Officials weigh contracts’ benefits and drawbacks

Natalie Spray

Commercial chains have a presence on campus. Already the smell of freshly baked bread, coffee and Chinese food fills the air as students walk down the stairs of the Memorial Union. Other trends – such as university-endorsed cell phones – won’t be followed, at least at Iowa State.

Other Iowa universities enter into contracts with chains such as McDonald’s and Subway, particularly in student unions.

Krispy Kreme Doughnuts was competitively brought onto the UNI campus, along with other franchises, said Roxanne Conrad, director for purchasing services at the University of Northern Iowa.

The University of Iowa has contracts with Coca-Cola and Starbucks Coffee, said Drew Ives, University of Iowa’s business manager.

Jonathan Lewis, director for campus dining services, said Iowa State is required to go through a competitive bid process in which major companies such as Coca-Cola and Pepsi-Cola bid for their product line to be sold or used exclusively on campus.

Such agreements are marketing objectives for corporations, said Warren Madden, vice president for Business and Finance.

Once a company has the opportunity to reach college-age students, the company can work to convince the students to consume their product for the remainder of their lifetime, Madden said.

Iowa State can benefit from exclusive contracts because universities receive a large, one-time payment simply for signing them, Madden said. Commissions can sometimes be made as well.

In the long run, students can also benefit from campus commercialization. In many cases, funds have been put back into scholarships, financial aid, or other areas of interest to students, he said.

“If there is a return, we believe the customer should get the return,” Madden said.

The University of Iowa is currently considering allowing cell phone companies to do business on their campus. Iowa State isn’t following that trend, he said.

Students shop around to get a cell phone plan that meets their unique needs, which makes it hard for the university to bundle all of the students together for a certain company,

Madden said.

“[The university] is reluctant to force people into a restriction of choices,” Madden said.

Some ISU said they have mixed feelings on the presence of commercial chains on campus.

“I personally enjoy having the conveniences of commercialized businesses on campus,” said Kimberely Rohlfing, sophomore in general undergraduate studies.

Ryan Cook, freshman in exercise and sport science, said he believes Iowa State has found the correct balance between commercialization and free choice.

“I believe commercialization is a way for the school to make money by allowing companies to put their names on products.” he said. “When a school agrees on these things, it limits students’ choices and can have negative side effects; I haven’t seen anything like that at Iowa State.”

But another student saw the disadvantages to such scenarios.

“It’s not great to have contracts, because it limits the variety of products we have to choose from,” said Patrick McDaniel, junior in journalism and mass communication.