USD - Chartwells Questions.pdf

University of South Dakota RFP Questions

General Questions

1. Will you consider a longer contract term (than what is noted in the RFP)?

No, the initial contract term of five years as noted in the RFP is the preferred contract length.

2. What is the preferred financial model: profit and loss, management fee, or fixed cost?

At this time, the institution does not have a preferred financial model. Respondents are encouraged to propose the financial structure that they believe best aligns with their operational approach and provides the greatest overall value to the institution. The evaluation process will consider the merits of each proposal, including financial sustainability, risk allocation, service quality, and long-term partnership value. Vendors may submit the model they feel is most appropriate and are welcome to explain why it is the best fit for the institution.

Capital Investment

1. What was this unamortized investment spent on?

The institutions currently benefit from various vendor-supported programs and investments that may differ by campus and contract year – however information regarding contributions, scholarships, sponsorships, capital investments, donations, and other in-kind support provided under the current agreement will not be disclosed. Proposers should describe any value-added services, financial contributions, scholarships, capital commitments, sponsorships, or other benefits they are proposing as part of their response.

2. Would you consider a longer amortization period than what is requested in the RFP?

Investment proposed by the vendor must be amortized over the length of the agreement.

Enrollment

1. Please outline the projected enrollment growth for the next five years:

a. FY2027

b. FY2028

c. FY2029

d. FY2030

e. FY2031

Given the enrollment cliff, international student market instability, and decreased time to degree, USD expects stable to slightly declining enrollment over the next five years. Growth is likely to come through student and staff populations who are not required to purchase meal plans.

2. Please describe any plans and relevant timing to increase the residential student population on campus, i.e., new residence halls and new housing requirements.

Planned renovations to Beede and Mickelson Residence Halls are projected to take place in FY29 and FY32. During these years, a complete renovation of the halls will take place, bringing them up to modern standards. These halls will be offline and will not house students during these fiscal years. Current capacity for Beede Hall is 283 beds and Mickelson Hall is 289 beds. It is anticipated that the total number of meal plans offered when halls are offline will decrease.

Meal Plans and Meal Plan Enrollment History

Voluntary Meal Plans

1. Who retains any unused flex dollars at the end of spring semester?

The current agreement includes meal-plan pricing and other financial arrangements related to meal plan revenue. The campuses are not requiring proposers to replicate the current pricing structure. Proposers should clearly identify their proposed meal-plan pricing methodology, including any daily rates, commissions, fees, revenue-sharing arrangements, or retained revenue components included in their proposal.

2. Please provide the amount of unused flex dollars at the end of each semester for the most recent three years for all schools: (Note: some schools provided this, but not all)

a. Spring 2026 -

b. Fall 2025 -

c. Spring 2025 -

d. Fall 2024 -

e. Spring 2024 -

f. Fall 2023 -

Please see Appendix G, Table 28 on page 59 of the RFP for annual unused flex for the past three years. Unused flex from fall semester carries over on the students account to the spring semester.

3. Is there a meal exchange or meal equivalency offered? If so, please provide the details: how many per week, which locations accept them, during what timeframe, and the exchange value.

No, USD does not currently have a meal exchange or equivalency program.

4. Are free meal plans provided to RA’s, faculty, staff or others? If so, which meal plan and how many are offered each semester?

No, any meal plans offered to RA’s are paid for by USD.

5. What is the number of billing days for each semester?

Fall 2026 is 112 days and Spring 2027 is 108 days for a total of 220.

6. What is the current override the school receives from meal plan sales, i.e., the difference between the sales price and the actual cost of the meal plan?

This information is not available.

Sales History

1. Please provide the residential sales history by tender for the most recent three years:

Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Meal Swipe 1,561,130 1,802,171 1,767,087 1,785,091 1,636,212 1,697,245

Flex Dollars 22,530 24,070 23,503 34,935 20,740 42,981 Coyote Cash 444 518 1,192 1,946 9,598 3,980 Cash/Credit/Debit 30,170 38,271 17,643 14,366 36,398 35,182

The above has been adjusted to report Coyote Cash on the Cash line and Cash sales with Credit/Debit based on available reporting.

2. Please provide the current door rates for the following meal periods in residential dining halls:

a. Breakfast:

b. Lunch:

c. Dinner:

d. Brunch:

e. Late Night:

The current agreement includes meal-plan pricing and other financial arrangements related to meal plan revenue. The campuses are not requiring proposers to replicate the current pricing structure. Proposers should clearly identify their proposed meal-plan pricing methodology, including any daily rates, commissions, fees, revenue-sharing arrangements, or retained revenue components included in their proposal.

