The financial health of Hospitality Services was quite stable

1. The financial health of Hospitality Services was quite stable, with some discrepancies in
the end of 2002 fiscal year. They have earned near about $16 million in the year 2002,
from their food and hospitality industry, which included restaurants, contract food
suppliers, catering business, drinking spots and restaurants established in colleges and
restaurants. From the institutional food service area, they have earned more than $986.5
million in the year 2002, which is considered their fourth largest food service industry.
The profit generation is much more in case of food services in institutions and colleges as
the competition is quite less in Canadian Universities, which every colleges having their
own food segments and cafeterias. The food service and restaurant business were quite
self-contained, within the institutions and demographically distant from each other,
creating an opportunity for earning adequate revenues.
2. The Hospital Services (HS) had five operational areas and they were segmented into cash
operations, residence operations, conference operations, then catering and vending
services. The food administrator already has unique ideas implemented in making their
food services popularized among the various students of the institutions. Their Cash
operations earned them about $4.9 million in the fiscal year of 2002, through this
department the possibility of opening new restaurants were possible. The director of the
company Kevin McCabe did not give much attention to franchise development until and
unless the lineup problem in their restaurants and food services within the institutions
started affecting their profit and revenue collection. Franchise development is the option
that can help the company to solve their problem, due to the continuous increase in the
population of the students in institutions. The development of the new franchise must be
done by taking thorough surveys from students and understanding their taste, he should

hire new people, train them to manage the delivery services within the student’s time
constraints, deliver services and food according to new trends and patterns that are much
preferred by the students. The most important factor that the associate director must align
its operations to, is following the Health and Safety Standards.
3. Center spot was the most popular spot for all the students, staffs, teachers and faculty
members, as it was aligned to the largest library on campus called D.B Weldon
University, as well as there was also the presence of the University Community
Centre(UCC). The place being the most visited place by all the people from the college, it
was considered by HS the most popular place for food service, as various types of
customers were present. This situation id also pressurizing for the staff of HS, as they
have to fulfill the desire of various customer within the time constraints. The issue that
was faced by Centre spot was that they operated independently, they also paid an annual
occupancy fees to Western. They had tremendous good sales with a boost up of $2500
per day from the year 1993 to $18,250 up to the year 2003. Although their sales was high,
2002 profitability in Centre Spot was low, which was untraceable as the sales were
boosted up. Later, it was found that the lineup problem, created the issue, as their service
provisions were not aligning with the time constraints of students and other faculty
members of the institution.
4. The growth of population, resulted in putting pressure on the operational stores, the line
up problem, was clashing with the time constraints of the students, which decreased their
customers. In solving the lineup problem, HS provided two cash registers, in Centre Spot
and rest were placed in Tim Horton’s and other branches. Therefore, in relation to
quantitative analysis, the problems of lineup was more in Centre Spot, which can be due