HomeMy WebLinkAboutR-86-1021NNW
J-86-958
12/11/86 86--1021
RESOLUTION NO.
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A NEGOTIATED AGREEMENT, IN A FORM
ACCEPTABLE TO THE CITY ATTORNEY AND WHICH
SHALL BE SUBSTANTIALLY IN ACCORDANCE WITH THE
REQUEST FOR PROPOSALS AND THE ATTACHED
PROPOSAL, AS MODIFIED, BETWEEN THE CITY OF
MIAMI AND VOLUME SERVICES, INC. FOR CON-
CESSION C)Ph, aT[O-NS AT THE MIAMI ORANGE BOWL
STADIUM AND THE MIAMI BASEBALL STADIUM FOR A
PERIOD OF FIVE (5) YEARS, WITH THE OPTION TO
EXTEND THE CONTRACT FOR ONE ADDITIONAL
FIVE-YIEAR P,�;tIOD.
WHEREAS, pursuant to public notice sealed proposals were
received on December 5, 1986; and
WHEREAS, Requests for Proposals were sent to twenty-three
firms and four (4) proposals were received; and
WHEREAS, a Selection Committee has recommended that the
proposal submitted by Volume Services, Inc. offers the City the
best combination of price, capital improvements, organization,
marketing, experience, and minority participation; and
WHEREAS, the City Manager recommends that the proposal of
Volume Services, Inc. be accepted as the most advantageous
proposal and that the attached negotiated agreement be executed;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1: The City Manager is hereby authorized to execute
a negotiated agreement, in a form acceptable to the City Attorney
and which shall be substantially in accordance with the Request
for Proposals and the attached Proposal, as modified, between the
City of Miami and Volume Services, Inc. for concession operations
at the Miami Orange Bowl and Miami Baseball Stadium for a period
of five years, with the option to extend the contract for one
additional five year period.
CITY COMMISSION
MEETING OF
DEC 11 ftd
86-1.02
RLSOLUTION Ne.
REMARKS:
•
PASSED AND ADOPTED this 11th. day of December
AT S
Matty Hirai, City Clerk
PREPARED AND APPROVED BY:
1
Robert F. Clark
Chief Deputy City Attorney
APP tD AS TO FORM AND CORRECTNESS:
'Lucia: Dou herty
City ttorn y
AV: bf:727
R L. SU
MAYOR "0
, 1986.
86-1021
ADDENDUM TO PROPOSAL
OF VOLUME SERVICE, INC.
This page consists of modifications in the proposer's proposal
made on the floor during the City Commission Meeting of December
11, 1986, said modification being consented to by the City
Commission.
The proposer agrees to provide to the City the sum of six -hundred
seventy-five thousand dollars ($675,000) as the Minimum Annual
Guarantee for the first year of the contract.
The proposer further agrees to provide as the Minimum Annual
Guarantee in years two (2) through five (5), or, in years two (2)
through ten (10) if an additional five --year option period is
exercised, the sum of five hundred thousand dollars ($500,000) or
eighty-five percent (85%) of the previous year's earned
commission rent, whichever is greater.
8671021
Accountants' Report
To The Shareholders of Transworld Corporation:
Re have examined the consolidated balance sheets of Transworld
Corporation and subsidiaries as of December 31. 1985 and
1984. and the related consolidated statements of income and
retained earnings and of changes in financial position for each of
the three vears in the period ended December 31. 1985. Our
examinations were made in accordance with generally accepted
auditing standards and, ac•cordingl%, included such tests of the
accounting records and such other auditing procedures as we
considered necessary in the circumstances.
In our opinion, such consolidated financial statements present
fairl% the financial position of Transworld Cogx►ration and
subsidiaries at December 31. 1985 and 1984. and the results (if
their operatiuns and the changes in their financial position for
each of the three sears in the 1►eriod ended December 31. 198•1.
in c•onformit% with general]% accepted accounting principles
applied on a consistent basis.
Deluitte Haskins 8 Sells
r .
Nt-A link. New lurk
March 3. 1986
xs: r
40
Management's Report
To The Shareholders of Transworld Corporation:
We have prepared Transworld Corporation's consolidate.
cial statements, including the notes and other financial
lion appearing in this Annual Report. and are responsii_
their integritN and objectivity. In order to fulfill this rest,
ity. policies have been established that require each s%s
internal accounting control pro%ide reasonable assuranc
ing due regard to the cost of implementing and maintain
system. that transactions are executed in accordance wi
management's intention and authorization, that accountii
and records are prepared and maintained so as to permi
preparation of the financial statements in accordance wi
generally accepted accounting principles and that accor
ity for assets. liabilities and equit% is maintained.
Compliance with these policies is verified. and the Conti
adequac% of accounting policies and procedures is e%alu
through an internal audit program. In addition. Transwo.
Corporation's independent certified public accountants i
and maintain an understanding of the accounting and ad
trative controls in place and. based on tests of those con
of the accounting records, render an opinion on the fairr
presentation of the financial statements. The Audit Com
of the Board of Directors. composed of norimandgement
members. meets periodic•alh with both the internal and
pendent auditors to receive their reports.
Further. we recognize our responsibilit% to conduct Tran
business in accordance with high moral and ethical Stan
Policies ha%e been established and review progran►s are
tained to ensure that the policies are understuc►cl and the
business activities are in compliance Aith them.
00,
C✓ �t •
F. L. Salizzoni
Vice Chairman
J. R. Painter
�'ic•e President and Controller
Subsidiary Officers
Hilton International Co.
Officers
Curt R. Strand
Chairman
C. Edwin Meyer, Jr.
Pre.,idew and Chief Executive Officer
Helmut He►ermann
Executivr Vice President -Chief Operating
Officer
E. Peter Aird
Senior \ icr President-Treasoret
Olaf S. Ronde
Srniur \ mr 1rrsident-Cent ral Eurol►r and
Eastern Mediterranean
David F. Hoffman
Senior \ice President -Human Resources
Dr►elupmcot
Pierre R. Jaquillard
Senior Vice Prertdrol-Ueslern Eurupr. Gulf
and Africa
Kenneth S. Mies.,
Senior \icr President-A.,ia and Australia
Fred Ruoff
Senior \ ive Prrsidrnt-Marketiug
Jonathan Berger
\ re a Prrsidrnt-O:urjKlydlr I )rvrlopnlrnl
Alan Bridle
\ ice President and Comldn-lle►
Anthony Carpenter
\ icr President-Lnited State -
Reginald h. Groome
\ icr Prrsidrnt-CanjiLc
Richard Handl
Vice Preside-nt-Japan. Guam. tubed and thr
Philippines
Jose A. Menendez
\ ice Pre,idrnt-Canbbrdo and Latin Amencd
Melvin Milligan
Vice Prrsidrnt. Grnrral Counsel.
and Assistant Srcrrtan
Willem Sprokkreeff
Vicr Prrsidrnt-Australia and South Pacific
Oskar von Kretschmann
\u•r Prrsidrnt-Indune.ia. Mala, sia. Singapore.
Sri Lanka and Thailand
Carol%n S. Parlato
Corp►ralr Srcreldn
41M. (mgawdlr Sri erldn ut Conlrrrl (,p►ldirallull.
and 1-14,endU In.
Spartan Food Systems Officers
Jerome J. Richardson
President and Chief Executive Officer
F.J. Hammond, Jr.
Senior Vice President -Construction
and Real Estate
Louis P. Howell
Senior Vice President, General Counsel
and Assistant Secretan
Samuel H. Maw
Senior Tice President -Research
and Development
R:P. Phillips
Senior Vice President -Operations
Vialter M. Brice, III
Vice President -Administration and
Assislant '.-wmtan
Donald D. Hasty
Tice President -Personnel
H. Stephen McManus
Vice President -Harder.,Operations
Robert Prevatte
Vice President -Hardens Operations
Olin D. Thomson
Vice President -Construction
Canteen Corporation
Officers
Robert A. Kozlowski
President and Chief Executi-
James A. Rost
Executive Vice President
William Adams
Vice President-Milnot Opera
Harold F Brogdon
Vice President -Engineering:
Quality Control
William H. Carlson
Tice President. General Cou
Assistant Secretan
Kenneth R. Davidson
Vice President -Purchasing
Nicholas A. Dinielli
Vice President and Contrulle
Paul G. Duffy
Vice President and General k
FcKKI and Vending
Melvin H. Grossberg
Vice President-11(me Operati
Daniel R. Krpan
Vice President -!Marketing
John E. Napier
Vice President -Distributor UI
Karl H. Sedlarz
\ ice President-Corpurate I)e--
Assistant treasurer
Richard M. Stein
Vice Prrsidrnt and As-istant e
Food and %ending
George B. Tone%
Vice President -Recreation tie
Lawrence F. V. ilka•
Vice President -Human Resor
8 -102-
VOLUME SER VICES, INC.
December 5, 1986
Mr. Walter E. Golby, Director
Department of Parks, Recreation
and Public Facilities
c/o Office of the City Clerk
City of Miami
3500 Pan American Drive, 1st Floor
Miami, Florida 33133
Dear Mr. Golby:
Volume Services, Inc. is pleased to submit this proposal for food and
beverage concessions at the Miami Orange Bowl and Miami Baseball
Stadiums. We have developed a response that addresses all items
Y. "=
included in the RFF and are excited about the prospect of serving the
+ P P g
patrons of these facilities.
Our operating experience, resources and strong management presence in
`
Florida is prepared to meet the challenges of the early transition date
.-
as prescribed.
If during your
review of our submittal you develop any questions or
y,
require further
infornation or clarifications, please contact me.
Sincerely,
Volume Services, Inc.
t. khK
David R. Scoco
`
Sales and Marketing Manager
Enclosure
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GT7/98-1
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VOLUME SERVICES. INC.
December 5, 1986
Mr. Walter E. Golby, Director
Department of Parks, Recreation
and Public Facilities
c/o Office of the City Clerk
City of Miami
3506 Pan American Drive, 1st Floor
Miami, Florida 33133
Lear Mr. Golby:
Volume Services, Inc. is pleased to
submit this proposal for food and
beverage concessions at the Miami
Orange Bowl and Miami Baseball.
Stadiums. We have developed a response
that addresses all items
included in the RFP, and are excited
about the prospect of serving the
patrons of these facilities.
Our operating experience, resources
and strong managemert presence in
Florida is prepared to meet the challenges
of the early transition date
as prescribed.
If during your review of our submittal you develop any questions or
require further information or clarifications, please contact me.
Sincerely,
Volume Services, Inc.
David R. Scoco
Sales and Marketing Manager
13woo
Vlo 0
0 #Oper. #4800 EAS: $1,200
® SAFECO INSURANCE COMPANY OF.
GENERAL INSURANCE COMPANY 0;
FIRST NATIONAL INSURANCE COM:
SAFECO OF AMERICA
HOME OFFICE. SAFECO PLAZA
SEATTLE, WASHINGTON 98185
Bid 'fond '1o. 931A()rlr1— 11)
BID BOND
Approved by The American Institute of Architects,
A.I.A. Document No. A-310 ( Feb. 1970 Edition)
& OW.111. BY7Y11'.`h.'PRL•:5ENT.S, That we.
Volume Services,- Inc.
_as Pnnc,pa:. lletemafIer called the Pnncipal
and the SAFECO INSURANCE COMPANY OF AMERIC'A, of Seattle, Wasl,rigton, a corporation duly organized unde
the !awS of the State of Washin-ton, as Sprct\ , hercu;a:ter called the Surety, are hc!d and f rntl) bound unto--_-
__-- ---City of eliatrs — -- _ — -- as Oblige- he,c;n:ifter called the Obligee
n; ;he n,m ,�!__--- Twenty —Five Thousand and Noi 100---_-------_-------_ ----- Dollar
Is, 25 CCO. 00- 1, for the pa\ ni nit of which sum well and truly n, he made, the paid Pnnc,pal.and the said Surety. bin•
oui •:!�e.. �-w heirs, exc:u!ors. ad,:ur,stralors, succei,,ors and ass,rns. jointly and severally, ti;ntly by these presents.
It'1/1:R1 .t.ti. the Principal has submitted a bid for —_--Food and Beverage Concessions at %Harty
owned football and baseball facility from 1/1/67 to 2/l/91.
A011'. 711 Rt'FORE, if the Obligee shall accept the bid of the Principal and the Principal shall enter into a Contract will
the Obiwee in accordance with the teens of Such hid, and give such hand or bonds as may be specified in the bidding o
Conn.ict Documents with good and sufficient surety for the faithful performance of such Contract and for the promp
pa%ment of labor and material furnished in the prosecution thereof, or ,n the event of the failure of the Principal to ente
su:h Contract and ,ive such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed th,
peiiali% hereof bomeen the amount specified In said bid and such larger amount for which the Obligee may in good faitl
cowract with another party to perform the Work covered by said hid, then this obligation Shall he null and vo;d, otherwis=
to remain in full force and effect.
Signed and sealed this -
26th- _— —_ day of_- _ . _ November— _ . I _ 86
Vole Services, inc. — (Sea!
Principa
K. H. Sedlarz-'Vice/President Tit1=
-� SAFECO INSURANCE COMPANY OF AMER10
At tilt Ile\'-m-Fac.
8f,-1Q
.i.
�i
f: 1
POWER SAFECO INSURANCE COMPANY OF r
OF ATTORNEY GENERAL INSURANCE COMPANY OF
t HOME OFFICE SAFECO PLAZA
i SEATTLE. WASHINGTON 98185
SAFECO
No. 4666
KNOW ALL BY THESE PRESENTS:
That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA each
a Washington corporation, does each hereby appoint
-------- ---------- -------- -------ALICE ALBANO----------- -------------------------
its true and lawful attorney(s)-in-fact with full authority to execute on its behalf fidelity and surety bonds or undertakings
and other documents of a similar character Issued in the course of Its business, and to bind the respective company thereby.
IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY
OF AMERICA have each executed and attested these presents
this 2nd day of Nnvpmhpr , 19_R�l
CERTIFICATE
Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA
and of GENERAL INSURANCE COMPANY OF AMERICA:
"Article V. Section 13 — FIDELITY AND SURETY BONDS . the President, any Vice President, the Secretary, and any
Assistant Vice President appointed for that purpose by the officer In charge of surety operations. shall each have authority
to appoint Individuals as attorneys -In -fact or under other appropriate titles with authority to execute on behalf of the
companv fidelity and surety bonds and other documents of similar character Issued by the company In the course of Its
business On any Instrument making or evidencing such appointment, the signatures maybe affixed by facsimile On any
Instrument conferring such authority or on any bond or undertaking of the company, the seal, or a facsimile thereof, may be
Impressed or affixed or In any other manner reproduced, provided, however, that the seal shall not be necessary to the
vandlt� of any such instrument or undertaking "
Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA
and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28, 1970
"On any certificate executed by the Secretary or an assistant secretary of the Company setting out,
(I) The provisions of Article V, Section 13 of the By -Laws, and
(III A copy of the power -of -attorney appointment. executed pursuant thereto, and
(III) Certifying that said power -of -attorney appointment is in full force and effect.
the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof "
I, Boh A Dickey, Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE
COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of
Directors of these corporations, and of a Power of Attorney Issued pursuant thereto, are true and correct, and that both the
By•Laws. the Resolution and the Power of Attorney are still in full force and effect
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the facsimile seal of said corporation
0
5974P•C3 66
this day of
19
PRINTED IN U 5 A
V.,
0 V
ACKNOWLEDGMENT BY SURETY
STATE OF
ss
County of
On this day of before me person
appeared Alice Albaao known to me to be the Attorney-in-Fac
SAFECO INSURANCE COMPANY OF AMERICA, GENERAL INSURANCE COMPANY OF AMERICA, FIRST NATIOf`
INSURANCE COMPANY OF AMERICA or SAFECO NATIONAL INSURANCE COMPANY, the corporation that executed
within instrument, and acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal, at my office in the aforesaid Coui
the day and year in this certificate first above written. ,
Ive
Notary Publi in thef.4al(Wpf, _ ..
