A group of UNM students who started their own on-campus delivery business have been told by University officials to stop operations this week due to a conflict with an exclusive food-service contract signed by UNM in September 2000.
Barry Schneider, Jesse Kooperman and Elliott Paull, the three student owners of Underground Services, said they should have the right to run their own business on campus or at least be allowed to petition the University for a review of their request.
"We're not giving up without a fight, we'll put it that way," Paull said.
The students' business sells assorted non-perishable snack goods and miscellaneous items such as lighters and condoms, and delivers them to campus residents for a nominal fee.
"This is a pretty neat idea as far as students being enterprising," said Robert Schulte, director of UNM Business Services.
But, he added, the students' on-campus business comes in direct conflict with a pre-existing food service contract.
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"ARAMARK has an exclusive right to deliver food services on campus," said Dupuy Bateman, associate vice president of Auxiliary Enterprises.
Bateman said the eight-year contract was signed in 2000 because the University was looking for an opportunity to consolidate food services on campus.
The 14-page contract stipulates that ARAMARK will manage and provide goods for all food and catering services to campus dining halls, convenience stores and retail outlets. But the three students argue that the contract is not fair because it prevents them from pursuing a capitalistic venture and that by running their business during evening hours, they really are not competing against ARAMARK.
"It damages the free-market economy system," Paull said.
Bateman said that although some food vendors still operate on campus, such as the hot dog cart and the burrito stand that set up near the Duck Pond, they were here before ARAMARK signed the contract with UNM. Also, he added, it was ARAMARK's decision to allow them to continue to operate on campus.
In establishing the business, the three owners conducted campus surveys, raised capital to pay for inventory and assorted fees and also registered their business with state authorities.
"We've already learned so much," Paull said.
The group said they have already invested about $400 in the business and now have to literally sit on their inventory of drinks and snacks as it collects dust inside Schneider's dorm room.
The group has met with Bateman, Schulte and the dean of students regarding their business, but they said they should be given the opportunity to be heard by a grievance committee.
For now, the group plans to continue meeting with University officials in an attempt to find a compromise. If one cannot be reached, they may approach ARAMARK and see what it would take to become one of the company's vendors. But, they do not want to do that because they would most likely have to give up a percentage of their profits.
The three entrepreneurs said they will continue to push to make their business a reality and that despite the conflict with the University's contract, it is a sound business idea.
"A student-owned and operated business looks great for the University," Kooperman said.
