At many other colleges, such at Pennsylvania State University and New York University, their equivalent of DBA can be used outside of campus at certain local small businesses. Yet Dartmouth Dining Services allows DBA to be used on campus only, thereby controlling every aspect of food at Dartmouth — from the price, to the quality and variety. Because the least expensive meal plans are those made up largely of DBA, DDS has an almost complete monopoly of what many students can buy and eat.
It is clear why Dartmouth would want a monopoly — through DDS, the College can make the most money possible while limiting competition. A monopoly, however, can only benefit the College at the expense of the students. DDS can get away with inflated prices because we need to use our DBA at DDS establishments. Odwalla smoothies, for example, are sold for $4 each at Novack, which is roughly a 12 percent markup from their price at CVS. Most other commercial products that students buy — from Silk soymilk to Sabra hummus — are sold for much more than they would be outside Dartmouth. The prices of prepared food sold by DDS are inflated as well. I could make a plain turkey sandwich for much less than the $5.55 they cost at Collis. The convenience of on-campus dining may account for some of this inflation, but this inflation is mostly due to the fact that Dartmouth knows most students do not have much of a choice.
By allowing students to use their DBA at local businesses, Dartmouth would be forced to compete with outside businesses for a share of students’ money, thereby forcing them to provide products that students want at a reasonable price. Dartmouth may be reluctant to do that out of fear of losing money, but DDS is not exactly a struggling program — it has has a history of incredibly large profits. During the 2010 to 2011 fiscal year, the most recent year for which we have DDS-specific data, it made $1.3 million in net income. DDS now is listed in the College’s accounts as an auxiliary enterprise, along with the Office of Residential Life and other programs. In 2013, auxiliary income increased by almost $5.3 million. Despite the inflated expense of the various meal plans, students still spend an average of about $200 extra DBA each term. As far as profits are concerned, the monetary risk for Dartmouth is more than manageable — especially when factoring in the benefits of a wider selection and more reasonably priced options for students.
Moreover, Dartmouth could still profit through partnering with local businesses by having them give a percentage of their profits from DBA purchases to the College. Since allowing DBA in off-campus restaurants would increase their business as well — business that suffers from DDS’s current monopoly — its reasonable that restaurants might be willing to make such an agreement.
The main benefit to this proposal would be the increase in student satisfaction by giving them the freedom to choose where and how they spend their money — especially because DDS would not lose as much business as it may first seem. During the cold days and nights of the winter and fall, students will be reluctant to go far from campus to get food. Even if students order delivery, potential delivery fees and tips often make it more expensive than going to Novack or the Hop. Eating on campus is also more convenient — few restaurants in town continue delivering late into the night, leaving few places outside of DDS to eat during later hours. During the week, few students would want to get up extra early to eat breakfast off-campus before class.
Dartmouth needs to sacrifice some short-term profits to provide long-term benefits for both students and the College. Allowing students to use DBA at off-campus businesses may not seem immediately profitable, but partnering with local businesses and maintaining the near-monopoly over late-night eating would offset the potential drop in profits. Ultimately, Dartmouth is a competitive academic institution, and as such it has an innate stake its students’ happiness — and that means finally bringing the spirit of reform to DDS.