3. How many door price meals were sold in the most recent two semesters?

4,002 meals were purchased in Fall 2025 and 3,429 meals were purchased in Spring 2026.

4. Please provide the retail dining sales history by tender for each location on campus. Are the sales figures below inclusive or exclusive of sales tax?

Exclusive of sales tax. Meal swipes are only used in residential dining.

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Chick-fil- A

Meal Swipe Flex Dollars 419,755 423,697 420,886 446,837 412,154 402,283 Coyote Cash 8,390 10,548 10,255 14,626 11,414 14,693 Cash/Credit/Debit 117,297 142,786 123,068 147,772 124,377 135,231

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Peking Plate

Meal Swipe

Flex Dollars 125,565 134,885 120,915 49,937 143,207 110,050 Coyote Cash 2,074 4,090 2,952 1,600 2,493 5,312 Cash/Credit/Debit 18,374 22,238 16,730 7,899 19,313 30,859 Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Qdoba Meal Swipe

Flex Dollars 329,077 334,086 326,939 340,393 312,711 310,129 Coyote Cash 6,052 9,360 9,738 11,014 8,855 11,327 Cash/Credit/Debit 80,465 95,637 81,385 96,687 84,254 93,688

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023

WOW

American Eats

Meal Swipe Flex Dollars 222,952 204,736 196,338 182,744 202,279 185,921 Coyote Cash 3,943 1,142 5,225 6,680 5,476 6,133 Cash/Credit/Debit 23,508 31,488 28,468 32,755 30,719 34,692

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023

MUC C-

Store

Meal Swipe Flex Dollars 186,224 109,170 153,216 113,120 171,500 123,856 Coyote Cash 2,096 2,659 3,785 4,066 3,645 2,996 Cash/Credit/Debit 25,247 31,503 29,671 34,362 34,123 39,339

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Coyote Village Market

Meal Swipe Flex Dollars 251,396 176,394 239,068 162,424 214,372 155,184 Coyote Cash 1,331 1,290 2,325 1,580 2,327 1,667 Cash/Credit/Debit 11,751 16,531 14,385 14,326 14,067 15,687

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Beede Bump

Meal Swipe Flex Dollars 368,224 290,786 395,008 287,183 379,093 280,136 Coyote Cash 1,853 2,548 2,972 2,357 3,446 3,141 Cash/Credit/Debit 16,420 25,202 22,608 31,267 20,826 26,062

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 MUC We Proudly Brew Starbucks

Meal Swipe Flex Dollars 129,645 145,992 134,734 129,240 146,690 172,891 Coyote Cash 1,096 2,036 1,940 3,040 3,203 3,920 Cash/Credit/Debit 20,137 27,295 22,170 26,801 28,243 40,704

Location Tender Spring 2026 Fall 2025 Spring 2025 Fall 2024 Spring 2024 Fall 2023 Einstein Bagel

Meal Swipe Flex Dollars 149,459 141,416 133,335 103,019 Coyote Cash 3,056 5,171 2,973 18,544 Cash/Credit/Debit 23,738 30,690 25,472 28,530

5. Are Flex Dollars taxed at the point of sale when redeemed? If so, what is the tax percentage amount?

During the last procurement process, there was confusion regarding the treatment of sales tax within the pricing submitted by respondents. To avoid a similar issue, all pricing provided in proposals should include any applicable sales tax and be presented as the final price that would be charged to students. The universities will not add sales tax to the prices proposed by the vendor. Therefore, vendors must clearly identify any sales tax assumptions included in their pricing and specify their responsibility for calculating and remitting applicable taxes. All tax-related assumptions should be clearly documented to ensure proposals can be evaluated on a consistent basis and that the resulting agreement accurately reflects the parties' intent.

For clarity, Flex Dollars are subject to sales tax at the point of sale and are taxed separately by the food service provider when purchases are made. Below are the current sales tax rates applicable at USD, as defined by the South Dakota Department of Revenue. Please note that tax rates are subject to change based on state and local tax decisions. It is the vendor's responsibility to remain informed of and comply with the applicable tax requirements for the location(s) included in its proposal and to incorporate any applicable taxes into its proposed pricing.

a. State + municipal = 6.2%

b. State + Municipal + Municipal gross = 7.2%

c. State + municipal + tourism = 7.7%

d. State + municipal + municipal gross + tourism = 8.7%

6. Are Flex Dollars billed to the school as part of the meal plan or billed separately when used?

Flex dollars included as part of the meal plan are billed to the student at the beginning of each semester. Additional flex dollars can also be added to a card at any time and are paid directly rather than being billed to the student’s account.

