Starbucks first of several franchises to come to Miami University's campus

Friday, August 28, 2015

When Starbucks Coffee comes to campus in January, it'll be Miami University's first fully licensed franchise, but it will not be the last.

This fall, Dining Services will conduct several in-depth student surveys to identify one or two additional national brands to bring to campus, said Jon Brubacher, director of procurement and food purchasing.

This is a move Miami began considering in 2000, when campus coffee shops started brewing Starbucks coffee beans. But Dining Services feared a fully licensed store was outside its means.

"We looked at it, did analyses on the franchise and saw what it would cost us," Brubacher said. "We didn't think the benefits would be enough to justify the expense." But as survey results and student requests poured in, dining staff found it hard to keep saying no.

"It all boils down to enough students asking for it, and we are here to serve the students," he said.

The transition from Patisserie to Starbucks requires renovating the space to accommodate the Starbucks atmosphere, equipment and design - a job that will cost the university an estimated $325,000.

Dining Services will also incur a one-time flat rate of $25,000 to purchase a license to the Starbucks franchise, according to David Creamer, senior vice president for finance and business services. Beyond that, the university will return a small percentage of the sales activity to Starbucks.

The money for Starbucks is coming directly from Dining Services. Like any self-serving business, Brubacher said Miami Dining uses the profits from its existing restaurants and stores to invest in new operations like this one.

The Starbucks store, to be located at Maplestreet Station, will honor student meal plans. So, for on-campus students using the Miami Diplomat plan, the 30 percent discount will apply, making the campus Starbucks location less expensive than the Uptown location.

Starbucks Coffee Company has 22,519 locations worldwide, according to an update on its site from June 28.

Of those, about 300 have reached college campuses in the United States (out of about 4,700 accredited institutions), making its presence on Miami's campus one of relatively few.

As for the franchises to follow, Dining Services will look to Miami students for feedback this semester before reaching a decision.

Brubacher said they are open to hearing options, but certain names come up again and again - Panera Bread is a favorite, and Chick-fil-A is popular, too. Ultimately, though, he said the decision comes down to company values and standards.

"We want to be very careful," Brubacher said. "Anyone we do partner with, the main thing is ensuring quality, safety and cleanliness." Miami Dining chose Starbucks as its debut franchise store, in part, for those very reasons. In addition to student requests, Starbucks shares many values with the university, Brubacher said.

The university will hire and pay Starbucks employees, treating it like any campus dining location. In this case, the only difference is a designated Starbucks staff will train employees at Miami's campus location.

Since announcing the change, Dining Services has received positive reactions from Miami students.

"Starbucks, historically, has been the one franchise students continue to ask for on campus, far more than any others," Brubacher said. "It has been the one that, continually, over and over, was requested most frequently."

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