It was the most popular restaurant on campus when it closed for
renovations over the summer, but Panda Express has yet to make a
dime this school year.
The Chinese food eatery has been closed since the beginning of
the academic year, presumably forfeiting thousands of dollars in
profit from students longing to satisfy their orange chicken
cravings.
But Associated Students of UCLA officials say those profits have
not disappeared. Instead, Panda’s customers have shifted to
other restaurants run by UCLA, generating additional revenue and
keeping the association on target to meet its budget.
Restaurants run by the university ““ like those in the
Cooperage, Northern Lights or the Bombshelter ““ pay a higher
percentage of their profits to the association than third-party
restaurants.
So far, those extra profits have made up for the money Panda
isn’t earning.
“The one good thing about this is when one of our
locations closes, people do have to eat,” said Rich Delia,
finance director for ASUCLA. “It’s conceivable that if
some of those customers stay with us, we could benefit in the short
run.”
Panda Express was budgeted to make $139,267 in the first month
of school, from Sept. 26 to Oct. 23. But because of its closure, it
made none of it, making that number a significant negative figure
in the association’s budget. The eatery made $101,126 during
the same period last year.
But nearly all of the other campus restaurants showed a
significant profit, offsetting Panda’s negative variance and
putting UCLA Restaurants only $40 short of what it had planned to
make for that period.
Bob Williams, interim executive director for ASUCLA, said the
numbers suggest ASUCLA-run restaurants were getting more customers
because of Panda’s closure.
Delia cautioned that it is hard to predict right now the
closure’s long-term effects and how customers will react when
construction on Panda is complete.
“Frankly I don’t think any of us know until they
reopen,” he said.
Williams said the renovations are still progressing, and he
hopes Panda will be open by the end of the month, though he’s
hesitant to offer a specific date.
From August to October last year, Panda made $339,688 in sales,
contributing 13.7 percent of that, or $46,447, to the association.
This year, during those three months, it has only paid the
association $12,300, or three months worth of its $4,100 monthly
rent.
Julie Reed, a representative with Panda’s public relations
firm, said she was unable to reach officials at Panda Express for
comment.
Another reason for ASUCLA staying on track to meet its budget
despite missing Panda’s substantial profits is Taco
Bell’s performance in the first month of school.
When it crafted its budget in May, ASUCLA had planned that the
association’s board of directors would have removed Taco Bell
from campus by the fall, and budgeted only $8,140 for the Campus
Corner location.
Restaurant officials had expected to have mobile food carts or a
different eatery at Campus Corner at the beginning this
quarter.
But because Taco Bell ““ the second most popular restaurant
behind Panda ““ was still on campus for the start of school,
the location made $53,283 more than expected, which also helped
offset Panda’s negative variance.
Now, with Taco Bell gone for good, Delia said Panda Express
becomes even more important for ASUCLA.
“It’s like taking one of our main factories out of
production,” Delia said of Taco Bell’s removal.
“My concern is those customers that are loyal to Taco Bell
don’t buy Mucho Taco,” he said, referring to Taco
Bell’s replacement in the Cooperage. Delia said he has heard
positive reviews of Mucho Taco and said the association is going to
“do the best we can” to make Mucho Taco a success.
The two ASUCLA officials agree that the biggest concern is
whether Panda’s most loyal customers who have stopped eating
on campus during its absence will return when Panda opens
again.
Delia said the association’s ability to hit its budget in
the first month of school is encouraging, but added that giving the
customers what they want ““ Panda’s Chinese food ““
is paramount.
“Financially, I don’t think it’s going to hurt
us very much, if at all,” Delia said.
“What we’re concerned with is servicing the
customers who want Panda.”