Sign up for the paNOW newsletter

Council slams under performance of concessions at City venues

Sep 23, 2014 | 6:29 AM

Changes could be on the horizon for city-run concession stands at seven venues in Prince Albert, which are under fire for their under performance this year.

The combined profit at the seven arenas and facilities mid-year in the report filed at the end of August stood at 49 per cent of what they were projected to make for the full year. One operation, the 7th Hole concession at the Prince Albert Golf and Curling Club is currently has a loss of more than $10,000 on the books

This had members of council calling for change at Monday’s meeting.

Coun. Lee Atkinson led the charge, describing the forecast that’s currently more than double the actual as “disturbing.”

“I think there’s some serious issues here that need to be addressed and I’m not sure what they are because they’re not clearly defined. And we also had two of the winter games [the Saskatchewan Winter Games and the First Nation Winter Games] went on this year, and again, it’s surprising that those events went on and our revenues are reduced,” he told council.

He criticized the profit forecast for being “entirely wrong,” and called on council and administration to consider what’s being offered to the public and what the City’s return on investment is.

To Coun. Martin Ring, at the price points and profit margins the City is faced with right now, the concessions are becoming more of a service rather than being profitable for its facilities.

“I think our tendering process, I think we’ve got a problem, because, I think the cost of our goods is out of line,” he said.

Mayor Greg Dionne promised a second report from administration at an upcoming meeting and said that within the last two days, they’ve held two meetings about this issue.

“We do believe that it is an issue,” he said during the meeting. “We have to decide as a council: is it a service or is it a profit centre? Most of us, I think, do believe it should be a profit centre, because we are supplying something. We shouldn’t be supplying something that’s costing us money.”

Dionne, who admitted the City could be stocking its concessions with better product, is also looking to narrow the selection of product available, and in turn, reduce inventory.

“Because at the end of the day, it’s a concession,” Dionne said after the meeting. “It’s not a full-scale restaurant or convenience store. So when you go to a [stand], you shouldn’t be expecting 15 flavours. Four, pick one. And it’s going to be the same with all the other products that we sell. We just are expanding our menu too big.”

As for the 7th Hole Concession, he said the City is in talks with Prince Albert Golf and Curling Club about the stand’s future. Right now, they are looking at a number of options, which include handing over operations and closing the stand, but Dionne is promising more information in a forthcoming report.

He’s also indicating that the City will be taking a hard look at who it’s doing business with as well.

All of the vending contracts that are set to expire in 2015 will all be tendered, he said. Prince Albert will be following in Regina’s footsteps in this regard.

“And since they went to the new protocol, they’ve almost doubled their revenues,” he told council during the meeting.

The City is also in contact with an unnamed Saskatoon concessions operator and is seeking his advice.

Other members of council are looking at how other concessions operations in other cities work.

Ring pointed to Warman’s Legends Centre, which has a private business running the concessions operations.

“That’s not a knock against our unionized employees or employees of the City of Prince Albert. But, you know, there is perhaps other ways to do the business.”

Members of council voted to receive and file the concession operations and vending agreement review.

Beer price hikes at Raiders games isn’t the City’s doing, mayor says

During Monday’s discussion, the mayor took the opportunity to let the public know that the City doesn’t sell liquor and isn’t responsible for beer prices going up at the Art Hauser Centre and the Prince Albert Golf and Curling Club.

He explained that the money generated by sales of liquor at both venues goes to the Prince Albert Raiders and to the Golf and Curling Club at the respective facilities.

“So, they did have a price increase at the Raider games, and both Jody [Boulet]’s department and my office have been taking some flak for it. But we’ve had to notify those people if you have a concern about the price of beer at the Raider games, you have to talk to the Raiders.

“It’s not the City of Prince Albert. We don’t sell alcohol.”

tjames@panow.com

On Twitter: @thiajames