Greater expectation
It’s been well reported that the cost of attending university has increased in recent years – according to the Institute of Fiscal Studies students in England leave university with higher debts than almost anywhere else in the developed world. Much of Europe has low or no fees; there are also lower costs in other European countries as more students live at home.
As a result, there has been a shift in expectation – students nowadays are expecting more for their money. A study by the Higher Education Policy Institute (HEPI) reveals that students are increasingly feeling that they aren’t getting value for their money.
Our fm consultants have navigated various partnerships between Facilities Management providers and Higher Education Institutions over the years, and we have seen evidence of this rise in expectation of services. Students expect a better standard of catering, accommodation, cleanliness and so on. They have more sophisticated tastes and as they are paying more, they expect more.
So, what does this mean for universities? How can they cost-effectively set their facilities apart, create and maintain high standards and ensure students aren’t lured to the nearby town or city?
Different Demographics & Changing Attitudes
Answering this question is not simple. There is no ‘one size fits all’. Each university is individual. Each has its own culture, its own DNA. What may work for a university in Bristol, may not work for a university in Leeds. These individual nuances need to be realised across all areas of Facilities Management, from catering for different dietary requirements, offering varying social activities, and providing options to suit different budgets.
There is also a change in attitudes amongst students, with a surge of young adults becoming more health-conscious. According to a survey by ONS, more than a quarter (27%) of 16-24 year olds are teetotal, rising from 19% ten years ago, showing a growing number of university age adults are foregoing alcohol altogether. There was also the introduction of the Sugar Levy in April this year, firmly putting sugar in the spotlight, resulting in students becoming increasingly aware of what they are consuming.
With this in mind, how are universities currently embracing their individual personalities, and creating thriving student villages?
Investing in Innovation
A recent report our facilities management consultants undertook in association with The University Caterers Organisation (TUCO) – ‘Business Models in HE Catering’ – looked at the sector’s various business models for delivering catering, hospitality and retail services within higher education facilities.
One of the key findings from the report – and one which I think is crucial to the future success of universities – is that a vast majority (85%) are now turning to innovation to create a point of difference. Innovation to help inspire, evolve and stay ahead of the curve. Tastes and trends are transforming at an accelerating pace and facilities need to keep up. One way that universities are embracing innovation is through the adoption of a more retail approach. This is evident largely in the catering provision that universities offer.
Creating mini-cities
This approach is resulting in universities creating bespoke ‘mini-cities’ – essentially, their own communities – with a diverse range of food and drink outlets which are true to the culture and ethics of the university.
As universities strive to adapt to changing student needs and keep competition from the local towns and high streets at bay, catering teams have been highly proactive over the last five years in developing, and trialling new services. For example, 42 out of the 48 institutions involved in the TUCO report have introduced new types of offerings, with coffee shops and cafés the most common choices. Pop-ups are also popular, with students actively seeking authentic, global food options.
We’ve witnessed many examples of inspiring innovation at universities up and down the country. There are two examples of ‘retail inspired’ innovation that I’d like to share that showcase how a ‘mini-city’ could be bought to life:
- Authentic, local producers and restauranteurs: The Universities of Exeter and Essex regularly host street food markets on one day of the week or month, enabling local vendors to showcase specialist food offers. Equally, the University of Nottingham has taken this a step further and leases space for two of its main campus outlets. One tenant is a local Chinese restaurant and the other is a food court pod selling afro-Caribbean food.
- Bespoke payment apps: One of the big trends is the development of smartphone technology in the form of online app based ordering, payment and delivery, for speed of service. At Harper Adams University the staff and student ID cards have multiple uses and can be used as a payment method for buying meals. The data is fed to the dashboard system to provide daily figures for the catering team – invaluable knowledge for when they come to make decisions about catering moving forwards.
These innovations emerging at universities also give us an insight into the future of catering. Students are often early adopters of food/health trends and so the ‘mini-cities’ created at universities allow Facilities Managers a glimpse into how catering outlets may develop in the future. This is invaluable insight – particularly for Facilities Management companies that work in various sectors and can share learnings from one sector to the other.
Maintaining competitive advantage
Despite the rise in fees over recent years, students haven’t been deterred from attending university as numbers are increasing. In 1980 there were only 68,000 people starting university. In autumn 2017 there were more than 500,000[1].
Of course, it’s not only about attracting these students, it’s about ensuring universities stay ahead of their competitors. The main competition for all universities is the neighbouring high street. With students’ expectations higher than ever, and this generation moving towards a more health-conscious lifestyle, universities need to maintain a barometer of emerging trends to stay ahead.
It’s also about mindset. For some universities, the current facilities have been in place for years and change doesn’t happen overnight. However, taking steps to ensure infrastructure is in place so new ideas can be trialled, and maintained if successful, has to start happening to compete against the ever-evolving high street offering.
Building facilities in a university is essentially the same as building a community. What is being created is a hub for students to enjoy experiences. To enjoy new tastes and flavours. To enjoy relaxing accommodation. It’s all the touchpoints of the community combined that will help students feel they are getting value for their money.
If nothing else, we urge universities to stay true to their personal story. To their culture and ethos. Each mini-city is individual and it’s this that needs to be celebrated. If universities keep this at the heart of the ‘community’ and keep innovating, each mini-city should thrive.
[1] UCAS