Reggie’s may be forced to increase prices

Reggie's may be forced to increase drink prices to cover outstanding deficit - Photo by Navneet Pall

A grim report of Reggie’s financial state exposed at last Wednesday’s Concordia Student Union council meeting could possibly result in increased drink prices at Concordia’s student bar.

CSU VP finance Jordan Lindsay and CSU President Lex Gill reported that CUSACorp, the union’s for-profit subsidiary that runs the bar, held a deficit of more than $40,000 for the last four months. According to Lindsay, this deficit will most likely double by the end of the winter term.

“Right now we have to find a way to go from $121,833 of semester sales to nearly $300,000,” said Lindsay, who is also on CUSACorp’s board of directors. “The situation is fairly grim and we need to tighten finances. We are going to do all we can to avoid increasing prices, but there is a 25 per cent chance that it will happen.”

Lindsay added that if such a scenario were to present itself, the increase would be minimal; “a matter of 25 cents here and there.”

During the meeting, Gill spoke of a worrying situation where, despite having no rent to pay for the bar and despite collecting a rent from the Java U café located next to Reggie’s in the Hall building, CUSACorp still managed to run constant deficits.

“Historically, Reggie’s has lost an awful lot of money,” said Gill.

Lindsay said the situation has been going on for years and that the bar has often been “eating up” most of the Java U rental profits. Gill explained that the losing money pattern was mainly due to “very poor” internal control, shifting management and high administration costs.

“Reggie’s is a fairly vulnerable institution,” said Gill. “It has a mix-mandate which is to be a bar, sell beer and make profits, but simultaneously to provide services and a community space for students. Therefore, the goal is not always to make money.”

Lindsay said that CUSACorp has not only planned to tighten expenses by controlling inventory and entertainment costs, but also to increase sales through better marketing campaigns, involvement of professional companies, use of social media, better lighting on Thursday nights, increased beer selection and organization of more theme nights.

Lindsay also insisted that Reggie’s was not condemned to bankruptcy, as he was confident the situation was fixable with better management of finances and increased sales campaigns.

However, the price increase seemed to be a concern for several students informed of the possible outcome.

“One of the major draws that Reggie’s has for students is cheap drinks,” said communications studies student Michael Czemerys. “I think they’re going to lose a lot of business if they increase prices.”

3 comments

  1. If they don’t have to pay rent they shouldn’t have any money issues. Call an audit, I’m sure there’s rampant theft and now they’re gonna spin the table on the students and gouge them for more money? Might as well shut the place down already.

  2. Forget tuition hike protests, this is going to cause the student body to go crazzzzzzzy. (Kidding, I hope).

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