BSB, Inc., The Pizza Wars Come to Campus
CHAPTER 1: Competing with Operations
Renee Kershaw, manager of food services at a medium-sized private university in the
Southeast, just had the wind taken out of her sails. She had decided that, owing to the
success of her year-old pizza service, the time was right to expand pizza-making
operations on campus. However, yesterday the university president announced plans to
begin construction of a student center on campus that would house, among other
facilities, a new food court. In a departure from past university policy, this new facility
would permit and accommodate food-service operations from three private
organizations: Dunkin’ Donuts, Taco Bell, and Pizza Hut. Until now, all food service on
campus had been contracted out to BSB, Inc.
Campus Food Service
BSB, Inc., is a large, nationally operated food-services company serving client
organizations. The level of service provided varies, depending on the type of market
being served and the particular contract specifications. The company is organized into
three market-oriented divisions: corporate, airline, and university or college. Kershaw, of
course, is employed in the university or college division.
At this particular university, BSB, Inc., is under contract to provide food services for
the entire campus of 6,000 students and 3,000 faculty, staff, and support personnel.
Located in a city of approximately 200,000 people, the campus was built on land
donated by a wealthy industrialist. Because the campus is somewhat isolated from the
rest of the town, students wanting to shop or dine off campus have to drive into town.
The campus itself is a “walking” campus, with dormitories, classrooms, and
supporting amenities such as a bookstore, sundry shop, barbershop, branch bank, and
food service facilities—all within close proximity. Access to the campus by car is limited,
with peripheral parking lots provided. The university also provides space, at a nominal
rent, for three food-service facilities. The primary facility, a large cafeteria housed on the