Colleges and universities have debated whether to self-operate their dining programs or contract with a large food service provider for decades. The stakes are high—cost, quality, student experience, financial sustainability, and institutional control all come into play.
Many institutions believe self-operation provides greater menu flexibility, control, and alignment with institutional values, but they worry about losing the purchasing power, rebates, and operational efficiencies that large food service contractors bring to the table.
Through our work at Porter Khouw Consulting (PKC), we’ve helped institutions navigate this decision clearly, ensuring they don’t walk blindly into a self-op model without a fully developed strategy. A self-operated dining program can be highly successful—but only if it follows a disciplined approach with the right systems, leadership, and financial oversight in place.
A recent self-op feasibility study PKC completed for a major university in the Midwest United States illustrates both the challenges and opportunities of self-operation. It’s clear that self-op dining can succeed, but only under the right conditions.
To guide institutions considering this transition, I’ve developed The Porter 10X Self-Op Promises—a framework for ensuring that a self-operated dining program is not just viable but thriving.
The Porter 10X Self-Op Promises
These 10 fundamental promises define the difference between a successful self-operated dining program and one that struggles financially, operationally, and strategically.
Each promise is a non-negotiable requirement for self-op success. If your institution is unwilling or unable to commit to these, then self-operation is likely not the best choice.
- We Promise to Fully Invest in the Required Pre-Opening Capital
A self-operated dining program requires a significant upfront financial investment to cover:
✅ Management hiring and training (starting up to 18 months before launch).
✅ IT, business systems, and labor forecasting technology.
✅ Kitchen renovations, equipment repairs, and facility branding.
✅ Procurement, vendor contracts, and supply chain integration.
In the recent self-op feasibility study, we estimated a $10 million pre-opening capital requirement—primarily for hiring management ($6M), IT systems ($1.7M), and facility investments ($1.75M). Institutions must be financially prepared to make these investments or risk operational and financial failure.
- We Promise to Hire Highly Skilled Leadership Before We Need Them
One of the biggest mistakes institutions make when going self-op is delaying key leadership hires until just before launch. Instead, a highly skilled leadership team must be in place at least 12–18 months before the transition.
This includes:
✔️ A Director of Dining Services with experience running a complex, high-volume food service operation.
✔️ A Director of Finance & Procurement to ensure proper financial controls, reporting, and vendor negotiations.
✔️ A Director of Retail & Catering Operations to maximize non-board revenue streams.
Without experienced leadership, the self-op model will struggle with cost control, staffing, and operational discipline.
- We Promise to Implement Advanced Procurement and Inventory Systems
Self-op dining programs must compete with billion-dollar contractors that have sophisticated purchasing networks. Institutions must implement:
📌 A fully integrated food procurement system to manage costs and vendor contracts.
📌 Weekly inventory tracking at every location to prevent waste and control expenses.
📌 Direct supplier negotiations to secure volume discounts and manufacturer rebates (which can range from 5% to 30%).
Without these systems, food costs will quickly spiral out of control, undermining the financial viability of self-operation.
- We Promise to Utilize Data-Driven Labor Forecasting and Scheduling
Labor is the single largest expense in a self-operated program. The self-op feasibility study projected:
💰 $126 million in management wages & benefits over 10 years
💰 $140 million in hourly wages & benefits over 10 years
Institutions must implement labor forecasting and scheduling technology to:
✅ Optimize staffing levels based on real-time demand.
✅ Prevent excessive overtime and labor inefficiencies.
✅ Ensure compliance with wage laws and university policies.
If labor costs aren’t tightly controlled, the self-op model will become unsustainable.
- We Promise to Benchmark Financial Performance and Adjust Accordingly
A self-operated dining program must have weekly and monthly financial reviews—just like a corporate food service provider.
📊 Weekly P&L statements by location.
📊 Monthly financial roll-ups with performance vs. budget.
📊 Annual benchmarking against peer institutions and contracted services.
Without financial accountability, self-op models often run in the red, requiring continuous university subsidies.
- We Promise to Maintain an Entrepreneurial, Service-Driven Culture
Self-op programs cannot operate like a bureaucratic university department—they must function like a customer-focused business.
This means:
✔️ Daily customer service training for all staff.
✔️ Menu innovation to keep offerings fresh and competitive.
✔️ Engagement with students through social media, surveys, and advisory boards.
A contractor’s biggest advantage is its ability to deliver consistently, professional service—self-ops must match this standard.
- We Promise to Create a Competitive, Flexible Meal Plan Structure
Meal plans must be designed to drive participation and revenue, not just meet minimum board requirements.
📌 Unlimited dining options that encourage social engagement.
📌 Flexible meal plan tiers to appeal to different student demographics.
📌 Commuter and faculty/staff meal plans to increase revenue.
A poorly structured meal plan can cripple the financial sustainability of self-op dining.
- We Promise to Fully Utilize Campus Retail and Catering as Revenue Drivers
A financially viable self-op program doesn’t rely solely on board plans—it maximizes:
✔️ Retail dining concepts (fast casual, coffee shops, convenience stores).
✔️ Catering for campus events and external clients.
Retail and catering revenues are critical to offsetting the higher costs of self-op dining. Institutions must develop a strong retail and catering business plan.
- We Promise to Invest in Student-Focused Dining Experiences
Dining isn’t just about food—it’s about building community and enhancing student life.
Self-op programs should:
✔️ Design social dining environments that encourage interaction.
✔️ Implement student engagement programs (theme nights, chef pop-ups).
✔️ Prioritize health, wellness, and sustainability initiatives.
- We Promise to Plan for Long-Term Financial Sustainability
The biggest risk of self-op dining is failing to account for long-term cost growth.
📌 Wage increases (minimum wage, union contracts, benefits).
📌 Capital reinvestments in facilities and equipment.
📌 Market fluctuations in food costs.
Institutions must project 10+ years out to ensure the self-op model remains viable.
Final Thoughts: Is Self-Op Right for Your Campus?
If your institution can commit to the Porter 10X Self-Op Promises, then self-operation can be a game-changer—delivering financial sustainability, student satisfaction, and institutional control.
At Porter Khouw Consulting, we help institutions strategically evaluate self-op transitions, ensuring they have the right plan, leadership, and systems in place before making the leap.
