Bringing Fresh and

Affordable Food to Campus
Business and Professional Writing
University of Minnesota
─

Morgan Daniels
Greta Gage
Yanle Kong
Justine Norris
Lao Yang

 
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Table of Content

Executive Summary……………………………………………………...…...………..……Page 2

Introduction……………………………………………………………...…….…....……….Page 3

Body………………………………………………………………...………………....…….Page 4

Current Situation………………………………………....…………………...……..Page 4

Student Survey Data…………..………………………………...…………...……...Page 8

Implementation of Aldi………………………………………...………………..….Page 9

Benefits and shortcomings of change…………………………...….……………...Page 10

Recommendations…………………………………………….………..………………......Page 11

Conclusion……………………….……………….…………………………………..…....Page 11
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Executive Summary
The number of student attending the University of Minnesota has been increasing. According to
the University of Minnesota Office of Institutional Research, the number of student has increased
from 8,189 to 8,748 between the years of 2012 to 2016 (University of Minnesota, 2016). The
University of Minnesota is a huge campus and has provided a variety of restaurants and
convenience stores to students. However, it is still considered a “food desert” campus. The two
closest grocery stores are Lunds & Byerlys and Cub Foods. The issue with these grocery stores is
that they are a significant distance from campus and require the use of public transportation or a
car. According to our survey, many students do not have cars, so they must rely on whatever they
can get to by foot or bus, which can really limit the options available. Another problem with
these choices is that Lunds & Byerlys is very expensive and many students cannot afford to shop
there. The University of Minnesota campus has convenience stores like Target Express,
Walgreens, CVS, etc., but it does not have a full grocery store to meet the needs of all, or most,
students on campus. As the number of students increased, more students live on campus, in their
own house or apartment, so it is essential that they have access to fresh grocery.

The campus diversity at the University of Minnesota- Twin Cities has increased in recent years
(University of Minnesota 2016). However, there aren’t any grocery stores/markets on campus to
cater to their needs.​ ​For instance, some international students need specific ingredients to cook
meals from their country, but the stores closest to campus have very small international foods
sections with even less options. In creating a proposal for building a grocery store on campus
that can cater to these needs, we can present this to our grocery store of choice as well as health
officials on campus who can help set this idea in motion.
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Introduction
The University of Minnesota has a large campus. It accounts for 1,204 acres of Minneapolis.
That being said, no space is designated for students to buy fresh and international foods (site).
Because of this, the University of Minnesota campus is considered a “food desert,” which is
defined by the Centers for Disease Control and Prevention as “Areas that lack access to
affordable fruits, vegetables, whole grains, lowfat milk, and other food that make up the full
range of a healthy diet” (Centers for Disease Control and Prevention, 2016). Many students on
campus live in their own houses or apartments, so it is essential that they have access to fresh
food. Many students also do not have cars, so they must rely on whatever they can get to by foot
or bus, which can greatly limit the options available according to our survey. The students of the
University of Minnesota needs an on-campus grocery store that will provide fresh produce as
well as international foods that will benefit all students.

The University of Minnesota is a large community, which includes a diverse group of students
with different background, race, and ethnicity. White students are the majority of total
population, and Asian, Black, Hispanic, and other international students account for the rest.
According to the data of the Official Enrollment Statistics, the number of white students in each
year maintains constant, while Hispanic students are increasing at an average of one hundred
people each year. More international students are joining the community of the University of
Minnesota, and the number of international students increased at the rate of 300 students per year
from 2011 to 2014 and then kept almost constant. The majority of international students come
from China, India, and South Korea (Table 2 ).

(Table 2: International Student)

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The purpose of this project is meant to help students living on and near the University of
Minnesota-Twin Cities campus by providing an easily accessible grocery store with a variety of
products. By being so close to student housing, focusing on having a variety of products, and
keeping prices low, this grocery store would alleviate the stress many students face when it
comes to buying groceries. However, space is limited in urban areas such as the University of
Minnesota campus, so this grocery store may not meet every single grocery need of students, but
it will be able to cater to many of the student body’s tastes and needs.

