By: Kevin McIntosh | VP Business Development | CARDWATCH | Spring 2005

While most communities offer some sort of Meal Plan for their residents, there are still many that do not.  With meals often being one of the few opportunities for daily social gatherings in a community, they are an important part of community life for many Residents.  

From an Operational perspective, it makes good sense to encourage full use of the dining facilities in order to realize the economies of scale and a faster return on the capital investment made in equipment, renovations and maintenance.  The facility (space), equipment, and maintenance costs are all there whether you serve one meal or three meals per day and whether half or all of your residents show up for those meals.

So how do you get residents to sign up for (more) meal plans and increase the frequency of their use?

Check Please!

As we mentioned in a previous article, there is a common perception among residents that meal plans cost them more than if they were to prepare the meals themselves.  That perception is driven by the 40 plus years of preparing their own meals at home and it is a well justified (not to mention ingrained) perception.  However, most communities do little to encourage a new perception of comparing it to the cost of dining out at their favorite restaurant.

In most states, meal plans are sold and considered as part of the rental (or life care) agreement.  As such, these meals (typically) become tax exempt, a savings of anywhere from 4% to 8% depending on your state (http://www.taxadmin.org/fta/rate/sales.html).  This is a direct savings that your Residents do NOT get when they dine out elsewhere.

Next, consider the T.I.P*…most communities do not allow Tipping as part of their policy.  Once again, when compared to dining out at a restaurant, your Residents enjoy a savings of anywhere between 10% and 20% depending on their generosity.

All said, a meal on plan can save your Residents as much as 25% on their meal costs. With an average meal value of $10 and a one meal a day plan, that works out to $75 in savings per month or almost 8 free meals!  Unless this is communicated to your Residents, you can bet they will hang on to their old perception.

Choice. Quality. Service.

Your Residents are not all the same, so why would they all be interested in the same meal plan?  When they retire, Residents expect the promise of the American Dream…of freedom and choice.  By creating and tailoring meal plans as unique as your Residents, they will be compelled to sign up.  Indeed, this “personalized” approach to meal plans should be an important feature in your community’s marketing strategy.  A Meal Plan Management application like CARDWATCH will manage 200 unique plans as easily and effortlessly as 2 plans all with the simple swipe of the Resident’s ID card and no additional administrative burden.

Last, but certainly not least, don’t forget that your only competition is not just “home cooking”.  While you may be the only restaurant on campus, you are likely not the only game in town!   Know your external competition – the local restaurants - their prices and service levels, then emulate the best of them all.  Provide quality food, a variety of menu options and exceptional service and your Residents will beat a path to your dining room not to mention beat down your cost per resident meal!

*Did you know…

THE HISTORY of tipping is as clouded in mystery as the rules that currently govern it. There is some evidence that tipping has its roots in the decadent Roman Empire. An oft-repeated story is that tipping--supposedly an acronym for "to insure promptitude"--became common in the "penny universities" (coffeehouses) of 16th-century England.

Another explanation is that "tips" of gold were thrown by horse-bound feudal lords to the unsavory peasants in the streets, as payment for safe passage (To Insure Passage). English etymology would support this theory in its suggestion that the word was originally medieval street talk for "hand it over."