INC NEWS - Local group pushes for DukeCard expansion (today's Duke Chronicle, recent N&O)

[John Schelp]

Local group pushes for Merchants on Points expansion
Duke Chronicle, 28 October 2005

If the Old West Durham Neighborhood Association gets
its way, students may soon have more options for food
on points and eventually be able to use their
DukeCards at local shops and restaurants.

Two weeks ago the association sent a letter to
President Richard Brodhead with a request to lower the
initial set-up and commission fees for the Merchants
on Points program in order to promote more small
business participation.

The MOP system allows students to have food delivered
from restaurants in the local area using their meal
plan food points.

John Schelp, president of the Old West Durham
Neighborhood Association, contended that the current
program favors larger businesses, such as chain
restaurants that are better able to absorb the costs
of the program. He said that if Duke was willing to
lower the fees, more small local businesses would be
able to participate in the program.

"It would be great for students, and it would be great
for the community near campus," Schelp said.

The Regulator Bookshop co-owner Tom Campbell explained
the difficulties the fees create.

"It's $3,000 to start and then there are commission
fees that can go up to 18 percent," Campbell said. "We
have to offer a lot of discounts, so the fees would
take half our profit."

The Old West Durham Neighborhood Association also
raised concerns about the students' inability to use
points off campus. In the MOP system, students can
only pay for purchases with points if they are
delivered on campus.

"We get asked fairly frequently if we take FLEX,"
Campbell said.

Director of Dining Services Jim Wulforst explained
that meal plan points are non-taxable and thus can
only be used on campus.

He added that Kemel Dawkins, vice president for campus
services, is currently in talks with lawyers about the
issue.

Some vendors already on the points system, however,
disagreed with the association's claims. Dan Mall,
Jimmy John's operating partner and area manager, said
the MOP fees actually make it harder for chain vendors
to participate because chain restaurants have
franchise fees to pay as well. 

"You can't just lower the fee and have everyone be
happy," Mall said.

He added that the quality of service and ability to
handle customer volume must be taken into
consideration.

Wulforst agreed that quality is important in the
success of the system. "If a vendor provides good food
at a good price, they will get the student business,"
he said. "I'm all for an open market."

There are currently more than 15 restaurants
participating in the MOP system. It has recently been
expanded through Gourmet Dining and Bakery, LLC—a
student-founded delivery company that added Pop's
Trattoria, The Original Q-Shack, Dale's Indian
Cuisine, Mad Hatters Café and Bake Shop and Papa
John's Pizza to the system.

Overall, Schelp is optimistic about the constructive
response from Duke.

"The initial news from Duke is good," Schelp said.

He spoke to Executive Vice President Tallman Trask
about the issue and was told that the association
would receive Duke's answer to their concerns in a
month.

The interaction could represent a larger trend of
cooperation between the Duke and Durham communities.
"I don't think this conversation would have happened
two years ago," Schelp said.

He attributed the improvement to the influence of
Brodhead and Provost Peter Lange and called Brodhead
"a breath of fresh air" in his interactions with the
Duke administration.


Ninth St photo caption: Some Durham residents are
calling for Duke to make it easier for small
businesses to offer food on points. 

Photo caption: A Durham neighborhood group is hoping
more local businesses can join Jimmy John's as
merchants on points.  

****

Spreading the wealth
News & Observer, 22 October 2005

Old West Durham neighborhood activist John Schelp
reports some progress in his campaign to get Duke
University to cut its charges to merchants who accept
DukeCards. According to Schelp, university vice
president Tallman Trask has said Duke "is looking at
ways" to cut the startup cost and per-sale commissions
that discourage small businesses from accepting the
card.

Schelp said lower charges would benefit both merchants
and the students and Duke personnel who hold the cards
by opening more off-campus options for trade. Trask,
he said, indicated "they'll get back to me in a
month."

****