Our proposed location for a new retail grocer on campus is ​604 Washington Ave SE,
Minneapolis, MN 55414.​ We searched for any available retail space within a mile of the
University of Minnesota campus, and 604 Washington was the only available space. This space
is located in the heart of Stadium Village close to student apartments, the Superblock dorms, and
multiple bus lines including the University of Minnesota Campus Connector, making it ideal for
students living on campus or off campus. After finding an available retail space, our group
debated what retail grocery corporation would best fit the University of Minnesota’s unique
community. We decided upon Aldi corporation as our choice for a fresh affordable grocery near
campus. It is one of few grocery chains that have affordable foods for young adults and college
students. Aldi corporation has a unique business model that allows for their products to have
great quality at low prices. Aldi would be a fresh produce supplier for the university, and would
bring new employment opportunities to the University of Minnesota community as well.

Current Grocery Situation

Grocery Stores Near Campus
There are a handful of grocery stores near campus for students to access, however, students face
many obstacles when it comes to accessing these grocery stores. The three grocery stores we
looked at were Cub Foods in The Quarry, Lunds & Byerlys Northeast, and the downtown
Minneapolis Whole Foods. These grocery stores were chosen based on their proximity to campus
and popularity among University of Minnesota students (see Map 1). The biggest obstacle for
students is transportation to these grocery stores. Most students do not have cars and choose to
walk, bike, or take public transportation to their grocery store of choice (Table 1.1). With each of
these options, students are left with many limitations. Walking and biking become challenging
when a student needs to purchase a large amount of groceries and the winter months being
extremely cold and unsafe to be outside for long periods of time (Map Table 1). The issue with
the bus is that it can take anywhere from 21 to 43 minutes (based on information gathered from
the Metro Transit website) for students to get to any of the aforementioned grocery stores from
campus. This means a student will spend a minimum of two hours to complete their grocery
shopping and could put refrigerated and frozen products at risk becoming unsafe for
consumption.

Although the University of Minnesota has attempted to remedy these problems by enacting a
grocery shuttle that takes students to Cub Foods in The Quarry in early 2016, there are still issues
that exist with this service. The grocery shuttle only operates on select days of the month and
may not fit in with a student’s academic and work schedules. In fact, the shuttle only ran 10
times over the Fall 2016 semester, mostly on Sundays, and only during the hours of noon to 4pm
which poses a problem for working students and students with very little free time. Another
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issue is that it was very hard to find the information regarding shuttle times and dates of
operation. Searching for the grocery shuttle on Google gives the impression that the shuttle no
longer operates because there is no website, campus advertisements, social media posts, or recent
blog posts on University of Minnesota websites regarding the shuttle service.

Based on our survey, one of the largest concerns students have when grocery shopping is the
price of the products they’re purchasing. When comparing the price range of products frequently
purchased by students it was found that Whole Foods was the most expensive grocery store
while Cub Foods and Lunds & Byerlys tended to have lower prices. Cub Foods and Lunds &
Byerlys alternated on which store had the less expensive products for certain items, but overall,
Cub Foods was the cheapest grocery store (see Table 1). None of these grocery stores had large
international sections. Most stores only had one to three shelves of products that can be
considered international and very little variety of products that fit in that category.

Map 1 : Grocery Options

Map Table 1: Grocery Options and distance from Coffman Student Union
Grocery Store Miles from Time on Bus
Campus

Downtown Market & 2.4 miles 21 minutes

Deli
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Whole Foods Market 25 miles 19 minutes

Cub Foods Quarry 3.4 miles 43 minutes

Lunds & Byerlys 2.1 miles 40 minutes

Sentyrz 3.6 miles 40 minutes

An aspect of the main challenge facing students is that there are no grocery stores within a mile
of campus (see Map 1). As mentioned previously students have limited forms of transportation,
resulting in time consuming bus trips and prolonged periods of time outdoors leaving students
vulnerable to Minnesota’s weather. We collected information from Google Maps on bus ride
durations to various near campus grocery stores from Coffman Memorial Union during the
typical student grocery shopping time, Saturday around 10 AM (Map Table 1). The results show
that travel time using the Metro Transit consumes between 21- 43 minutes of student time, these
travel times vary depending on seasonal weather changes. During the winter months’ students
find it difficult and dangerous to use their bikes as a form of transportation. Even taking the
Metro Transit during winter months can make traveling more difficult due to inconsistency in
bus schedules and increased traveling time. These issues can be addressed by increasing on
campus options for fresh food.

