LTC 329-2008 Centerplate Updater,.F- ~~~~ IvFr~
2008 DEC 19 PM 4~ 53
OFFICE OF THE CITY MANAGER
NO. LTC# 329-2008 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager~'
DATE: December 19, 2008
i
SUBJECT: Centerplate Update
On April 11, 2006, the Mayor and City Commission approved the issuance of Request for
Proposals (RFP) No. 22-OS/O6, to Provide Professional Food and Beverage Facilities
Management Services for the Miami Beach Convention Center; with an option to manage
food and beverage services at other city cultural facilities, to include: 1) the Jackie Gleason
Theater of the Performing Arts; 2) the Colony Theater; and 3) the Byron Carlyle Theater.
This RFP was issued in advance of Centerplate's expiring contract on February 28, 2007.
Centeraplate, doing business originally as Volume Services America, Inc. held the exclusive
food and beverage services contract at the Miami Beach Convention Center since
December 17, 1986.
During the initial 20 years of the agreement, the convention center's food and beverage
concessionaire was restricted from hosting local catering events such as banquets,
weddings, and galas, when those events did not book an exhibit hall and were not
conventions, trade, public or consumer shows. Prior to the issuance of the RFP, the social
catering restriction was reviewed by several committees and organizations, and a
recommendation was made to remove the prohibiton. The City Commission subsequnetly
endorsed the removal of the social catering prohibition. Therefore, the RFP allowed for the
successful proposer to host local catering everts at the Miami Beach Convention Center and
specific attention was given to this area.
The RFP Evaluation Committee and the City Administration recommended Centerplate as
the top-ranked firm. This recommendation was made in large part due to Centerplate's
partnership with Barton G. At the time, Centerplate had formed an exclusive relationship
with Barton G., a Miami-based event planning and production companywith a strong base of
social, corporate and philanthropic Gients. On September 6, 2006, the City Commission
adopted Resolution No. 2006-26316 authorizing the Mayor and Clerk to execute an
agreement upon completion of successful negotiations by the Adminsitration.
The City and Centerplate concluded negotiations and executed the agreement in
December, 2007. Much of the delay centered around the partnership with Barton G, and
operational issues involved with booking social catering business. Akhough the final contract
was not executed until December, the terms of the Agreement were retroactive to March 1,
2007 and social catering business was booked during that time at the Convention Center.
Page 2 of 2
Centerplate Social Catering Partner
The attachment details some of the early social catering business that was booked at the
Convention Center in partnership with Barton G. Unfortunately, Centerplate and Barton G
were unable to agree to terms and on May 15, 2008, the City was officially notified the
partnership would not continue. Section 10.17 of the Agreement between the City and
Centerpalte stipulates that any replacement for Barton G is subject to the prior written
approval of the City Manager. Centerplate immediately began searching for a new social
catering partner and on August 28, 2008 Centerplate proposed Touch Catering as their
social catering partner. Staff reviewed the documentation provided, and met with
Centerplate and Touch representatives todiscuss their approach to social catering and why
Touch was being recommended. The discussion also included Centerplate's own efforts to
attract new social catering business during the interim as they pursued another partner. We
were pleased to learn that they were able to secure new business that has a possibility of
becoming recurring business.
Touch Catering was created out of the success of Touch Restaurant and Lounge. David
Tornek and Executive Chef Sean Brasel own the company and other restaurant operations,
inGuding the newly-opened Meat Market on Lincoln Road. Touch Catering also includes a
Glatt Kosher division which was created to meet the high-end kosher catering needs in
South Florida. Centerplate has indicated that high-end kosher catering will also become a
focus of the sales and marketing efforts for the Convention Center. It is expected that
providing this niche service will attract new social catering business to the Convention
Center that cannot be accomodated elsewhere. This element is an attractive component of
the Touch package of services they would bring to the Convention Center. Attached is some
additonal information on Touch Catering for your review.
After reviewing the material and Touch Catering's history and track record, I have approved
the replacement of Barton G with Touch Catering.
