The fate of the Grove Caffe still hangs in the balance today, after Associated Students President Donna Bean contested the council’s vote to preserve the struggling enterprise at a meeting last night.
After nearly three hours of discussion, 15 councilmembers voted in favor of ceasing Grove operations, while 11 voted for the cafe to remain open. The vote was taken under the presumption that a two-third majority was necessary to approve the motion.
However, Bean contested the grounds upon which the two-thirds requirement was originially implemented.
Council chair Jordan Taylor said that according to council bylaws, the fact that Grove employees’ paid positions were at stake necessitated the two-thirds rule. Bean countered this by saying that because only a simple majority is required to create an A.S. enterprise, the vote to cease cafe operations should have been subject to the same rules.
The dispute will now go before the A.S. Judicial Board, a body composed of seven noncouncil students appointed by the president. The board will hear both sides of the argument and determine a ruling by majority vote.
The controversy over the council’s vote last night was prefaced by an animated discussion of the merits of allowing the Grove to remain open.
Councilmembers on both sides of the debate expressed concern over the cafe’s value to the campus community, the recent failure of the Grove as a profitable enterprise and the monetary commitment that would be necessary to revive the business.
University Centers Business Officer John Hughes told councilmembers that updating the Grove to modern operating standards would likely run in excess of $350,000. Many on the council were unwilling to commit this type of funding to the Grove, which is roughly $126,000 in debt.
‘The influx of money that would be needed to salvage the Grove is not an appropriate use of funds,’ Revelle College Senator Katie Hall said.
Still, others see hope for the cafe. Some councilmembers referred to the coming closure of Sierra Summit and El Mercado, stating that the Grove could easily fill the vacuum left by these eateries, seizing upon the opportunity to develop an expanded customer base.
‘The fact of the matter is that once people come to the Grove, they come back,’ student manager Thomas Frank said. ‘The hardest part is getting them to come in the first time.’
Vice President of Finance and Resources Naasir Lakahni is confident that the Grove can succeed as a profitable enterprise once the burden of nonstudent manager Cleveland Thomas’ $50,000 annual salary is removed. Thomas’ departure would also mean the cafe would close during the summer months, saving it thousands of dollars in operating costs.
Lakhani presented financial projections demonstrating that the Grove would have reported a substantial profit this year had these measures been adopted earlier.
‘If we had made these changes a year ago, we would’ve seen $12,000 in profit from the Grove,’ Lakhani said.
Hughes echoed Lakhani’s sentiment.
‘One of the things that’s very clear is that the Grove’s business model righ
t now is not financially viable,’ he said. ‘A large part of that is the nonstudent manager getting paid a salary 12 months out of the year.’
Despite these projections, many on the council worry that the Grove will fail to see any significant profit and will continue to drain student funds.
‘The Grove’s model is no longer viable in that space,’ Associate Vice President of Academic Affairs Lana Blank said. ‘Pretty much everything it does is also available nearby. ‘hellip; No matter how much money you put into it, it’s not going to turn around.’
However, Frank, along with fellow student manager Autumn Hays, believes the Grove will see a boost in profits once the cafe adopts a new business model designed to cater to upperclassmen, graduate students and staff. They plan to shift the Grove’s emphasis from espresso to food, including hot sandwiches and pizza.
Frank also said he would like to see greater communication from councilmembers regarding the cafe’s financial performance and daily operations, in addition to more council support in organizing events designed to attract business to the Student Center.
Readers can contact Reza Farazmand at [email protected].