HomeMy WebLinkAboutIR 9333INFORMAL REPORT TO CITY COUNCIL MEMBERS
To the Mayor and Members of the City Council
im
December 7, 2010
Page 1 of 1
SUBJECT: UPDATE ON THE WILL ROGERS MEMORIAL CENTER
CONCESSION AND ALCOHOLIC BEVERAGE SERVICES
The purpose of this Informal Report is to provide City Council an update on the Concession and
Alcoholic Beverage Services at the Will Rogers Memorial Center (WRMC).
Aramark Sports and Entertainment, Inc. (Aramark) entered into an agreement with the City of Fort
Worth for exclusive concession and alcoholic beverage rights in 2005. The initial term was for
five years with five one -year extension options. It was anticipated that the agreement with
Aramark would be extended for at least one additional year. However, Aramark notified staff that
they would not be exercising their renewal option under the existing contractual terms, as they
were losing money on the current arrangement. Aramark agreed to continue until December 31,
2010 to allow an opportunity to engage a replacement operator.
In order to allow staff an opportunity to continue to research and develop a business model to
address the food and beverage operation, staff is recommending engaging Coburn's Catering
Service, Inc. ( Coburn's) as the exclusive concession and alcoholic beverage provider for an initial
period of six months, with an additional six -month option period. Coburn's currently contracts
with the Fort Worth Stock Show to provide concessions operations during the Stock Show.
Further, they possess the equipment, to assume the role of concessions and alcoholic beverage
provider for the facility.
Coburn's will pay the City the following commissions:
25% of gross receipts of Alcoholic Beverages & Mixed Drinks
25% of food and non - alcoholic beverages at permanent or temporary concession stands
50% of revenue from Third party Vendors
Catering at the facility will remain open to approved caterers who meet the established criteria,
have the capacity to provide health permits, liability insurance, have the ability to contract with the
City and agree to pay the established commission based on gross receipts less sales tax.
A Focus Group Meeting was held on November 18, 2010 to solicit input on a new business model
from local caterers and restaurants. Representatives from Coburn's, Godbey's, Riscky's and
Reata participated and provided relevant information and feedback. It is anticipated that a new
Request for Operators based on a new business model will be issued next year and that an M &C
to authorize the City Manager to enter into an agreement with Coburn's will be on the December
14th City Council agenda.
If you have any questions, please contact Kirk Slaughter, Director of Facilities and Public Events
at 817 - 392 -250
Da A. Fisse+l r, P.E.
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS