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Concessions status
Posted on 10/11/19 at 6:45 pm
Posted on 10/11/19 at 6:45 pm
As a spinoff from the “suggestions for Woody” thread, I’d like to give some background information that is relevant to concessions discussion. I am in no way advocating for anything, just thought it would be good for more people to know.
1) When the RFP was put out for concessions, there were only 2 bids for the contract - Aramark and Levy. That’s it - the department had to pick from one or the other as no other bids were submitted.
2) The contract is for 10 years, as will likely be the next one. LSU requires a huge capital expenditure on the part of the concessions vendor, and no one will invest in the upfront costs if the contract is shorter.
3) LSU, specifically the Athletic Department, is paid a percentage of the gross receipts, and that percentage goes up with higher volume, which will be relevant with alcohol sales.
Contract: LSU Aramark Contract
1) When the RFP was put out for concessions, there were only 2 bids for the contract - Aramark and Levy. That’s it - the department had to pick from one or the other as no other bids were submitted.
2) The contract is for 10 years, as will likely be the next one. LSU requires a huge capital expenditure on the part of the concessions vendor, and no one will invest in the upfront costs if the contract is shorter.
3) LSU, specifically the Athletic Department, is paid a percentage of the gross receipts, and that percentage goes up with higher volume, which will be relevant with alcohol sales.
Contract: LSU Aramark Contract
This post was edited on 10/11/19 at 8:37 pm
Posted on 10/11/19 at 6:56 pm to SpencerRob
Doing a contract like that is absurd. It needs an overhaul. 10 years is way to long for any service agreement contract.
3 year deal is what is more appropriate. LSU doesn’t want to absorb any cost so it’s understandable they want to put that on the supplier, however there should be a happy medium in here somewhere
3 year deal is what is more appropriate. LSU doesn’t want to absorb any cost so it’s understandable they want to put that on the supplier, however there should be a happy medium in here somewhere
This post was edited on 10/11/19 at 6:58 pm
Posted on 10/11/19 at 7:05 pm to SpencerRob
I’m in my 3rd season of buying nothing from concessions in Tiger Stadium.
Posted on 10/11/19 at 7:26 pm to Geauxld Finger
I’m not an expert on the industry, but apparently 7-10 years is the industry standard. I haven’t researched to see what other schools contract length is. It would be public record for public universities.
Posted on 10/11/19 at 8:17 pm to TheHarahanian
quote:
I’m in my 3rd season of buying nothing from concessions in Tiger Stadium.
I'm right behind you. Do occasionally buy a drink if it is hot.
I can't see how it is a good deal for LSU. Lines are definitely shorter than they used to be. Sales must be down, I would think.
This post was edited on 10/11/19 at 8:24 pm
Posted on 10/11/19 at 8:36 pm to ChEgrad
That data is publicly available, but I don’t know if it’s been requested, I’ve never seen it posted.
Posted on 10/11/19 at 8:40 pm to ChEgrad
Well, they do have Hebrew National hot dogs, soooooo...
Posted on 10/11/19 at 9:15 pm to ChEgrad
They've also got exponentially more points of sale than they used to. More lines = shorter lines.
Posted on 10/11/19 at 9:33 pm to SpencerRob
If no one else puts in a contract there isn’t much you can do. The previous company, Compass, decided not to put in a bid. If a large company like that decides to bail from a major University, that should tell you it isn’t profitable enough for them
Posted on 10/11/19 at 9:38 pm to Geauxld Finger
quote:
to long
I literally stopped reading here.
Posted on 10/11/19 at 9:47 pm to SpencerRob
Curious: how did it work before as far as logistics and keeping the stands stocked.
I know various groups worked the stands as fundraisers for their club/team/school. Guess they’re having more bake sales.
I know various groups worked the stands as fundraisers for their club/team/school. Guess they’re having more bake sales.
Posted on 10/11/19 at 10:13 pm to SpencerRob
In the past the groups got 13% of sales. Before they started they would commit to how many people they could bring and be placed in a stand(s) accordingly. The company would try to hire students at $10 an hour to work soda and water stations to not pay out that money. The company would have made more having groups staff the small stations, but it was more about having as many stations as possible. It really was a staffing nightmare. If a group was committed and just didn’t show up, only so much you could do the day of the game.
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