(Seal) County of
5 Z30 as 6 78 PRINTED IN u
136. 1-Q
4 9
TABLE OF CONTENTS
IMODUCTIO14
A. CORPORATE PROFILE AND PHILOSOPHY..................3
B. OUR CREDENTIALS..................................13
C. MANAGEMENT PLAN - OPERATIONS .....................36
D. MANAGEMENT PLAN - MANAGEMFhrr AND STAFFING ........ 42
E. CAPITAL IMPROVEMENTS .............................50
F. FINANCIAL CONTROLS AND ACCOUNTING................52
G. EMPLOYEE GROWTH AND DEVELOPMENT..................55
H. CORPORATE SUPPORT SERVICES AND UNIQUE PROGRAMS ... 61
I. PROPOSAL DOCUMENTS
EXHIBITS
- Alcohol' Awareness Program...............El
- Affirmative Action/EEO..................E2
- Uniforms................................E3
- Corporate Capabilities Brochure .... .....E4
- Volume Services Brochure... ..... oo—e—E5
- TW Financial Statement... o.*e9o*eeo.*o**E6
- Certificate of Insurance................E7
- Letters of Recommendation...............E8
a
INTRODUCTION
The provision of quality food and beverage services is an important and
Integral function of the operations at the Orange Bowl and Miami
Stadium.
The undertaking of such a responsibility is not to be treated lightly,
or as simply as "just another Stadium Foodservice". Volume Services,
Inc. understands and appreciates your objective to offer the tenants,
visitors and guests of Miami, the highest quality products and services
at outstanding value.
We have developed this response to your request for proposals
Incorporating our significant experience, proven operational programs
and management resources into an innovative and comprehensive management
plan for the facilities. The diverse food and beverage requirements of
the stadiums will require an equally flexible and creative organization
to ensure customer satisfaction and financial performance.
The Volume Services Division of Canteen is prepared to meet the
challenge. As you review our proposal, we invite you to establish the
standards by which to evaluate our performance. The operating concepts,
management plans and financial projections contained herein are our
commitments to the City of Miami, and to the patrons of the Orange Bowl
and Miami Stadium.
41
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Our proposal is organized into topical headings, each section detailing
specific information as it relates to a successful foodservice operation
at the stadiums. Every element is designed to ensure that Volume
Services' contribution to the overall success of the complex is
complete, and exceeds your expectations.
-z- cxw. 1.Q2
A. CORPORATE PROFILE B PHILOSOPHY
Corporate Profile
Volume Services Inc., recognized as the leader in excellent quality food
service to recreation, sports and convention center markets is a wholly
owned subsidiary of Canteen Corporation, one of the nation's finest food
service management firms. Volume Services specializes in the unique
food service requirements of convention centers, stadiums, arenas,
racetracks, and numerous other public facilities. We have distinguished
ourselves in the industry by means of the Volume Services System,
providing management, merchandising, controls, financial return to our
clients, and, most importantly, excellent service to our customers.
Volume Services has significant experience in successful operations plus
the desire and flexibility to continually learn new techniques to
improve our performance. We have served six World Series in three
different cities, numerous Colliegiate Bowl Games, national political
conventions, many of the most prestigious international, state and
regional conventions, as well as many other high attendance events. We
were privileged to serve the spectators of both Super Bowl RVIII at
Tampa Stadium and the 1984 Summer Olympics at the Los Angeles Coliseum
and Sports Arena.
Our ability to provide our convention centers, arenas, and stadiums with
maximum gross revenues and the highest possible per capita volume has
enabled us to continually renew contracts in the facilities where we
operate V add new business to this growing market each year.
-3-
x;
l
During 1985, Volume Services Inc., became a part of Transworld
Corporation's family of service organizations via Transworld's purchase
of the Interstate United Corporation. Now as a wholly -owned subsidiary
of Canteen Corporation, Volume Services benefits from the significant
experience and resources of this major contract management firm.
Canteen Corporation
One of the nation's largest service providers, this 1.3 billion dollar
_ concern is rapidly becoming known as America's Foodservice Company. The
corporation's rich history began in Chicago in 1929. Since then, by
broadening its markets and operations, the company has enjoyed steady
growth while this diversification has lead to a leadership role in
virtually every area of professional service management.
_ In addition to Volume Services, Inc., Canteen Corporation is divided
.' into the following network of operating groups:
A
-4- 156--42
Canteen Corporation (Continued)
* TW Services, Inc...provides food, lodging, gift shops and tour
services in National, State and municipal parks, conference
centers, and training facilities, services include:
- resort management
- marketing and sales promotion
- rentals, tours, exhibits
- quality dining programs
facility maintenance
4 - security and transportation
Gulliver's...This deli concept meets the needs of office workers
and visitors in multi -tenant commercial office buildings without
,.r company sponsored foodservices. The services include:
�.,.
{ 4 - customized design
- convenience to tenants
- tenant catering
Build -Your -Own salad bars
y'j,- prepared to order delicatessen sandwiches
kitchen fresh soups
S.
breakfast service
0
Canteen Corporation (Continued)
* Corporate Foodservices...'eets the dining requirements of American
Business. The services include:
- Executive Dining Rooms
- Employee Dining Rooms
- Special Function Catering
* Educational Foodservices... Canteen's Educational Foodservice
provides nutritious, tasty lunches to North America's primary and
secondary schools. The services include:
- sophisticated management methods
- trained quality management
- employee training and motivation
- high quality, tasty food
- appetizing menu choices
- imaginative merchandising
* College and University Foodservices... Canteen's menus, meal plans
and style of service reflect what students and college
administrators demand in foodservice. The services include:
a
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flexible meal plans
credit cards and computer deductions
rathskellers, delicatessens, pizzerias, pubs,
and soda shops
student involvement
special events
cost-effective management
Correctional Foodservices... Our management programs, which meet
court mandated standards, provide prison administrators with
efficient, cost effective approaches to growing populations. The
services include:
- Use of Federal Commodities
- Use of prison -grown foods
- computer menu controls
- religious and denominational menus
- design assistance
- skill training for inmates
- security procedures and contingency plans
- nutrition standards which exceed American
Correctional Association guidelines
•
86. 2
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* Health Care Foodservices... Provides dietary departments and coffee
shops for hospitals, nursing homes and life care centers. The
services include:
- Menu development and analysis
- patient meals
- nourishment programs
- purchasing services
- administrative reports and financial forecasting
- in-service training
* Vending and Automated Services —Canteen provides vending services
through 200,000 vending machines in 180 markets across North
America. The services include:
- state of the art equipment
- national brands
- kitchen fresh foods
- trained professional personnel
- responsive maintenance
- detailed computer reporting
- Quality Assurance programs
s
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�6"'14
,.
* Preferred Meal Systems... provides 42 million preportioned,
single -service meals each year to school children across the
country. The services include:
- top-quality food at reduced costs
- reduced demands for equipment
- lower labor factors
- less administrative involvement for school administrators
- firm price quotations
- purchasing, production and distribution systems
* The Rowe Division...provides cigarette and refreshment services,
amusement games, phonograph music systems for restaurants and other
businesses across the United States. The services include:
- prompt, efficient, dependable service
- stringent accountability
- top quality products
- the finest equipment
It becomes evident that the Canteen family of operating groups truly
provides food and related services to every aspect of daily activity.
-9-
Transworld Corporation
Canteen is a wholly -owned subsidiary of Transworld Corporation, a $2.5
billion New York based holding company that guides a network of
service -oriented companies. Besides Canteen, the Transworld family
includes:
* Hilton International - one of the world's foremost hotel management
companies, with 89 hotels in 43 foreign countries. Domestically
Hilton International operates under the Vista International name.
* Spartan Food Systems - Canteen's sister company in the Transworld
"Food Group" owns and operates more than 300 Hardee's fast food
�., restaurants and 200 of its own proprietary concept, Quincy's Family
<;s Steak Houses.
The common denominators linking each of the divisions of Transworld
Corporation are food, service and hospitality. Transworld's
concentration on these common elements has resulted in one of the
world's largest and finest service organizations. Each member of TWC
Family shares its resources with one another. Regular exchange of
training, marketing, and operational information is encouraged. The
1985 TWC Annual Report has been included for your review, as an exhibit
to this submittal.
Volume Services' philosophy for foodservice operations is based upon the
development, implementation and maintenance of the highest professional
foodservice standards.
Our approach is to test and refine programs which can be duplicated in
each of our operations and which are adaptable to our clients'
facilities and requirements.
The ability to deliver quality programs again and again under very
different circumstances for clients with very different objectives is
unique in the food service industry. This ability says more about our
management philosophy than anything we might say in our proposal.
Volume Services has enjoyed exciting growth due to our sensitivity to
our clients' needs and understanding of foodservice trends. We will
ensure our continued growth through imaginative marketing, professional
management, innovative systems, and the development of creative
foodservice personnel.
Much of our future growth will come from our existing business base.
The on -going development of quality programs, sound controls, and our
ability to out -perform our competitors will continue to provide us solid
growth opportunities.
0
h.
Volume Services places great emphasis on developing and training its
people. We constantly review the talent pool from academic and industry
sources and hire quality people for management training positions to
sgpport our growth plans. Once affiliated with Volume Services, new
eaployees receive a formal curriculum of training programs, workshops
and programmed study.
Our philosophy of demanding quality service and performance excellence
ensures continued growth, expansion and leadership for Volume Services.
In a market populated with discerning clients, we stand out as the
choice for excellence. We encourage you to v-1P4.t foodservice locations
managed by Volume Services. You'll find out we don't just talk about
quality and consistency, but we achieve it.
•
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B. OUR CREDENTIALS
We are all known by the company we keep. At Volume Services we are
proud to say we keep some impressive company. Our complete list of
clients and their facilities we serve is included for your review.
s
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8(; -1.Q2
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CLIENT LIST
We encourage you to contact each of our clients for a first person
appraisal of our performance. The following is a list of our valued
clients, in alphabetical order, indicating our client's name, address,
and telephone number, as well as the facilities, size, type of service
and year service started.
CLIENT American Royal Center
25th Floor, City Hall
Kansas City, Missouri 64106
CONTACT Mr. John Burge
816/274-1316
FACILITIES Kemper Memorial Arena (18,000 seats)
American Royal Building ( 6,150 seats)
Governors Exposition Building (120,000 sq.ft.)
TYPES OF SERVICES Concession (stands and vendors), programs, and
novelties
START OF SERVICE 1974
CLIENT Arkansas State Fairground Complex
P.O. Box 907
Little Rock, Arkansas 72203
CONTACT Mr. J. R. "Johnnie" Holmes
501/372-8341
FACILITIES T. H. Barton Coliseum
Arena (10,000 seats)
Hall of Industry (37.000 sq. ft.)
Grandstand ( 5,000 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
novelties, cafeteria and banquet catering.
START OF SERVICE 1979
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CLIENT LIST
We encourage you to contact each of our clients for a first person
appraisal of our performance. The following is a list of our valued
clients, in alphabetical order, indicating our client's name, address,
and telephone number, as well as the facilities, size, type of service
and year service started.
CLIENT American Royal Center
25th Floor, City Hall
Kansas City, Missouri 64106
CONTACT Mr. John Burge
816/274-1316
FACILITIES Kemper Memorial Arena (18,000 seats)
American Royal Building ( 6,150 seats)
Governors Exposition Building (120,000 sq.ft.)
TYPES OF SERVICES Concession (stands and vendors), programs, and
novelties
START OF SERVICE 1974
CLIENT Arkansas State Fairground Complex
P.O. Box 907
Little Rock, Arkansas 72203
CONTACT Mr. J. R. "Johnnie" Holmes
501/372-8341
FACILITIES T. H. Barton Coliseum
Arena (10,000 seats)
Hall of Industry (37.000 sq. ft.)
Grandstand ( 5,000 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
novelties, cafeteria and banquet catering.
START OF SERVICE 1979
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CLIENT Arrowhead Stadium
One Arrowhead Drive
Kansas City, Missouri 64105
CONTACT Mr. Jack Steadman Mr. Robert Wachter
816/924-9300 816/924-9300
FACILITIES Football Stadium (78,034 seats)
TYPES OF SERVICES Concession (stand and vendors), programs,
and novelties
START OF SERVICE 1972
CLIENT Baltimore Civic Center
201 W. Baltimore Street
Baltimore, Maryland 21201
CONTACT Mr. Charles Neustadt
301/837-0903
FACILITIES Arena (13,000 seats)
TYPES OF SERVICES Concessions, programs, novelties and catering
START OF SERVICE 1984
•
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CLIENT Arrowhead Stadium
One Arrowhead Drive
Kansas City, Missouri 64105
CONTACT Mr. Jack Steadman Mr. Robert Wachter
816/924-9300 816/924-9300
FACILITIES Football Stadium (78,034 seats)
TYPES OF SERVICES Concession (stand and vendors), programs,
and novelties
START OF SERVICE 1972
CLIENT Baltimore Civic Center
201 W. Baltimore Street
Baltimore, Maryland 21201
CONTACT Mr. Charles Neustadt
301/837-0903
FACILITIES Arena (13,000 seats)
TYPES OF SERVICES Concessions, programs, novelties and catering
START OF SERVICE 1984
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CLIENT British Columbia Place
777 Taylor Street
Vancouver, British Columbia, Canada V6B4Y8
CONTACT Mr. Harry Renaud
604/669-2300
FACILITIES Stadium (60,000 seats)
Stadium Club ( 75 seats)
Luxury Suites (80)
Exhibit Hall (230,000 sq.ft.)
TYPES OF SERVICES Concessions, catering, restaurants
START OF SERVICE 1983
CLIENT Casper Events Center
200 N. David Street
Casper, Wyoming 82601
CONTACT Mr. John Nath
307/235-8354
FACILITIES Arena (10,000 seats)
Exhibit Space (44,000 sq. feet)
Theatre ( 3,500 seats)
TYPES OF SERVICES Concessions (stands and vendors)
START OF SERVICE 1982
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CLIENT The Centrum in Worcester
c/o Spectacor Management
50 Foster Street
Worcester. Massachusetts 01608
CONTACT Mr. Neil Sulkes
617/755-6800
FACILITIES Arena (13,500 seats)
Exhibit Hall (40,000 sq. feet)
TYPES OF SERVICES Concessions and catering
START OF SERVICE 1982
CLIENT Century II Complex
225 West Douglas Avenue
Wichita, Kansas 67202
CONTACT Mr. James F. Clancy
316/264-9121
FACILITIES Exhibit Halls
Arena
Concert Hall
Performing Arts Theatre
(Total 200,000 sq.feet)
( 5,200 seats)
( 2,190 seats)
( 661 seats)
TYPES OF SERVICES Concessions, catering and novelties
START OF SERVICE 1985
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CLIENT Victor R. Copps Trade Centre/Arena
101 York Boulevard
Hamilton, Ontario, Canada L8R3L4
CONTACT Mr. Brian Conacber
416/526-4450
FACILITIES Coliseum (18,000 seats)
Exhibit Space (87,000 square feet)
TYPES OF SERVICES Concessions and club
START OF SERVICE 1985
CLIENT Erie Civic Center
P. 0. Box 6140
Erie, Pennsylvania 16512
CONTACT Mr. Jay Armbruster
814/453-7117
FACILITIES Arena ( 9,200 seats )
Exhibit Hall, (25,000 sq. ft.)
TYPES OF SERVICES Concessions, programs, novelties and catering
START OF SERVICE 1964
-18-
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CLIENT Five Seasons Center
150 First Avenue, N.E., Suite 250
Cedar Rapids, Iowa 52401
CONTACT Mr. David Pisha
319/398-5211
FACILITIES Arena ( 8,500 seats)
Exhibit Space (28,500 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1979
CLIENT Fresno Convention Center
2101 "C" Street
Fresno, California 93706
CONTACT Mr. Ernie Valdez
209/488-1511
FACILITIES Arena
Theatre
Exhibit Hall
TYPES OF SERVICES Concessions and catering
START OF SERVICE 1982
—19—
( 7,410 seats)
( 2,359 seats)
(32,000 sq. feet)
0
CLIENT Hollywood Greyhound Track
831 North Federal Highway
Hallandale, Florida 33009
CONTACT Mr. Les Schwartz
305/454-9400
FACILITIES Greyhound Track (15,000 seats)
Dining Rooms ( 700 seats)
TYPES OF SERVICES Concessions, catering, restaurants
START OF SERVICE 1973
CLIENT Hubert A. Humphrey Metrodome Stadium
900 South 5th Street
Minneapolis, Minnesota 55415
CONTACT Mr. Jerry Bell
612/332-0386
FACILITIES Domed Stadium (65,000 seats)
TYPES OF SERVICES Concessions (stands and vendors)
START OF SERVICE 1982
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CLIENT Jacksonville Sports Complex
Department of Recreation and Public Affiars
851 North Market Street
Jacksonville, Florida 32202
CONTACT Mr. Dan Lee
904/633-3808
FACILITIES Stadium (Gator Bowl) (70,000 seats)
Coliseum (10,228 seats)
Auditorium ( 3,200 seats)
Beach and Miscellaneous City Parks
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1976
CLIENT Jones Beach State Park
Long Island State Park and
Recreation Commission
Belmont Lake State Park
Babylon, Long Island, New York 11702
CONTACT Mr. John Sheridan
516/669-1000
FACILITIES Beachfront (33 miles) Softball Fields
Golf Course Theatre
Fishing Piers
TYPES OF SERVICES Concessions, restaurant, banquet catering,
cafeterias, vending and liquor services
START OF SERVICE 1931
•
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CLIENT Kansas City Convention Complex
1310 Wyandotte
Kansas City, Missouri 64105
CONTACT Mr. John Burge
816/421-8000
FACILITIES Arena
( 10,000
seats)
Exhibition Hall
( 50,000
sq. feet)
Exhibition Hall
(200,000
sq. feet)
Music Hall
( 3,500
seats)
Theatre
( 1,000
seats)
TYPES OF SERVICES Concessions, banquet
catering, cocktail lounge,
restaurant, cafeteria
START OF SERVICE 1976
CLIENT Lawlor Events Center
University of Nevada, Reno
Business Center North
Reno, Nevada 89557
CONTACT Mr. Robert Dagitz
.702/784-6552
FACIIITIES Arena (13,000 seats)
TYPES OF SERVICES Concessions, bar, catering and novelties
START OF SERVICE 1983
•
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CLIENT Los Angeles Memorial Coliseum
and Sports Arena
3911 South Figueroa Street
Los Angeles, California 90037
CONTACT Mr. James Hardy
213/747-7111
FACILITIES Stadium (88,000 seats)
Arena (15,400 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1977
CLIENT Ted Makalena Golf Course
Waipio, Ewa, Hawaii
CONTACT Mr. Kiyo Tenjoms
808/259-5350
FACILITIES 18-Hole Golf Course
TYPES OF SERVICES Concession stands and catering
START OF SERVICE 1981
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CLIENT Oakland -Alameda County Coliseum Complex
Nimitz Freeway and Hegenberger Road
Oakland, California 94621
CONTACT Kr. Ray Ward
415/569-2121
FACILITIES Stadium (54,000 seats)
Arena (14,260 seats)
Exhibit Hall (50,000 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors)
START OF SERVICE 1966
CLIENT Ocean Center
101 N. Atlantic Avenue
Daytona Beach, Florida 32018
CONTACT Mr. Jerry Mac Donald
904/252-7766
FACILITIES Arena (10,000 seats)
Exhibit Hall (62,000 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors),
liquor service, catering
START OF SERVICE 1985
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9
CLIENT Orange County Convention/Civic Center
9800 International Drive
Orlando, Florida 32809
CONTACT Mr. David O'Neal
305/420-3773
FACILITIES Convention Center (165,000 sq. feet)
Arena ( 8,500 seats)
Meeting Capacity ( 12,000 seats)
Meeting Rooms ( 40 )
TYPES OF SERVICES Concessions (stands, vendors), catering
START OF SERVICE 1983
CLIENT
Lester E. Palmer Auditorium
P.O. Box 1088
Austin, Texas 78767
CONTACT
Mr. Ron Wood
512/476-5461
FACILITIES
Coliseum
( 6,200
seats)
Auditorium
( 6,000
seats)
Exhibit Area
(87,440
sq. ft.)
Banquet Facilities
( 4,500
capacity)
TYPES OF SERVICES
Concessions (stands and
vendors),
programs,
novelties, and banquet
catering
START OF SERVICE 1979
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CLIENT Pompano Park Racetrack
1800 Southwest Third Street
Pompano Beach, Florida 33060
CONTACT Mr. Harold Duris
305/972-2000
FACILITIES Harness and Quarterhorse Racetrack
TYPES OF SERVICES Clubhouse dining rooms, concessions, bars,
and catering
START OF SERVICE 1973
CLIENT Richmond Coliseum
Dept. of Community Facilities
600 E. Broad Street - Suite 615
Richmond, Virginia 23219
CONTACT Mr. Jerry Johnson
804/780-5093
FACILITIES Coliseum (14,000 seats)
Exhibit Space (50,000 sq. feet)
Mosque Theatre ( 3,667 seats)
TYPES OF SERVICES Concessions, catering and novelty sales
START OF SERVICE 1982
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CLIENT Riverfront Coliseum
100 Broadway
Cincinnati, Ohio 45202
CONTACT Mr. Don Schumacher
513/241-8500
FACILITIES Coliseum (19,000 seats)
TYPES OF SERVICES Concessions, programs, and novelties
START OF SERVICE 1975
CLIENT Riverside Convention Center
3443 Orange Street
Riverside, California 92501
CONTACT Mr. George Condos
714/787-7590
FACILITIES Exhibition Hall (32,000 sq. feet)
Banquet Hall (16,000 sq. feet)
TYPES OF SERVICES Banquet catering and concessions
START OF SERVICE 1976
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CLIENT Rockford Metro Centre
401 S. Main Street
Rockford, Illinois 61101
CONTACT Mr. Douglas Logan
815/968-5600
FACILITIES Arena (10,000 seats)
Exhibit Area (91,000 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors), programs
and novelties optional
START OF SERVICE 1981
CLIENT Royals Stadium
One Arrowhead Drive
Kansas City, Missouri 64105
CONTACT Mr. Joseph Burke Mr. John Schuerholz
816/921-8000 816/921-8000
FACILITIES Baseball Stadium (40,613 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1972
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CLIENT
Sacramento Community Center
1300 "K" Street
Sacramento, California
95814
CONTACT
Mr. Sam Burns
916/449-5291
FACILITIES
Exhibit Hall with Stage
( 7,200
seats)
Exhibit Hall
(40,000
sq. feet)
Auditorium
( 4,500
seats)
Theatre
( 2,500
seats)
Activities Building
(10 banquet rooms)
TYPES OF SERVICES
Banquet catering, concessions, and meeting room
services
START OF SERVICE
1974
CLIENT St. Louis Arena
5700 Oakland Avenue
St. Louis, Missouri 63110
CONTACT Mr. Jack Quinn
314/644-0900
FACILITIES Stadium Club (400 seats)
Luxury Suites (50)
TYPES OF SERVICES Concessions, restaurants, bars, catering
START OF SERVICE 1984
0
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CLIENT St. Paul Civic Center
143 Test 4th Street
St. Paul, Minnesota 55102
CONTACT Ms. Marlene Anderson
612/224-7361
FACILITIES Arena (17,700 seats)
Auditorium (10,000 seats)
Exhibit Space (Over 100.000 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1977
CLIENT Sea Life Park
Makapu Point
Waimanalo, Hawaii 96795
CONTACT Mr. Robert Moore
808/259-7933
FACILITES Marine Show and Viewing Tanks
TYPES OF SERVICES Concessions, bars, restaurant, and catering
START OF SERVICE 1975
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CLIENT
Seattle Center
305 Harrison Street
Seattle, Washington
98109
CONTACT
Mr. Ewen Dingwall
206/625-4227
FACILITIES
Coliseum
(15,000
seats)
Exhibit Space
(40,000
sq. feet)
Arena
( 6,100
seats)
Opera House
( 3,100
seats)
Display Hall
(37,000
seats)
Playhouse
( 800
seats)
Banquet Rooms
( 10
rooms)
TYPES OF SERVICES
Concessions, catering, and novelties
START OF SERVICE
1964
CLIENT
CONTACT
FACILITIES
TYPES OF SERVICES
�# START OF SERVICE
A
Sodrac Park/Jefferson Park Racetracks
Box 195
North Sioux City, South Dakota 57049'
Mr. Iry Epstein
605/232-4321
Thoroughbred Racing
Greyhound Racing
Restaurant and concessions
1978
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CLIENT Tampa Stadium
Tampa Sports Authority
4201 N. Dale Mabry Hwy.
Tampa, Florida 33607
CONTACT Mr. Joseph J. Zalupski
813/872-7977
FACILITIES Stadium (72,000 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1978
CLIENT Thomas and Mack Center
University of Nevada, Las Vegas
4505 Maryland Parkway
Las Vegas, Nevada 89154
CONTACT Mr. Dennis Finfrock
702/739-3761
FACILITIES Arena (18,500 seats)
Silver Bowl Stadium (32,000 seats)
TYPES OF SERVICES Concessions (stands and vendors)
and catering
START OF SERVICE 1983
0
4
CLIENT Tucson Community Center
260 South Church Street
Tucson, Arizona 85703
CONTACT Mr. Robert J. Sullivan
602/791-4101
FACILITIES Arena ( 9,550 seats)
Exhibit Hall (35,000 sq. feet)
Music Hall ( 2,300 seats)
Auditorium ( 575 seats)
TYPES OF SERVICES Concessions, liquor service, and banquet
catering
START OF SERVICE 1974
CLIENT University of Washington Stadiums
Tubby Craves Building
Seattle, Washington 98195
CONTACT Mr. Michael Lude
206/543-5828
FACILITIES Stadium (60,000 seats)
Arena ( 8,475 seats)
TYPES OF SERVICES Concessions
START OF SERVICE 1985
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CLIENT Veterans Memorial Auditorium
833 5th Avenue
Des Moines, Iowa 50309
CONTACT Mr. Roger Newton
515/283-4168
FACILITIES Arena (15,000 seats)
Exhibit hall (30,000 sq. feet)
Total Exhibit Space (76,000 sq. feet)
TYPES OF SERVICES Concessions, liquor service, banquet catering
START OF SERVICE 1981
CLIENT Waimea Falls Park
59-864 Ramehameha Highway
Oahu, Hawaii 96712
CONTACT Mr. Roberts Leinau
808/259-7922
FACILITIES Botanical Park and Waterfalls
TYPES OF SERVICES Concessions, bars, restaurant, and catering
START OF SERVICE 1979
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CLIENT West Palm Beach Municipal Entertainment Center
1601 Palm Beach Lakes Blvd.
West Palm Beach, Florida 33401
CONTACT Mr. Randy Carillo
305/683-6010
FACILITIES Exhibit Space (27,000 sq. ft. exhibit space)
Auditorium ( 7,500 seats)
Baseball Stadium ( 5.000 seats)
TYPES OF SERVICES Concessions, catering, novelties
START OF SERVICE 1985
CLIENT
Yankee Stadium
161st and River Avenue
Bronx, New York 10451
CONTACT
Mr. James Naples
212/293-4300, Ext. 230
FACILITIES
Baseball Stadium (60,000
seats)
Luxury Suites
(19)
Stadium Club and Lounge
(430
seats)
Combo Club
(125
seats)
Yankee Club
(125
seats)
Press Dining Room
(65
seats)
TYPES OF SERVICES
Concessions, restaurants
START OF SERVICE
1964
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C. MANAGEMENT PLAN - OPERATIONS
Concessions
Volume Services' proven systems of concession operations combines the
advantages of creative merchandising with optimum stand employee
efficiency to provide maximum sales and the fastest service in the
industry.
The faster service and higher volume of this system is proven daily at
all of our locations throughout the nation. Volume Services has been
awarded contracts based on our ability to provide higher sales and
per -capita spending. This ability to generate the highest possible per
capita sales converts into a higher net income to your facility, as
witnessed by Mr. Len Zerilli, CFE, Manager of the Sacramento Community
Center.
"Since 1974--the opening of the Sacramento Community/Convention
Center --we have had the service for food and beverage by Volume
Services. Initially, our community was much concerned about having a
national firm represent our Center in this phase of our operation.
Although Volume Services was not the high bidder, they were chosen over
other bidders, and truthfully, we have not regretted the choice. Each
year they have continued to increase revenue to the City. This has been
accomplished by a complete evaluation on a continuous basis of their
service and products to the patrons of the Center and for each event
accordingly.
Although Volume Services is a national firm, we consider them a
local since they have now been in our community for so long, hire
locally, and purchase as much as possible from local purveyors.
We expect the high degree of professionalism experienced in the
past to continue into the future. Should you choose Volume Services, I
am certain that they would also provide your facility with the degree of
satisfaction you can be proud of."
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Concessions (Continued)
The principles of the Volume Services System are quite simple. Building
upon the design of the food and beverage concessions, the following
elements are developed:
• Creative Merchandising
• Quality Menus
• Employee Training
• Courteous Service
• Operating Policies and Procedures
• Accurate and Timely Reporting
This combination of location specific procedures results in customer
satisfaction and increased per-capitas. That is the success of the
Volume Services concession system. —the most efficient ...the most
productive in the industry.
Our Unit Operations Manual is available for your review, however, its
contents are proprietary. Upon our successful selection as your
contractor, a manual specific to the Miami operations will be prepared.
0
Catering
Volume Services is a full foodservice management company. Our
professional management approach is used in both the concessions and
catering operations. We operate catering facilities which host from
five people to 13,000 for breakfasts, lunches, dinners, meetings, and
receptions of all kinds. The interest, enthusiasm and flexibility for
creating an individual catering package for each tenant and serving him
in a "distinguished" fashion with no surprises is the foundation of our
successful catering program.
Volume Services has the ability to meet even the most unique catering
requirements. From clam bakes to cocktail parties, we have the
experience and expertise to fully handle the gamut of catering
challenges.
The same expertise, which we display in catering a Presidential
Inaugural and employee company picnics for as many as 50,000 people is
available to satisfy catering needs with the usual no surprises results.
* Catering assignments will be met without disruption in the
daily foodservice/concessions operations.
* Any event of any size at any time for the year will be
handled.
-38-
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Catering (Continued)
* Both regularly scheduled and specially catered events will run
smoothly.
* The theme, menu, presentation and type of service for each
event will be specifically tailored to meet the customer's
objectives.
* Finally, the customer can be assured of operations within a
specific budget for each and every event.
The net of no surprises catering is what Volume Services will provide:
A superior service specifically planned to meet the client's needs.
No surprises catering achieves what it does because it views each and
every event as a separate foodservice situation requiring its own
separate "Event Plan".
Elements which go into each "Event Plan" include:
* Determining the characteristics of the audience to be served:
- Visitors from a foreign country?