7. Are meal swipes or declining balance monies allowed to be used at any off-campus venues? If so, please describe in detail how and where they can be used. What is the total amount used in off-campus venues for the most recent year?

No, meal plan dollars are only used at on-campus locations provided by the food service vendor. N/A

8. Please provide the amount of additional Flex Dollars sold beyond standard meal plans for the most recent year.

$33,426

9. Please provide customer counts by meal period for each retail location.

We do not have retail locations set up by meal period.

10. What is the current commission rate being paid to the university by the contract for retail sales?

The current agreement includes meal-plan pricing and other financial arrangements related to meal plan revenue. The campuses are not requiring proposers to replicate the current pricing structure. Proposers should clearly identify their proposed meal-plan pricing methodology, including any daily rates, commissions, fees, revenue-sharing arrangements, or retained revenue components included in their proposal.

Retail Brands

1. For each retail brand, who holds the franchise agreement, the contractor or the school?

The contractor holds the franchise agreement.

2. When does the current franchise agreement expire for each location?

Agreements are non-transferable and a new agreement would have to be negotiated directly with each brand.

3. When was the last brand refresh? When is the next scheduled refresh?

Qdoba and Chick-fil-A were last completed in summer 2020. WOW American East was completed in summer 2022. Dunkin’ was completed in summer 2026. The next scheduled refresh would be part of the new franchise agreement.

4. With Chick-fil-A changing its model and partnering directly with Colleges/Universities, what is the plan for those schools that have a Chick-fil-A on campus?

While Chick-fil-A is a highly desirable food selection for students, we want to maintain options for students with minimal impact to the revenue the institution receives. Vendor proposals should include a recommendation for the Chick-fil-A retail location if the new model provided by Chick-fil-A corporate is not a desirable option.

Participation and Redemption

1. Please provide meal plan participation or a copy of the redemption report for the past two semesters, by residential location. This is the number of meal swipes/exchanges used versus the amount available.

The only location that board meals may be utilized is in the all-you-can-eat residential dining area. All other locations require the use of flex or cash/card payment.

Plans 2025 Fall Available

2025 Fall Used

2026 Spring Available

2026 Spring Used

Coyote 10 23,200 7,651 22,080 8,539 Coyote 17 14,960 4,403 13,872 5,640 Yote Pack 55 16,005 8,430 15,675 8,649 Yote Pack 70 73,080 38,766 70,560 36,917 Yote Pack 120 13,320 7,052 12,600 7,416 Paw Print Flex 0 148 0 0 Paw Pleaser Flex 0 107 0 0 Paw Pride Flex 0 134 0 0 10 Block 20 0 20 16 20 Block 960 321 960 822 Cancelled or Withdrew 0 0 0 62 Total 141,545 67,012 135,767 68,061

2. For residential dining halls, please provide the number of board meals available/sold for the most recent two semesters.

This data is reflected in the prior question.

3. Regarding #2 above, please provide the number of board meals served each semester, by meal plan.

This data is reflected in the prior question.

4. How many meal exchanges were used each semester for the most recent two semesters?

USD does not currently have a meal exchange or equivalency program.

Operating Days

1. Please list the number of operating days for each residential and retail location on campus:

Location Fall Operating Days Spring Operating Days Summer Operating

Days Chick-fil-A Meal plan days minus

16 – closed each Sunday

Meal plan days minus 16 – closed each Sunday

Peking Plate Mon-Fri during classes, closed on weekends, closes Wed of finals

Mon-Fri during classes, closed on weekends, closes Wed of finals

Qdoba Meal plan days minus 16 – closed each Saturday

Meal plan days minus 16 – closed each Saturday

WOW American Eats Mon-Fri during classes, closed on weekends, closes Wed of finals

Mon-Fri during classes, closed on weekends, closes Wed of finals

Dunkin’ Meal plan days Meal plan days 0 MUC C-Store Meal plan days Meal plan days 0 Coyote Village Market Move in through graduation Move in through graduation

Beede Bump Move in through graduation

Move in through graduation

2. Do any locations on campus remain open during academic breaks or holidays? If so, please list which ones remain open and the days and hours of operation of each.