As always, please feel free to contact me with any questions
JMG/HF/MAS
c: Hilda Fernandez, Assistant City Manager
Max Sklar, Tourism and Cultural Development Director
Tom Mobley, Interim General Manager, Miami Beach Convention Center
Eric Bayne, General Manager, Centerplate
angst zs. r)os
Max Sklar, f?irector
City of Miami Reach
I uunsm and Cultural Departrnent
1700 Convention Center Urive
Miami Reach. I~I. 33119
Dear Max
You asked me to summarize where we are with respect to the new upscale event option
for the Comemion Center \1'c are proposine Touch Catering, N•hich we believe will be an ideal
partner for this endeavor Touch specializes in the production of distinct, custom-made events
and has the reputation and marketing muscle to bring new events to the Convention ('enter
As you know, a numtxr of factors dictated that w•e roake a change tram Barton G Touch
ts'highly snphrsticated and is known Ibr its one-of-a-kind events and the innovative cuisine of
renowned chef; Sexn Brasel, of Touch Restaw'ant !n addition, Touch has a Glatt kosher
division. a highly attractive element in the Miami Beach marketplace Ravine kosher catering
ability would open up significant new business opportunities and we are eseited about tlus
prospect
We have enclosed some information nn Touch and our marketing plans. if you need
additional information or have any yuesnons, please don't hesitate to ask.
Sincerely. ~/-'
,,
Eric Bavnc `
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ct,nvention
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MiamE ~8ach
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Marketing
Update
October 1, 2008
Centerplate and the Miami Beach Convention Center
In August of 2006 the City of Miamr Beach selected Centerplate to provide food
and beverage services for the Conventron Center. At that time. Barton G was
identified as our partner rn attracting and offering soda) catehng options at the
faality.
ey selecting Centerplate as the food service company of choice. the City of
Miamr Beach continued its 20 plus year relationship with company
An element of the proposal process included identrfying and partnering with a
prominent. local business to foster social catering sales at the Center At the time
of proposal submission, Centerplate and Barton G formed the stated partnership.
Between the announcement of the award and 18 months later when the contract
was fully executed. Centerplate and Barton G developed the sodal catering
business as identified below
Sales
In late 2006 through early 2007, Centerplate and Barton G collaborated on
several social catering events from which commissions equaled $28.249-00 in
2006 and $12,103.00 in '07 for a cumulative $40,352.00. The hosted events
were
The Stern Bar Mitzvah: $9.919
Miamr Art Museum Ball. $18,330
The Jackson Memorial Foundation Annual Gala. $12,103
G Revenue Figures r
Total
2006 $_ __ 28.249.38
Jackson Memorial Foundation Annual Gala,
Jan-07 Barton) _ _ $_- _ 12,103.00_
Total
~ 2007 _ _ _ - -- _ _- _ - - - - ~ $ 40 352 38
_ ~ Total Commissions Pard $
Unfortunately, over recent months, it was determined that a new social catering
partner would be needed. Barton lost interest in partnering with Centerplate
primarily because of the long delays in finalizing the food service cormact. (Bid
submittals for the contracted food services were due in May of 2006, and
subsequently the contract was awarded to Centerplate rn August m 2006. 19
months later Centerplate and the City of Miami Beach reached definitive
contractual agreement.
Once it was clear Centerplate would not be able to partner with Barton G we
immediately began a search for a social catering partner that rauld provide
Centerplate and the Convention Center with high end plate options, upscale
design and decoration services and. preferably, an established client base
During this period, however, Centerplate continued to diligent{y pursue social
catering business We, independently. developed $113.663 00 rn social catering
business in fiscal 2007, and $73. 948.00 in 2008. We address these efforts and
outcomes below and further in this document
While the Leo Awards. an annual gala, grew from $53.821 in 2007 to $67,701 m
2008 and was supplemented by smaller occasions, one gala we hosted in 2007
the Big Brothers Big Sisters Gala was a non repeating event in the Center for
2008 with a corresponding drop in revenue noted year over year Centerplate
solicited this event for their continued business and their decision to place their
gala elsewhere rested on finding space m other venues on their preferred date.