- Civic Group?
- College Organitation?
- Political Group?
- Private Industry?
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Catering (Continued)
+� Determining the size and sake -up of
the audience
The number involved?
�i
y
- Are families to be involved?
* Setting the specific objectives for
each event:
- Avards Banquet?
xk..
Presentation of the annual report?
a
- Executive seminar?
* Setting the date and time
Setting the budget?
on a per -person basis?
Fps
- An overall figure?
* Determining the type(s) of menu(s)
required?
ty
- Several course formal dinner?
Z rwfke��n
Cocktails?
Large Barbeque?
Special "Theme" menu, decor,
etc.?
It's our sound planning that assures you of perfect execution, no matter
what the requirements.
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Catering (Continued)
By asking all these questions and getting the right answers, we will
provide a superior service, which is pre -planned, flexible, imaginative
and uniquely in keeping with the catering requirements at the Orange
Bowl.
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86-.,1021
D. MANAGEMENT PLAN - MANAGEMENT AND STAFFING
What follows is a detailed description of our management
team planned
for the facilities, our organization in the Miami area and
how
both will
interface with the complex.
Senior Management and Corporate support staffs are vital
to any
`1
1
business. But in a service and people oriented business
the
critical
element is the relationship of our local management with
you
and with
your patrons. Therefore, our focus here is on key members
of our local
k_
and on -site management staff.
General Manager Concept
Foodservice responsive to your objectives and sensitive to the
customer's needs requires continuity, coordination and management
J
R direction. To achieve this, one individual must be responsible. With
Volume Services that is the task of the General Manager. The Resident
General Manager for Volume Services will be responsible for planning and
directing all operational, financial and personnel activities for the
foodservices at the Orange Bowl and Miami Stadium .
The General Manager must comply with corporate policy and procedures to
assure quality service. The Manager has the expertise and latitude to
institute specific procedures for the facilities.
a
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General Manager Concept (Continued)
He has the authority to make his own managerial decisions subject to the
directions of the Director. The General Manager participates in setting
L' his own goals and priorities in order to achieve overall service and
1;-
profit levels subject to the input of our corporate office.
Proposed Management Organization - Miami Stadium
1'
General Manager Concept (Continued)
In addition to the resident General Manager, several key staff positions
are:
Assistant General Manager - Supervises the operational department heads.
1 The Assistant General Manager is an operations manager responsible for
administering the policies and programs of the General Manager including
purchasing, training, merchandising, staffing, and cash control.
.k
Product Supervisor - Directs the warehouse, receiving, stocking and
sanitation programs, and personnel in those areas. Reports to the Asst.
Manager and is responsible for maintaining the physical plant as well as
,.
all products purchased by Volume Services.
Office Manager - The office manager reports to the Assistant General
At
Manager and is responsible for maintaining accurate accounting records
for sales, costs, payroll, accounts payable, accounts receivable,
perpetual inventory, event statistics, rent reports, and cash control.
The office manager supervises all additional office personnel necessary
`* including the Head Cashier.
,ra .
There are many other regular employees, each of whom has a complete job
a
description; such as, Waiters, Waitresses, Concession Stand Manager,
_ etc. One unique employee is the Condiment Stand Porter.
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General Manager Concept (Continued)
Condiment Stand Porters - Specific stand attendants will be assigned
each event to saintain the condiment stands and other public areas in a
sanitized and orderly fashion, fully stocked, as well as maintaining all
concourse areas free from dangerous spills. This unique service is
extremely important to the overall appearance and safety of your
facility.
All of our employees and staff are trained to provide the quickest, most
courteous service to the customers while providing quality products.
Our employees are well aware of the responsibilities associated with
selling food and alcoholic beverages as well as strict adherence to
proper sanitation practices. With our well defined job descriptions and
proper training you will find the Volume Service employees a true asset
to the stadiums.
Volume Services is fully aware of the management requirements of the
facilities. The on -site management staff will have the necessary:
° Education
Skills
° Experience
° Training
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D
The on -site management team at Miami is supported by the Volume Services
Eastern Area. This includes the South Eastern Regional Manager, Rob
Forbes, and the Eastern Area Vice President, Craig Trimble. The
complete corporate support structure can be depicted as follows:
Miami Stadium
General Manager
South East Regional Manager
Rob Forbes
Eastern Area Vice President
Craig Trimble
Volume Services Corporate Office
Barry Freilicher, President
Additional support can be readily obtained by virtue of the presence of
the local Canteen Regional Office in the Miami Area.
•
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J I
i
Management Staffing
This management team will be in contact with the Center on a continuing
basis.
Mr. Barry Freilicher - President, Volume Services. Mr. Freilicher has
been with Interstate United for ten years, progressing from General
Manager to Regional Manager to Senior Vice President and recently to
President. His management skills encompass many areas of recreational
food service such as, coliseum, arena, stadium and racetrack management.
;i
Mr. Freilicher was formerly in the airport food service field. He has a
-�
B.S. Degree in Hotel and Restaurant Administration from Cornell
.. ..
University, Ithaca, New York.
Mr. Craig Trimble - Eastern Area Vice President, Volume Services. Mr.
Trimble has been with Canteen/Volume Services for twelve years,
j progressing from Regional Controller to General Manager to Regional
General Manager, and most recently to Eastern Area Vice President. In
r this position, he will be responsible for all Volume Service accounts in
the East. Mr. Trimble has a B.S. Degree in Accounting from Rent State
University, in Rent, Ohio.
Ll
-47-
WE,
a 4
Mr. Robert Forbes - Southeast Regional Manager, Volume Services. Mr.
Forbes has been with Volume Services for seven years, employed at the
Riverfront Coliseum and Convention Center, both in Cincinnati and also
at Royals and Chiefs Stadiums in Kansas City before becoming general
manager of Baltimore Memorial Stadium in 1981. He is a graduate of
Miami University of Ohio, obtaining a B.S. degree in business
administration. Recently Rob was promoted to Southeast Regional Manager,
his office in Orlando, Florida.
Consultants
Mr. William A. Cunningham - President of Coliseum Consultants, Inc.
assists Volume Services as a Facility Management Consultant. Mr.
Cunningham has over 23 years of experience in managing major public
assembly facilities, 16 years as General Manager of the Oakland -Alameda
County Coliseum (1964-1980). and previously as the Assistant Director of
the Philadelphia Trade and County Civic Center from 1957 through 1964.
He was President of the International Association of Auditorium Managers
in 1974, and the 1977 winner of the McElravy Award, IAAM's highest honor
for professional achievement. He also has been designated a "Certified
Facilities Executive" (CFE) by this professional organization. He has
served many communities in a consulting capacity. Mr. Cunningham holds
a Bachelor of Science Degree in Education and completed three years of
graduate work in Governmental Administration at the University of
Pennsylvania. He also attended the Professional Auditorium Management
Symposiug at the University of Illinois.
-48-
8f -1021-
Mr. Vince J. Pantuso President of V. J. Pantuso Services, Inc. and
consultant to Volume Services, Inc. Mr. Pantuso was with Interstate
United Corporation for over ten years, most recently serving as
President of Volume Services. Twenty of his 25 years in the food
service industry have been spent in the sports and recreational
facilities area. He holds a B.S. degree in Business Administration from
St. Joseph's College in Philadelphia and attended graduate school at
Drexel University in Pennsylvania. He is a member of the Board of
Directors of the National Association of Concessionaires and is listed
in Marquis Who's Who In America.
;N
41
-49-
86r"JL021
F
Y � j
�yk
e -
n ,
a a
E. CAPITAL IMPROVEMENT PLAN
Volume Services proposes to expend a sum up to five hundred seventy-five
thousand dollars ($575,000) at the Orange Bowl and Miami Baseball
Stadiums. This investment will be used for operating equipment and
leasehold improvements throughout the concession areas. A preliminary
outline of how these funds may be expended is below:
Orange Bowl
Full Service Concessions - upgrade and equip all locations including a
grill/fry menu capability. Illuminated Menu Boards, graphics package to
include neon and canopies - All locations $260,000
Beer Stands - Upgrade utilities and equip all beer rooms, add graphics
and menu boards. Purchase beer portables $52,000
Vendor Commissaries 6 Support - Improve layout and equip all
commissaries, provide distribution equipment, storage facilities, etc.
$143,000
Office b Cash Room - Provide equipment, as necessary, safe, alarm system
and telephones. $20,000
•
-50-
\ 6.JL02
4
t
Capital Improvements (Continued)
Miami Baseball Stadium
n
Concession Areas - Upgrade and fully equip all permanent locations,
establish one vendor commissary, Menu Boards, directional graphics and
neon. $100,000
Total - $575,000
In the event Volume Services, Inc. would not be granted the additional
five year option period, book value protection is required for the
remaining asset balance of these improvements at the end of the
contract, 10-year straight line depreciation, from the date of purchase
will be employed to determine the net book value.
•
-51-
86 1021
4 4
F. FINANCIAL CONTROLS AND ACCOUNTING
We utilize a full range of electronic data processing equipment,
accounting systems, and security methods to insure the integrity and
accurate reporting of operational results.
At the operational level, we employ retail accountability and inventory
controls, yield analysis, independent customer shopping, and per capita
analysis to monitor the cash receipts and product control of each facet
of our operations.
The basic control of cash is recorded each step of the way from the
customer to the bank with several checks and balances built into the
system along the way.
A perpetual inventory of each item to be distributed to .the outlets is
kept in the commissary. Upon receiving the orders for an event, the
product supervisor deducts each item from the perpetual inventory and
distributes it to the individual outlets. At the concession stanA a
complete opening inventory is made by the Stand Manager, and the initial
bank counted and entered by the Assistant Manager.
s
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86OW
JL021
t: :
FINANCIAL CONTROLS AND ACCOUNTING (Continued)
At the close of the event, another complete inventory of
everything --cups, hot dogs, candy, etc. --is taken and entered against
the opening inventory. The calculations give exactly the number of
items sold. The money is counted and entered against the total inventory
consumed. A cash flow sheet pinpoints the accuracy of each cashier.
Our books are open to your inspection and audit at any time.
As you can see from our accounting controls we will provide you with a
detailed audit trail of individual items and locations, not merely a
conglomeration of total sales. On a daily basis, the previous day's
receipts are deposited in a separate bank account maintained at a local
bank. We will furnish you with a daily report following each day's
operation, detailing sales by outlet and product category.
Our fiscal year is divided into four quarters, each consisting of one
five -week and two four -week periods. Following each four or five -week
accounting period, you will receive a detailed summary indicating a
total sales analysis for the period. Commission payments to the City
will be made the 15th day after each period closing.
In every facility where Volume Services operates, there are unique
accounting and reporting systems to be used based on particular contract
specifications for that facility.
0
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eE-�.o�1
FINANCIAL CONTROLS AND ACCOUNTING (Continued)
Our resident manager will work closely with you to establish a
reasonable accounting and reporting system to fit in with your
operation. Where possible the cash register requirement will be met.
Our sales and operating records and accounting methods may be audited by
your representative at any time. Our own internal audit staff conducts
unannounced audits of each of our accounts on a continuing basis.
•
-54-
8E 1021
G. EMPLOYEE GROWTH AND DEVELOPMENT
Volume Services approach to employee development is to provide an
organization of foodservice professionals to properly serve our
custosiers and assist all of our clients in meeting their foodservice
objectives.
We accomplish this through programs for educating management,
supervisors and hourly employees in people skills, foodservice skills
and management skills. These programs are all based on an enlightened
personnel philosophy that recognized individuals and their career growth
objectives.
Training and Development
This Canteen department supports our field organization's efforts in
developing management personnel. It supplies results -oriented training
services which help bridge the gap between advanced foodservice
management theory and proven on-the-job practice.
The department publishes an annual catalogue of courses and seminars
offered. A study of the curriculum will reveal that Canteen Corporation
and its subsidiaries responded to the challenges facing foodservice
managers in an age of rapid change. Seminars and Workshops cover such
topics as leadership skills, time management techniques and better
personnel selection.
s
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86�1021
i
t
Training and Development (Continued)
i
In addition, we utilize proprietary training programs from outside
sources to further enhance the perception, skills and performance of our
people. A copy of the Table of Contents is included.
Hourly Employee Development
a It is Volume Services' objective that our employees be efficient,
courteous and professional. They must possess the necessary skill level
training not only to perform tasks properly but to understand the
purpose for all procedures.
Volume Services Employee Development Program includes all of the
following elements:
Individual.Job Descriptions...A separate and complete job
description is written for each job and is reviewed with each
employee. It includes information such as: basic
qualifications, pay scale and benefits, responsibilities, and
criteria for evaluation and advancement.
* Show and Tell Training... Volume Services uses the Show and
Tell Technique. In new accounts, the managers opening team
members and senior employees will walk all operations
personnel through their assignments. This procedure assures
the supervisor that each employee completely understands the
Individual job requirements.
e
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86�1-021
r,f
T,kaining and Developmel, Catalog
Q/INTtEN '
�■� r.M.r... Tab!e of Contents
We have kept this training catalog flexible. As programs are added or revised, a new table
of contents page will be sent to you for inclusion in this catalog.
How oo Schedule a Seminar I
reumbdon Series
The Principles of Foodservice 1
Management Feld Seminar
The Principles of Foodservice 2
Management (for Upper and Middle
Management)
The Canteen Personnel Development 3
Seminar
The Management and Administration 4
of the Canteen Personnel Process
Seminar
The Labor Relations Management 5
Systems Workshop
Specialised Personnel Series for Managers:
Recruiting for Canteen 7
Canteen Selection Interviewing 8
How to Orient Employees to Canteen 9
and the Industry
Boomerang: Canteen Management 10
Training in Equal Employment
Opportunity
Making Canteen Performance Reviews 11
Productive
Basic Management and Supervisory Skills:
Productive Leadership for 12
Canteen Managers
Planning for Performance 13
Time Management 14
Performance Management: Preparing 15
Foodservice Supervisors and Manages
for Handling Critical Supervisory
Situations
Pattern of the High Performing 17
Foodservice Manager (Coal Setting
with Subo foinates)
Managing Part -Time Foodservice
Employee% 18
Advanced Management or Supervisory
31011Series:
Creative Profit Improvement 19
Coaching and Motivating Foodservice 20
Personnel
Executive Development Series:
Management in Depth —Managerial 21
Manpower Planning
Foodservice Presentations That Work 22
Conducting a Meeting Workshop 24
(How to Hold Effective Meetings)
Foodservice Problem Solving 25
for Key Results
Marketing and Sales Development Series:
Systema Program (Interpersonal 27
Communications)
Canteen Marketing Corporate 2S
Overview Program
Canteen Foodservice Marketing 29
Seminar
Special Workshops/Programs:
Stress Reduction .110
Japanese Style Management in 31
American Business During the 1980%.
and Beyond; A New Approach to
Customer Satisfaction, Quality of
Service and Pioductivity
Canteen Quality Service Improvenivni '12
Team Administrator's Workshop
Canteen Quality Service Impruvemem :1:1
Teams Leader training Workshop
Canteen Quality Service Improveniviit :t•t
Team Member Training
Tuition Reim biirsemviit ( For Full -Time 35
Salaried People)
MOW ee-102-1
y.l
a j
i
- Bourly Employee Development (Continued)
Training aids used in this process are Books I and II of Canteen's
j Quality Food Service Program which demonstrate graphically
ICanteen's procedures for:
I
- correct production methods
;
- exciting counter display and merchandising
serving the customer
}' Additional training tools include:
u� �J
- Canteen Recipe Files
- Canteen's Evaluation of Food Service Standards
- Canteen's Sanitation Checklist
- Canteen's Safety Checklist
- Canteen's Cold Food and Dessert Picture Guidelines
- Cashier Training Manual
* Pre -Service Briefings... Before every serving period our food
service managers conduct a pre -service briefing. Menu items and
how they have been prepared and bow they should be served are
reviewed and demonstrated. Panning, garnishing. plating and
counter presentation are all covered. Each day different employees
are asked to participate in conducting this review.
a
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86. 1021
414 A
Hourly Employment Development (Continued)
This procedure accomplishes two things. It ensures that the foodservice
Is properly staffed, and that it In merchandised as planned by the
manager.