No

Summer Camps and Conferences

1. What is the commission rate the university receives on camps/conferences sales?

The current agreement includes certain commissions, fees, and retained revenue arrangements associated with specific revenue streams. Rather than requiring proposers to match the existing financial structure, the campuses are seeking each proposer's recommended financial model, including any commissions, revenue sharing, fees, or other financial arrangements proposed as part of its response.

Catering

1. Who sets up and breaks down the rooms (tables/chairs/buffet tables) for catering events?

Room set ups are typically completed by facilities staff, but is not responsible for table coverings, decorations, etc.

2. Who owns the current catering software? The Vendor

a. Who pays for licensing? The Vendor

3. Who owns the catering equipment on campus? USD

4. Please provide a list of all current catering equipment that is in usable condition.

A full list of equipment inventory will be available to the selected vendor.

5. What is the commission rate the university receives from the contractor on catering sales?

The current agreement includes certain commissions, fees, and retained revenue arrangements associated with specific revenue streams. Rather than requiring proposers to match the existing financial structure, the campuses are seeking each proposer's recommended financial model, including any commissions, revenue sharing, fees, or other financial arrangements proposed as part of its response.

Athletics / Concessions

1. Do you have an athletics training table? If so, please provide details regarding hours of operation, meal plan holders, participation, and other relevant information.

No, USD does not have an athletics training table.

2. Are students able to utilize their meal plans for concessions?

Yes, flex dollars can be used at concession stands.

3. What is the commission rate the university receives from the contractor on athletic/concessions sales?

The current agreement includes meal-plan pricing and other financial arrangements related to meal plan revenue. The campuses are not requiring proposers to replicate the current pricing structure. Proposers should clearly identify their proposed meal-plan pricing methodology, including any daily rates, commissions, fees, revenue-sharing arrangements, or retained revenue components included in their proposal.

Equipment and Point-of-Sale

1. Please provide a list of all the current equipment, the approximate age and the remaining life for each.

All equipment, smallwares and infrastructure utilized by the current vendor is owned by the university. A full list of equipment inventory will be available to the selected vendor.

2. Please provide a list of all smallwares on campus owned by the university.

All equipment and smallwares is owned by the university. A full list of equipment will be available to the selected vendor.

3. Please provide the make, model, and date of purchase of the current Access and POS system.

Dining Locations QTY Model Purchase End of Life Comments Coyote Card Office 1 TB QK10 Spring 2022 2027 Need to replace in Summer

Residential Dining 1 TD QK10 Spring 2022 2027 Need to replace in Summer

Food Court & Market Locations (Peking Plate/Qdoba/WOW/MUC Market)

4 TD QK10 Spring 2022 2027 Need to replace in Summer

Concessions 38 TD QK10 Spring 2022 2027 Need to replace in Summer

Chick-Fil-A & Dunkin’ 3 Units leased

Leased through Grubhub

Leased through Grubhub

4. How much is the annual fee for the card access and POS systems and equipment? Who pays the annual fees?

The average cost of the card access system allocated to the food service operations was $141,289 over the last three years. The vendor contributes a portion of this cost, and the university covers the remainder.

Staffing

This information is managed by the vendor and not provided to the university.

1. Is there a union currently representing the food service employees? If so, please provide a copy of the current collective bargaining agreement (CBA), if available.

2. Please provide a roster of all current positions, including the number of hours worked per day, number of days per week, and number of weeks per year. What is the current hourly rate for each associate, tenure, or original date of hire and benefits enrollment breakout?

3. How many weeks per year are the staff paid?

4. Please provide the current tax and benefit rate charged by the incumbent in the monthly P&L that you receive.

5. How many students are currently employed in food service?

6. How many work study students are there currently in dining services?

USD does not currently have work study students in dining services.

7. How many hours per week are worked by students?

8. Who currently pays the students?

The vendor pays all staff directly, including students.

Facilities

1. Please provide CAD drawings and/or blueprints of the existing dining spaces and kitchen areas.

PDFs will be provided via email to offerors present during the pre-submission conference call.

Survey and Benchmarking Data

1. Please provide the past three years of surveys and benchmarking results from dining services from outside agencies, such as NACUFS, EBI, and NASPA.

No surveys or benchmarking have been conducted by outside agencies. All surveys and benchmarking have been conducted by vendor and is proprietary.

In-Kind Donations/Institutional Support

1. Please list all in-kind donations and the annual amount you currently receive.

a. Catering: $

b. Food Insecurity: $

c. Athletics: $

d. Sustainability: $

e. Scholarships: $

f. Other: $ The institutions currently benefit from various vendor-supported programs and investments that may differ by campus and contract year – however information regarding contributions, scholarships, sponsorships, capital investments, donations, and other in-kind support provided under the current agreement will not be disclosed.

