With food prices on the rise, disruptions in the supply chain and potential tariffs, Iowa State Dining is continually navigating today’s challenges.
According to the USDA’s Food Price Outlook, food prices were 2.5% higher in January 2025 than in January 2024, with an anticipated increase of an additional 3.4% in 2025. Egg prices are predicted to increase 41.1% in 2025.
Stu Essex, associate director of business services for ISU Dining, shared how a variety of sectors within their operations have been affected in the last few years.
“There’s natural disasters, flu, pandemics,” Essex said. “We’re always managing that, so it is always a core part of our operation to be aware of those food costs and navigate it.”
Essex declined to comment on the potential impact tariffs may have on operations, but noted general economic impacts.
“[Economic factors] have the impact for potential higher food costs, supply chain disruptions,” Essex said. “We’ve navigated various challenges… right now it is pretty general in nature. How all this will get down to our industries is yet to be known.”
Karen Rodekamp, director of ISU Dining, has seen a variety of fluctuations in her 25 years in the dining department.
“I’ve seen natural disasters, H1N1, the avian flu,” Rodekamp said. “I’ve seen how our organization can navigate through these periods of time, and how we diversify the menu to help a lot for what we’re experiencing.”
As mentioned by Rodekamp, one current concern in the food industry at large is the avian flu and its impact on egg prices.
“Today it’s fresh eggs, it could be pork in a few weeks, it could be a recall on spinach or a melon,” Rodekamp said. “There’s always things that ebb and flow throughout the food system that we just have to continually navigate.”
According to Rodekamp, in the fall 2024 semester, eggs cost $33.40 for a case–now, they are $133.
To address this, residential dining centers—Friley Windows, Seasons and UDM—will not be using cracked eggs for the time being. Freshly cracked eggs will be substituted with a frozen egg mix or frozen egg patties, according to Rodekamp.
Jason Strand, a senior in management, has held an unlimited meal plan for two years. Strand expressed his thoughts about the move away from freshly cracked eggs.
“I feel like people probably paid with a certain expectation,” Strand said. “But, as long as it doesn’t hurt the quality.”
Essex said that quality will remain a top concern for ISU Dining no matter the cost pressures. Signage will also be posted notifying customers of such changes.
“We have operations in place and much analysis being done and work behind the scenes to make sure [quality] is not impacted,” Essex said.
Strand said that his main reason for maintaining a meal plan is convenience, despite a higher cost than purchasing his own groceries.
Strand, who studied abroad last semester, had to cook and buy food for himself. He pointed out a greater variety in food options and higher quality at ISU Dining locations than with his own cooking.
“I use it quite a bit,” Strand said. “It’s been useful for me. But it may not be worth it for everyone.”
Strand’s main concern fell with dining’s retail locations. Recently sick, Strand purchased medications from the dining retail locations where he noticed upcharges that he said may disproportionately affect students without a car to purchase items elsewhere.
“Let’s just say I’m running low on my dining dollars,” Strand said.
Rodekamp noted that ISU Dining’s prime vendor, Martin Brothers, acts as a first line of defence to price fluctuations.
“Our brain is currently on avian flu and how that’s affecting ISU Dining and our menus,” Rodekamp said. “Martin Brothers have seen this two or three weeks before… they’re potentially stockpiling, or they’re starting to diversify who they’re working with.”
When operations are “status quo,” Rodekamp said, Martin Brothers works to increase purchasing power through their contract with both University of Northern Iowa and ISU Dining.
However, when there is variability, Martin Brothers works to increase their number of suppliers and build inventory. Rodekamp noted that their costs reflect when Martin Brothers purchased the product, not necessarily the current market conditions.
Rodekamp highlighted that Martin Brothers is working with other organizations to understand current market situations and were able to navigate supply chain issues during and in the aftermath of COVID-19.
According to Rodekamp, while eggs are the main food cost increase, there are others as well.
“[Egg prices] in general are rising, and that’s going to start making other things like cookies, cake mixes and any product with egg in it affected down the road,” Rodekamp said.
Rodekamp also noted a 8- to 10-percent increase being seen in coffee products, which ISU Dining is currently absorbing the cost of rather than raising prices.
Rodekamp said that despite certain food cost increases, ISU Dining aims to keep menu prices the same during the academic year and will re-evaluate menu prices on a yearly basis.
According to Essex, two to three years ago, a “substantial amount of menu re-engineering” had to occur, as fewer students had meal plans leading to lower revenue paired with higher costs.
“I’m not in panic mode with any current situations,” Essex said. “We’re right where we need to be.”
According to Essex, ISU Dining is not concerned with having to perform menu eliminations, but may conduct menu modifications.
“There have been many price adjustments across the board,” Essex said. “And we’ve seen that it’s not just here.”
Rodekamp and Essex outlined the process of price changes within ISU Dining, with meal plan rates being set far in advance.
“We’re starting to work on the fall menus right now,” Rodekamp said. “Menus have to be built to stand the test of time, but also where we can ebb and flow, if there’s a need.”
Meal plan rate proposals are then brought before the Inter-Residence Hall Association (IRHA) for approval, where ISU Dining works to inform the student leadership about the budget—“dissecting” it and educating students where their money is going, according to Rodekamp.
According to Essex, after a rate increase proposal is approved by IRHA, it then goes to senior administration offices—the vice president of student affairs, the president’s office and the Board of Regents for approval.
Essex and Rodekamp highlighted that the rate proposals are based on reinvestments into infrastructure, inflationary pressures such as food or labor costs and the margins needed to maintain operations.
“A lot of that meal plan increase is looking towards the future in our reinvestments and our facilities,” Rodekamp said.