Chapter 2: The Scale Dilemma: When Fewer Students Means Higher Costs

Industry

Understanding the Challenge

Dining programs thrive when volume is high. The more meals served, the easier it becomes to spread costs across labor, ingredients, and equipment. At Division III schools, this scale often isn’t achievable. With fewer students purchasing meal plans, every meal comes with a higher price tag, and directors must make careful decisions about where to allocate resources. The difficulty doesn’t stop with financials; it’s also about how to keep students engaged when variety and convenience are harder to maintain on a smaller scale.

Key Pressure Points

  • Narrow Menu Variety
    When participation is limited, dining services can’t always justify bringing in a broad range of ingredients. This can reduce menu diversity and make the program feel repetitive. Students today are used to a wide variety of food choices in their daily lives, and when campus dining can’t keep pace, dissatisfaction can grow.
  • Concentrated Dining Locations
    Maintaining multiple outlets requires steady student traffic, but a smaller customer base makes that unrealistic. Most programs concentrate operations into one central dining hall, which can create crowding during peak times and limit access for students who live or study farther away.
  • Shortened Operating Hours
    Without enough demand, late-night or extended service hours are hard to justify. Students with irregular schedules such as athletes, performers, or those with evening classes may feel underserved, and some turn to off-campus dining as a result.

Positive Takeaways

While limited economies of scale introduce clear constraints, they also create opportunities for programs to think differently about how they serve students:

  • Closer Student Feedback Loops
    With fewer students, directors often have more direct access to feedback. This creates the chance to tailor offerings to specific student interests and respond more quickly to changing expectations.
  • Room to Pilot New Ideas
    A smaller audience can allow programs to test new concepts in a more controlled setting. Whether experimenting with themed nights or rotating specialty items, limited scale can make it easier to pilot changes without the logistical challenges faced at larger institutions.
  • Tighter Community Feel
    A single dining location, while sometimes restrictive, also has the potential to become a central hub of campus life. Students are more likely to interact with peers across classes and activities, reinforcing the role of dining as a shared community experience.

Real-world Scenario

Consider a small university with 1,700 students, where only 60% are on meal plans. The dining director runs one main dining hall and a small café in the library. Extended late-night hours aren’t feasible, so students with evening rehearsals or games often eat earlier than they’d prefer. Menu variety is modest, but when a weekly “international flavors” station was introduced, students responded positively, and participation spiked during those meals. By using student feedback to guide small changes, the program found ways to deliver more value even within its limitations.

Key Takeaways

  • Lower meal plan participation drives up costs per meal and limits how much variety, coverage, and flexibility a program can offer.
  • Smaller-scale programs can still use direct student input, targeted pilots, and a community-centered approach to strengthen dining’s role on campus.
  • The challenge isn’t just money; it’s about finding ways to keep students engaged and satisfied when resources are stretched.