Dear Team,
I hope you’re all enjoying a colorful Autumn, it’s hard to believe that Winter is right around the corner…yikes! We’ve had a great opening to FY19, and I have a lot of good news to share. We well exceeded our Business Plan Year 1 targets, both in terms of revenue and operating profit. It will be a challenge to top those results in Year 2. However, I am confident that we will continue our success and improve our underlying profitability, thanks to the integration efforts and progress made by all of you.
KICKING OFF THE NEW FISCAL YEAR
We opened the year with a strong showing, kicking off September with a spectacular event for the Association of Zoos and Aquariums, jointly hosted by the Seattle Aquarium and Safeco Field teams – to rave reviews. Our 3500 clients, prospects, and industry experts were all wowed by incredible power and teamwork on display in our combined team. Last week, in New Orleans, our team at the Morial Convention Center cleared $6 million on the blockbuster Tableau show. These are just two examples of the teams going above and beyond the normal call of duty… keep up the great work!
CLIENT RETENTION IS KEY
FY18 was also an extremely successful year for us in client retentions and renewals. Thanks to the efforts of our local teams, finance and sales & marketing, we were able to secure renewals and extensions without bid, retaining 89% of EBITDA (notably Hard Rock Stadium in Miami and Vancouver Convention Centre). Of those contracts we lost or exited last year, we lost 3% EBIT.
I don’t like losing contracts, but as we look at the business, we want to ensure we are exiting or re-negotiating accounts that are not profitable. It is important that each of you have the real conversations that are engaging and honest with our clients and colleagues. You must trust your capacity to understand and take the appropriate action.
For FY19, we have even more contracts expiring, and need to focus on keeping our clients close and staying on top of the business. In a testament to the importance of that message, last week, the Orange County Board of Commissioners voted 4-1 to renew the contract with Centerplate at the Orange County Convention Center, citing our track record and commitment as the reason to remain with us. We also officially executed a new contract with the Ronald Reagan Memorial Library, thanks to the great work and innovative thinking of our joint Centerplate and Sodexo team.
FOCUS ON GROWTH
Our Senior Leadership Team attended the Sodexo Senior Leadership Meeting in October, where the meeting theme was “Focus on Growth”. Segment leaders from across Sodexo North America are all tasked with answering the same question: How do we grow our business, drive innovation, and deliver value? We will continue this focus and revisit our progress at our 2019 Annual Conference*.
I ask that you continue to keep that in the forefront of your operations as you push the standards higher. Beware that success can lead to complacency if we are not diligent. I urge you to embark on your job with lucidity, confidence and pride.
INTEGRATION WORKSTREAM UPDATE
You will find below the monthly update on our workstream progress. As we move forward with integration, our workstreams will announce refinements to our internal processes as we continue to combine our shared business.
Integrating organizations is never easy, but I am constantly being reminded what a great starting point we have—we share the same values, a focus on growing our shared business, and we have an enormous breadth of talent and experience in our colleagues. I appreciate all of your patience, good humor, and constructive hard work navigating these new shared practices.
I’d like to thank you for all of your hard work and dedication in making our organization great.
I’m looking forward to seeing you all soon.
Chris
*Save the date for the 2019 Annual Conference the first week of April. More details to follow in the New Year.
NEW WINS
> Ronald Reagan Memorial Library
CONTRACT RENEWALS
> Holiday Valley Resort
> Orange County Convention Center
> Miami Beach Convention Center
SPOTLIGHT ON LAS VEGAS CONVENTION CENTER
Centerplate won the long-term contract for all catering, food and beverage, and vending services at the Las Vegas Convention Center (LVCC) and Cashman Center in October 2016 and began services on January 1, 2017.
Interview with Richard Ginzel, VP Operations
Why was Centerplate chosen over the competition?
“The bidding process was long and very competitive. There was only a 1 point difference between Aramark, Levy and Centerplate. Our relationships in Orlando and New Orleans made us victorious as the hour-long client interviews were a key deciding factor along with our top reputation among meeting planners for Convention Centers in the US.”
What is the biggest event held at the LVCC?
“The CES, the largest trade show in the world. We executed CES 2017 only 4 days after receiving the keys to the kitchen from Aramark. Our teams did an outstanding job to quickly gear up to serve the 170,000 attendees. We received an evaluation showing less than 1% of sales had to be refunded (for wrong order, late delivery, etc). In the past years under Aramark, it was around 4% to 5%.”
How do your teams stand above the high standards of Vegas?
“Our team’s can-do attitude is key! With trade shows, the money is made the hard way – high volume. We have to be nimble and think out of the box because we only have few events to draw in the majority of revenue. Food service is key. We’ve led the renovation of the food court focusing on improving the customer experience and it’s already been paying off. Client feedback is better than ever and we have increased the food court volume by 40% in the first 2 years.”
MOVING FORWARD IN OUR INTEGRATION
Workstream Update
All significant workstream objectives with a due date for FY18 have now been closed out and we are continuing to make good progress on the integration since the start of FY19. The following are recent key updates to be noted from the various workstreams.
> Rolling Out Sodexo’s Clients for Life Program
The Sodexo’s Clients for Life program is currently being rolled out to select Centerplate accounts, as part of our focus on retention. In addition, Fresh Eyes Reviews will be performed at specific focus accounts over the next 3 years.
> Field Controller Support Organization
To better support Operations and our major markets, we have realigned the regional controllers and finance team members. Further, Ed Arwine and Jane Turner and their teams will continue to support Centerplate and Sodexo units and operations respectively.
> Resource sharing / Labor transfer policy
A new policy has been issued relating to the temporary transfer of an employee from their home unit to another unit. The policy outlines the method to calculate the transfer amount for both hourly and salaried employees and includes various forms to be used for support and processing. Please consider utilizing internal resources from other units, wherever possible, before requesting external temporary labor.
> Procurement: Chicken Program Conversion
Centerplate units should now be transitioning to Koch Foods for all frozen raw, breaded and unbreaded processed chicken products, by working with their Sysco representatives. We expect significant annual cost savings from this conversion, while maintaining the quality of products.
> IT Support Process
Both Centerplate and Sodexo units continue to have a different support process until further notice. When a unit requires support relating to any IT matters, such as unit operating system, PCI support, issues with software or e-mails, then you should contact the relevant Help Desk as follows:
– Sodexo units: Contact Sodexo Help Desk at 1-888-667-9111
– Centerplate units: Contact Centerplate Help Desk at 1-864-248-2026
Depending on the nature of your request, you will be connected to the appropriate analyst to resolve the matter.
QUESTIONS ABOUT THE INTEGRATION?
Please reach out to Sana Haque if you have any specific questions relating to integration process.