[Purpose]Using the data of number of students using meal plans and costs of meal plans of the dormitory of “A” National University, this study analyzes utilization rates and costs of meal plans. Because the mandatory meal plan practice, forcing st...
[Purpose]Using the data of number of students using meal plans and costs of meal plans of the dormitory of “A” National University, this study analyzes utilization rates and costs of meal plans. Because the mandatory meal plan practice, forcing students to purchase meal tickets, is a forced trade prohibited under the Monopoly Regulations and Fair Trade Act, the Fair Trade Commission (FTC) advised all universities to revise mandatory meal plan practice in order for students to determine meal plans at their own wills. The FTC expected that the introduction of optional meal plans would provide students the option to choose meal plans and lower students’ living costs but would not make the dormitory management worse because university dormitories could decide the price differently according to the number of meal tickets purchased. Even after the FTC’s advice to introduce optional meal plans, most universities implement mandatory meal plans only as 58.8%, and universities claim that mandatory meal plans are necessary to maintain a certain level of quality of meals.
[Methodology]This study analyzes the utilization rates and costs of dormitory meal plans, using the number of students who utilized meal plans, and the costs of meal plans during the period from March 1, 2010 to April 31, 2012, which the mandatory meal plans were implemented by “A” National University, which does not operate the dormitory meal facilities for profits.
[Findings]The results of the analysis indicate that the average utilization rate during the entire period was 51.5%, the utilization rates were different depending on days of the week and meals, and the cost of meal was 3,810 won per one meal. “A” National University charged 1,684 won for one meal, only 44.2% of the cost of meal, but was able to continue to provide meal plans because the utilization rate was as low as 51.5% and it expended the meal costs considering the income collected from the mandatory meal plans and the utilization rates. Because the quality of meal (in optional meal plans) would be lower than that in mandatory meal plans, or meal plans would be discontinued because of accumulation of loss if optional meal plans are introduced to national or public universities without price increase to reflect reality, it is necessary to introduce meal plans reflecting characteristic of meal costs and pursuit of profits rather than introducing unconditional optional meal plans. In addition, the meal cost during the vacation is higher than during the semester due to the nature of the university, the FTC needs to allow universities to implement mandatory meal plans, or both optional and mandatory meal plans rather than emphasizing the BYOB (Bring Your Own Bottle) policy.
[Implications]This study makes universities, the meal plan providers, implement efficient meal plans by providing real meal plan utilization rates, and helps the students in dormitories with optional meal plans determine the number of meals to be purchased during the residency period. Because this study shows the cost per one meal and structure of meal costs, it can be used (for universities) to decide the price of meal when changing from mandatory meal plans to optional meal plans, and helps the FTC to advise the meal plan system in which the effect of fair trade improvement is relatively greater than the effect of consumer welfare reduction.