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Finances, application error incite restuarants' departures

By Kiah Haslett

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Published: Wednesday, April 9, 2008

Updated: Sunday, July 13, 2008

After a Whopper of a partnership, the King is leaving the Nebraska Union because of financial reasons.

The decision to not renew Burger King's contract with the University of Nebraska-Lincoln was one Horizon Holding Inc. made because they couldn't afford to pay for it anymore.

"The simple response was it was a financial decision," said Dennis Erickson, the president of Horizon Holding Inc., a Lincoln-based company.

"With the number of days that we are open at the student union, the downtimes, the breaks (and) the weekends when the union wasn't open, it wasn't a financially feasible location," he said.

Erickson said it appeared fewer students were going to the union to study, and competition from the union's other restaurants and kiosks hurt business.

"It makes sense for us to find something that more closely matches the 364-day operation with expanded hours that Burger King wishes us to have," he said. "UNL has been very good to us, and we would hope the next restaurants that come in have equal success and they have a long tenure with (the university) as well."

Runza will replace Burger King in June.

Finances didn't force Subway out of its prime location, but an incomplete application did.

Gary Kraft, the director of UNL's purchasing department, said Subway should have been familiar with the required paperwork and format needed for proposal requests, but the store's management only sent their revenue statement.

Subway franchise operator Kevin Belling explained why: "We were working with the college for quite awhile, and I assumed they had the rest of the paperwork. I should've filled it out more completely and shouldn't have assumed it. It's my fault completely."

Belling said Subway would reapply for the space in five years, pending approval from the Nebraska Board of Regents.

In the meantime, Belling said he hoped students would visit Subway's new location at 131 O St.

"We would love as many customers at the downtown location if they can walk the three blocks to get to Subway," he said.

Subway's loss was Planet Sub's gain. Dan Novascone, Planet Sub's owner and operator, was excited about the store's new location.

"It's a good opportunity for different reasons," he said. "It'll give lots of exposure because we're new to the Lincoln market and it's the first Planet Sub store inside a state university. It opens a lot of doors for the chain."

Novascone said Burger King's concern about restricted hours doesn't apply to Planet Sub and that he'll be in touch with the union board, which he said has been "fantastic to work with."

He also noted the new location is looking to hire about 20 to 40 people and encouraged students should apply by dropping off applications at the downtown location.

Novascone said the store's downtown Lincoln location on 1332 P St. will "absolutely remain open."

Kiahhaslett@dailynebraskan.com