Catering deal

[Bob's Orange]

Sounds like good business to me.

Certainly does.

Although as Ardiles mentioned, 10 years does seem a long time and things could change dramatically in this period of time so lets hope throwing all our eggs into one big basket doesn't hinder us in the long term somehow.

[Red Frog]

True dat. Although I was referring specifically to this deal, but then this deal is larger than just the catering, it's also all the sales and marketing for non-matchday events for the next 10 years too. Does this mean they charge back a fee for that? Or do they get all the profits from any/all non-matchday events too? If it's the latter, we've just sold off a huge chunk of our non-football revenue streams for the next decade. Which may well be a shrewd bit of business or could severely hamper the scope for a future board to profit from a redevelopment. May well be a lot of devil in them details

I'm beginning to understand a bit better how not very rich people* like Jed & co run their businesses. They have no significant capital assets*, so they pay for the present with the future. Having to offer long-term contracts to fund the short-term is adding risk and reducing room for manoeuvre in future. Not knocking the income for the deal as such - £1.3m income per year for catering rental sounds very respectable - but as others have pointed out, what will it look like in 2023?

*allegedly

[pauld]

Not knocking the income for the deal as such - £1.3m income per year for catering rental sounds very respectable - but as others have pointed out, what will it look like in 2023?

According to what Samdy's posted it's not £1.3m to the club (it's "worth" that to Lindey, not the club). For the club, it's £200k income plus £200k "saved", so it doesn't look like £1.3m in 2013, never mind 2023

[london_red]

Can't argue with a net £400k improvement to the club's balance sheet really.

£8k a week less of wages that need to be slashed.

[LucienSanchez]

Can't argue with a net £400k improvement to the club's balance sheet really.

£8k a week less of wages that need to be slashed.

Or it could fund the Rooney transfer

[Flashheart]

That sounds more realistic.

Anybody know what our profits on catering are now?

[pauld]

That sounds more realistic.

Anybody know what our profits on catering are now?

I assume they're the 200k loss of the 400k.

[wokinghamred]

I'm beginning to understand a bit better how not very rich people* like Jed & co run their businesses. They have no significant capital assets*, so they pay for the present with the future. Having to offer long-term contracts to fund the short-term is adding risk and reducing room for manoeuvre in future. Not knocking the income for the deal as such - £1.3m income per year for catering rental sounds very respectable - but as others have pointed out, what will it look like in 2023?

*allegedly

Well, we appear to be doing things very much like other clubs. (not that that makes it a good thing necessarily)

Lindley have just signed a 10 year £18m deal with Watford, they have an existing long standing relationship with Liverpool, and at least 7 other clubs including Spurs and Bristol City.

Much as I hate to praise the board, it does smack of professionalising how we manage catering, with an award winning company.

[Red Frog]

According to what Samdy's posted it's not £1.3m to the club (it's "worth" that to Lindey, not the club). For the club, it's £200k income plus £200k "saved", so it doesn't look like £1.3m in 2013, never mind 2023

Yes sorry, he posted while I was writing mine. I wonder if the £200k "saved" is actually the total cost of the current in-house hospitality, rather than the net shortfall after earnings (remembering Jed's "£1.8m profit" on concerts)? That does seem a remarkably large loss to be making on a relatively small operation. If that's what's meant, the net gain won't be £400k p.a.

Well, we appear to be doing things very much like other clubs. (not that that makes it a good thing necessarily). Lindley have just signed a 10 year £18m deal with Watford, they have an existing long standing relationship with Liverpool, and at least 7 other clubs including Spurs and Bristol City.

That does provide some reassurance.

[Frigby Daser]

Certainly does.

Although as Ardiles mentioned, 10 years does seem a long time and things could change dramatically in this period of time so lets hope throwing all our eggs into one big basket doesn't hinder us in the long term somehow.

A contract of that length will (on the basis our friends in the boardroom did this properly) be flexible enough to take account of changing circumstamces - customer volumes, food prices, staff costs, food health and safety legislation changes etc. There will be standards they have to meet, and failure to meet them could lead to us terminating. There should also be a right for the club to terminate for any reason, because we feel like it, but them pay them an element of compensation for doing so. They seem to be a market leader, so a long term extension makes sense in principle if it means reduced costs. The potential savings equate to the left arm of a soon to be signed Town and future Forest Green player, so whilst it makes sense, it's nothing to get excited, or angry about. Next...

[ronnie21]

Whilst I no longer use any catering facilities at the CG (far prefer the chppie opposite the CG) it matters not to me who supplies the burgers and chips, but if it means more money in the coffers at the end of the day I am all for it.  I definitely agree with Bob's Orange about all those people who disturb everybody else as they come back late - we have one family in our row in the DRS who are up and down to the toilet all the time after arriving about two minutes after the start, leave their seats about two minutes before half-time and then drift back in dribs and drabs after the second half has kicked off!!

[Peter Gibbons]

so a long term extension makes sense in principle if it means reduced costs.

I guess the primary benefit of a long deal is to encourage investment, perhaps a new deep fat fryer so that enough chips can be cooked to meet demand, and a new freezer in which there is sufficient space to store said chips. 

Can a story about County Ground catering reach four pages?

[leftside]

and a new freezer in which there is sufficient space to store said chips. 

You mean the chips don't come from fresh spuds that are picked, peeled and chipped on the day?!!! Boo.

[Baggins]

This may have been asked before in this thread, but its late and I don't have the energy to check.  Is one of the stipulations of the deal that the food is edible?  I mean, suitable for humans?  Imagine that...

[sonicyouth]

And can it be possible to get black coffee and tea for once?