BSB, INC.: The Pizza Wars Come to Campus
—Source: This case was prepared by Dr. Brooke Saladin, Wake Forest University, as a basis for classroom discussion. Renee Kershaw, manager of food services at a medium-sized private university in the Southeast, has just had the wind taken out of her sails. She had decided that, owing to the success of her year-old pizza service, the time had come to expand pizza-making operations on campus. However, yesterday the university president announced plans to begin construction of a student center on campus that would house, among other facilities, a new food court. In a departure from past university policy, this new facility would permit and accommodate food-service operations from three private organizations: Dunkin’ Donuts, Taco Bell, and Pizza Hut. Until now, all food service on campus had been contracted out to BSB, Inc. CAMPUS FOOD SERVICE BSB, Inc., is a large, nationally operated food-services company serving client organizations. The level of service provided varies, depending on the type of market being served and the particular contract specifications. The company is organized into three market-oriented divisions: corporate, airline, and university or college. Kershaw, of course, is employed in the university or college division. At this particular university, BSB, Inc., is under contract to provide food services for the entire campus of 6,000 students and 3,000 faculty, staff, and support personnel. Located in a city of approximately 200,000 people, the campus was built on land donated by a wealthy industrialist. Because the campus is somewhat isolated from the rest of the town, students wanting to shop or dine off campus have to drive into town. The campus itself is a “walking” campus, with dormitories, classrooms, and supporting amenities such as a bookstore, sundry shop, barber shop, branch bank, and food-service facilities—all within close proximity. Access to the campus by car is limited, with peripheral...
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