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Salient. Official Newspaper of Victoria University Students Association. Volume 40, Number 3. March 14, 1977.



The cafe at the moment is directly run by the Students Association. Up til 1973 we sublet it to outside caterers on a contract basis and look a fixed percentage of the turnover. Thus any losses it made were no concern of the Association (generally, except in 1973, the private caterers had made a profit anyway).

However in 1974 we took over direct running of the cafe, employing our own catering manager. From then on any losses it made were on the shoulders of the Association. But it's important to realise that the cafe has never been subsidized. This means that it has always been budgeted to be a self supporting business. Otherwise it would have been too much a drain on Students Association funds.

When in fact it made a loss; $20,000 in 1975 that grew to an accumulated loss of $50,000 by July 1976, the Students Association had to pay it off and thus in effect subsidized the cafe. The money was borrowed from the university. This was done because there was no other way of getting round the problem, but after July last year everybody was determined that the cafe should not lose money like that again. After rigorous control the cafe made a loss of only $4000 for the second half of the year.