sophomore residency growth due to increase/upgrade in on-campus housing capacity (possible future sophomore live-on requirement) • UMC dining renovation project not approved • Local workforce • Difficulty in responding quickly to changing customer expectations and preferences and level of customers’ sophistication • Opportunities • Direct access between dining room and fountain plaza • Provide service to more students/customers • 15,000 traffic counts per day • Expand dinner business • Capture more catering business • Introduce a new UMC Meal Plan • Renovate food/dining facilities • Increase dining capacity • Create additional study space in the building to relieve pressure from dining area. • Clientele with disposable income

20. Environmental Scan & Market Penetration • Off-Campus Competitors • CU students indexed 83 restaurants within ¼ mile of the UMC • Areas included the Hill, Baseline Road, Arapahoe Avenue and Pearl St. Mall • Photos and detailed information for each restaurant will be provided to CU. • Market Penetration Analysis • 15,000 potential customers pass through the UMC every day Monday-Friday. • Current daily transactions at the Alferd Packer Grill: Approx. 2,500 • Approx. 5,000-6,000CU students live on the Hill. • Result: UMC could increase revenues by making changes that would make all of the dining options in the UMC more inviting and customer friendly to building and surrounding traffic/customers.

21. Retail Catalog Inventory Mapping • Map detailing off-campus restaurants’ locations relative to the UMC will be delivered to CU.

22. Visual Listening • Form follows function, but what style is right for the UMC? • Theme • Ambiance • Concept • Interior design • What is Bouldersque?

23. Visual Listening • “I like the combination of booths and tables.” • “I like the large windows that let in lots of natural light. It makes the area comfortable and cozy.” • “The ambiance is warm and airy.”

24. Visual Listening • “I like the queuing system where customers order their food and beverages and then move down the counter and watch as their food is being prepared.” • “I like the light-colored wood and the interior design.” • “I like that it has a sense of design and how all of the elements work together.” • “It has the feel of a student union.”

25. Visual Listening • “It’s fun!” • “I like the bar seating option, where students can eat and watch their food being made and interact with the dining staff.” • “There is lots of natural light. I also really like the light fixtures.” • “It appears to be a high energy kind of place.” • “I like the display cooking aspect.” • “It looks inviting and contemporary.”

26. Visual Listening • “It’s classy.” • “It has a clubby feel that is inviting and cozy.” • “It looks like a pub and a place where students would like to hang out.” • “It reminds me of a student hangout.”

27. Visual Listening • “I like the beautiful food display and I like that you can see your food being prepared while you wait.” • “It feels like a warm space with the blond woods, brick interior and task lighting.” • “I don’t like the seating area.”

28. Field Trip • Porter and UMC Administrators Hit the Road! • Toured area surrounding campus looking for design and menu ideas that could be incorporated into the new dining venues in the UMC • Stops included: • Wild Oats—Organic salad bar, display bakery • Amante—Contemporary, inviting, European • Paradise Bakery—Warm, inviting, brick walls • Whole Foods—Abundance, promotions, beautiful food displays • Noodles & Co.—Interesting menu boards, good use of small space • Peabury’s Coffee—Inviting interior, copper finishes, feels “special” • Buchanan’s—Eclectic, funky, student operated • Illegal Pete’s (on the Hill)—Dive, cool, huge burritos • Espresso Roma—Very popular, small • Qdoba—Painted cement floor, industrial look

29. Market Research Findings & Recommendations December 6, 2005