Most importantly it provides daily training in good foodservice
practices and Volume Services' standards of service. This results in
the development of a cadre of skilled and knowledgeable professionals.
* Regular Personnel Review and Evaluation...
Each General ?tanager and his staff will regularly sit down with
each employee and review and evaluate individual performance.
Training Centers
Canteen operates 17 National Training Centers across North America.
These Training Centers provide a unique way to offer education and job
skill development in an authentic real world environment -- something
that's often missing in education.
The Centers are actual client facilities where Canteen is the
foodservice contractor. They are selected because of their location,
and their adaptability to a full range of programs.
C
-56-
86-'1021
Training Centers (Continued)
New managers, key production personnel. and other appropriate
Individuals are sent to Training Centers for training and orientation to
Canteen systems and programs.
Poodservice subjects covered include:
* Preparation
* Merchandising
* Customer Service
* Sanitation and Safety
* Recipe Use
* Financial Administration
* Ordering and Receiving
* And a host of others
The Training Center program is thorough. and prepares the employee to
implement our systems. Each Training Center is evaluated a minimum of
once per calendar quarter by a member of the corporate staff.
In addition to the National Centers, there are 55 District Training
Centers where training in standards and procedures is provided at a more
local level.
C
-59-
967*-1021
L
Specifically designed for our Volume Services operations are a number of
multi -media presentations and other training materials, including:
A. Fourteen Bilingual Slide and Audio Tapes
Cover food service skills, alcoholic beverage responsibilities
and sanitation practices, filmed at actual Volume Services
locations.
B. Study Guides and Tests - Used to reinforce learning.
C. Handbooks and Orientation Guides - for employee reference
during their employment.
D. Posters - Highlighting job skills throughout the work place
to reinforce training.
E. Certification - For graduates of the training program,
Including public recognition of the employees and monetary
incentives.
The certification program has been so successful that our developer has
prepared an adaptation for the National Association of Concessionaires
for their professional development series.
s
40-
86. 021
R. CORPORATE SUPPORT SERVICES AND UNIQUE PROGRAMS
Throughout this submittal ve have made reference to the many corporate
resources available to Volume Services We also presented a number of
unique, proprietary programs that may be incorporated into the
foodservice operations at the Center. For your review a brief
description of the following services and unique programs is presented:
° International Foodservice Council
° Facilities Design Division
° Purchasing Department
° Menu Development
° Canteen's Quality Foodservice Program
° Health Fare
° By the Ounce
° Quality Beverage Program
° Colombian Coffee Program
Automated Menu Management System
•
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--------- --
t International Food Service Council
This important council is made up of senior executives. marketing
experts, food service managers and district managers. Members selected
for this prestigious group have demonstrated creativity, vision and
enterpreneurial style in developing new ideas, concepts and programs in
foodservice in the areas of:
* merchandising
* presentation
* preparation
* promotions
The Council meets quarterly in different operations across the country.
At each of these meetings specific programs and recommendations are
presented to enhance service to our customers.
The exchange of ideas and information results in program improvements
and exciting new concepts which keep our service fresh and innovative on
a continuing basis.
s
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4
Facilities Design
Canteen's Facilities Planning staff is made up of professional
foodservice designers. interior designers and engineers with the
knowledge, experience and creativity to satisfy all of the design needs
of our customers irrespective of the size of the operation. Whether
designing an existing facility, or starting from scratch on a new one,
each project blends front -of -the -house aesthetics with back -of -the -house
efficiency.
The Facilities Design functions in support of operations personnel and
are called upon to provide services to our clients including:
s
* kitchen and dining room design and layout
* equipment configurations
* traffic flow and space planning
* decor options
* foodservice equipment specifications
* furniture selection
* problem solving
* modular planning
-b3-
86 -1021
I
Purchasing
Volume Services purchasing program begins with the department's
development of standards. These are quality levels to which all
operations must adhere whether purchasing food, small wares, or capital
equipment.
The purchasing staff selects approved suppliers based on standards of
quality, service and price. In order to meet the needs of our network
of operations, these approved supplier lists include national, regional
and local purveyors which meet Volume Services standards and who will
provide performance, responsiveness and quality products to our clients.
With
standards
set and suppliers identified, the
purchasing function
takes
several
direction. First, contracts are negotiated for
commodities that are most appropriately and effectively purchased on
national agreements. Fountain syrups, canned goods, coffee, groceries,
confections, foodservice equipment, fleet vehicles, etc. are items we
contract for nationally, and the price is guaranteed to all our units.
At the regional and local level an effective purchasing program is also
In place. Based upon the needs of the market we serve, the General
Manager and his staff evaluate local suppliers and entertain competitive
bids from those purveyors who meet our standards. The bidding process
Is administered under corporate guidelines to ensure that sound business
decisions are made.
� 861021
With a large number of accounts in each of our Regional Areas,
a
Canteen/Volume Services is able to combine the needs of all our
customers and make volume purchases that give us great purchasing
leverage. The discounts we effect are your discounts because we pass on
all trade and product discounts to our clients.
' We want to emphasize that we do not use our commissaries or warehouses
as profit centers; these are support functions. There is no "u "
P pp "up -charge"
for products supplied to individual clients, so the money saved by
1� combining volume is money we save for you.
Our purchasing people are vigilant to ensure that contract terms for all
our operations are honored by suppliers. We continually renegotiate
z: contracts to more favorable terms as major new accounts are acquired, or
i�
as the market changes to provide more attractive prices.
Beyond the basic purchases (foodstuffs, fresh and frozen products,
meats, poultry, etc.) there is another area where our programs can
result in substantial savings. Canteen is an authorized distributor of
all major lines from amallwares and appliances to institutional
equipment.
s
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1-2: 1
Our Discounts Are Your Discounts (Continued)
We are able to purchase for our clients at Canteen's national price.
There in no mark-up; our discount becomes your discount. So when you
remodel or need to replace equipment, wares, china, etc., Volume
Services saves you money.
Our purchasing organization is sophisticated, professional and
effective. it is also flexible and capable of adjusting to a clients
unique needs or a client -preferred supplier. The ultimate benefits
accrue to you and to each of the clients we serve.
Lf
Menu and Recipe Development
Developing an exciting, quality -oriented menu is not a simple task. It
ti
knowledge of
requIres complex technical functions and a thorough
foodservice production. It also requires a great deal of imagination,
skill and creativity.
The keystone in this process is the recipe, and we develop recipes in a
variety of ways:
0
Executive chefs, working in a development
kitchen atmosphere, develop new recipe items.
-66-
86. 021L
Menu and Recipe Development (Continued)
* our own chefs and cooks have provided recipes for many
dishes.
* Suppliers furnish recipes and information on how to use
them.
* Operations personnel are charged with the
responsibility to seek new items when visiting
restaurants and dining establishments.
* Employee recipe contests are conducted twice annually.
With recipes available from a variety of sources, our challenge is to
refine them for the clients we serve, adjust them for regional tastes,
yr
and adapt them to volume foodservice production. Using our test
kitchens, Volume Services chefs work with each recipe until the finished
item is just right.
Then final tests are performed. Each new item is prepared in a customer
environment and tasted by a panel of foodservice experts from Volume
i Services. If the menu item is well received, it is then taste tested by
customers in our Training Centers.
r
0
-b7-
IG.* 1 21L
1.0
Menu and Recipe Development (Continued)
Only after passing all these tests are new dished introduced into the
menu. This constant menu enhancement brings new food items to our
accounts on a continuing basis.
From recipe development, to testing and final adoption, our program is a
blend of technical know-how, entrepreneurial flair and market savvy.
Canteen's Quality Food Service Program
Our consistently good tasting and attractively merchandised food is the
result of a program of planning and management. The foundation of this
program includes manuals and systems which cover Canteen's standards for
every conceivable operational procedure. The major elements are
Included in the following pages.
* Purchasing Standards ... To insure consistent high quality in
the food we serve all foods are purchased according to
specifications and standards. You will not find higher
quality standards anywhere in the foodservice industry.
-68-
8`102.
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.j
V
}
s �
40"
* Pre -Tested Recipes ... Each item in recipe file has
been tested by our corporated recipe development people. a
taste panel, and in actual field unit to determine the item's
popularity and any regional variations required. The recipe
file provides information on ingredient quantities required
for various numbers of servings.
* Pre-costed Cycle Menus ... Our menus are pre -coated on a
continuing basis to assure attainment of forecasted goals.
Pre -costing tells the manager and client the cost of each menu
item before being served, and it works because of adherence to
standardized recipes.
* Daily Production Records... Managers keep daily production
records on all items served. These records include three
important statistics:
a
- Row many of each individual item were
prepared.
- Row many were purchased.
- Over Production.
-69-
t :t
X.
tft
z;: ,
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ON
40�
Daily Production Records track other factors which may have influenced
each day's sales (i.e., climatic conditions, attendance, schedule,
etc.,). By constantly comparing servings produced to servings sold,
your unit manager will be able to make sure that we always produce the
correct amount.
* Portion Control ... Each counter attendant is instructed as part
of the pre -service briefing as to the:
- Proper serving utensils
- Correct dish
- Correct portion
* Inventory Control... The "Ordering/Receiving Inventory
Control" book includes forms and procedures for even required
item.
* Visual Panning and Plating Guides... All salads. fruit plates,
entrees, cold sandwiches and desserts on Volume Services menus
•
are photograph and numbered to coincide with recipe cards.
When employees prepare a menu they have a recipe to follow and
a guide which shows exactly how that product should appear
when presented for sale.
•70-
86. 1021
Canteen's Quality Food Service Program (Continued)
* Counter Merchandising Guide ... A variety of counter
merchandising techniques has been developed for each point of
service. e.g. Sandwich, Entree. Salad. Breakfast and Dessert
stations. Photographs of these include step-by-step
approaches to counter set-up merchandising.
Health Fare
Health Fare is a nutrition awareness program which uses a variety of
methods to communicate information on nutrition and good eating habits
to our customers.
Information is provided on the various food groups, which essential
elements of our diet are provided by each, and how they relate to one
another. An extensive series of monthly bulletins covers topics after
that initial exposure:
* Weight reduction * Sodium
* Weight maintenance * Thiamin, niacin and
* Sensational or fad diets * B complex vitamins
* Exercise and fitness * Vitamin C
* Fat and cholesterol * Protein and iron
* Fiber
a
-71-
8t-k1021
(11
A series of "Health Fare Trivia" table tents covers valuable and
Important information through the use of interesting questions and
answers. Countertop placards and handout flyers treat a variety of
nutrition topics in language and format that sakes them easy to
understand.
Vest-pocket sized calorie counters are provided so interested customers
can monitor their individual caloric intake.
Each day our menus suggest health fare selections that receive special
emphasis on our menu boards. Our menus and recipes emphasize healthy
menu items, ingredients and cooking procedures such as:
* Fresh vegetable ingredients * Fewer high -cholesterol
Items
* Broiled and baked items * More seafood, chicken, lamb
and veal
* Introduction of more roughage * Whole grain breads
* De -emphasis on salt * Low calorie dressings
* Pasta salads
s
-72-
86am
. 1021
'N "1
By -The -Ounce
Canteen pioneered By -The -Ounce merchandising in the corporate dining
service market. This program sleminates the Lake -it -or -leave -it,
pre -plated, portion sites and combinations of foods.
Hearty eaters, light eaters and those on restricted diets enjoy it.
The program includes:
* Entrees * Finger foods
* Vegetables * Fruit and cheese bars
* Ethnic specialties * Contemporary fun -food
* Desserts
By -the -Ounce increases participation, check averages, and service
efficiency. It also reduces fixed -labor costs and that's attractive to
everyone: client, customer and Canteen.
a
-73-
6
I Canteen's Colombian Coffee Program
Colombian coffee is recognized as the gold standard of coffees
throughout the world. It is the premium coffee served in the finest
restaurants and hotels. Canteen has launched a quality coffee program in
all our dining rooms and operations featuring 1002 Colombian coffee.
The program includes quality control, brewing instruction and training
of on -site personnel by experts on coffee brewing techniques. It
assures proper preparation of a perfect cup of coffee every time.
He have an on -going inspection program in place to make sure that
brewing standards are maintained in conformance with the Colombian
Coffee Federation standards.
Our 1007, Colombian Coffee program is supported by merchandising and
point -of -sale programs designed to increase our customers' awareness of
the premium coffee we serve.
0,
-74-
86. JL021L
Canteen's Automated Menu Management System (CAHMS)
Canteen bas developed a sophisticated computer Menu Management System.
The heart of CAMRS is a system that provides:
Pre -costing of recipes and portions
Kitchen production recipes for exact quantity required
Menu pre -costing and adjustment
Customer -count forecasting
Food iter. bid/purchase cost quotations
Forecast orders by vendor
Maintenance of back-up files/records for existing
Food Service Menu Management System.
This system eleminates or greatly reduces waste and over production,
reduces the need for excess inventory, and presents concise cost/benefit
criteria for purchasing action.
Since the program can be updated easily, flexibility in menu planning
and custom designing of menus for specific client requirements can be
quickly achieved.
0
-75-
86-1021
f
DECLARATION
DOCUMENT NO. 1
TO: Cesar M. Odic
City Manager
City of Miami, Florida
Submitted this =_ day of December 1986
The undersigned, as PROPOSER, declares that the only persons
interested in this PROPOSAL are named herein, that no other
person has any interest in this PROPOSAL or in the CONTRACT to
which this PROPOSAL pertains, that this PROPOSAL is made wit`lout
connection or arrangement with any other person and that this
PROPOSAL is in every respect fair, and made in good faith,
without collusion or fraud.
14•
The PROPOSER further declares that he has complied in every
respect with all the Instructions to Proposers issued prior to
the opening of PROPOSALS, and that he has satisfied himself fully
relative to all matters and conditions with respect to the
general condition of the CONTRACT to which the PROPOSAL pertains.
1. F
The PROPOSER agrees, if this PROPOSAL is accepted, to execute an
appropriate City of Miami drafted CONTRACT for the purpose of
establishing a formal contractual relationship between him, and
ti
the City of Miami, Florida, for the performance of all
d.._:
requirements to which the PROPOSAL pertains.
Each PROPOSAL shall be accompanied by a Proposal Security w^iich
shall be a Certified Check or a Bond, and shall be in the ameunt
of $25,000.0O (Twenty -Five Thousand Dollars). The City of Miami
v, reserves the right to reject any and all security tendered to the
CITY because of any irregularities. Certified checks will be
returned to all PROPOSERS within ten (10) days after the City of
Miami and the accepted proposer has executed the written
:.Y CONTRACT.
