Centerplate Scores New Contract

On Jan. 15, the Orange County (Fla.) Board of County Commissioners voted 5-2 in favor of hiring a new caterer, Centerplate, for Orlando's Orange County Convention Center.

Now, Kathie Canning, deputy general manager of the OCCC, said, officials will negotiate the terms of the deal, expected to be a 10-year, $300 million contract beginning in August with the Spartanburg, S.C.-based caterer.

Ten years ago, when the current contract with Chicago-based Levy Restaurants was out for bid, Canning said, the process was as “contentious,” but added this bidding round wasn't — at least to the same degree.

“It is a competitive bidding process,” she added. “We had three bids that were qualified.”

The process starts with the convention center sending out requests for proposals, which are submitted to the county's procurement committee. The committee then reviews the bids, ranks and rates them, and presents them to the board of county commissioners. Centerplate came in first, Canning said, above the other bidders, Aramark and Levy Restaurants.

“The board of county commissioners voted to go with the recommendation,” she added.

Most of the controversy this, and last, time centered on the lack of minority partners the bidding companies had. Levy Restaurants alleviated that concern in 1998 by forming a joint venture with minority business owners in the area.

This time, all three companies scored the same on that point. Centerplate has partnered with four minority individuals in the Orlando area, including Habana Grill - operated by members of the Perez family, whose grandfather immigrated to the United States from Cuba and began working in Florida's restaurant business in the 1950s.

The OCCC contract is just one of many new ones Centerplate has landed in the past few months.

“We are certainly in a growth mode right now,” said Bob Pascal, the company's corporate vice president of marketing. Centerplate won $76 million in new business in 2007.

The company risks losing one of its biggest deals, a $65 million-per-year contract with the New York Yankees, when the baseball team moves to its new stadium in 2009. Observers have speculated that has prompted Centerplate to aggressively go after new business, but Pascal said the two aren't related.

“Every client is important to us,” he said. “While we would be disappointed to lose the Yankees, we wouldn't be devastated.”

Centerplate doesn't plan to radically change services at the OCCC, Pascal said. But, he added, one aspect of Centerplate's strategy that's helped attract new business is the company's approach to the “experience delivery business,” which incorporates the culture and cuisine of the area surrounding the venue.

“I think that's something you'll really be seeing us do (in Orlando),” Pascal said.

Even though Levy Restaurants is losing the contract at the OCCC, it still will be involved in catering at the largest convention center in the country, Chicago's McCormick Place, which has nearly 2.7 million square feet of exhibit space.

In August, McCormick's contract with Levy Restaurants ended, and a new one with Chicago Restaurant Partners – which Levy has a 45-percent stake in – began.

When asked whether customer complaints were a reason why Levy lost the Orlando contract, Canning said the OCCC has post-convention meetings with its caterer after a show moves out, and there were no major grievances. “Nothing out of the ordinary,” she added.

Still, Centerplate will have to stay on its toes. Canning said the convention center and its customers had high expectations of its caterer, and Centerplate would “have their work cut out for them.”

The OCCC requires service on the showfloor, banquets and concessions from its caterer, and Canning said she's “delighted” about Centerplate.

“It will be a transition, but I personally have been through the (catering contract) transition (before),” she added. “It has been, in my experience, very seamless.”