Dining Fee Accounts Benchmarkers

  • 1.  Dining Fee Accounts Benchmarkers

    Posted 01-06-2020 15:27
    We are in the process of finalizing the dining contract and want to ensure that best practice benchmarkers are established for a fee account. I would love to hear of any benchmarkers currently being used at accounts, primarily from dining programs with operating a fee account.

    Thank you for your assistance.

    Ann Marie Powell
    Director of Dining & Auxiliary Services
    American University

    Ann Marie Powell
    American University
    Director of Dining & Auxiliary Services
    Washington DC
    United States

  • 2.  RE: Dining Fee Accounts Benchmarkers

    Posted 01-10-2020 10:22

    Good morning.


    I would also appreciate any information that you are willing to share.

    Thank you.



    Robert A. Valenti

    Associate VP for Auxiliary Services

    Fairleigh Dickinson University

    1000 River Road H-CF2-02

    Teaneck, NJ 07666

    : 201-692-7391 cell: 201-638-3127 |:




  • 3.  RE: Dining Fee Accounts Benchmarkers

    Posted 01-14-2020 09:12
    I am also interested in hearing what you have found out. Thank you

    Jessica Bender, CASP, MBA
    Palm Beach State College
    Manager, Aux. Services & College Card
    Lake Worth FL
    United States

  • 4.  RE: Dining Fee Accounts Benchmarkers

    Posted 01-15-2020 10:42
    All...  You ask a very good question that is very hard to answer (without the context of the deal in its totality).  In working with clients across the country, assisting with negotiating many fee agreements, there is a wide range of fees and how they are calculated.  Items that impact a Management and Administration Fee include:

    -  Capital investment
    -  Shared Procurement Rebates
    -  Financial budget accountability (financial risk for a missed budget)
    -  Performace based risk/reward programs
    -  In-kind offers
    -  Allowable expenses for corporate allocated costs
    -  Commissions and other returns to the University
    -  University retained meal plan cost override
    -  Term of contract
    -  Others

    We have seen Management & Admin fees as low as +/- 3% and as high as +/- 15% of total revenue and/or managed volume.  As you can see, a wide range.

    Our team typically evaluates all financial levers and contractual commitments, benchmark them against other contacts and assist with the validation of a "fair and reasonable" fee for the operator.  Keep in mind, beating up an operator over fee during contract negotiations can be counterproductive over the long term, if the contract does not turn out to be financially sustainable for the operator.

    Matt Mundok
    Innovative Hospitality Solutions
    Foodservice Management Consultants