OPINIONS

Forbes Café: A New Pricing Scam?

Merriam-Webster defines ‘scam’ as a “dishonest attempt to make money by deceiving people.” Yesterday, The Daily published an article regarding a new pricing system at Forbes Family Café, which now operates under Residential and Dining Enterprises (R&DE) at Stanford. Based on that article, as well as multiple conversations I had with people associated with the Café, it seems that Stanford students may be facing a new “dishonest attempt” to suck money out of their small pockets.

The scheme involves a substantial increase in the prices of an essential life necessity: food. To make things worse, the decision-making process by which the new prices were set lacked transparency, involving very few decision-makers and no formal or direct involvement from the students, whom R&DE claims to serve. The new pricing system at Forbes Café raises serious concerns, which I try to summarize in the three points below.

First, let’s focus on the new pricing system itself. Using R&DE’s own numbers, the average 25-ounce plate of hot food used to cost a student $7.25. By the new pricing system, the same 25 ounce plate will now cost $14.25 – a 97 percent price increase.  In other words, if a student walks into Forbes Café today and gets the same average amount of food they used to get (and need), they will be charged almost double the price. When Forbes took over the space in Huang Engineering Center a year ago, R&DE promised to deliver a “healthy and affordable” service superior to Ike’s Place. There is nothing “affordable” about double-charging students overnight. Most students have a limited amount of financial resources, supplemented, in many cases, by their financial aid or work stipend. To my knowledge, the University did not increase the students’ financial aid or stipends by 96 percent recently, making this increase in food prices for students by this percentage nothing short of outrageous.

There is also nothing “healthy” about forcibly reducing the amount of food students can consume, which brings me to the second concern.  The new average plate size of 12.42 ounces under the new pricing system raises serious questions beyond meal prices to touch on students’ diet. Did the student customers of Forbes Café “freely choose” to suddenly cut their food consumption by half? Or were the students unable to afford the new prices, so they “were forced” to adjust by either reducing their food purchases or finding another, cheaper venue altogether? In plain English, I am very troubled at the possibility that the new pricing system at Forbes may be negatively influencing the students’ diets by forcing them to eat less, which in turn may affect their ability to properly conduct their daily activities. It would be offensive and insulting if R&DE is negatively interfering in our diets, let alone claiming it to be for good reasons like “sustainability” or “reducing food waste.”

Third, the original pricing structure at Forbes was set after consulting with several focus groups that included ASSU representatives as well as students in the Science and Engineering Quad (SEQ). Upon transitioning to this new pricing structure, however, no such focus groups seem to have been formed. In fact, I learned from the staff managing the food vendors at SEQ that even they were not consulted on the new pricing system; they were only informed about it upon its implementation. Furthermore, the pricing change was initiated during the summer quarter, when most students (and student leaders) are off campus and cannot voice their concerns. Therefore, I can’t help but ask: Why? Why so few decision-makers, and why were students not involved in this key decision? Shouldn’t this raise suspicions that alienating students from the decision-making process was intentional? And doesn’t this raise serious doubts about the transparency of RD&E’s services to students?

In conclusion, the situation at Forbes signals a broader concern: The interests of students are deliberately left out of the decision-making process in favor of market analyses to generate profit. Given this reality, and all the unsettled questions and concerns I outlined earlier, I can only urge R&DE to suspend the new pricing system at Forbes immediately. Subsequently, R&DE should initiate a new, more inclusive decision-making process regarding the pricing system at Forbes and its other eateries, a process that allows for an active participation by both the student governments (ASSU and GSC) as well as representatives from the student population working in the places they serve.

Students at Stanford should not be subject to overnight price hikes, and we should be allowed the right to collectively negotiate affordable food options on campus. In economics, this is called “buyers power,” and there are 14,000 smart student buyers at Stanford. I urge my fellow students to begin this process by making their voices heard and raising their concerns. If you are reading this article, email your ASSU or GSC reps., The Daily and R&DE, and let them know your opinion. Here, I want to acknowledge the ASSU President John-Lancaster Finley, who has been very supportive since I brought this issue to his attention last week. The student voice is powerful when it is expanded beyond the writings of one Ph.D. student, and we need to make it known that the student voice still matters at this University.

Karim Farhat

Ph.D. candidate in Management Science and Engineering

Contact Karim Farhat at kfarhat ‘at’ stanford.edu

  • Sreyas Misra

    Not sure what this has to do with dishonesty. There is no need to intentionally confuse a perceived lack of transparency with “dishonesty” just to create a provocative title like “a new pricing scam?” Really, the only thing dishonest so far is the wording of the article.

    There doesn’t have to be a matching % increase in financial aid to justify the food-price hike, because food is only a relatively small portion of a student’s total tuition and living cost at Stanford. Finally and thankfully, Forbes cafe does not have a monopoly on food at Stanford. If it really is overpriced for the value they provide, they will get outcompeted. Otherwise the price is competitively fair.

  • sure it sucks

    Sure it sucks, but 1.5lbs of food for $7.25 is pretty cheap, and probably not sustainable. I also imagine a lot of students were taking more food than they needed. Their new price is much more in line with what you would pay at Whole Foods (a little bit higher, but snacks at these places are higher than you would get a grocery store).

    Is it terribly affordable? No, but there’s not really any food options that are run by Stanford that are dirt cheap.

    There are much larger issues at Stanford that are worth bringing attention to than Forbes Cafe deciding they can’t subsidize meals for students.

  • NoHighPrices

    R&DE isn’t whole foods, is it. And I doubt all students go to whole foods to get their groceries. Plus I have no reason to believe that students get excess food to throw it away; I and my friends don’t. This is a problem that needs a solution, and I’m glad someone brought it up.

  • deeper problem

    Maybe, but one of the major issues that led to R&DE taking over the space was a claim that the prior (independent) vendor was too expensive. Raises questions for sure.

  • sure it sucks

    Definitely agree!

  • sure it sucks

    No it isn’t, but all food options at Stanford are slightly more expensive than other places. A drink at Axe and Palm is more expensive than the same drink at Safeway and even Whole Foods.

    Wouldn’t you agree that students would most likely err on getting too much food if they have the option to? You see this all the time at the cafeterias.

  • Stanford Student

    Forbes does not take meal plan dollars, whereas Axe and Palm is covered by many students’ dining plans.

    Unless Stanford subsidizes or covers the increased costs for students (who often do not have time to return to their residences/dining halls between classes), this price increase is a barrier for many students. This is not the first time students were not consulted in a decision that affects us. I do not think it would be so difficult for R&DE to simply send an email to our student representatives to discuss such matters.

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  • Andy Moreland

    If safeway or whole foods were easily accessible then it’d be one thing, but Stanford seems to be working to remove all outside vendors of food from the campus. They almost have a monopoly on food, so they need to be very careful not to exploit this power.

  • Just Graduated

    You can’t go anywhere and get A POUND AND A HALF of food for less than $10. They’re just adjusting the pricing scheme to something more realistic. Be grateful that we had a year where food was so cheap. Yes, it sucks that they didn’t consult students on this, but if providing the previous prices would have run this cafe out of business…. wait…. screw it, I don’t like this place anyways. Charge $7.25 flat, close the place and BRING BACK IKE’S.

  • Moral Max

    Plus I have no reason to believe that students get excess food to throw it away; I and my friends don’t. Casquette Huf