Table 1: Price Range of Near-Campus Grocery Store Items

PRODUCT Whole Foods Cub Foods Lunds & Byerlys

Apples $2.49-2.99 /lb $1.69-2.99 /lb $1.49-3.49 /lb

Bread $3.99-5.39 $1.99-4.29 $2.39-6.99

Peanut Butter $3.99-7.99 $2.19-5.69 $3.25-9.39

Jelly $3.99-5.99 $1.99-4.99 $2.39-7.29

Lunch Meat $13.99-15.99 /lb $7.49-11.99 /lb $8.99-15.99 /lb

Lettuce $2.49-3.99 /lb $2.99-4.99 $1.79-3.99

Noodles $2.19-5.99 $1.19-5.99 $1.49-4.99

Cereal $2.69-7.99 $1.59-5.99 $3.19-5.99

Carrots $2.99 /lb $1.59-5.99 $1.69-3.98

Eggs $3.49-6.99 $1.29-4.99 $0.99-3.79

Milk $3.99-5.99 $2.89-3.89 $2.79-3.69

Rice $2.99-8.99 $1.99-7.49 $2.39-4.29

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On-Campus Convenience Stores

As previously mentioned, a big obstacle for students buying groceries is the ability to get to a
store. Many students do not have a car on campus, so they must settle for what they can get to by
foot or public transportation. Time is also an issue and getting on the bus and going to a grocery
store can take an entire afternoon that could be better used for studying. This leaves many
students to stay on campus and use the convenience stores like Target Express, CVS, and
Walgreens for ease and quickness. These on-campus convenience store options have very limited
choices for foods and are more expensive than grocery stores in the area. Target has quite a few
aisles of grocery items, but CVS and Walgreens each have only 2-3 aisles dedicated to groceries.
If there were an Aldi’s grocery store on campus, it would be easily accessible to virtually
everyone on campus and it would be more affordable than these convenience stores. This would
save students precious time and money.

Table 2 shows the three different stores on campus and the price ranges for the staple items that
many students buy. Target has the biggest variety and best quality, but their products are more
expensive and more limited than what one could find at a grocery store like Aldi’s. CVS didn’t
even have all the staple products, and many of the products only has one option when it comes to
brand and quantity. Walgreens has each item, but they are expensive and there aren’t many
options for variety.

Table 2: Price Range of On-Campus Grocery Items

PRODUCT Target CVS Walgreens

Apples $0.79-$1.49 N/A $0.79

Bread $1.49-$3.09 $2.59 $2.49-$2.99

Peanut Butter $1.89-$2.59 $2.99-$3.59 $2.79-$3.49

Jelly $1.84-$4.29 $2.99-$3.99 $2.29-$3.19

Lunch Meat $3.19 ​(9oz) ​- $3.89-$3.99 $2.99-$4.29

$5.79​(16 oz)

Lettuce $1.29-$2.99 N/A $2.09-$3.99

Noodles $1.37-$3.99 $1.79 $1.79-$2.29

Cereal $1.99-$4.49 $4.19-$7.29 $4.19-$5.99

Carrots $1.64-$1.99 N/A $1.69

Eggs $0.89-$3.39 $1.59 $1.29

Milk $1.79-$2.99 $1.99-$2.99 $2.19-$5.99

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Rice $0.99-$5.05 $2.67-$2.99 $2.59

Survey: Students’ Opinions on Having a Grocery Store on Campus

In addition to this proposal, we conducted a survey to gain insight in students’ preference in
which store to purchase grocery, transportation to the store, and how much they spend on
average for grocery monthly. Also, this survey was conducted to ask students’ input on if having
a grocery store in campus should be considered. This survey helped us further the proposal by
including students it would affect and making sure that their voices and opinions are heard
because they will be the main customers to the new proposed grocery store in campus.

Survey Methodology
We used a convenience sample survey with the sample size of 25 participants. We created the
survey through the Surveymonkey website and shared with participants through social media
such as Facebook. The participants completed the survey are the University of Minnesota-Twin
Cities students. In order to make sure that we received that attempted amount of participants, we
reshared the survey on social media to remind students to complete it by December 6, 2016.

Survey Instrument
The survey include ten questions focusing on the average amount student spend on grocery
monthly, stores often visited, and transportation to the stores. The purpose of this survey was to
gain insight of the University of Minnesota students use of the local stores for grocery and their
opinions on if a primary grocery store should be considered to be built on the University of
Minnesota campus. The questions of the surveys were multiple choice with an option labeled
“Others” to explain their thoughts and other suggestions. In addition, the survey also asked
general background information such as the student’s year in school, race/ethnicity, student
status (local or international), and current living situation. This information will not be reported.

