Envision Strategies : Reinventing the Husky Den

On January 10, 2002, Seattle Weekly, a popular Seattle lifestyle periodical, published the following in its Side Dish column:

"Monday morning, quite without fanfare, Seattle's most ambitious new restaurant in years opened for business.... The proprietor in question is the University of Washington, and the new eatery, filling most of the ground floor of the HUB - UW's student union building - is called the Husky Den.... If you attended UW any time in the last 50 years or so, you've almost certainly dined - if that is the word - at the Husky Den. Last remodeled in the early 1970's, the Den deserved its name. It was dimly lit, sparsely furnished, and pervaded at all hours by the aroma of steam tables. [Now], old alums won't recognize the place.... Few commercial food courts look half as comfortable or inviting. But looks aren't the only change. The new Husky Den is the outcome of four years of research, planning, questionnaires and... focus groups, and for once "process" seems to have produced the desired result: nothing less than 'the deinstitutionalization of institutional food'."

What follows is the story of the reinventing of the Husky Den, and the role that Envision Strategies played in that process. It is a story of vision, research, analysis, teamwork and hard work, with an outcome that reflects all that we most value in the work that we do.

In 1996, the University of Washington's Housing and Food Service Department contacted EVS to conduct a brand research study for the Husky Den. At the time, the Husky Den was taking a weekly beating in The UW Daily, the University's student newspaper. At the height of the controversy, editorials were calling for HFS to be "fired", so that the Den could be outsourced to a foodservice contractor. In other words, the situation was dire. HFS felt that the incorporation of 1 or 2 branded food concepts into the Husky Den would take the heat off so that a longer term solution could be studied. So as the first phase of the redevelopment effort, Envision Strategies conducted a comprehensive market research project on behalf of the Husky Den, incorporating the following elements:

Assessment of the Off Campus Competitive Marketplace;
Focus Groups with Students, Faculty and Staff;
A Quantitative Brand Preference Survey.

The results of the research indicated that two brands stood above the rest with regard to their ability to drive transaction volume - Subway and Pagliacci's pizza, a popular Seattle brand. Envision Strategies worked with HFS to identify placement opportunities within the Husky Den, and work commenced on negotiating franchise/license agreements. Negotiations with Pagliacci's proved unsuccessful; at the time, the company was completely self operated, and had never granted a license agreement. However, after more than a year of contract negotiations that ultimately required sign off from Washington's Attorney General, HFS was granted a franchise agreement with Subway. The opening of Subway became the first phase of the reinvention of the Husky Den, and the outlet quickly became the highest grossing university Subway in the United States.

Over the course of the brand research and implementation project, it became obvious that what HFS really required was a comprehensive strategy for the future development of the entire foodservice program. Thus, in 1997, EVS's contract was extended to create a 15 year master plan for campus dining. As with the brand implementation study, the master plan for campus dining was based on a sophisticated research study incorporating customer focus groups, focus groups with prospective UW students at the high school level, and a comprehensive quantitative survey distributed to 3,300 members of the campus community. Generally speaking, the market research indicated that the customer perception of value at UW is most influenced by the availability of freshly prepared foods offered in convenient locations and in settings that reflect the quality found in Seattle's commercial restaurant environment. The market research also used advanced multivariate statistical techniques to identify and profile the market segments that exist within UW's customer base, so that strategies could be developed to better meet each segment's needs. The research indicated that the customer based is comprised of the following four market segments, based on customer buying behavior:

Satisfied or Undemanding Shoppers (21%) of the population
The segment of the market least demanding in their needs with regard to foodservice.

Demanding Shoppers (30%) of the population
The segment of the market most difficult to satisfy in that all aspects of the dining experience (quality, variety, convenience, price-value, environment, speed of service, etc.) are extremely important in their decision of where to purchase a meal.

Convenience Shoppers (28%) of the population
Those that make their purchase decisions based primarily on convenience of location and speed of service. The research indicated that a substantial portion of this market was comprised of brown baggers who were "capturable" if improvements could be made to distribution of dining locations and customer throughput.

Price-Value Shoppers (21%) of the population
Customers who make their purchase decisions based primarily on the relationship between price paid for the product and the value received. This segment also contained a substantial sub-set of brown baggers who were "capturable" if improvements could be made to the perceived value of products and services offered.

Based on the research, the core philosophy of the resulting master plan for campus dining was predicated on a strategy of leveraging existing large capacity retail dining venues on campus while adding niche concepts designed to meet the needs of the various market segments of the customer base. For instance, to better address the needs of Convenience Shoppers, the master plan called for the implementation of small footprint storefront cafes, markets and espresso bars located in strategic traffic zones of campus, offering a limited number of targeted core products, and including a newly created self-branded line of signature packaged foods. As an aside, subsequent to completion of the master plan, several of these concepts have been implemented across campus, with results that have exceeded expectations in terms of both revenue and customer satisfaction.

As the largest existing retail food venue on the campus, upgrading the centrally located Husky Den was identified as the cornerstone of the capital redevelopment plan. The strategy for redevelopment of the operation was comprehensive, including the development of cutting edge self-branded concepts, the introduction of new menus, food preparation and service styles, and an extensive staff training program. This was accomplished within the context of a complete renovation to the 47,000 s.f. facility.

