Dana Hospitality and McGill

Fabrice Lebeau signed an initial contract with Dana Hospitality on May 9, 2019. Since then, there have been three amendments to the contract signed January 16, 2021; October 28, 2021; and March 29, 2022. At the time of signature, the contract can be extended for a maximum of 5 years from June 1, 2024 (clause 2.3). An amendment to the contract made in January 2021 extended the contract to a maximum of 5 years from June 1, 2025.

While the contract is several pages long, and contains many clauses, here are some key highlights:

• 1.6: McGill doesn’t have to continue its arrangement with Dana if it believes that the arrangement is in violation of Act respecting contracting by public bodies RSQ, c. C-65.1 
• 3.2: McGill can add and remove Service Locations, modify Meal Plans, and increase its own service offerings at any time during the contract.
• 5.3: Representatives of McGill and Dana hold review meetings to discuss processes, client issues, and areas for improvement. McGill should collect indicators on quality of service and Client Satisfaction for these meetings.
• 7.2: Dana pays McGill a commission for the privilege of being their food provider.
• 7.7: If McGill believes that the prices of food being sold are too high, they can compare the prices to other locations (off-campus locations, retail outlets, other universities) and request a pricing adjustment.
• 10.1: McGill can have access to all of Dana’s books to do an audit.
• 27.0: Dana cannot subcontract its services without McGill’s approval.
• 35.1: McGill records Dana’s performance in ‘Performance Evaluation Report.’ This report will be submitted to Dana at the end of their contract.

Scope of contract (page 19 onwards) with regards to pricing:

Amendments:

No. 1 (signed January 16, 2021): 

• During the period between March 21, 2020 and May 15, 2020, when the university was closed due to the COVID-19 pandemic, McGill requested that Dana Hospitality maintain their services for students remaining on campus.
• McGill gave Dana Hospitality compensation for the profits they lost during that period due to low demand for food services by reducing the commission Dana would usually pay to the university.
• The contract term was updated: the contract was extended to May 31, 2025, with the possibility to renew the contract up to five year from June 1, 2025.

No. 2 (signed November 1, 2021):

• The list of locations administered by Dana Hospitality was modified.
• Definition of capital investment was updated. Capital investment refers to money used to purchase equipment or conduct renovations or improvements to a location.
• Dana Hospitality has to get approval from McGill before initiating any capital investment expenditures.
• Dana Hospitality to offer composting services at its locations at no additional cost to the university.

No. 3 (signed March 2022):

• The Athletics Cafe is removed from the list of locations administered by Dana Hospitality
• Current list of locations:

1. New Residence Dining Hall
2. New Residence Hall main floor (previously Première Moisson)
3. McConnell Café
4. Law Café
5. Trottier Café
6. Second Cup, Stewart Biology Building
7. Redpath Café
8. Starbucks, Carrefour Sherbrooke
9. Med Café
10. La Citadelle
11. Carrefour Sherbrooke Dining Hall