A San Diego-based concessionaire purchased by SMG in June will handle food and beverage at the Greek Theatre next season and possibly for the 2017 and 2018 seasons. Running the F&B operations will be Jason Parker from the nearby SMG-managed Long Beach Arena and the Pacific Aquarium.
On Dec. 9, the Los Angeles Rec and Parks Board selected Premier Food Service Management Group for the concessions contract at the iconic LA venue, displacing longtime concessionaire Aramark. Both Aramark and the Patina Group submitted bids, but Patina was found to not meet the minimum requirements of the RFP.
Under the terms of the deal, Premier will provide a minimum revenue share percentage of 42% up to $3 million and 45% of revenues greater than $3 million, with a minimum annual guarantee of $1.4 million. Aramark had offered 48% of all beverage sales, but only 40% for food and offered a $50,000 bonus if sales exceeded $5 million. They guaranteed a minimum annual revenue of $1.3 million.
“Although Aramark is offering a higher revenue share percentage on alcohol sales, Premier is offering a higher percentage of total gross receipts along with higher minimum revenue share,” LA Rec and Parks GM Mike Shull wrote in his report. “This higher minimum revenue guarantee provides certainty to the Department of the revenue stream from this concession.”
Premier will also invest $600,000 into equipment, $200,000 of which included an equipment credit.
According Shull’s report, the panel convened to evaluate the proposals from Aramark and Premier and unanimously selected Premier as their recommended bidder.
“The Greek Theatre’s overall success depends in large part on a cohesive re-branding of the venue while focusing on the venues historic assets as well as its food and beverage offerings,” Shull wrote in his report. “Premier’s proposal fully recognised the need to present a seamless brand to the artists, promoters, and patrons that specifically and only focused on marketing of the iconic venue.”
As for Aramark’s proposal, Shull wrote that it relied on “increasing revenues by partnering with one specific brand – Rock & Brews. Although Rock & Brews is a growing and emerging Southern California restaurant and bar business, the Panel believed Aramark’s proposal focused too much on highlighting this third party brand without integrating it into The Greek Theatre brand.”
Shull said that Premier would operate the Greek’s Front Plaza as a year-round destination and would include a branded concept called Agora, “a walk up, self-service, grab and go portable of fresh food that will increase point of sales and revenue to the Department and offer convenience and selection for patrons.”
Premier’s clients include the Del Mar Fairgrounds and Racetrack and The Ida and Cecil Green Faculty Club at the University of California San Diego, as well as dozens of SMG Savor clients like Intrust Bank Arena in Wichita.
What else does Premier have planned for the Greek Theatre? According to the company’s RFP, Premier’s is calling for a California-themed mural on the wall inside the south plaza. They’re also planning on introducing a portable pizza oven and possible food and wine festivals, along with more third party events like corporate meetings and weddings.
Want to see what Premier plans to serve and how much they plan to charge? Check out the proposed menu below. You can also download a PDF copy of the menu here.