In developing the operational plan for the new Husky Den, EVS consultants worked with HFS's core planning team to establish a number of foundational operating strategies for the facility, including the following:

Abandon the tradition of the Husky Den as a cafeteria style service system that tries to be all things to all people, with the result that nothing is done well. Rather, develop a limited number of fully realized self-branded food concepts that are commensurate in quality and presentation with national brands, and that are targeted to the preferences of the customer base with regard to food products, price points, and delivery systems;
Put the focus back on the food by emphasizing creative menuing combined with exhibition cooking at each point of service;
Design menus for each concept that support speed of service and quick delivery;
Abandon the concept of centralized cashiering (even though potentially more cost effective) in favor of cashiering at each point of service so that the customer waits in only one line;
In contrast to the old Husky Den, rather than incorporate the sale of pre-packaged foods and bottled beverages in the food court, establish a separate, retail food market to sell these products in order to maintain better operational control of food and labor costs and to insure that the needs of convenience oriented customers are met.

Based on the market research, EVS, working with HFS's core planning team, identified and developed what would ultimately become the final concept mix for the Den:

1. HUSKY DEN FOOD COURT

National Brand Food Court Anchors

Subway
Pagliacci's Pizza (who, after some internal management changes, showed renewed interest in the University of Washington)

New Self-Branded Food Court Outlets

@ Home
"This triple crown of comfort food features an Italian pastaria, a carving station and a full-line display kitchen to present the gamut of your favorite comfort foods."
Pickles & Fries
"If you're looking for a juicy burger, made from the freshest-never frozen-100% ground beef, a hand-dipped, premium shake so thick and creamy it can hold up a spoon, first-rate crispy fries and a crunchy, Steinfeld's dill pickle on the side, then our 1950s hamburger stand, Pickles and Fries, is the place for you!"
Red Radish
"Red Radish is the home of fresh salads, soups and breads. Whether you choose a seasonal entrée salads tossed to order at our display station or make your own salad at our 15-foot salad bar that's stocked with the freshest lettuces, vegetables and fruits and a host of delicious dressings, you know that you're enjoying the best, crunchiest salads available. If soup is what you're craving, you can choose from a daily rotating variety of eight of the heartiest soups anywhere."
Firecracker
"The menu for this eclectic "grab and go" restaurant reads like a tour of Asia with stops in Thailand, China, Japan, Korea, Vietnam and the Philippines. Flash cooked on a double Japanese Tappan yaki grill, our fast, hot entrees are served with seasonal Asian vegetables and fragrant jasmine rice in convenient Chinese take-out boxes."
Arriba!
"Welcome to the authentic, fresh taste of coastal Mexico with recipes created by the chef of Seattle's Blue Water Taco Grill. At Arriba!, we start early each day and make all of our recipes from scratch using authentic spices. We use only the freshest produce, meats and seafoods to create our big-flavored menu."

2. HUSKY DEN RETAIL MARKET

Etc.
A food market anchored by Seattle's Best Coffee, Etc. offers a broad array of high quality prepared foods, including Boss Tucker, UW's popular line of gourmet packaged sandwiches and soups.

3. THE ATRIUM

An existing high quality espresso and bakery kiosk, The Atrium has long been a favorite venue for a quick coffee and a snack.

For each of the new self-branded outlets, EVS consultants worked with the core planning team to develop the following:

Menu concept
Pricing strategy
Production strategy
Service system
Food and labor cost objectives
Staffing profiles

As the concepts were developed, the consulting team utilized sophisticated business modeling tools to bring operating cost projections into alignment with average check requirements, transaction forecasts and revenue projections in order to insure that each concept would meet the net revenue objectives required to fund the capital investment for renovations. Comprehensive operations manuals and business plans were developed by EVS for each concept. Three months prior to opening, EVS placed a consultant on site two days a week in order to facilitate implementation of the following pre-opening plan, as developed by the consulting team:

The grand opening of the new Etc. Market occurred in November of 2001, with the Husky Den Food Court following in early January, 2002. The results have been phenomenal. The Market, Food Court and Atrium combined now serve as many as 10,000 customers daily, much of this representing new volume to the dining system. Revenue has exceeded forecast, and the project is well on track to meeting its financial objectives. Best of all has been the positive impact on customers and on the image of HFS. To use a little "Husky" humor, a department that once was in the doghouse, has gone to being top dog! From the consulting team's standpoint, one of the most positive and heartwarming outcomes has been the pride that the project has engendered in HFS staff, from management to line servers, all of whom are now associated with a WINNER.

Ultimately, the redevelopment of the Husky Den has been the result of the combined talent and resources of a variety of dedicated professionals. These include:

University of Washington Housing and Food Services Core planning team and culinary staff - operational planning, implementation and recipe development
Envision Strategies - market research, strategic and operational planning, self-branded concept development, design oversight, business plan development, operations and concept manual development, pre-opening implementation and coaching
Mesher Shing & Associates - design architect
URS Greiner Woodward Clyde - managing architect
Thomas Ricca Associates - foodservice design
Landor Associates and KBI - identity and graphics development

For us, our work at the University of Washington personifies all of the reasons why Envision Strategies was founded, and why we love what we do! It is rare that a consulting firm has the opportunity to engage in so comprehensive a planning effort or work with such a dynamic and talented team of individuals. We remain passionate about this project and appreciate your consideration.