Texas State University’s campus dining scene is about to get a major shakeup, and 183 on-campus food-service workers have been told their jobs could vanish at the end of May. The cooks, cashiers, supervisors, and delivery drivers who keep dining halls and retail spots running across the San Marcos campus were told they may be able to reapply with a new vendor, but for now, the details are murky.
According to a WARN notice obtained by the Houston Chronicle, Compass Group USA, which runs Texas State’s dining through its Chartwells brand, has told state officials it will not renew its contract and plans a permanent closure of its campus operations. The filing lists 183 affected employees in various roles and sets May 31, 2026, as the effective date. In the notice, Chartwells says, “We anticipate that impacted employees will be offered the opportunity to continue their employment by applying with the incoming service provider,” although the WARN does not identify who that provider will be.
Chartwells' long campus footprint
Chartwells has been embedded in Texas State’s dining program for years, turning up in procurement records and university communications about meal plans and food-service projects. Chartwells is the higher-education arm of Compass Group, and Texas State board documents outline contract amendments that highlight just how deeply the company has been involved in campus dining.
What workers face
For the 183 employees on the WARN list, the next few weeks bring a lot of uncertainty. Some jobs may be picked up by the new contractor, but most workers are looking at a fresh application process and possible changes to pay scales and schedules. Campus dining roles often include student workers and hourly staff who depend on predictable shifts, so a contract flip can quickly disrupt income and benefits. Local labor groups and student advocates may push the university or the new vendor for commitments on rehiring and transition support.
Outsourcing trend and WARN process
Contracting campus food service to large outside vendors has become increasingly common, and research suggests that when those contracts change hands, staffing patterns often change with them. A Congressional Research Service analysis of school and institutional food service notes that deals with major providers tend to bring operational and labor shifts when contracts flip, offering broader context for what is happening in San Marcos. At the state level, WARN filings are designed to alert workers and agencies about mass layoffs and closures, and the Texas Workforce Commission maintains WARN data along with rapid-response resources for affected employees.
What’s next for campus and students
The university is slated to move to a new dining provider after Chartwells exits, but the WARN filing leaves the incoming vendor unnamed, and the start date will depend on procurement steps and operational handoffs. During the transition, students could see changes to retail options, hours and how meal plans are processed, although core meal-plan services typically continue even when a contractor changes. Workers caught in the middle can turn to state rapid-response programs and the university’s employment resources while they sort out next steps.
The contract change is a reminder that behind every swipe of a campus meal card sit vendor decisions that shape jobs, schedules and daily student life. As the May 31 deadline approaches, employees, students and campus leaders will be watching closely to see who lands the new dining contract and how many of the current staff end up back behind the counters.