Proposers should describe any value-added services, financial contributions, scholarships, capital commitments, sponsorships, or other benefits they are proposing as part of their response.

2. How many interns does the current contractor hire annually?

This is information managed by the vendor and not provided to the university.

Bundled Services

1. Who currently provides the following services on campus? If contracted, please provide the year the contract expires.

a. Vending: USD contracts with LinPepCo. The current contract expires July 31, 2036.

b. Cleaning/Custodial: University

c. Plant Operations and Maintenance: University

d. Grounds: University

Additional questions:

Can you update the hours of operation (HOO) per location (for the USD campus). During our RFP tour, it was referenced that the HOO were incorrect for a few destinations.

The only hours of operations that were misstated in the original RFP is for the Peking Plate location. Monday through Thursday the hours listed as 11 am – 2 pm was incorrect and 11 am

– 7 pm is the correct hours of operations. This is noted in RFP Amendment #1.

USD:

Athletics concession photos: Request pictures of the softball/baseball concession areas (USD).

Photos of the softball concession stand, and the concession trailer located between the Track & Field and Soccer complex are included at the end of this document.

USD Sioux Falls enrollment: Request enrollment information for the Sioux Falls campus to help determine the appropriate scale and viability of a food service concept there Below is the USD-SF Campus enrollment for the prior six years.

2026 663 2025 648 2024 528 2023 477 2022 467 2021 434

Please identify any existing financial obligations, unamortized investments, transition costs, or other financial commitments associated with the current dining services agreement that the selected partner will be expected to assume or satisfy. If exact amounts cannot be disclosed at this time, please describe how and when these obligations will be calculated and communicated to respondents.

All financial obligations are included in the amortization schedule included in in Appendix I of the RFP.

Please update or confirm the responsibilities listed below:

RESPONSIBILITY SUMMARY

VENDOR CLIENT

SECTION 1. FOOD

Food Purchasing X Processing of Invoices X Payment of Invoices X

SECTION 2. NON-MANAGEMENT LABOR

Payment of regular full-time salaries X Payment of student (part-time) salaries X (if through University Work Study Program) N/A

Payment of sick leave pay earned after X Chartwells starts services X Payment of holiday pay X Payroll taxes X Fringe benefits and insurance X Preparation of payroll X Processing of payroll X Training and development cost X

SECTION 3. MANAGEMENT

Salaries X Taxes, fringe benefits and insurance X District and regional management costs X Management relocation X

SECTION 4. ADDITIONAL ITEMS

Telephone local X Telephone long-distance X Removal of trash and garbage from front and back of house X Payment for the removal of trash and garbage from premises X Depreciation of investment X Depreciation of equipment X Replacement of china, glass and flatware X

Initial inventory of dishes, silverware, and other foodservice equipment Shared Shared Replacements of expendable equipment (pots, pans, etc.) X Repair to infrastructure (vents to outside, gas line) X Cost of repairing equipment X Fire insurance: SEE RFP X Products and public liability insurance: SEE RFP X Gas and electric utilities metered to foodservice X

SECTION 5. SUPPLIES

Detergent X Paper supplies X Postage X Taxes/licenses X Pest control (current client, however desire is for vendor responsibility under new contract) X Laundry X Uniforms X

Menu paper X

SECTION 6. SALES AND USE TAX

Sales & Use Tax on cash sales and purchases from Service vendor X Sales & Use Tax on Board Plan and declining balance X Proposals should clearly identify whether sales tax is included in or excluded from any pricing provided and specify which party is responsible for remitting applicable sales tax. Vendors should ensure that all pricing assumptions related to taxes are clearly documented so that proposal comparisons can be made on a consistent basis and the resulting agreement accurately reflects the parties' intent.

SECTION 7. CLEANING

Equipment and hoods within arm’s reach X Vent from hoods to outside X Floors Shared Shared Walls X Ceilings and fans X Light Fixtures X Tables and Chairs Shared Shared Locker Rooms (foodservice associates) X

Public Restroom X

See page 62 of the RFP under the Dining Facilities Care & Cleanliness section for specific information related to cleaning and care of the dining facilities.

SECTION 8. SERVICES

Bussing of dishes from tables in cafeteria, i.e., self-bussing, banking receipts X

Photos of USD Softball Concession Stands and Track & Field/Soccer Complex Concession Trailer that were omitted from the campus tour due to weather conditions.