Honolulu Star-Advertiser

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Business

Stadium stands pat on food

GEORGE F. LEE / GLEE@STARADVERTISER.COM<
Centerplate employees worked the concession stands at Aloha Stadium shortly before Hawaii's game against USC yesterday. Centerplate Inc. was awarded an extension last month to the original 10-year contract it signed with the Aloha Stadium Authority in 2001.

The state has given the company running the concessions at Aloha Stadium five more years to operate the business.

Stamford, Conn.-based Centerplate Inc. was awarded an extension to the original 10-year contract it signed in 2001. The Aloha Stadium Authority extended the agreement to the maximum allowed under the original deal.

The amount the state gets from concessions remains level at 48.5 percent of net income. The stadium takes in an average of $1.6 million a year from the contract, Stadium manager Scott Chan said.

Centerplate was awarded the extension last month because it would have been difficult to competitively award a new contract before the current deal expires on Jan. 5, Chan said. Additionally, it’s unlikely the state could have gotten a better deal via a competitive procurement, he said.

"It would be difficult to get the percentage we get now," Chan said.

PAYING THE PRICE

The cost of a 32-ounce fountain drink:

» Aloha Stadium: $3.25
» Stan Sheriff Center: $2.50

Chan said he would like to see food prices drop at the stadium, however, that may not happen because contract terms basically remain unchanged.

The cost of food was the main concern of stadium patrons, according to a customer satisfaction survey discussed at a recent stadium authority meeting.

The cost of a 32-ounce fountain drink at Aloha Stadium is $3.25 while the same size drink at Stan Sheriff Center is $2.50.

Centerplate’s local manager, Roger Reeves, did not return calls seeking comment for this story.

The University of Hawaii, which operates the Les Murakami Stadium and Stan Sheriff Center, said it was able to drive up concessions sales by cutting food prices at athletic events.

That’s something Aloha Stadium would like to emulate if possible.

"That is the concept," Chan said.

"We’re not sure if we can get it done."

In contrast with the new concession contract at Aloha Stadium, in which the terms remained the same, the University of Hawaii recently increased its commission rates under a contract with Gaithersburg, Maryland-based Sodexo Inc. The rate was raised to 30.52 percent of athletic event sales in 2009 from 18.5 percent in 2008. That in part has helped the university increase concessions commissions despite a cut in food prices.

During 2009 UH Athletics and Sodexo lowered concession stand prices at UH sporting events.

For example, the price of the most items Les Murakami Stadium were cut 10 percent to 20 percent. Alcohol prices were reduced by 10 percent, according to UH.

Following the cuts concessions sales rose slightly to $1.5 million last year from $1.44 million in 2008. UH’s commissions rose from $266,849 in 2008 to $458,192 last year. Average sales per attendee dipped to $5.76 last year versus $6.33 in 2008, according to UH Associate Athletics Director Carl Clapp.

"Our goal has been to provide value and be affordable to our fans ultimately resulting in increased ticket sales and concession revenue," he said in a e-mail to the Star-Advertiser. "I believe the greatest result was in customer satisfaction with the lowering of prices but we only have anecdotal proof."

Aloha Stadium commissions in 2009 were the lowest in at least eight years at $1.54 million. The decline was partly result of ongoing stadium construction and because UH did not participate in the Sheraton Bowl, according to the minutes of the Aug. 8 meeting of the Aloha Stadium Authority.

 

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