Bear Bucks expansion has negligible effect on businesses’ profits - Student Life

Bear Bucks expansion has negligible effect on businesses’ profits

Although the Bear Bucks program may be a convenient option for Washington University students, most businesses to join the program have seen little or no increase in revenue.

The Bear Bucks program, which allows students to add funds to their campus cards, has expanded over the past two semesters to include off-campus eating establishments such as Blueberry Hill, Chill Frozen Yogurt and most recently Pi Pizzeria.

Blueberry Hill owner Joe Edwards said that while his business has not seen an increase in sales since accepting Bear Bucks in November, he thinks it is a valuable step in maintaining positive relations with the school and its students.

“The students appreciate the convenience, especially when there are students who go out in groups,” Edwards said. “It is also bringing in people who have never come before.”

He said that the value of the program outweighs its costs—the processing fee for Bear Bucks is 7 percent of all sales, versus 2.5 to 4 percent for credit cards.

“I’m willing to pay the extra processing fee for giving students more convenience,” Edwards said.

Chill Frozen Yogurt has also seen little benefit from Bear Bucks in terms of customers or sales, manager Ryan Kerlick said.

“There are more students coming in groups, but there has been no change in net profit,” he said.

Kerlick said that about five percent of his current sales come from Bear Bucks.

“We have a 50-50 split between Bear Bucks and credit cards with students,” he said.

Kerlick noted that the program’s cost has led to mixed results among some of the businesses to implement it.

“Other businesses have not seen the benefits of Bear Bucks,” he said. “The processing fee can be a turnoff.”

Bobo Noodle House has seen a marginal increase in sales since accepting Bear Bucks in September, general manager Paul Goodloe said.

“It fluctuates, but we have between 200 and 500 dollars in sales every day from Bear Bucks. It’s about 10 to 15 percent of our sales,” he said. “We do lose a good chunk of change to the processing fee. Ideally, it would be best if everyone paid in cash or credit card in terms of profit.”

Goodloe noted that the program does help even out business, but added that expanding its use of the program could bring in additional results.

“Bear Bucks has brought students in on nights when we are not so busy,” he said. ”It would really take off if we could have students use Bear Bucks for delivery. It would be even more convenient for the student and give us an edge in terms of business.”

Pi Pizzeria was the only business to report a noticeable increase in business as a result of the program.

“We have just started accepting Bear Bucks this week, and we have seen an increase in the number of students that come in,” general manager Greg Hard said. “It has added vibrancy with the steady business and has had a positive effect on our profits.”

Some students have voiced ambivalence toward the Bear Bucks program.

Sophomore Reith Sarkar said he is skeptical of the program, noting that certain students may find themselves overspending due to the convenience of Bear Bucks.

“Bear Bucks [can] promote financial irresponsibility because you can keep transferring funds in from a card,” he said.

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