After closing down in December and undergoing renovations in March, the Bean Cafe, the campus’ coffee stand, opened for business on Monday.
The Bean Cafe will offer similar products with reasonable prices. The stand will provide sandwiches and Peet’s Coffee in hopes to increase revenue for the school.
“The products are going to be the same. The only difference is who’s providing it,” said Ron Nakasone, executive vice president of administrative services.
The school decided to contract the stand out to a company called World Coffee Kiosk after trying to find ways to save money within the budget.
Nakasone said students formerly operated the last stand with revenue going toward the cafeteria. The sales, however, were not fully covering the operating costs.
“We’ve been having difficulty with the cafeteria,” Nakasone said. “They’re running a deficit, and the deficit is picked up by the college.”
Last year, the school spent $110,000 to support the cafeteria.
The school decided it was best to contract the coffee stand to a private company, modeling after the bookstore, which was contracted to Follett last semester.
“By contracting out, we don’t have to worry about the sales anymore.” Nakasone said.
“Contracting out made sense because the rent we’re receiving was almost as much as if we [the cafeteria] did it ourselves.”
The school will make money with the monthly base rent and will share a percentage of sales with the new company when business picks up. Profit toward the school starts from three percent of sales over $1,000 and goes up, depending on the daily intake of revenue.
New owner Robert Hwang said he would be operating the new stand, providing his own workers. In the future, he said he would consider hiring student workers.
In hopes of making more money, the Bean Cafe will find it challenging due to its competitor Coffee Bean across the street.
Bioscience major Adis Isayan, 21, said Coffee Bean would make more profit, attracting not only students, but also people outside GCC.
However, psychology major Shuant Ghazari, 19, said he has used the services of the old stand plenty of times before. With the new stand, he said students would stay on campus more often instead of walking across the bridge to get their coffee.
A former Glendale student who works for World Coffee Kiosk endorsed the decision to open up the stand at GCC. Nakasone said the former student said the college was a great place to bring in revenue.
The Bean Cafe will initially offer Peet’s Coffee, but the company is trying to obtain the license to offer Starbucks.
Nakasone said there would be a conversion soon from Peet’s Coffee to Starbucks.
The up and running business will not only bring back coffee and service to the campus, but the additional source of revenue will bring back money to the campus.