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CaV22 ll ^ E -
September 7,1989
Pizza Hut On Campus: Controversy To Go
e
,
C o l l e g e Press Service
Pizza Hut pizzas soon may be
available just outside dorms on
as many as 450 campuses
nationwide, leaving off-campus
businesspeople piping hot.
Marriott Food and Services
Management, which runs food
facilities on 450 colleges and
schools, said in late August it
has signed an agreement with
Pizza Hut to operate Pizza Hut
kiosks directly on campus
grounds.
Marriott installed a similar
program--in which students can
charge special 6-inch pizzas with
their meal cards - for Domino's
at the University of North Carolina at Chapel Hill last winter.
As a result one local off-campus
pizza parlor, Howie's, folded,
while another, Gumby's, saw its
share of the UNC pizza market
fall from 45 percent to 10 percent.
"This is not an operation that
serves the students' academic
needs,"complained Dick Luna,
president of the Chamber of
Commerce
in
Davis,
Calif, .where Marriott recently
put up a Pizza Hut kiosk at the
University of California-Davis,
"It is a direct retail operation."
AH Khallaghi, owner of
Mountain Mike's restaurant in
Davis, reported that half his
customers are students, and expects the on-campus pizza
kiosks will diminish his sales,
"It appears the Pizza Hut name
and kiosk are attracting to the
university Union area students
who used to go downtown to
eat," added Dr. Stephen
H.Peterson of Central Missouri
« t c U " i v ^ JfCMSU)
S ^ h ahis
Warrensburg,
been
testing thewhere
kioskMarriott
idea. nas
Students do seem to love the
idea.For instance, Pizza Hut sold
1,200 pizzas - enough for one
of every eight students - the
first day its kiosk was open at
CMSU.There are now two
kiosks on campus.
At George Washington University, another test site, staffers
projected selling 800 to 1,000
pizzas a day. Within two weeks,
Pizza Hut was selling that many
during the lunch
pizzas just
s
hour. Now, GW is selling about
hour.
is selling
a just
1,500 Now,
pizzasGW
a day
and has
added a second &osk, said Julius
Green, director of auxiliary services.
"The pizzas are super popular," said John David Morris,
president of GWs student association. "There is always a line a
mile long at lunch."
At most campuses, students
can use their meal card to
"charge" pizzas. For example,
the meal program at GW ineludes 10 meals a week, plus
$200 per semester that students
can use at any location on campus that sells food. Brian Reser,
a CMSU sophomore, says using
his meal card is easy. "It's nice
not to have to use cash," he said.
Pizza Hut also finds it nice.
The kiosks cost one-tenth the
amount needed to build a traditional Pizza Hut restaurant, but
can generate up to one-half of
the sales of a restaurant, said
Marriott spokeswoman Kathy
Boyle.
the "traditional" small pizza
places that have always catered
to students, of course, still must
cope with "traditional" costs,
including taxes that campus
ventures, by virtue of being
nonprofit firms, don't have to
PayOff-campus business groups
have been mounting legal challenges at a quickening pace in
recent years as colleges start
selling computers, pizzas and
even pharmaceuticals in competition with local companies.
In April, a California appeals
court, for example, ruled the
state's 107 community college
bookstores would have to stop
selling books not used in their
classes because the schools,
which don't have to charge students taxes, were competing unfairly with off-campus stores.
Georgetown University and
the universities of Colorado and
Utah, among others, have been
sued by angry local businesspeople for allegedly unfairly
competing with them during
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On the other hand, colleges
forcefully keep local firms from
selling on their campuses. Loyola University of New Orleans
banned a local pizza parlor from
advertising on campus in March,
1988. In September, 1988, the
University of Miami adopted
strict leafletting policy to keep
salesflyersoff campus.
The Marriott deal with Pizza
Hut, Davis's Luna claimed, is
more of the same. "It seems that
the university is getting more
and more involved in retail
activities which aren't fair compeutioa," he said.
There is a better way.
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