CONTACT: STEVE PARROTT
5 Old Capitol
Iowa City IA 52242
(319) 335-0552; fax (319) 335-0558
Release: Dec. 6, 1999
Private vendor to service non-soft-drink vending machines
IOWA CITY, Iowa Aramark Vending Service of
Cedar Rapids has been selected to service non-soft-drink vending machines
in University of Iowa residence halls and academic building, a UI official
announced today. The proposed agreement is for three years and will take effect
some time over the upcoming winter break. The Cedar Rapids firm was selected
through a competitive bidding process.
Aramark will service about 150 vending machines that
offer products such as candy bars, cookies, chips, coffee, milk, yogurt, fruit,
sandwiches and laundry detergent. The private company will also operate and
maintain dollar bill changers in vending areas.
Outsourcing the vending service has two main purposes,
said Phillip E. Jones, UI vice president for student services. The proposal
offers some new services to faculty, staff and students who use the vending
machines. It will also eliminate the operating losses incurred by the UI since
the 1997-98 fiscal year and eliminate the need for the UI to invest in new
equipment and vehicles.
Aramark proposes to pay the university $100,000 to
purchase existing vending equipment and to purchase the product inventory
at book value. The new vendor also proposes to pay the university $20,000
a year, and will invest $100,000 in new campus vending equipment over the
three years of the proposed agreement.
In addition, Aramark proposes some new customer services,
A major vending promotion each year, using merchandise
purchased from the Iowa Memorial Union Bookstore. The value of the promotion
will be at least $5,000.
Quarterly meetings with a UI representative to discuss
customer suggestions and feedback, new product selections, and promotional
ideas and schedules.
Implementation of the
latest technology in refunding systems.
The vending service is currently operated through
UI Residences Services. No UI employees will be laid off, but all employees
who have worked in vending services will likely be reassigned. In addition,
Aramark will invite the vending service employees to apply for job openings
within that company. All UI candidates who apply for positions with Aramark
will be guaranteed a job interview.
The proposed agreement between the UI and Aramark
does not affect non-soft-drink vending machines in University of Iowa Hospitals
and Clinics or those operated by UI Recreational Services. Likewise, the proposal
does not affect soft drink vending machines.