Degrees renovated despite fiscal instability
UMSU views restaurant as an alternative food service
Tessa Vanderhart, Staff
Photo by Vito Sutanto.
The closure of Degrees for repairs for two weeks this August has cost UMSU $24,885, but the restaurant, which has yet to make a profit, continues to be an UMSU priority.
Rachel Gotthilf, UMSU director of internal administration, detailed the costs and benefits of the renovation. She said that the closure allowed time and money for renovations in the kitchen and storage areas, repair of coffee machines, as well as long-needed replacement of lost and stolen dishware.
“The drywall in the dishpit area was beginning to show signs of decay,” said Gotthilf. “We’ve been meeting health code requirements until now — we wanted to continue that good record.”
She later added: “It was patched, and now that mould — [in the] patching — is all gone because it was replaced by the new drywall.”
In addition, the floor in the service area was worn. It was replaced as a health and safety concern for the staff. Restaurant-grade fiberglass was put in the dish area to deter moisture-related decay, and new flooring was installed.
The restaurant has lost money in each of its three years of operation, a trend that Gotthilf does not expect to continue this year, thanks to changes to the menu and continued advertising, which has been increased to $6,000 this year from $4,000.
Gotthilf is excited about what she sees as the benefits of the renovations, including lowered prices and changes to the menu, which will make good food more affordable on campus.
“I should emphasize that we look at Degrees as not just a business to make money for UMSU; fundamentally, it’s a service to provide an alternative to other food on campus. Also . . . we want to take the prices seriously, we want to make it accessible to students,” said Gotthilf. “That is our main objective, and then also to break even . . . .”
“We call it a business, but deep down, I think of it as a service.”
At the UMSU council meeting on August 18, $18,000 remaining from the increased collection during the last academic year was slated to go to UMSU businesses. In addition to protecting other businesses from a deficit, this will increase the budgeted profitability of Degrees from $8,100 to $12,600.
“For 05/06, what has been budgeted is to have a surplus of $8,100. Now, after next council meeting, there are going to be some budget amendments proposed. . . we increased the fees last year. . . [and] at the upcoming council meeting we will be talking about how to incorporate the new fees into the budget.”
The restaurant used its own finances to refurbish the storage area, which had carpeted walls and was in desperate need of improvements in shelving capacity. This improvement cost $3,289 in supplies, but was done by employees of Degrees to save money.
Degrees pays UMSU back $9,000 every year for money owed, listed in the budget as ‘depreciation.’ All UMSU businesses pay depreciation in varying amounts, as, according to Gotthilf, the UMSU capital fund pays for renovations up-front and every year the fund is paid back.
“If they have to pay for too many things, then they have a loss — like last year — and then that lost ultimately becomes UMSU’s responsibility,” said Gotthilf. “We took on a loss last year even though they paid back the depreciation. Next year, they will make that profit back to UMSU.”
UMSU continues to hold private, closed discussions of food services during council meetings, and Gotthilf did not deny that something may be in the works for this fall. She said that Degrees might be looking into getting a lounge licence, which would allow the restaurant to serve alcohol without a meal.
“We haven’t talked in UMSU council enough about [food services]”, said Gotthilf, adding that UMSU President Amanda Aziz will be leading the discussions with council. “We talked in-camera about ARAMARK, and then the administration made a decision that we will tell council next meeting.”
More information on the finances of UMSU businesses should become available after a professional audit is presented on August 25.
“It’s only three years old, and I think it’s a valuable service — it’s good food,” said Gotthilf. “We’re investing money in to it, obviously, because we hope it will grow more profit as the years go on.”
Two restaurants have previously occupied the space where Degrees is currently located: Bar Italia and Scholars.