The PROPOSER states that the PROPOSAL is based upon the Proposal
documents listed by the number as follows:
a
16 -
8671021
9
0
Declaration/Document No. 1 (continued)
I. Declaration of Proposal
2. Proposal Form
3. Proposer Qualification Questionnaire (and attachments)
4. Insurance Stipulations and Statement
S. Minority Classification and Participation Form
6. Firdt Source Hiring Compliance Clause
7. Financial Statement
8. Proposal Security
9. Attachements
•
- 17 -
orporation/ artnership
GNATURE
Barry Freilicher
PRINT NAME
President
TITLE — IF CORPORATION
(President, if Corpora-
tion Authorized Genl.
if Partnership)
8E�021
6
CITY OF MIAMI
P R O P O S A L
Document No. 2
For the right to operate the authorized Food and Beverage *
Concessions' and Novelty Concessions approved in-Z—riting by the
DIRECTOR in he City of Miami TADIUMS for a ve-year period
per the oregoing specificationsq the undersigned agrees to pay
the City of Miami:
A guaranteed annual payment of $ 200,000 (Not Less
Than $200,000)
against
42.1 (%) of all gross receipts (Excluding Tobacco Sales)
10.0 W of all tobacco sales
*Please see alternative proposals attached
The CITY will accept proposals only on the above format. No
other proposals will be considered.
SUBMITTED 8Y:
PROPOSER: Volum Services Inc.
SIGNED:
ADDRESS • 120 S. Riverside Plaza
CITY/STATE/ZIP: Chicago, IL 60606
TELEPHONE NUMBER: (312) 930-2300
Addendum No. 2/replaces original page 18
page l8 (revised)
S6am
.1021
y
�a
Section 5/Document No. 3
PROPOSERS QUALIFICATION QUESTIONNAIRE
FOR
FOOD, BEVERAGE, AND AUTHORIZED NOVELTY CONCESSIONS
AT TWO CITY OF MIAMI STADIUMS
INSTRUCTIONS:
PROPOSER must present evidence that he is fully competent and has
the necessary facilities, experience and pecuniary resources to
fulfill the conditions of the Concession CONTRACT. To provide
the CITY with information on these points, PROPOSER must submit,
as part of his PROPOSAL, information stipulated in this
questionnaire.
EXPERIENCE:
The PROPOSER submitting this proposal warrants that the
individual, firm, partnership, or corporation or its parent
company making application, has been in continuous existence for
• a period of two years and has been active and in good
standing with the Secre ary of State, Corporations Division, for
this period.
WITNESSES:
0
- 19
PROPOSER: (If Sole Proprietor
or Partnership)
Name: N/A
By:
SEAL
TITLE Sole Proprietor/Gen .
Partner)
PROPOSER: (If Corporation)
Nami
By:
Atte
(CORPORATE SEAL)
86r1021
ti Principal Office Address:
Official Representative:
Individual
Partnership (Circle One)
Corporation
If a Corporation, answer this:
Then Incorporated:
In What State:
Resident Agent
Address of Resident Agent:
If Foreign:
UaMe-oT Registration with Florida
Secretary of State
Name of Resident Agent:
Address of Resident Agent:
President's Name:
Vice -President's Name:
Treasurer's Name:
Members of Board of Directors:
u
20 -
120 S. Riverside Plaza
Chicago, IL 60606
David R. Scoco
6/14/73
Delaware
The Corporation Trust Co.
1209 Orange Street
Wilmington, DE 19801
10/3/84
CT Corporation
8751 W. Broward Blvd.
Plantation, Florida 33324
Barry Freilicher
Christopher Bigelow, Craig Trimble
R. Skadow
Section 5/Document #3
�1021
4
i
QUESTIONNAIRE (Continued)
If a
Partnership, answer this:
N/A
Date
of organization:
General
or Limited Partnership:
Name
and Address of Each Partner:
NAME
ADDRESS
NIA
1.
Number of years of experience the PROPOSER making the
proposal has had in the operation
of similar business:
twenty-five
2.
Give the names and locations
of places at which PROPOSER has
p'
operated similar business,
together with the dates of
Y
operation:
P�
Type of Operation Name
Location Dates
r
(a)
Please see attached section
x
(b)
B - Client list. Volume Services
(c)
will provide copies of selected
(d)
contracts upon notification of
(e)
selection as the highest and best
proposer
"`
PROPOSER shall submit copies
of each contract listed above.
f
.�`
Section 5/Document No. 3
- 21 -
861 :1021
QUESTIONNAIRE (Continued)
3. List below the names and addresses of PROPOSER's landlords
for the operation listed in Item 2:
Operation Landlord Address
(a) Please see section B
(b)
(c)
(d)
(e)
4. List those City of Miami or Dade County agencies or private
facilities with which the PROPOSER had and contracts or
agreements during the past three (3) years:
(a) None
(b)
(c)
5. State approximately the largest gross receipts PROPOSER has
realized from the operation of the above mentioned facilities
at any one place in one (1) year.
$ 14,000.nnn Year: IqRr� Location
6. Have any similar leases or agreements held by PROPOSER for
the operation of concession similar to the proposed
concession ever been cancelled?
YES ( )
NO (g )
If yes, give details on a separate sheet.
7. Bank References:
B_ ADDRESS
Barnett Bank - Timothy McGuire P. 0. Box 2340
Jacksonville, Fl 32203
Continental Illinois - Robert Curley 231 S. LaSalle
Chicago, IL 60697
• Section 5/Document #3
-22-
8f -IL021
QUESTIONNAIRE (Continued)
8. Attach a Balance Sheet and Statement of Profit and Loss of
!, the PROPOSER for the preceding calendar year, certified by
either an appropriate Corporate Officer or an independent
Certified Public Accountant.
9. References: Give three references as to experience and
ability:
1. Mr. J. Zalupski Tampa Stadium
2. Mr. J. Holmes Arkansas State Fair
3. Ms. Marlene Anderson St. Paul Civic Center
PROPOSER shall attach letter from each reference listed
above.
10. Have you carefully inspected the STADIUMS?
Yes ( x ) No ( )
11. Persons or persons interested in this Proposal and
Qualification Form (have) x (have not) been
convicted by a Federal, State, County, or Municipal Court of
any violation of law, other than traffic violations. To
include stockholders owning over ten percent (10%) interest.
(Strike out inappropiate words)
Explain any convictions:
None
12. Lawsuits (any) pending or completed involving the
corporation, partnership or other person submitting a
proposal:
A. List all pending lawsuits:
None
B. List all judgments from lawsuits in the last five (5)
years:
0 Section 5/Document #3
- 23 -
5
QUESTIONNAIRE (continued)
C. Have the judgments listed in "B" been fully paid and
satisfied?
N/A
9
D. Are the judgments listed in "B" and "C" currently being
appealed?
N/A
The PROPOSER understands that information contained in this
Qualification Form is to be relied upon by the CITY in awarding
the CONTRACT and such information is warranted by the PROPOSER to
be true. The undersigned PROPOSER agrees to furnish such
additional information, prior to acceptance of any proposal,
relating to the qualifications of the PROPOSER, as may be
required by the City of Miami.
WITNESSES:
WITNESSES:
ATTE
PT:
.. .
0
- 24 -
If Individual:
Signature
Print Name
If Partnership:
Print Name of Firm
Address
By:
General Partner
Print Name
If Corporation:
Volume Services, Inc.
Print1. 1..... u. v 1 V V• �.
120 S. Riverside Plaza, Chicago, IL
�dres
By:
Pr dent
(CORPORATE SEAL)
6060
QE-1021.
r
SECTION 5 - DOCUMENT NO. 4
INSURANCE STIPULATIONS AND STATEMENT
A. GENERAL:
1. CONCESSIONAIRE will not be permitted to begin operations
unless they have obtained insurance coverage as specified
below. PROPOSER should review these requirements
carefully, as no modification of the requirements will be
made after conclusion of the proposal process.
2. All required liability insurance policies shall be written
on an occurence basis unless otherwise specified.
3. Additional Insured
CONCESSIONAIRE is required to name the City of Miami as as
Additional Insured on their policy or policies, and it
shall be stated that "these coverages are primary to all
other coverages the CITY possesses for this CONTRACT
only."
4. Company Ratings
All insurance policies required must be written by a
company or companies rated at least "A" as to management
and at least "Class V" as to financial strength in the
latest edition of the Best's Insurance Guide, published by
Alfred M. Best Co., Inc., Ambest Rd., Oldwick, N.J., 08858
5. Certificate
The CONCESSIONAIRE will furnish a Certicate of Insurance,
or other evidence of coverage to the CITY clearly
indicating conformance with these requirements.
Certificates should be forwarded to:
City of Miami
Finance Department/RISK MANAGEMENT DIVISION
65 S.W. 1st Street
Miami, Florida 33130
6. Evidence of coverage shall be submitted to the CITY within
five (5) days receipt of notice from the CITY. Any
questions pertaining to insurance requirements should be
directed to the Risk Management Division at the above
address, or telephone 579-6058.
B. COVERAGE REQUIRED
The following coverage shall be provided:
1. Liability:
The CONCESSIONAIRE shall obtain and maintain in force for
the length of the agreement Comprehensive General
Liability Insurance Coverage, or its equivalent
least a combined single limit Of $1 000 000 t' with at
g per occurrence
'- for bodily injury and property damage liability.
25
IS
SECTION 5/1DOCUMENT •4: INSURANCE (continued)
In addition to Premises/Operations Coverage,the following
extensions of liability coverage shall be included in the
required policies:
INSURANCE TYPE LIABILITY LIMITS
Products and Completed Operations 10000,000
Contractual Liability 110009000
Independent Contractors 190009000
Broad Form Property Damage 1,000,000
Personal Injury 1,0008000
Elevator 1,0001000
Liquor Liability shall be provided.
2.Contractual Indemnification:
CONCESSIONAIRE shall covenant and agree that it shall
indemnify, hold harmless, and defend the CITY from and against
any and all claims, suits, action, damages or causes of action
arising during the term of the agreement for any personal
injury, loss of life, or damage to property sustained in or
about the concession areas, by reasons of or as a result of
the CONCESSIONAIRE's operations and from and against any
orders, judgments or decrees which many be entered thereon,
and from and against all cost, attorney's fees, expenses and
liabilities incurred in an about the defense of any such claim
and the investigation thereof.
3.Automotive Liability
CONCESSIONAIRE shall obtain and maintain in fore for the
length of the CONTRACT liability insurance coverage, covering
all owned, non -owned, and hired vehicles used in connection
with WORK arising out of the CONTRACT. Coverage shall be
written with at least a combined single limit of $300,000 per
occurrence for Bodily Injury and Property Damage.
4-Workers' Compensation
CONCESSIONAIRE shall obtain and maintain in force, during the
life of the agreement, Workers Compensation insurance as
required by Chapter 440, Florida Statutes.
S.Cancellation
The policy or policies of insurance required shall be written
in a manner such that the policy or policies may not be
cancelled or materially changed without 30 days advance
written notice to the City of Miami. Written notice shall be
sent to the Risk Management Division/Department of Finance at
the above address.
[7
- 26 -
86- 021
3
SECTION 5/DOCUMENT #4: INSURANCE (continued)
Note: When using the "Accord" form of Insurance Certificate,
the following must be deleted from the "Cancellation" clause:
"endeavor to" and "but failure to mail such notice shall
impose no obligation or liability of any kind upon the
company, its agents or representatives."
PROPOSER AND INSURANCE AGENT STATEMENT:
We, the undersigned, have read and understand the Insurance
Requirements of these specifications and acknowledge that
evidence of insurability will be required within five (5) days of
receipt of notice from the CITY.
Volume Services, Inc. *Please see attached sheet
PROPOSER INSURANCE AGENCY
SIGNATURE OF ROPOSER
SIGNATURE OF FLORIDA RESIDENT AGENT
NAME AND LOCATION OF AGENCY
L
- 27 -
SIGNATURE OF PROPOSER'S
AGENT
Agent's Error and
Omissions Pilicy:
Company
Policy Number
Amount of Coverage
Expiration Date
n
86-1021
U
,_
INSURANCE STIPULATIONS & STATEMENT
(See Attached)
V E, THE UNDERSIQNED, HAVE READ AMID UNDERSTAND THE INSURANCE REQUIREMENTS
OF THESE SPECIFICATIONS AND ACR30WLEDGE THAT EVIDENCE OF INSURABILITY
WILL BE REQUIRED WI= FIVE (5) DAYS OF RECEIPT OF NOTICE FROM THE CITY.
Volume Services, Inc.
PROPOS
SIGKAT'u PROPOSER
i Joseph A. Grillo
I QC-►TLRE OF FLOIUDA RESIDENT AGED 1
Fred S. James 6 Co. of Florida, Inc.
Ft. Lauderdale. Florida 33394
N%%E XC) LOCATION OF AGENCY
Fred S. James & Co. of Illinois
Chicaao. IL 60606
INSURiLNU AGENCY
�'�x Richard J. Lietz
GRATUR? 1 OF PROP?SER' S AG=1
AGENT'S ERROR AND OMISSIONS POLICY:
Yarmuth Insurance, LTD.
OONIP: %Ny
Renewal of P1006
POLICY NU-MER
$5,000,000
AMDLN''T OF COVERAGE
January 1, 1968
E?TIRATION DATE
8%-1021
SECTION 5 — Document No. 5
MINORITY CLASSIFICATION AND PARTICIPATION
INFORMATION AND ACKNOWLEDGEMENT
1. Indicate CLASSIFICATION of Business Enterprise (PROPOSER):
E ] BLACK E ] HISPANIC E ] WOMAN E ] OTHER
2. Detail MINORITY/FEMALE PARTICIPATION within your firm or as
it may apply to this proposal, if awarded:
Please see Exhibit 2
A. JOINT VENTURE:Provide information regarding Minority/Female
firm(s) participating as such and the extent of participation
..% of Dollar
Firm Name Business Address Proposal Amount
B. SUBCONTRACTORS: Provide information regarding Minority/Female
firms that will be subcontractors for this proposal, and
their extent of the work
% of Dollar
Firm Name Business Address Proposal Amount
a
C. SUPPLIERS:Provide detail regarding Minority/Female Firms that
will Supply you with goods or services, and the extent
3
% of Dollar
r
Firm Name Business Address Proposal Amount
�s
y
D. AFFIRMATIVE ACTION PROGRAM
3
If existing, Date Implementegetail of program must be attached'
If planned, Date of Proposed Implementation:
The undersigned PROPOSER acknowledges that it has received a copy
of Ordinance No. 10062, the Minority and Women Procurement
Ordinance of the City of Miami, and agrees to comply with all
applicable substantive and procedural provisions therein,
including any amendments thereto.
1
PROPOSER; Volume ervices, ne.
s
SIGNATURE:$
• 28 -
86-1021
^t- .
ILL
17 r
N
Section 5 - Document No. 6
FIRST SOURCE HIRING
AGREEMENT COMPLIANCE CLAUSE
PROPOSER acknowledges that it has been furnished a copy of
City of Miami Ordinance No. 10032, the First Source Hiring
Ordinance attached herein as composite Exhibit C. The First
Source Hiring Agreement policy requires that as a condition
precedent to entering into this CONTRACT when such project is of
a nature that creates new jobs, a First Source Hiring Agreement
be negotiated between the CONCESSIONAIRE and the CITY's
authorized representative, if so applicable. CONCESSIONAIRE
shall comply with applicable provisions of Ordinance No. 10032,
including any amendments thereto.
0
-29-
Signature
Volume Services, Inc.
PROPOSER
** ALTERNATIVE PROPOSAL **
As an alternative proposal for your consideration, Volume Services, Inc.
presents the following:
Volume Services, Inc. will offer a first year Minimum Annual
Guarantee of five hundred thousand dollars ($500,000). Guaranteed
Annual Payments in year 2 and successive years will be at eighty-
five per cent (85%) of the previous year's earned commission rent
or two hundred thousand dollars ($200,000), whichever is greater.
This proposal is subject to a mutually agreed upon option for the
additional five-year period and an annual schedule of events to
include as a minimum:
5 - University of Miami Varsity Football Games
1 - Orange Bowl Classic
1 - Major League Exhibition Schedule
Under this alternative, the investment will remain an amount up to
at five hundred seventy-five thousand dollars ($575,000) with book
value protection, in the event the second five years are not
granted.