We will continue to work in tandem wfth Global Spectrum's safes staff to
reengage Big Brothers Big Sisters - as Ms Laurie Gunn indicated services were
excellent. and would consider reluming to the MBCC
-- -- - ___
Date ~ Social Catering Events ~ Revenue
__ _ ---- - - - -r-
•~..., nC I !`:~, Y..anL Ocrcnlinn .Qi
. -_ _. ___ ____-__. - _ I
r --- -
Mar-08
- --
LEO Awards Gala Chiefs of Police _- i.. _. _ -
$ _ - __.___
67, 7 01.00
Jun-08 Amigos for Krds $
- 6.247.00. ;
--
Total Fiscal
12008 _f_ $ _. 73,948 00
As we look ahead, Centerplate is pleased to acknowledge fiscal 2009 is off to a
strong start m the socal catering market with the UM Sylvester Gala occurring on
November 1'i In addition to this prestigious event. we have, once again, booked
the Leo Awards and Amigos for Kids with a combined $73,000.00 in sales. Net
present value for these three events is protected to be $203,000 00
--- - ---
I Date ,Confirmed Social Catering Events I Revenue
_. ---- -
~,Nov-OS 1UMISylvesterGala __ ,_$ __130,U00_00__~
Mar-05 ~ LEO Awards Gala Chiefs of Police $ 67.701 00 '
Jun-09 ~Amigos_forKids_ ___, _1 $ 6.24700
j _.-_ _____ ~ --
i Total $ 203,948 00
These functions establish the baseline for our sales efforts m 2009, We are
optimistic our relationship wdh Global Spectrum will further enhance social
catering sates in the year for the year and beyond
Additionally, our efforts to secure a highly respected local catering partner have
proven fruitful As we considered the marketplace and opportunities to book
events into the Center, we determined we needed to find a partner who met the
original stated criteria (ability to otter high end menu choices. design and decor
services and an established customer base) as well as offer a key point of
differentiatiai. With these elements as our baseline. we met with the principals of
Touch Catering and Glatt Kosher Touch to assess the viability of a proposed
partnership.
These conversations have evolved into an agreement that, when approved, will
accelerate our penetration of previously untapped opportunities specifically within
the Kosher catering market and generally as both Centerplate and Touch
Catering seek new business within the social market. We believe thts alliance will
lend itself to achieving significant sales both in the near term and within an 18
month booking window
Marketing
Leading Centerplate's marketing efforts are Eric Bayne, Tanny Geres-lim,
Katrina Portal and Pathcta Figuereo about whom we note these brief
biographies.
As General Manager for Centerplate's operations at the Miami Beach Convention
Center, Ehc Bayne bangs more than 20 years experience in the hospdality
industry to this prestigious account. While successfully driving continuous
improvements, Eric finds new and innovative ways to keep Centerplate in front of
local decision makers In addition to his oversight of our sales team's activities,
Eric has participated in the following events to network and position the MBCC
for sales growth.
Kiwanis Annual Meeting
• Invitation to the Arts
• GMCVB Gotf Tournament
• GMCVB Membership Mixers
• Carrnvat Genter (Arch Center of Performing Arts) Opening Party
MBCC 8 Adore Events' Centerplate-FIU Networking Event
• Wotfsonian Museum Night with the Arts, Perrier Jouet Party
Trump Towers Best of the Best in Culinary
Food Network SuBa Festival -CEO RecepUo
Tanny Geres-Lim is Centerplate's Director of Catering Sales With rnne years
experience rn the MBCC.. Tanny is each diem's liaison to orchestrating special
events in the Center. She knows their event intricacies: she anticipates their
needs and her detailed knowledge of the facility allows her to guide our
customers' success
Complementing Tannys abddies are those of Katrina Portal and Patriaa
Figuereo, respectively Centerplate's sales manager and executive catering sales
associate These professionals bring marketplace knowledge academic and
work related experience and, importantly, an enthusiasm for orchestrating events
to their customer's satisfaction
While our intended partnership with Barton G waned in the latter half of 2007. our
marketing efforts to promote soaal catering in the Convention Center since the
opportunity to book these events became available have inducted
Participation in the Wedding Expo -January 2007
Produced by Paul M Catalano Productions and hosted in the MBCC,
Centerplate's booth drew compliments from the show's attendees for positively
promoting our services We distributed business cards and brochures in addition
to engaging in one on one conversation with interested brides. We furthered
these efforts by providing resources brides typically desire and seek from their
business providers. among them 20 Inventive Wedding Ideas, Hot Trends for
2007 and Centerplate provided service enhancements to their wedding
receptions.
