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Home My WebLink AboutIR 7380 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7380 Ann opylft,4 ~bfSOAt� To the Mayor and Members of the City Council May 2, 1989 X Subject: PROPOSAL TO IMPROVE CONCESSIONS AT THE FORT WORTH ZOO The Fort Worth Zoological Association is proposing to improve the concession facilities at the Fort Worth Zoo (see attached letter) . The proposed improvements include upgrading existing facilities and equipping the kitchen in the Texas Exhibit . The estimated cost of these improvements is $140 ,750 . The Association's revenue goal from concessions with the improvements is $1 , 125,000 for the 1989-90 season. In the 1987-88 season, the Association's revenue was approximately $690,000. The City of Fort Worth receives 15% of the gross revenue from concessions according to the terms of contract between the City and the Association. The Association has requested that expenditures made to improve the concessions facilities be credited against the 15% to be paid to the City by the Association. Because - the City would also benefit from the improvements in increased revenue, the City Council may not want to consider allowing fifty percent of the costs to improve the concessions (not to exceed $70,000) to be credited against the 15% to be paid to the City. , The City Council may also want to consider limiting the amount that will be credited in any one year to 50% of the amount due the City under the Association's contract . Staff requests guidance from the City Council in developing a response to the Association's proposal . LAS 4R; CITY MAMA [ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS FORT WORTH ZOO M06"000M MEMORANDUM cu&Cohn 624W(Asix, Mr.Perry k Tiass 6.Lewis H.W Mrs.6A(ft swmw Mr.sated keka 6.Pad#40 To: Rat-ion Gunjardo rb-axmw Assistant City Manager -%"q(MMV &S,in K BM From: Tim Stephens tk 5w FW* .WV GW Mr.Mid W S.Hyan Date: April 17, 1989 h.bk F Min Ak 00 K H*,k Re: Fort Worth Zoological Association Concessions Als.Oak$#WOW Fort. Worth '(',00 Mr.R Dovid N"ft Mc braes t Pent' Mr.bin Pvvt #J.low*so* The Fort Viorth Zoological Association currently operates food and beverage concessions et the Fort Worti) Zoo as follows: Mc Tim*T.S"Oft Owl) Kiosk #1, loc-!ated near the ninin entry gate, also near the Prinjete House, (2) Kir,4- W2, located between the Prim-ite House and the Elephant Exhibit, (3) Kiosk #3, located near the Cafe and the future location for the South American Exhibit, (4) A portable trailer serving soft drinks and popcorn, located currently on the sidewalk halfway between the west entry gate and the Primate House, across from the elephants, (5) The "Rock House (6) The "Cafe", (7) The TEXAS! Exhibit, now consisting only of a Coca•Cola portable trailer serving cokes and popcorn, and a portable ice cream cart .serving drumsii-lks and ice cream sandwiches. The Primate House construction has already eliminated Kiosk #2 and will substantially restrict recess to Kiosk #I after September 1, I989. Tilt, concession stand located in. the rides area has, of course, beci, clim. inated.. The sewer rehabilitation project, which will cause subztsinlittl excavation thr,*mgh the central part of the Zoo this summer, will significantly restrict movcnient of visitors tbiough the centrn] part of the Zmi, specifically between Me existir)g Primate flousp and the Rhii)oiG;rn.ffe area.. This will create a situation wll(,I•e the cnIPI,-,i5i3 vil food acrd Ilevereges will be the Cafe, Rock flouse tend the TEXAS! Exhibit during the 1989 season. Soo#40 st"I Sucre 717 Fort Worth,lem 76102 (817)877-3111 Mr. Ramon Guajardo April 17, 1989 Page Two Furthermore, without a significant improvement in food quality, menus, service, and capital improvements to concession areas, including renovations and a clean appearance, gross revenues for 1989 will experience a substantial drop from 1987 revenues. The Zoological Association desires to implement a short-term plan for 1989 to attempt to maximize potential gross revenues for 1989 while moving to implement a long-range plan in the winter of 1989 for permanent improvements to major concession areas, such as the Rock House and outlying concession stands. ltd %Vto Gross revenues in 1988 per person were .19 89 and net income per person was $.095. This is well below the national average for zoos and represents less than satisfactory performance. Revenue goals for the 1989rseasontare a minimum of $1.50 per person, which would equate to a gross of $1,125,000 on attendance estimated to be s44a94 750,00 for the year, and a net revenue goal of 30% of gross, or $337,000, which would equal $.45 per person. These goals represent a very substantial increase over what was achieved in 1988. In order to achieve such increases in sales, an investment in capital improv,1111ents is necessary. The Association is proposing the following for the 1989 season: (1) Kiosk #1 will be renamed "Safari Outfitters", (2) Kiosk #2 has been removed due to construction and will be replaced by a portable stand located across from the existing Primate House at the intersection of several walkways in front of the Elephant Exhibit to be named the I'Serengetti Outpost", (3) Kiosk #3 will be renamed "Hot Spots", (4) The Cafe will be renamed "Flamingo Cafe", (5) The Rock House will be named "Amazon Crossing", (6) The TEXAS! exhibit will open under the name "Yellow Rose Cafe" and the Zoo Association proposes to put in a permanent kitchen in the TEXAS! Exhibit for the concession operation, as well as the catering operation for special events. Costs: (1) Capital costs for a permanent kitchen in the TEXAS! Exhibit are estimated to be at least $75,000 (2) improvements to the new "Flamingo Cafe", are expected to cost approximately $26,000 (3) Costs for the new "Hot Spots" will be approximately $ 250 (4) Costs for the new "Amazon Crossing" will be approximately $ 4.500 . Mr. Ramon Guajardo April 17, 1989 Page Three Ph, (5) Other capital costs associated with the entire operation, including cash registers, comptite,r systems and "club cars" for transportation of food, money and equipment and a permanent storage building, located within the Zoo, will be approximately $35,000 These are the minimum needed improvements to bring the operation up to a level sufficient to generate the above revenue goals for 1989p*j jillo. In addition, substantial permanent long-term improvements to be implemented in the winter of 1989 would include a complete gutting and renovation of the Rock House, now known as "Amazon Crossing" and -other substantial permanent improvements to what are now substandard concession "stands".