If you've ever wandered through some of the dorms on the University of Michigan campus like East Quad, North Quad, or South Quad you have probably run into one of the "Java Blu" cafes tucked in a corner somewhere near the normal dining hall. You might have only seen it out of the corner of your eye or just barely registered the bright blue neon signage with the word "Java" in fancy, loopy script. These "Java Blu" cafes are part of the University of Michigan's "retail" dining operations and are considered separate entities from the normal dining halls most students think of when they think of on-campus dining. I've been lucky enough to have been a part of South Quad's Java Blu for the past year and half as a Student Manager after it opened last August with South Quad's grand re-opening.
And let me tell you, that first year was rough. We struggled those first few months trying to figure out what students wanted to eat and drink. We knew they often only had a couple of minutes in between classes, so we wanted to create a menu that was quick and appealing to the masses. We were also in direct competition with all of the fast food options in the Union directly across the street from us. These restaurants took quite a bit away from out potential profits. With South Quad mainly housing freshmen, we also struggled with visibility within the student body. Most of the students didn't even know we were in the building! They certainly didn't know what kinds of foods and beverages we were offering.
By far, our biggest problem that first year was our lack of unique food and beverage options. Last year was the first year that all freshmen came in with an unlimited meal plan. As a "retail" dining unit this meant we were then faced with even more competition from the traditional dining halls. The fact that we served the identical coffee and the identical sandwiches that students could get in the dining halls was debilitating to our bottom line. Why would a student pay $7.49 for a sandwich they could have made to their exact specifications in the dining hall for just one of their endless meal swipes? Why would they pay for a cup of coffee if they could swipe in and get as much coffee as they wanted from the dining hall? Even our cookies were the same kind of cookies you could get from the dining halls! Our product line made no sense, and as soon as students took enough notice of us to find our location within the building, so too would they realize that it made much more financial sense to just skip us and go straight to the dining hall.
The hope is that with this completely unique product line, so
So stay tuned to see how we go about coming back from such a rough start last year. We came out of the gate swinging so hopefully we can sustain the momentum during this school year and become bigger and better than we imagined!
For now, and forever, Go Blu! (Java Blu...)
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ReplyDeleteYour post provided some great insight into something that I know of, but am not so familiar with on campus. Like any business, it makes sense that you guys had to struggle for a bit to figure things out. I am glad to see that you have identified some ways in which you can take JavaBlu to the next level. I think stocking more unique products is a great solution and will hopefully capitalize upon students' zero moment of truth -- maybe they had always gone to the dining hall to save time/money, but once they realize you now have unique products, they will become an active Java Blu shopper and utilize this alternative (Babin/Harris 26). Washtenaw Dairy doughnuts are always a win!
ReplyDeleteSource: Babin, J.B., Harris, E.G. CB, Student Edition 7
I worked as a barista at Victors for two years, so I totally understand that it can be a very fast-paced and sometimes stressful work environment. I hadn't even considered how the new unlimited dining plans would affect the dorm café businesses until I read your post. When I was an underclassman, I always lumped places like Java Blu in with the North Quad dining hall, so it's great that you're using a differentiated marketing strategy (Angell Lecture 9/14) to clearly separate yourselves. I would argue that you're also using somewhat of a niche marketing strategy (Angell Lecture 9/14) by offering specialty items and trying to appeal to a slightly different audience than the dining hall. People who are willing to pay more for the specific Washtenaw Dairy doughnut and Hazlenut coffee they want are a smaller sub-market to be marketed to. I'm interested to see how this plays out and hope you are successful!
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