Bytes with Bites: How Tech is Transforming College Dining Services

Navigating the New Normal: Dining Services Face Fresh Challenges

Higher education institutions face a challenging environment. Coupled with lingering challenges from COVID-19, enrollment has steadily declined since 2011 by about 1.5% each year. Undergraduate college enrollment dropped from 18.1 million to 15.8 million over the last 13 years.¹

Since dining services are a revenue source, lower enrollment directly translates into reduced revenue. Dan Park, Chief Executive Officer of CBORD, explains: “Dining services typically represent a significant revenue stream, and the disruption of that income has been a top concern for higher education leadership since 2020, when nearly all residential schools closed in response to COVID-19.”²

Here, we uncover critical strategies for securing student enrollment and dining revenue, as well as how technology (like smart lockers) can help.

Beyond the Cafeteria: The Evolving Tastes of Today’s College Diners

Dining room preferences are morphing thanks to a focus on better nutrition, bourgeoning interest in new cuisines, changing habits from the pandemic, and the growing influence of TikTok and Instagram on food choices.

A 2023 Student Voice survey by Inside Higher Ed and College Pulse found over one-third of students (37%) believe their campus dining facilities need improvement.³ A new report from the National Association of College and University Food Services (NACUFS) found students seeking change along four key themes:⁴

1. Dining Choice

Similarly to the general population, students embrace general food trends such as fewer processed foods and more whole-food, plant-based options. 38% percent of students want to see fewer ultra-processed foods, and one-third want a greater variety of cuisines. Additionally, they want to easily accommodate their dietary preferences (e.g., gluten-free, vegetarian, vegan), allergies, or religious needs. Cornell University, for example, has an entire gluten- and tree-nut-free dining hall.⁵

2. Accessibility

Accessibility is synonymous with flexibility. It means giving students longer operating hours, offering meals when they want them, and allowing them to “grab and go” when the dining room is closed or overcrowded.

3. Physical Spaces

Since technology is integral to their lives, college students today want spaces that allow them to set up a PC, tablet, or mobile device in the dining room. They want to dine, meet with their friends, and linger. And when it comes to programs offered by dining services, the demand for mental health and well-being reigns supreme.

4. Tech-Friendly

Students want technology to boost efficiency, not simply technology for technology’s sake. For example, they’re interested in self-checkout via kiosk because of its speed and autopayment ability. The preference for human-cooked food remains essential even though smart technology might assist in the delivery via a robot or smart locker. Dining room visitors also want an app showing designated food service locations, hours, nutritional information, and an easy ability to pay and go quickly.

Meeting Student Needs with Innovative Technology

A recent CBORD study reveals that automation has gained significant traction in higher education dining services.⁶ Almost 50% of higher education leaders have implemented automated solutions in the past two years. Looking ahead, over half anticipate making such investments within the next two years. Solutions include the student preference for self-service kiosks mentioned above as well as universal identification cards that work as entry keys and payment systems.

Gen Z’s New Dining Paradigm: Order Ahead, Pick Up Fast

Gen Z is leading the pack with its preference for picking up meals. According to PYMNTS data, 47% of this demographic opted for restaurant pickup versus just 8% for Gen X and 33% for Baby Boomers.⁷ McDonald’s, Chipotle, Wendy’s, and other fast-food restaurants are revamping restaurants and drive-through lanes to make pick-up faster. Of course, these Quick Service Restaurants (QSRs) are also optimizing their apps to deliver a better pick-up experience.

College and university dining establishments are taking a page from QSR’s menu and adding order-ahead and pick-up capabilities. These options streamline operations, increase revenue, leverage smart locker technology, and reduce student wait time.

Smart Lockers: Revolutionizing Campus Dining

Smart lockers are transforming the college dining experience, offering a multitude of benefits, including:

• MORE Convenience: Smart lockers provide students with 24/7 access to meals through refrigerated lockers, allowing for flexible ordering that accommodates busy schedules, late-night study sessions, and library visits.
• MORE Efficiency: Students say goodbye to long queues and wait times as food is picked up in as little as 30 seconds. Smart lockers significantly improve efficiency, helping students optimize their time management.
• MORE Revenue Potential: From a financial perspective, smart lockers can increase revenue by serving a larger student population and attracting more customers with convenient grab-and-go options.
• MORE Equity: These systems promote equity by accommodating diverse schedules and dietary needs, addressing food insecurity concerns, and creating a more inclusive dining environment. Institutions can implement additional initiatives to further enhance food security on campus. Meal swipe donation programs, such as those facilitated by Swipe Out Hunger, allow students with surplus meal swipes to contribute to a pool that those in need can access. Research shows a direct link between receiving meal swipes and improved academic performance.

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As colleges and universities navigate the evolving landscape of campus dining, it’s clear that embracing technology and student-centric solutions is vital to success. Smart lockers, mobile ordering, and flexible dining options are not just trends but essential components of a financially stable, efficient, and inclusive campus dining experience.

Ready to deliver a premium dining services experience for your students with smart parcel lockers? Contact a Parcel Pending representative today.

Sources:

1. Conley, Jordan. US College Enrollment Decline – 2024 Facts & Figures. www.collegetransitions.com. April 22, 2024. https://www.collegetransitions.com/blog/college-enrollment-decline/
2. Donadel, Alcino. Automation is top of mind as a means to combat shrinking dining service revenue. universitybusiness.com. July 28, 2023. https://universitybusiness.com/automation-is-top-of-mind-as-a-means-to-combat-shrinking-dining-service-revenue/
3. Flaherty, Colleen. Physical Health and Wellness Linked to Student Success. www.insidehighered.com. May 31, 2023. https://www.insidehighered.com/news/student-success/health-wellness/2023/05/31/how-college-students-rate-campus-health-and
4. National Association of College and University Food Services. Campus Dining: 2030 and Beyond. www.nacufs.org. January 9, 2024. https://www.nacufs.org/Resources/2030-and-Beyond
5. Filson, Mackenzie. College Dining Hall Food Has Become Super Fancy. www.delish.com. March 1, 2024. https://www.delish.com/food/a60001747/fancy-college-dining-halls/
6. Kleinberg, Bennett. Study: Higher Education Leaders Exploring New Dining Revenue Streams in Preparation for a Coming Demographic Cliff. www.cbord.com. July 26, 2023. https://www.cbord.com/?p=259506
7. PYMNTS. Restaurants Turn Their Focus to Pickup to Reach Gen Z. www.pymnts.com. April 10, 2023. https://www.pymnts.com/restaurant-innovation/2023/restaurants-turn-focus-pickup-reach-gen-z/