by Mike Sharkey
Staff Writer
All indications are Chicago-based Levy Restaurants is coming to town. Starting late this summer, Levy, which is currently in contract negotiations with the Jacksonville Jaguars, SMG and the City, will be the concessionaire for the newly-renovated South end zone at Alltel Stadium if a deal is reached. And, they aren’t stopping there.
In October, SMG said Levy will take over for Aramark as the vendor at the Osborn Center, and when the new $130 million arena opens late this year, Levy will also be the vendor there.
The arrival of Levy marks the end of an era for Aramark and SMG, the management company that handles the Osborn Center, Alltel, the T-U Center and the new arena. SMG general manager Bob Downey said Aramark’s contract at the Osborn Center expires at the end of September, at which time Levy — who was selected in a bid presentation last week — will take over.
“We’ve been with Aramark since the beginning, about 15 years,” said Downey, adding Levy will sign a three-year contract on the Osborn Center. “They [Levy] made a better offer. They plan to offer high-end food and I expect they will raise the bar.”
Levy was started in Chicago in 1978 by brothers Mark and Larry Levy as a single delicatessen. Since then, the company has expanded into several different areas, including food service operations at sports and entertainment venues all over the country. Those venues, to name a few, include Churchill Downs (the Kentucky Derby), Dodger Stadium, the Pepsi Center (Colorado Avalanche and Denver Nuggets), MCI Center (Washington Wizards and Capitals), the Molson Centre (Montreal Canadiens) and Navy Pier in Chicago.
According to Downey, Centerplate, Inc. (formerly Volume Services) will continue to handle the rest of Alltel Stadium and the Coliseum until it’s demolished this summer after local high school graduations. The Jacksonville Suns own and operate their own concession company.
Unlike the other SMG-managed venues, the new South end zone party terrace and 700-seat luxury suite deal was negotiated primarily between the Jaguars, City officials and representatives from Levy.
Jaguars vice president/chief financial officer Bill Prescott said the team has no problem with the stadium having two concessionaires.
“Going into the South end zone [project], we knew we had a unique venue, one that we will have control of 365 days of the year,” said Prescott. “Part of paying for it is the ability to derive revenue on non-game days. We want to be able to lease it to companies and groups.”
Prescott explained the decision came down to Levy and Centerplate.
Based on their solid relationship with Centerplate, Prescott said there was no consideration given to awarding Levy the entire stadium. The team expects to renew their contract with Centerplate in June (the contract was originally signed in 1998 with two- and three-year renewal periods). Prescott said Levy and Centerplate were the only two vendors considered.
“We had seen Levy in other venues,” explained Prescott. “We talked to each one and asked for proposals. By far and away, Levy had the same vision as we do for the South end zone.”
Plans are for Levy to operate the South end zone’s sports bar, terrace suite and patio.
“The sports bar will have two concession stands with normal stadium fare, but Levy will put their own twist on it,” said Prescott. “The terrace suite will have a buffet included in the purchase price and it will be more upscale than in our club suites today. The patio will have mostly portables with beer, sodas and hot dogs.
“We are still negotiating the contract right now. We have a base agreement with the business terms. We just have to put those terms in writing.”
Despite only having one professional team among the four major sports, Levy has been eying Jacksonville for almost a decade.
“Levy has been interested in the Jacksonville market for several years,” said Jeff Wineman, executive vice president of business development for Levy. “We first became familiar with the city when we considered bidding on Alltel Stadium when the NFL awarded a team to Jacksonville. Since that time, we’ve visited often and watched the city grow.”
Wineman added the Better Jacksonville Plan and the expansion of the sports complex presented Levy a great opportunity to strengthen its southern market.
“The major catalyst for Levy was the City’s amazing commitment to expand its hospitality business with the Better Jacksonville Plan and the construction of new, world class venues like the ball park, the arena and the renovations to Alltel Stadium,” explained Wineman. “Jacksonville is serious about the hospitality industry and we look forward to the opportunity to play a significant role in its expansion.”
Wineman said Levy is committed to presenting Alltel patrons “a whole new era of sports dining.” He also said splitting Alltel is an acceptable arrangement for the time being, but Levy would like the opportunity to serve the entire stadium.
“The beauty of the South end zone expansion is that it will provide us an opportunity to serve all fans — the premium guests as well as the general public,” said Wineman. “By serving both populations we will be able to put together a plan for what the fans at Alltel Stadium want and expect. If their [the Jaguars] current expectations and desires are not being met by Centerplate, we will certainly put our hat in the ring.”