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Wednesday, September 12, 2012
Starbucks may undercut Spoke’s bucks
Ritchie Sham Gazette
Students passing through the University Community Centre may have an extra option for coffee, but converging line-ups aren’t the only effect of having a Starbucks in the atrium. The new franchise is expected to financially impact the other coffee spots on the main floor, especially the Spoke Cafe. “The Spoke is probably Starbucks’ biggest competitor, because we both serve similar products, compared to [the Spoke] versus Tim Hortons,” Tony Ayala, vice president finance for the University Students’ Council, said. “There is competition and we just have to deal with it.” The Starbucks franchise was set up by Western’s Hospitality Services, which divides control of the UCC space with the USC. “On our space that we lease, we control who the tenant is. We make the contract with them about pricing, rent—everything. However, there are certain spaces that Hospitality Services control like the bookstore, the computer store, Tim Hortons, Starbucks and Williams,” Ayala explained. The two sides do not operate with complete independence. Like all other UCC decisions, the Starbucks franchise was previously brought up with the USC.
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“We’re part of the UCC coordinating committee that meets monthly, and the USC is represented by student leaders,” Frank Miller, director of Hospitality Services, said. “We’ve talked about this for several years so there was no surprise—we discussed it at the committee and decided we should move ahead.”
We are confident that the Spoke will continue to be a strong option for students, but we also recognize that students want as many choices as possible. — Adam Fearnall
USC President
He explained the decision to add another coffee shop was based on student feedback. “We do an annual survey, and Starbucks has been in the top five on the list for the last three or four years,” Miller said. “So that certainly gives us a good indicator that that’s the way to go.” Adam Fearnall, USC president, concurred with Hospitality Ser-
vices’ reasoning. “Last year, through the Strategic Plan, students told us that they just wanted good services and that it didn’t matter where they got the service from,” Fearnall said. “We are confident that the Spoke will continue to be a strong option for students, but we also recognize that students want as many choices as possible.” Still, more options mean the Spoke is expected to take a hit. “We’ve had competition before—Tim Hortons and Williams are both under Hospitality Services,” Ayala said. “Our managers just prepare themselves by trying to up the service. We never try to go for pricing wars with competitors, but rather service wars.” But even while remaining competitive, the USC has planned for lost business at the Spoke this year. According to Ayala, the Spoke made over $100,000 last year, and this year it’s only projected to make $56,000. Although, according to Miller, the impact may not be as severe as anticipated. “As of day one, it appears it has not impacted our Tim Hortons on the upper level, so it hasn’t taken any business away. It will take us a few weeks to watch the trends, and we’ll see how the numbers shake down, but so far no impact.”
Volume 106, Issue 6
Student summer employment suffers Alex Carmona News Editor
“Sharply rising tuition in the context of decreased student summer employment suggests that It turns out any students who students are going to have more had trouble finding a job this sum- difficulty affording a post-secondmer had plenty of company. At 13 ary education, and will increasper cent, Ontario boasted the high- ingly rely on student financial asest student summer unemploy- sistance, and because of this, have ment rate of any province in Can- higher debt,” Alysha Li, vice presiada, according to a recent report dent university affairs for the Uniby the Ontario Undergraduate Stu- versity Students’ Council and presdent Alliance. Based on Statistics ident of OUSA, explained. Li added some of the provinCanada’s June labour force survey, the report also shows the amount cial government’s recent policy of students left out in the heat this changes haven’t helped either. “One hindrance has been the summer only just fell short of the record number of unemployed cancellation of the work study students during the summer of the program, where the government subsidized students’ wages. Some 2008 financial crisis. While the economy might not schools still administer the probe in the same state of crisis as it gram, but the government no lonwas four years ago, the ongoing ger contributes funding for the downturn has been pinpointed program.” Luckily for Flaherty, he manas a major cause of the lack of employment opportunities for aged to get hired at a big box hardware store last summer without students. “We’re in an extremely difficult such programs, thanks to a pereconomic situation right now,” sonal connection. “The only reason I was hired at Chris Martin, director of research all is because I had friend already for OUSA, said. “Unemployment is high in gen- working there and she got me an eral. Canada-wide it’s at around interview,” he said. “I am now a seven per cent, which is very high firm believer in the saying that it’s historically. But it is having a par- not what you know, but who you ticularly adverse impact on stu- know.” “If you want a job, by all means dents because Ontario has the highest participation rate of any apply to as many places as posprovince,” he added. “Combined sible, but you should also canvas with the need to pay tuition and to your friends and family to see what work to afford your tuition, I would kind of contacts you can make and imagine that probably places an see what opportunities you can increased strain on our already find.” strained labour market.” Martin also noted competition from other students is one of the biggest barriers preventing stu- Student summer dents from claiming highly sought- unemployment rates after summer employment. “Right now I think [the biggest problem] is probably the crowd- 2009: 14% ing in the labour market,” he said. “We’ve seen declines in the employment rate, and the unemployment rate has remained high, yet enrollment has increased every 2010: 10.4% single year.” Patrick Flaherty, a fifth-year social science student at Western, felt the pressure of that crowding when he started looking for sum- 2011: 11% mer work. “I applied to 17 jobs in the Masonville area, which is where I live, and I didn’t expect it to be nearly as difficult as it was. All the jobs I ap- 2012: 13% plied for were retail, and I didn’t realize how competitive it can be for that type of work,” he said. Soaring tuition costs in Ontario Source: Ontario Undergraduate Student Alliance have compounded the problem.