Survey Results
It is very interesting that students would rather go to the closest stores to them. According to our
finding, 50% of students responded to purchase their grocery at CVS convenient stores located
on the University of Minnesota East campus and Target Express in Dinkytown. The result of
students visiting the nearest stores is correlating with the transportation that student use. Table
1.1 shows that 50% of students walk to purchase grocery and 33.33% responded to drive a car.

Table: 1.1: Transportation to a Grocery Store.

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Another interesting finding from this survey is that 52.17% responded that they spend $50 to
$200 monthly on grocery according to table 1.2. This amount may not seem a lot, but as college
students living on a budget, spending up to $200 on grocery monthly is expensive. In addition to
the result of the survey, 95.83% agreed that having an affordable within a walking distance is
necessary to be considered in the University of Minnesota campus.

Table 1.2: Monthly Average Spending on Grocery

Implementation of Aldi
We chose Aldi as our winning choice for a fresh food affordable grocery store that we would like
to establish a store on campus. Aldi is a cost effective brand that uses unique operational
techniques to ensure quality fresh food using lean production methods (Business Case Studies
2016). Aldi uses lean production methods to enhance their business model to continuously
improve time management, stocking methods and quality management. Aldi production uses
“just-in-time production” where materials are stocked based on vacancy, not on vendor shipment
schedules, ensuring that all produce will be fresh (Business Case Studies 2016) . Aldi is an
affordable fresh food grocery which meets the main requirement the University of Minnesota
community needs affordability. Aldi as an organization meets all of the requirements needed for
a grocery option for the University of Minnesota campus.

Aldi corporation has standard requirements for their retail spaces, unfortunately the location we
chose​ does not meet all of the requirements. Our location fits several of the retail requirements
set out by Aldi. Our location is located in a dense trade area population and is in a location with
daily traffic in excess of 20,000 vehicles. 604 Washington Ave SE, Minneapolis, MN 55414,
will be the perfect available retail space on campus and will be a great location for Aldi. Aldi
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corporation requires a minimum 85 dedicated parking spaces, and 2.5 acre pads for purchase and
development (Aldi 2015). However, due to the high density of businesses within walking
distance from campus, the requirement of 2.5 acres and obtaining a minimum of 85 parking spots
can not be met.

The University of Minnesota would be a new unique consumer base for Aldi. Due to the large
percentage of the University of Minnesota community living within walking distance of campus,
Aldi’s new consumer base will no longer require 85 parking spots. If Aldi requires additional
parking options there are several parking ramps near the 604 Washington Ave location. The
University of Minnesota community will bring over 50,000 new customers who need a regular
grocery to meet their unique needs. ​Due to the density of the available location retail costs to
purchase land will be reduce totalling only $358,200 according to the owners retail ad
(ForSaleByOwner). Purchasing this property will save Aldi on construction costs since the land
is previously developed and takes up less acres than their requirements reducing the overall
building costs for Aldi.

Benefits of Change
Opening a Aldi grocery store at the University of Minnesota will bring many benefits to students,
and the relation is reciprocal, which means these benefits will generate considerable profits for
the Aldi Store. The benefits not only include bringing more convenience to student’s life, but
also promoting the development of the students’ community. First, most students do not have
vehicles to access to distant stores, such as the Target at downtown, and Walmart in Rosedale.
However, the location where we chose is the center of the University of Minnesota, which
indicates students are able to go shopping easily and quickly instead of spending a lot of time on
public transportation. As mounting student consumers are willing to buy products at Aldi, the
inflow of money will increase simultaneously. Furthermore, many students are burdened with
loans and have to reduce their cost of living. The Aldi store can take the aim that students want
to save money as the key point of breaking through, hence the store might have special discount
for University of Minnesota students, and it can provide specific cheap products for the specific
student demographic at the University of Minnesota. With this business stratagem, the Aldi store
can increase profits through covering a wide range of consumers. In addition, hiring these
students will also help them acquire financial support from a part time job, and ALDI store can
also reduce the cost of insurance. Secondly, adding a variety of international food options at the
store will be beneficial to the business reputation, since students consider that the Aldi store pays
close attention to the development of the community. Because potential consumers always be
uncertain about whether buy international food at the first time, the advantage of the grocery
store is that the salesman can introduce the food to customers more precisely, this method will
indirectly promote the sales of international food. As we mentioned above, the students are
enjoying benefits, and they also generate potential profits for the business of the Aldi store.