Sponsored the Society of Independent Show Organizers - March 2007
While primarily an assodaUon geared to the group market, SISO, by its very
nature. is comprised of meeting planners who also host single day events in the
corporate and social markets. With this in mind, Centerplate's activities to woo
business included hosting a dinner for 220 members (in tandem with the
GMCVBISMG) featuring all desired elements. the menu, ambient decor and
entertainment. Eric Bayne greeted SISO's guests and offered a welcome speech
identifying the benefits of hosting an event in the MBCC.
Centerplate, the MBCC 8 Adore Events hosted the FIU Networking Event -
August 2007
This networking event provided an opportunity to connect with event production
comparnes, magazines Tike Premier Bride and web based companies such as
The Knol, meeting planners and our colleagues from the hotel community such
as the Hyatt and Sofitel to cross promote our services and establish referral
relationships
• Part+cipaUOn in the Event Solutions Idea Factory Expo - August 200
Event Solutions magazine held its annual Idea Factory Expo at the Miami Beach
Convention Center This national trade publication hosted an audience of event
planners, including Miami residents and other Florida-area event profess+onals
who were involved as producers and attendees at the event
According to the Event Solutions Annual Forecast 2007, its readers coordinate
127 events per year on average, at an average cost per event of $33.'713. With
more than 2,500 expected attendees at the conference, the potential economic
impact to the city and the Center was significant.
We selected Miam+ Beach because if s a top city for extraordinary events with an
exploding local events industry,' said John Baragona, president of Event
Publishing, Event Solutions' parent company
Recogn+zing the opportunity to impress this selective audience, Centerplate and
Barton G (prior to parting company) comb+ned forces to offer delicious food,
decor, Mofiios martinis and music to tend luster to the events tradeshow.
Complementing our food and beverages were photos and video streams of our
collective capabilities featured on a flat panel screen in our booth Personnel
from Centerplate, Barton G and SMG interacted with prospects during exhibit
hours and we rece+ved a number of business cards for our database information
as a result of our iPhone drawing.
Participation in the Food Network South Beach Wine and Food Festival -
February 2008
Posdioned in a prime location in American Express' Grand Tasting Tent,
Centerplate gained positive med+a exposure via feature photography, articles and
commentary in the Miami Herald. Biz Bash and on NBC 6. Additionally, we
presented our savory Floridian flavors to several thousand guests over the 3 day
weekend reinforcing Centerplate's culinary brand to a broad based local
audience
As we seek opportunities to promote galas, fundra+sing and soaal events in the
Center, our part+cipation in the Wine and Food Festival and corresponding
favorable press fends credib+lity with th+s audience and underscores our ability to
service their events.
• Web Site Development -March 2008
We refreshed our web site's content to present information relative to social
catering bookings. We believe it is now time to renew this information consistent
with our goals, those of Global Spectrum's, our audience's expectations and our
campetltwe set.
While this is a vehicle for information communication, we believe we are best
served rn the soda) catenng market by enticing our readers to learn more
through personnel engagement. Our call to action will reflect this.
Traditional Marketing Support -Historical approach
In prior years, SMG and Centerplate's use of the marketing reserve fund' has
been dedigted to supporting business development via traditional food and
beverage strategic activities. Typica0y this has included promoting "taste panels"
to generate increased top line food and beverage sales and commensurate
commissions, previewing in bound shows to assess food and beverage
contribution and opporturnties to up sell, supporting
Gty sponsored customer familiar¢ation taps and site visits with food and
beverages to enhance capture rates and requests by management to off set food
and beverage expenses related to industry functions. We note several examples
of these acUvitres below and their corresponding outcomes.
