Inside Tucson Business: Food fight

Food fight

By Teri L. Schramm Inside Tucson Business
Published on Monday, May 09, 2005

It's a white, plastic identification card. On the front is a University of Arizona student's dreaded freshman ID picture, a signature, a foreign looking gold chip with a too-long-to-memorize number below it. Every one of the approximately 36,000 students at the UA has one.

So what makes this card so special? Some of the university's more studious students claim it's the access to library books and on-line archives. Other students would agree it's admittance to the CampusRec Center and pool. But local restaurants agree it's the magic black magnetic strip on the back.

Named the CatCard, it allows access to campus facilities, student services, ATM's, but most importantly n food.

As it characteristically works, parents provide their sons and daughters with a meal plan. A quick bite is just a swipe of the CatCard away at any campus restaurant or campus convenience stores, called UMart. Students have the option to dine at 35 on-campus eateries.

But are parents and students really getting options worthy of the money they pour into this bottomless plastic pit?

Many of the students and restaurants lining Tucson's University Boulevard say no.

For the past seven years, the Domino's Pizza at 1033 N. Park Ave., has accepted the CatCard's meal plan as a form of payment for delivery orders to residence halls and nearby homes. As many students see it n that's free pizza, although parents might disagree.

Sounds like a win-win deal for students and Domino's. This is exactly why so many want in on the CatCard meal plan action.

So why aren't they getting in on the action?

Dana Hall, manager of Penguin's Frozen Yogurt, 825 E. University Blvd., claims the university has made it extremely difficult and complicated for local businesses to have CatCard meal plan access.

"It's all about money. Not about giving kids choices," Hall said. "It's not about the big picture with them (UA)."

Hall says she naively called three years ago to find out about how to obtain CatCard meal plan access for her shop and was, "shut down in so many words."

Andrew Adey, who owns Pita Pit, 845 E. University Blvd., has similar views.

"It's a write-off. They'll never allow it," he says. "The student union would fold. They're babysitting them."

Both Penguin's and Pita Pit would like to be able to accept the CatCard meal plan.

Other restaurant owners believe it will never happen and there is no use in trying.

"It doesn't really make sense for a small business like us to pay high per transaction fees," says Matt Jones, manager of No Anchovies, 870 E. University Blvd. "Maybe Domino's gets breaks since they are such a big corporation."

David Galbraith, director of the UA's food service, insists there are no breaks given to anyone.

He explained that Domino's won the UA's proposal that was offered to every pizza company in Pima County. Domino's won the very specific proposal that specifies the location providing the delivery service must be on-campus.

According to the State of Arizona's academic policy all students are exempt from paying sales tax on food served on university property.

"We could do it (allow CatCard Meal plan access to University Boulevard restaurants), but there would be no sales tax exemptions and the students would end up paying the higher price," Galbraith said.

Penguin's Hall responds, "They obviously just don't want the kids to go off campus in order to keep their revenues."

Galbraith claims the UA actually does not substantially profit from the food at the student union.

"We get the highest volume of food we can for the lowest price," he said. "After paying for the food, the labor, utilities, equipment, mortgage, and other student union related fees there's nothing left."

Galbraith describes the cost of equipping a restaurant on or off-campus with the CatCard equipment as gigantic. The machine to swipe the CatCard costs roughly $2,000. Then there is a $750 annual maintenance fee, a six percent transaction fee, and because the machine is not automated, there is the added cost to pay an employee to account for each swipe.

"Six cents of every dollar," Pita Pit's Adey says. "It's kind of a rip-off."

Rip-off or not, restaurants are resigned to the fact they aren't likely to be part of the CatCard's meal plan anytime soon.

And what about the students?

As he sipped his extra large Coke in line at the Student Union's Panda Express, UA freshman Dan Mitchell said "I really like the Student Union food, but after a couple of weeks you get bored of it. Me and my friends go to University (Boulevard) at least three times a week for dinner. It gets expensive."

Like many students, Mitchell's parents do not give him money for food besides what is put into his CatCard's meal plan.

At the core of the CatCard controversy is the student's perception of its value. It's up to the students to decide if they will fork out an extra couple bucks of their highly prized cash to eat off-campus. While the UA and the local commercial businesses argue over their share of the financial pie, students such as Mitchell will continue to sense reduced value in the CatCard.

Teri L. Schramm is a freelance writer and former student at the University of Arizona. Comments regarding this article may be e-mailed to editor@azbiz. com or call (520) 294-1200.