Shortcoming and Concerns

However, the new ALDI store might have some drawbacks. The first drawback for the store is
the rental fee. It is obvious that renting a space at the center of the university will need plenty of
funds, and this factor might cause the price of products to become higher, hence the store cannot
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attract potential customers because of low price competitiveness. Such a poor circulation
between goods at the store and students will lead to a bankruptcy.

In addition, the concern is how the Aldi store continues to supply popular international food.
Obviously, some factories of most international food are based on home countries, and these
items will be usually shipped by sea transportation. However, the sea transportation will take a
long time, and the Aldi store might face the dilemma that the new stock cannot be purchased.

Recommendations
There are several necessary steps to take to provide an affordable fresh food grocer to the
University of Minnesota Community. The first necessary step would be to first examine city
zoning permits and legal requirements set out by Minneapolis to open a new retail space. After
requiring all of the necessary legal documents, the next step would be to create a site
consideration described by the Aldi corporation. Aldi welcomes external suggestions for new
retail spaces for new Aldi grocery stores. The requirements for site considerations are to provide
a site plan, boundary information, city map with marked on the map, contact information and a
aerial photograph of the suggested site (Aldi, US).

Our team recommends that an Aldi’s grocery store be put into the space for rent on Washington
Avenue, near Stadium Village. This Aldi’s should have affordable staple items with a good
variety of choices, as well as satisfy the needs of our international students. Students want easy
and affordable. Right now students can choose easy or affordable, so putting an affordable
grocery store like Aldi’s gives students the option for easy and affordable. In doing so, as shown
in the survey, many students would gladly change where they shop for groceries and give Aldi’s
their business, so it would be a good business move on their part. The space is already available
so no building would be required, which makes it much easier for Aldi’s to come in and create
this grocery store. We strongly believe that if Aldi’s were to accept our proposal, they would be
successful because there is no easy and affordable option on campus for students, so they would
have virtually no competition when it comes to student grocery shopping. Aldi’s would win and
the students of the University of Minnesota would win, so having this partnership would be
beneficial to both parties involved.

Conclusion 
Because the University of Minnesota campus and surrounding neighborhoods popular with
students are considered a food desert, there is a high demand for a grocery store with low prices
and easy access for the student body. We believe that implementing an Aldi store in the heart of
Stadium Village, close student housing and public transportation, will relieve most of the stress
students face when it comes to grocery shopping. The affordable pricing and plentiful stock
ensures that students will always have access to fresh, healthy food. Additionally, efforts to cater
to the needs of international students by providing a wider selection of foods from their home
countries will help with their transition to life at a large, American university. Our proposal to
Aldi will provide students an additional choice for groceries, create jobs, as well as promote
healthy eating choices for students. Overall, we believe a new Aldi grocery store in Stadium
Village will greatly benefit the University of Minnesota community and Aldi.
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Works Cited/References
Aldi Corporation. (2016). Innovative retailer seeks space for smart shoppers. Retrieved
December 03,2016 from ​https://corporate.aldi.us/en/real-estate/real-estate-opportunities/
 
Aldi Case Study (2015). Business Case Study. Retrieved December 01, 2016. From  
http://businesscasestudies.co.uk/aldi/competitive-advantage-through-efficiency/lean-productio
n.html#axzz4RcVoeaDU

Centers for Disease Control and Prevention. (2012). A Look Inside Food Deserts. Retrieved
December 07, 2016 from http://www.cdc.gov/features/FoodDeserts/index.html

Chaduvula, R. (2016, March 1). Shuttling out of the food desert. ​Minnesota Daily​. Retrieved
from ​http://www.mndaily.com/article/2016/03/shuttling-out-food-desert

U.S. News. (2015). How Does University of Minnesota Rank Among America's Best Colleges?
Retrieved December 07, 2016, from
http://colleges.usnews.rankingsandreviews.com/best-colleges/university-of-minnesota-3969

Peterson, D. E. (2016). Official Enrollment by Race/Ethnicity for Fall 2012-2016. Retrieved

December 09, 2016, from
http://www.oir.umn.edu/student/enrollment/term/1169/trend/10153

"Campus and Unit Enrollment by Race/Ethnicity for Fall 2016." ​OIR: Enrollment Headcount
Data: Race/Ethnicity​. Office of Institutional Research, Web. 15 Dec. 2016.