- -- -- i
'~ Promotional Opportunity Ex nse '_Benefit to MBCC
- --- - - -
Big BrothersBrg Sisters $1.385 00 Event generated
Taste Panel $365,898.30 top tine
sales and 316,804.07
Leo Awards Taste Panel - --~c°mmissions
II I $1,286.00 Event generated
379,455.00 top line
_~mmissions
II UM Sylvester Taste 'sales and 320,261.03
$2,350 00 ,Event generated
Panel i 3200,002.90 top line
sales and E51,000.74
'~ '; commissions
•These funds are generated as a percent of Centerplate's top line catehng sales
and accrue at a rate of 1.5°~ of catering food and beverage revenues per month.
In annual terms, the approximate marketing reserve accrues $45,000 or more.
Given the pnor management cornpany's preference for Centerplate to
underscore selling activities by virtue of the tactics above. we limited our
engagement in pant and direct mail marketing activities to instances like our
Holiday Postcard Blitz -May/October 2008.
Centerpiate's corporate offices developed a holiday postcard for personalization
and distnbuhon by its field accounts Tanny and her team distributed 250 of these
cards during GMCVB's Membership Mixers, Americas' Food and Beverage Show
and at the Amigos and Kids reception. Additionally they mailed 500 to event
planners rn the late spring to drum up short term holiday sales
We agree d ~s important to promote the Center to the social catering market, and
believe a ponion of the marketing reserve fund should be dedicated to both print
b
and web based marketing media. As these funds are limded, we will optimize our
presence via advertising trade outs similar to the ones we pursued with Big
Brothers Big Sister and UM Sylvester.
We believe we can further capitalize on our combined resources when our
proposed premiere partner is approved and have outlined these strategies
• Media outreach
Promotional activities
• Cooperative advertising
• Participation in spedal events
• Web site messaging
Industry memberships
• Urrect solictaton
Customer Interaction
In the catering business one of the most effective means of increasing sales is
via personalized attenfion to a customer's or social committee's menu
preferences as these discussions allow us the opportunity to develop and solidify
our relationships wdh our prospects - and at little to no cost. The upside potential
is significant, as positwe word of mouth advertising from satisfied customers
spreads very quickly within the social community.
In addition to the relationship budding menu customization engenders, we are
eager to undertake these activities as they typically foster increased spending via
up selling higher priced menu elements or services. Tangentially, we lend added
impact to host and guest event enfoyment as we include regional and local
cwsine in our menu development -currently both the smart thing to do from a
culinary trend perspective as well as the right action by including local purveyors
of fine foods in our purchasing activities
Generally this process follows the Center confirming the event, but from time tc
time Centerplate is asked to provide a proposal prior to the customer reaching a
final decision regarding site selection We view these opportunities as a positive
way to communicate the features and benefits the MBCC offers its prospects.
Among the accounts for which we have developed tailored menu proposals are
the Nafional Foundation for Advancement in the Arts and Switchboard of Miami,
Inc While these events did not materialize for the Center, they and the Center's
sales team's efforts offered a positive and well received approach to the
customer s interests: keeping the door open for future solicitation and bookings.
Centerplate is eager to continue its sales support to the MBCCs and Global
Spectrum's endeavors and offer our trine. talent and treasure to op4mize new
business opportunities Our prior efforts are groundwork for future success as.
collectrvety, we capitalize on our key attributes and offer existing and new
customers compelling reasons to host their events in the Miami Beach
Convention Center
Accordingly. over the past several weeks Global Spectrum and Centerplate
management have met to identify safes, marketing and operational issues in
preparation for sales growth Speck topics.
• Goal setting
Defining the economic impact of social business in the Center
Types of local socal groups
• Streamlining efforts/commurncation to maximize customer satisfaction
throughout all elements of the booking and event execution process
Union impact to customer expenses
Inclusive package develop and deployment
Parking
• Collateral material to represent the City, Global, and Centerplate
We are eager to translate these discussions into business development and are
confident our combined efforts will foster revenue growth for the aty