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In the concession business

July 17, 2014   ·   0 Comments

Want a coffee while you’re watching the game at a town owned facility? Well you’re in luck, because New Tecumseth is now in the concession stand business.

Monday, Town of New Tecumseth council members approved a recommendation from staff to proceed with the direct operation of concession and food services in the Beeton Memorial Arena and Tottenham Community and Fitness Centre.

After Marco Concessions was released from its contract with the Town to provide concession services at these two facilities (on April 2, 2014, two years early) snacks and beverages have been made available at the Guest Services kiosk at the Tottenham Community and Fitness Centre utilizing existing staff.

On June 21 and 22, hospitality staff were also deployed to the Beeton Memorial Arena following a request of the organizer of a ball hockey tournament to service players and patrons in lieu of a concession operator onsite.

Staff have also initiated both vending and concession services at Alliston Rotary Pool utilizing the existing staff compliment for the summer of 2014.

“Based on recent challenges relating to the performance, consistency and reliability of the previous concession operator, staff respectfully recommend that the Town proceed with the direct operation of the snack bar and vending services located at the Beeton Memorial Arena and Tottenham Community and Fitness Centre…” reads a report to council from staff. “A Town operated concession and vending service will enable staff to ensure that concession services are available consistently and at the request of user groups and patrons. As the Town expands vending initiatives and further utilizes the hospitality division, resulting revenue generated will support the department’s commitment to achieve sustainable programs, facilities and services.”

The target launch date would be determined by lead time required to recruit, hire and train staff in addition to space rehabilitation and preparation.

“As concession, vending and hospitality services expand, cost savings resulting from increased volume and efficiency of multi-tasking staff will further enhance the department’s ability to increase the revenue to expenditure ratio,” reads the report. “Utilizing existing staff onsite will allow the department to broaden services such as coffee service to meetings, special event catering and seasonal operations including satellite concession services at the Alliston Rotary Pool.

“The introduction of a junior hockey team in Tottenham will offer an additional opportunity to the operation of the concession and hospitality services. This could include a licensed booster club area and food seat service in the stadium. This multi-market efficiency will strengthen the Towns ability to generate revenue.”

Staff also promoted the idea by explaining the benefit of additional local employment opportunities and leadership roles for local youth by operating more town-owned resources directly.

Staff estimate that the cost to run these concessions, an estimates $26,500 in Tottenham ($9,500 in wages, $15,000 in purchase, $5,000 for miscellaneous expenses) and $17,000 in Beeton ($6,000 in wages, $9,000 in concession costs, $2,000 for miscellaneous expenses) could be recovered by the revenue generated by the concessions directly – an estimated $35,000 and $28,000 respectively. And could also generate a total net profit of $19,500 annually.

Neighbouring municipalities, including Orangeville, Caledon, Midland and Orillia are already running their own concession stands at recreational facilities.

The model of expense and revenue was based on an estimated 36 hour weekly operation period in Tottenham and 22 hour weekly operation period in Beeton.

By Wendy Gabrek

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