Percentage rental rates will be 42.1% of all gross receipts
excluding tobacco. A 10.0% rate will be applied to tobacco
product.
8E-1021
Y_
b¥-�k
FIA
CERTIFICATE OF ASSISTANT
SECRETARY OF
VOLUME SERVICES, INC.
The undersigned, Kim S. Mitchell, hereby certifies that she is
the duly elected and acting Assistant Secretary of Volume Services,
Inc., a Delaware corporation, and the keeper of its corporate records
and minutes. In that capacity, I hereby certify that below is a true
copy of a Resolution passed by unanimous consent of the Board of
Directors of the company on December 4, 1986:
RESOLVED, that Barry Freilicher, President of the
corporation, Craig Trimble, Vice President of the
corporation, and/or Christopher Bigelow, Vice
President of the corporation, be and hereby are
authorized and empowered to bind the corporation
in all matters involving, related to, or
incidental to the submission of a proposal for the
food/beverage concession services at the Orange
Bowl Stadium and the Miami Baseball Stadium in
Miami, Florida, and if such proposal is accepted
by the City of Miami, Florida, to bind the
corporation's full performance under the terms of
the food/beverage concession management contract
attached to said proposal.
Date: December 4, 1986
A
Kim S. Mitchell
80-1021
0
State of Illinois )
SS
County of Cook )
Barry Freilicher being first duly sworn, deposes and says
that he is the President of Volume Services, Inc., making the
forgoing proposal; that Volume Services, Inc. has experience in
operating similar food and drink concessions in a major place of
assembly; such as a large sports arena, which has multi -purpose uses
including Exhibition Halls, with a capacity of at least ten thousand
(10,000) persons and various sized meeting rooms; that Volume Services,
Inc., has conducted a first-class restaurant, bar, and/or cafeteria
involving the purchase, preparation and serving of food and drink to the
public on a mass basis; that Volume Services, Inc., has experience in
serving food to at least three thousand (3,000) persons in one day or an
average of two thousand (2,000) meals per day for five consecutive days;
and that Volume Services, Inc. has the ability to begin operations upon
execution of the contract.
Affiant
Sworn to and subscribed before me this 4th day of December ,1986
T
My Commission Expires
86 -i021
CORRECTED NOTICE OF PUBLIC PROPOSALS
CITY OF MIAMI REQUEST FOR PROPOSALS
Be advised the City of Miami ad no. 4604 published November 17,
1986 has been corrected and now reads as follows:
Sealed proposals for OPERATION OF CONCESSIONS AT THE CITY OF
MIAMI'S ORANGE BOVL STADIUM 6 MIAMI BASEBALL STADIUM FOR A FIVE
YEAR PERIOD COMMENCING JANUARY 1, 1987 will be received by the
Office of the City Clerk at 3500 Pon American Drive, Dinner key,
Miami Florida 33133 until 2:00 .m. on December 5 1986. At
the dime, date, and piece a proposals w be pub icy opened
and read aloud.
i Proposal packets may be obtained from the office of the City
Clerk (3500 Pan American Drive, Miami) or from the Department of
Parks Recreation and Public Facilities (1390 N.W. 7th Street,
A Pre -Proposal Conference will be held at 10:00 a.m. on November
051 4780n the To —or Press Box, Orenge Bowl Stadiu-, 15L
.W. rd-Strest, Miami, Florida 33125.
All proposers requesting pertinent information relating to the
operation of the concessions may submit their questions in
writing to the Director of Perks, Recreations anc Fu:!i:
Facilities located at 1390 N.M. 7th Street, Miami, rlc-ica
33125, not less than ten (10) days before 2:00 p.m. on DecebI?r
5, 1986. All proposals shell be submitted in accordance «itn the
Instructions to Proposers and the Request for Pro;, -sal
specifications.
All proposals snail include a Proposal Security wnic,) T %, :_ a • .�
Cashier's Check or Proposal Bond, anti shall be in the a7cj .. ; 1
$25,000.00, payable to the City of Miami.
A Performance Bond In the amount of S100,000.00 shall be re:,-',e:
of the successful proposer prior to the signing of the concessi:•+ S
contract and shall be in faithful observance of this contrast.
Prospective proposers are alerted to the provisions of Orlinan_e
No. 10062 which established a goal of awarding 51% of the City s
total dollar volume of goods and services to Black, Hisaaric anc
Women Business Enterprises on an equal basis.
The City of Miami reserves the right to accept any prc;.cs3ls
deemed to be in the best interest of the City, or to %ai+e sr,,
informality
in any proposal; and the City may reject any a-iz: ail
proposals and re -advertise. (ad no. 4605k
CITY OF MIAMI
ADDENDUM NO. 1
NoveMper 20, 96E
Cesar H. Odio Received by:
City Manager --�-•�
s
CITY OF MIAMI — REQUEST FOR PROPOSALS
CONCESSIONS AT ORANGE BOWL AND BASEBALL STADIUMS
NOTICE OF ADDENDUM NO. 2
LISTING OF REVISED AND ADDITIONAL PAGES
RECEIVED BY
REVISED (NEW) PAGE REPLACES (OLD) PAGE PROPOSER
4 a 4
4 b 4
10 (revised) 10
18 (revised) 18
37 (revised) 37
39 a 39
39 b 39
41 a 41
41 b 41
46 (revised) 46
_ 49 (revised) 49
50 (revised) 50 /
69 (revised) 69 /
71 (revised) 71 %,
92 (revised) 92
149 (revised) 149 /
NEW AND ADDITIONAL PAGES
r 94 b n/a
+ 148 missing
150 through 197 n/a
IN ORDER TO ALERT PROPOSER TO CHANGES IN THE TEXT OF THE REQUEST
FOR PROPOSAL, words and/or phrases have been underscored to
designate added or revised material. Deleted words and/or
phrases have been replaced by asterisks (•). All other material
remains unchanged.
PROPOSER ACKNOWLEDGES THAT HE HAS RECEIVED THE COMPLETE ADDENDUM
NO. 2 AND HAS FOLLOWED THE DI CTIONS CONTAINED THEREIN.
SIGNATURE:
PROPOSER NAME: V _ �,�•t Sc. fy I �.� ��
DATE: / 211 i
•
Notice of Addendum p2
page 2
80-1021
PROPERTY OF VOLUME SERVICES, INC.
"This proposal remains the property of Volume Services until such time
as it is accepted and our services implemented. Any reproduction or
distribution of this proposal other than to the principals of the City
of Miami is expressly prohibited without prier written permission of
Volume Services, Inc."
0
86-1021
31
k_
3�
}NN
E1
ALCOHOL AWARENESS PROGRAM
Volume Services pioneered the use of alcohol awareness training programs
to positively affect the facilities they serve. While the media has
covered the growing liability concerns very well, the primary concern
for the program is to promote the controlled responsible consumption of
alcoholic beverages that are a primary and necessary source of revenue
to public assembly facilities.
The Volume Services Alcohol Awareness Program has proved to:
Provide an understanding of alcohol's physical properties and how
It affects individuals.
Identify potential trouble spots, events and troublesome customers.
Instruct employees on correctly handling customers purchasing
alcohol.
Define the legal responsibilities of the employees and Volume
Services.
Reduce the possibility of alcohol related problems.
Decrease the potential for litigation.
•
8f -1021
improve the dependability of licensee, should litigation be
necessary.
Reduce the overall cost of liability insurance.
Enhance customer satisfaction at your facility by providing a safe
and pleasant environment.
Due to the continuing vigilance of education and supervision, we have
been able to provide our patrons with the full services they expect and
our client's locations with increased revenues.
y
p
.
�
y..
■
E2
Equal Employment Opportunity and Affirmative Action
Regardless of sex, religion, ethnic background or age ... Volume
�r Services/Canteen has given people an opportunity to succeed and excel
n_ for more than three quarters of a century.
Our concern for human dignity and welfare includes working with
minorities. the handicapped and under priviledged youth to make a
i contribution to the communities we serve.
S. .
4�
0.
We are in full compliance with every law and regulation in the EEO and
Affirmative Action policy area. Annually. Canteen's president issues an
EEO policy statement for all operations. A copy of the current policy
statement is included here for your information.
We shall make even good faith effort to comply with the EEO/AA
requirements of the City of Miami.
0
eir�l i�i a:oMPCIRd+TiCN !Mt MI*CMAMDISE f CHWAGO. IUJMCIS 00"4/i' im tti•ISOo
OPPCY
rtbruary 3, 1986
To.. All 2*10ye"
M. 8E=L aAFtASMM
Canteen Corporation, As a part of its ccmitment to equal empicyment
c zt:sii.ty, prohibits acts of tiaras. =t on the par'` of its eaployees on the
basis of rase, sex, aolcr, rel.igian, age, natioral or I, or onditi= of
au=ll s`"
hadiemp. t1y, the Equal fl*lolnmt Opats
quideliaes relati-sg xpecifical y to sexual harsssw:t wtiich we ve_= re in
keeping with o= lcsq standing cam:itae st against any fc= of harsssznert i.-:
the W=:k envy..,-rrmx t.
'2-A =cc Vidal -'des provide tat "L'nWl :G�e 5ccu'' eva =S, rw.msts f:s
sexier? favors and other vex-Ama.l or piiys'icai csrxltrt of a sex_•a, -3 —a
✓ c=.stit.•te sma' harassarst wbm:
1. sutadssicn to sudh is mde eit".es erLci •.=y cr
-- -- implicitly a tear or =mdi icn of an iadividua1's wplcymert:
2. surk-ri SS: „„ to or re;ec..i= of such ccc'uct by an inch vidva
is used as the basis fcr esplc}mer:t, decisicrs afferi^q
such individual, or
3. such eandu- 'leas the p=pcm or effect of sustantially
interfe r: q with an indi vidsaal' s wozk pef_::snai^re or
=eating an intiasidat nq, hostile, or offensive wa23L
Th keepi�x with the spirt of these qui' Ines, �+e :°ea `gin cur be:ief that
y Canteen e*Lccyee mnat be treated with dignity ar—A zrspet re4 a. -^.:less of
,- sex, race, cols, religion, age, national ot+giz, or condition of hand,:c�p.
We ask t'A ba p of aL' of you to help us meet cis cbLgatscns by acting.
acor'sr_arece with cis state cacmitm-.t and by brnc.:zq ary viclaticss of `.;s
pel cy to o= ac..+cs i=—
r+.;4s M�,�,r i yr riser - % iw
C^p,n=!V OOPeP1ATION TMe . gMOM+wasa MART, Cr�.AGG, iLUMCri 000" 1 WO "1-?A*T
1 rebrua-y 3, 1986
MOURT A.XCZLCVNXI
IM OOM "w CbW s.rra» QM —
TO All a ployees h
wa the provisicas of Title VI= of the Civil Rights Ace of 1964, as
amfsdad, the Age n4sc:4**4mt4M in E ployment Act of 1967, as amended,
E=cutive Orders 21141 and 11246, as ammded, Section 503 of the
Aahahil.itatiaa Act of 1973, and Section 402 of the Vietnam Era Veterans
Read7mUnnt Ace of 1974, it is my legal duty to pericdica.UY remind You
of Caatew 0=1= atioa's position conce=ning equal mplopment
q*osmity and afiLcmative action. Za addition to it being my legal
duty, I sincerely believe that it is my acral responsibility to advise
you that Canteen Corporation I s policy is as follows:
It is the policy of Canteen Corporation that it shall be
an equal opportunity employer. The =any shall act
#
affirmatively to assure that it will:
1. Tacruit, hiss and promote for all job classifications
without regard to race, deed, color, national crigin,
sex, age or oonditarh of handicap.
2. Base decisions on employ=ne solely upon irdiv dval's
gualificat ons for the position being f ..La:.
3. Insure that all o her pe-Thorne? ac�icns sues as
c=vensaticn, promotions, benefits, transfers, layoffs,
r lz= fr= layoff, social and reo;eaticnal pr.�grarss
r
will be administered witmue regard to race, °,
f
colas, national ce-gin, sex, age or condition, of harcicz;.
s eps to corre= any unde_^.•at::on
4. Take apprpr'inap
of ire mn, mummies, Vietnam era veterars and handicapped
itdividuain t'se s icompany s w=k—lorce.
Mary ,deer. O'Callagfhaa has been appointed as Direcor offal
EWlayaent Cppartunity raper -tun ctlY to Lawrence F. wi:kas, vine
President, Dize=r of lb—n Resources. All ope_-aticns will' suaait
�l.:sreu^e repor'.s (applicant flow, hire, presr ==, and term nat:cn
loos) twice yearly on June 30th and December 31st to the Direr.Qr of
EJO, 1430 Merd'wuxUse Mart, Chicago, Illinois 60654, in order ttAt
x$ their c=ipLiance with our policy can be monitored.
I w=ect that eac: one of You wiU do your u=st to ccmply wits v=
ope_-at on's Af::=azive Ac--:.cn Plan and insure that our corperate -01ce
;3 gol::c,{ c aer. nq ecual employment and of the ac�..-cn :s qw;e.^. .re
very hiv=- pr_orrty.
-1021
h
4
Minority Business Enterprise
Volume Services, Inc. will expend every effort to meet the goals of the
City of Miami with regard to Minority and Female Business participation
In this contract. In addition to the general corporate policy
statements attached, we have formalized some specific plans for
achieving these goals at the concession operations of the Orange Bowl
and Miami Baseball Stadiums.
I. Subcontractors - Volume Services plans to utilize charitable,
non-profit and individual groups for the operation of
concession stands at the Orange Bowl. We anticipate that the
MBE goals with regard to this conveyance of operations will be
achieved.
II. Suppliers - Volume Services, Inc. purchases frankfurter
products nationally from David Berg Products, a certified WBE.
Similar provisions for purchase of concession products,
supplies, service contracts and equipment will be developed
with MBE/WBE firms in Miami.
III. Contractors - Minority and Female firms will be selected to
provide materials and services to accomplish the capital
improvement program set forth.
This briefly outlines our approach to meeting the minority and female
business participation goals of the City. Upon award of the contract,
Volume Services will prepare a formalized plan for the facilities.
•
86-1021
t
UNIFORMS
On the following pages you vill find suggested uniform styles for
concessions, lounge and service staff. They are intended to be
representative of the general style, cut and ensemble that will be used
at the center.
Selection of the appropriate color schemes, identification tags and
s
other details will be developed in concert with the overall plan for
the Orange Bowl improvements, if desired.
•
E3
SG71021
lJ
c
VOLUME SERVICES
lJ
UNIFORM PRO
GRAM
a
4
i
A
vor
IL A
A) Service Person d) VendorlConcesslon Worker
Un se+ Go' Sh.'t—Tan Unisex Vendor/Concession Srnr,
Emp.oree s Own Pants'Sacks Female Jockey Style Cap
Employees Own Pants/S,acks
a
� e
ay;
C) Vendor/Concession Worker
Unisex Vendor/Concession Sh+^.
Male Mesh Basebai! Cap
3 Pocket Change Apron —Bros•, n
Employees Ov,,n Pants'&,;cks
le c
Our Uniform Program
The Volume Services Division is proud
to present our new uniform program
which has been developed with
comfort, style, easy care and versatility
as the uppermost goals of the program.
I
O) Restaurant/Catering Lounge
CacaAay Apron --Black & Wrnte Pinstripe
f
Formal BowUe--Red or Black
Employee's Own Willie i;�r /Blouse
Emp;oyee's Own Back PantsKnin
•
M
r _
�x
The fabric —an easy -care blend of 65 %
Kodel Polyester and 35 % Combed
Cotton —is very comfortable to wear
and easy to maintain, while giving a
look of quality and professionalism to
your image. It has the hand of natural
fibers with the wearability and
launderability of polyester. Under
normal conditions, this versatile fabric
actually requires little or no ironing.
