While the Grove Caffe’s ballooning debt is not a new issue for A.S. councilmembers, they have recently faced new hurdles following Craft Center Director Ron Carlson’s decision to liquidate his approximate half ownership of the restaurant’s contract, forcing the A.S. Council to weigh the costs and benefits of sustaining the eatery in the coming year.
Grove Caffe employee and Eleanor Roosevelt College senior Daniel Sarran (right) helps a customer on April 18. The Grove is in danger of being shut down following Craft Center Director Ron Carlson’s liquidation of his portion of the eatery’s contract.
This would mean an additional debt of around $25,000 for the A.S. Council, should A.S. Associate Vice President of Enterprise Operations Sydney Goldberg and the council decide to buy out Carlson’s portion to keep the business afloat.
Along with the $23,000 debt with which the council business is currently coping, the potential $48,000 cost could hold devastating implications for the future of the Grove. Some employees expressed doubt about the council’s willingness to assume a significantly heavier debt in order to preserve a historically less-than-profitable operation.
“”Whether the Grove stays depends on the A.S.’s willingness to assume a $48,000 debt,”” Grove Caffe employee and John Muir College senior Jason Grishkoff said. “”At this point, it doesn’t seem likely, unless there’s incredible pressure on them to do so. The Grove employees alone cannot provide this pressure – there has to be an uprising from the customer base.””
Grishkoff speculated that Carlson’s decision to terminate his half of the Grove contract was due largely to his aspiration to rejuvenate the Craft Center, which he also manages. Carlson did not respond to several requests for comment.
Other employees said they were more confident in the Grove’s ability to survive its financial crisis, and do not anticipate the eatery’s shutdown.
“”I don’t see the likelihood [of] the Grove closing,”” Grove employee and Muir senior Derek Philips said. “”Based on A.S.’s intentions expressed at the last meeting, they don’t want to close. I think it’s more probable that there will be structural changes, changes in the charter and changes in specificities relating to A.S.””
The A.S. Council has designated 30 days from April 13 in which to make a final decision, and is considering three main options.
The first option would entail the hiring of a full-time, nonstudent professional manager. In light of the newly doubled debt, however, the decision has become less viable than when first offered, as it would involve an additional $30,000 to $40,000 in annual debt.
The second avenue would a partnership between the council and UCSD’s Rady School of Management in an effort to make the business more profitable. This option has generated varied reactions among both employees and councilmembers.
“”Having the Rady Business School take [the Grove] on as a project is a great idea,”” Grishkoff said. “”Basically, it would be a hands-on opportunity for students who want to learn about management.””
Philips is more skeptical of the suggestion, which has not yet been officially presented to the Rady School by the A.S. Council.
“”I don’t think [Rady’s involvement] is going to happen – I’d categorize it as more of a rumor than any real plan,”” Philips said. “”There are a thousand possibilities, but the key is that the Grove will basically remain the same in the coming year, and function in the same way.””
While the option has not been formally discussed, it is not entirely unrealistic, according to Rady School assistant professor of marketing On Amir. However, such a project would mean a large time commitment from both students and faculty.
“”We have done several projects with restaurants and other food suppliers around town,”” Amir said in an e-mail. “”We have also done projects with other types of institutions that were in need of help. Projects such as this are useful to the students, but ultimately depend on whether there is enough interest by students and faculty to take on the project.””
The third option would be to lease the space out to a new vendor, although Goldberg stressed that the Grove will continue to run for the rest of the quarter, as it has for the past 21 years.
“”At this time, all I can say definitely is that regardless of what decision is made, the Grove will operate as usual for the remainder of the quarter, and I will be working closely with the managers to reach a solution,”” Goldberg said. “”It is extremely important that regardless of what option is chosen, the atmosphere and values of the Grove Caffe and the Student Center are preserved.””
Some employees feel that the business’s current management system, despite experiencing recent fiscal difficulty, should not be fundamentally altered.
“”Personally, I like the fact that it’s student-managed and operated, and I’d like it to stay that way,”” Philips said. “”There are basic business issues that can be resolved to make the Grove more profitable. It’s up to everyone to maintain business integrity, and to understand the need for direct involvement.””