The designs of the selected styles have
a proven track record in that they are
both durable and functional, and at the
same time will upgrade the overall
appearance of our enure food service
team.
The complete Volume Services uniform
program order form appears on the
back of this brochure. For information,
call or write Customer Service at:
UNIFORMS TO YOU & CO.
4340 West 47th Street
Chicago, Illinois 60632
(312) 927-5601
h
VOLUME SERVICES ORDER FORM
REM
UZES b WANT171ES
107A,
pT.
PR+CE
EACH-+
TOTAL i
Pp C F
S
RA�
XL
XxL
VENDOR"CONCE S90N
134 36;
(38.40)
142-44)
146 481
15052,
WORKER $HIR1
XS
S
M
L
XL
SERvrCE PERSON
Fen+rk
tr8
32
10-12
34-36
14.16
38.40
18.20
42.44
40-42
46.48
GpLF SONT.
MAW
YAN
FEMALE
One Sze•Frts•A11
JOCKEY STYLE CAP
MALE MESH
One•Size-Fits•All
BASEFAU CAP
3—POCKET
One Size -Fits -AP
CHANGE APRON —BROWN
RES'AURANT'
pne SIe Fds•Ali
CATER'NG :OUNCE
CALLAvA,AY APRON
K^4AL B0wT1E
Qne STe Fd1 Ai
I
RED
FORY'k, BOA'.-E
One Sze Fr,s A.
BLACK
NUMBERED
One S:e• its A'
RVs+G% AS
125: IC st;
•►6• - T,jm O�Je 12 P,e;es
NOTE: Vendor/Concession Worker Shirts will come Complete with Age/ D Insignias applied on
al' Initial orders Employee Number Insignias wil; also be affixed to the number of Shirts ordered For
those initial orders total;mg less than, 250 the balance Of the Employee Numbered Insignias %N,I;, bE
sent to you detached with your order Please return the exact number of these patches to Uniform$
To You & Co when reordering
�i
ORDERING INSTRUCTIONS
A Standard VOiJ'ne Service purchase order or letter rnus! ac-
`=
a O'de's COmpete th ! Order f01*^. InSe" COm
piPle:' Volj'ne Services purChase Order or letter. and ma,' to
UNIFORMS TO YOU & CO
r
Customer Service Department
4340 West 47th Street
Cnicage Iluno � 60L)32
i
NO P O BOX NUMBERS PLEASE
Ordered B)
Ship To
A01,ess
:#
C1t:
�.
DE.IvEF+ NEEDEDE)i
8 e<
t. .
P.O N
Dare
Telephone
State
1
Tot?` A %AA rf-ipn , « i
Applicable Sales Ta, I !
I
TOTAL Ati"OJ%7 TH'S ORDER
(ALL ORDERS SHIP F O B CH `ACC);
Zip Code
�L7 �DAM
PRaDUCER
VINS CERTIFICATE Ei I SGUED AS A MATTER M vvpvm. 11ON ONLY AND CONFERS
NO RIOKTS WON THE CERTIFICATE MOLDER THIS CERTIFICATE DOES NOT AMEND,
IXTIM OR ALTER THE COVERAOE AFFORDED BY THE POLICES BELOW.
FRED S. JAMES & CO. OF ILLINOIS
230 WEST MONROE STREET
COMPANIES AFFORDING COVERAGE
CHICAGO, IL 60606
BARN`' A TRANSPORTATION INSURANCE CO. (CNA)
� A Y C CONTINENTAL CASUALTY CO. (CNA)
.+sLIRED
CANTEEN CORPORATION,
LCOM
ETTER C VARIOUS CARRIERS
M DIVISIONS & SUBSIDIARIES
MERCHANDISE MART PLAZA
COMPANY D
LETTER
CEIIC..AGO, EL 606M
SRN' E
a
THIS N TO CER V flMT POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWITHSTANDING ANY REOUI:EMENT. TERM OR CONDMON OF ANY CONTRACT OR OTHER DOCUMENT WTTH RESPECT TO WHICH THUS CERTIFICATE MAY
BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS• AND CONDI•
TIONS OF SUCH POLICIES
�q TYPE OF INSURANCE
POLICY NUMBER
PDXErqt r.i
DA'I MUM".
P0.K% EM;• 4'4>
(K T to OD".
LIABILITY LIMPS IN THOUSANDS
EA—
AG3RE:,a'E
tU
WMERAL LIABILITY
X coINP%►,EKsvE FORH
CCP001704517
12-31
12-31-89
$A
X PREA�SEs�PE�u' s
PROPERTY
$
$
X' EI P.OS 3NA CD -LAPSE HIA 0C
DAMAGE
X; PFKDXTsCW.ETEO OPERA' ONS
B X CotiA. (Blanket)
BO A PD
[:OA�9INE�
$ 1�000
$ 1.000
X N+IOEPEMXAr DO0.TRA.T39tS
X I BROW FORM PROPERTY MtkU
PERSOFOL P JUR%
PERSONAL INJUP-
$ LOW
X , Liquor Liability
AVTOMO•ILE LIABILITY
11F
NX.
A Ani A.":
BUA001704516
12-31-86
12-31.89
(W-- X-:G>�
$
PA_
A.. DAN.: A.^X MRS
(Except Texas)
ecn.
1•,
H1v��
I A.: Ch^-. A:�'T,E PRM� CPTIL '�
i
NE' A Jig'
$
MI✓;r #-�"
A `X, NO�E: A,1X
CCP001704517
..c
DAMAGE
$
GARAGE .IAE1.
(Texas)
come'HEz
$ 1'W0
.ate
EXCESS LIABILITY
C Ir
UMV4—A FOW
VARIOUS
12.31
12-31-89
B� QED
$ 10,000
$10,000
MR THMA U#$R:.-A FORM
Aw01YMR' COMPENSATION WOD01704519 bTATIlrppv - , ...
12-31-86 12-31.89
AND 5OW (EAC« A ':
BlrLOYEJK• LIABILITY WC001704518 (Calif.) �5 casErsE a;,,,,— IJ ""-:
;4 S (DISEAS:
0TwA With respect to Named Insured's conmssicn operatiF at the ty of Miami'sOrange Bowl Stadium Miami Baseball Stadium, C)ertifito Hold Warned below is an
:PESCRIPTiON OF OPERATIONS/LOCATHONSIVEMICLESISPECIAL ITEMS 30 DAYS ADVANCE NOTICE WILL BE GIVEN
CERTIFICATE HOLDER IN EVENT OF
CANCELLATION OR CHANGE IN COVERAGE
City of Miami •
Finance Dept./Risk Management Div.
65 S .W. 1st Street 110� S"�°ucAT LIABILITY
PANY, ITS VENTS ORA RE •TAT
Miami a FL 33130 AJTMORIZED REPRESENTATIVE
• _
� O LIVESTOCK SHO`N
June 28, 1984
To Whom It May Concern:
E8* otters of Recommendation
Volume Services, Inc and now Interstate United Corporation has been
operating food and drink concessions on the Arkansas State Fairgrounds
since May 30, 1979.
g Our operation and Interstate United Corporation's involve year around
operation of a number of facilities including 3 exhibit buildings, T.
H. Barton Coliseum and outdoor auctions and other events. To service
these activities and the Arkansas State Fair requires good management
and flexibility of operations to meet the different situations.
Interstate United Corporation has effectively served our patrons and
our operation with a willingness to meet each challenge with excellent
service, quality products, and steadily increasing grosses.
The Arkansas State Fair's income has continually increased during the
last five years from Interstate United Corporation's operations.
In 1978, our Association's income from Interstate United Corporation's
+' predecessor was $39,834.00 during the 10 days cf our Fair and $17,255.00
for the other 355 days or a total of $57,089.
In 1983, off -Fair income was almost $146,000.00 and $62,321.00 during
the Fair. This total of more than $208,000.00 is almost four times the
previous operator's rental to us.
We a well pleased with our Interstate United Corporation team.
Sinc rel
3
J H R. HOLMES
xecutive Vice President
JRH/bj
ARKANSAS LIVESTOCK SHOW ASSOCIATION
2600 HOWARp • P. O. BOX 907 • LITTLE ROCK, ARXANSAS 72.203 • r501117T- �{
-021
E
)range Count}, Convention /Chic Center
Thomas R. Sewel►, Executive Director
September 1, 19e41
TO WHOM IT MAY CONCERN:
Daring April of 1978, the Orange County Board of County Commissioner:
authorized the Orange County Convention/Civic Center project. From the shirt
of this process, the highest standarc!s for evchitec•tural desi-r• Here eNtahli"lled.
Building service, +Pere also mandated to maintain urn "Kbo�c the aver•�,gr" level
of qualit:•.
The "',1dn3gement Fee" concept, adopterl b_. the Oran; c County Convention/Civic
Center. ollo►•;ed the facility tc p;:rtir;pate tsith the fold service c•ontractni- in
co:,trollin; service level, price and food quHlit�•. This t�pc• of b►rangemmnt <i�mirnr'-
extensive catering. concession End mdnbaement experience from the- food ser%rce
contractor.
1'olume Service_ was chosen as the compaw. that %• vs be.t able to m.,ot theme
demands after a competitive bid proce=s, involvinn a nun,it,c of nnticnul firms.
Thr-v have der;ron;trated an rbilit• to modsfy its opc^align to meet the cl;rn5ino
=` needs of the Civic Center and our cliunt�.
at
' The Orange County Convention/Civic Center is plL•;;•-c•c to
Scry ce, nivi-;on of lnterst,.,tc lnoc.: Corroratinn a. ;,n intoor,,; pcsrt of
bu lding, staff. he believe the\ hi:kc helped u- n,a�- thi, -It. cx(•cptior,::l fbcir„�.
cinrercl.
t Thomas l�. Se�ticll
i.
V�
ry�
.f
` 9800 Inte►nanonal Drive. Oriando, Florida 32609 •
86-1021
0
SL Paul Civic Center
I A O'Snaignessy Plaza • St Paul, Minnesota 55102 a (612) 224-7361
Marlene t Anderson
Manapm- Oircctor
September 7, 19EW4
r
In :,ctober of 19- . Volune Se. -vices Inc. was awarded the food and
beverage service contract in the Saint Paul Civic Center. The change
i
f ror. a loca! co n: cs:ion operator to a national food and beverage
co -._an-: has prc•: er, to be a very positive advantage in our food
1
scr•:ice area. vel•ane Services carefully planned the transition, and
ca_r:e it th:..cr: with no ir.terr::rtion in service to our customers.
CnLC on bc:..d, they be_:.n renovation of our concession areas and have
__ . -_ n ..
:c :e r..ade rz- i---e•:ere-:s :- b::h the facilities ar- ecuiF-:er.t
5_r:ices w_rks closely with o_r staff to prrvide
a:c.:c: set-L; is ne=essa:• tc best serve the event. ::e Civic Cez.tcr
fay:12t•• w,g cvF: 350 event days with attendance over 1.5 million
i-. 19L:. E•:e-:= vtraed fro.i cvntinental breakfasts for 2;:. luncheons
fa: 5:•0, to sill -out concerts of 16,000. Vcluae Servi:es catered
tc t%z nec s of the e•.cr.t, an:: r..aintained the quality standard our
c.:_ :cr.r s havv cc-.e tc expo. t .
{
Strvices is ac:ivcly pa:tici;a:inc ir. c:::
�"
r.-%-,,. r�-�•:a___.. Frc.•ec: r.-. in Fro=ess. Their exrert:s& her bey^
the ::es%=r. :: t`.c• ccr.ces_icn service areas, an.. a
fl:s--e-:e: in hcuse kite=,c facility.
.
.. y:,. art- cor.si:c r _:._- a f coo an_ be•: cr age contract for you:
encc-. are -•�_ tr look tc V: _ur.•c Ee: •ice_ ,
d -.d w�.tt the;; car, ofle. your e_e:ation and your c':stor..ers. It is
truly a r:c`ess:onsl full -service food and beverage company tha;
has Fat__fie3 o.r eu_tcnc.s and made my staff Frond to have them
sr ,
w-
involvo! ire the Civic Centex operation.
Yo::rs Very truly,
tf3
av
_
Marlene kndersor.
Managin: Director
t,
fr
n r
Q1
}
*yam
41C$h. sos 86-1021
I
0 0
:url►ovatit,ll. unr of tilt' nalitni, lav"- Components of Revenue
ivr t•tstill ►anit,-, at•t•tnnit^ 1111' ul►I►ru�i-
ItL t•l\ 16 lit•rt't,ltl 0 vv\rnut•. 24 pt•rt•rnt
^ ul►t•I';Itill" illt•olllt'. a1111 30) pt'l't't•Ill (it il.,� a: m+%.
Ilr t ululatm rrt\rr Illy t,ut�niYalt, \\t►1'Icl tilt'uurll
r,ll '1"II1%r' ill ltI r\rt•tit I%I. tliltiII,,.. collll,;llI\ cale'It't'iils
dll, \rllelill�t.'• 1'e•llt•'11111t•I11 l't'lllrl'�. (:illl1t,N11 �l'I'\r•
-t,1 ltuu.. ar11I'l'. anti titlu•r 1'ect-'atiun facilitit,?�:
Ikt• ttt.tt^. Illll'^itl_ 1't•IlIvIllt•llt t'tiIIIIItllllllil'•:
•, I %t%I t'ullt'�t 'Illd t'%it'Ie't'lW1I'll lavIll tII II itl�tl
i
rr^t,lur,ul1, and lullIirlI, tat i{itit,• in natitn1,11
t
am ^tale 1►atk, . aril{ 1� tilt,(
:Ili rt,r al t ull\e nliun anti
t
I Sl,,ll'tall F%1%,II S\^It'll) III%'.. it I'I'^I,IIIr,1111 1't1111-
I I' 1,1,%'IJ1111} III Ill%' �ulllllt .1�1 .�.. a1'I'1111111- till
�It \IIILIII'I\ 22 In•It't•tll Ut Ilall^\\ttlltl r It \%'till% r.
.; 1 wit 1•tll ill It- t111rr,11111_ Ill( Itllll•. ;Illtl 21) lit'I'('t'Ilt
tit
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A�1
' tdl t ^.Illtl\tit III'^ dllll ('ullllilltllrlll,u\ lirinl1111^.
ftU' lll('llll it t .1tllll% \ �l1.11(.111 ^ ill llt'1 It'^t.lU-
I.tt t till%-1.111. Ill, {IIt1t•^ ,1 \aIlt•I\ tit illt,llll\ ^It•.Ik
111.11 Iwo Ill, ( I11( krn .111(l ^lnlinp. illl%I .11111,111-
1,t:-.II.I%1. Iltit \,•_(•%.till(• ,ill%t ^lull, I(,Ir-.
Con►ponents of Revenue
11111t1n Illtt 1u.111%1n,11. a It,at1i11; inll'rll.ltitnlal CornlumentsofRevenue
Ili+' I t t,lllli.11l\. .It,( %,till%- t„1 .Ililil,i\1111Jt( I\ 3,11 Itt'It'e'lll
t,1 I ,111^Nt,11(1 11.11'llll(•^. � I 1►t,lYv•111 ut 11^ ulil'rUllllr!
Ili, till .Itlll .32 111•1, 4.111 tit ll�
III (lilt I.III ^ till Incur\-t 1.1-^ II%ilt,l^ ;u(iuntl tlu
H,tl I \\ fill a 1. 7 1 I,itilll "t•1'\ 111r lot iul,ll Ill, IIt1�itlt•-^
11,1, Irl III .IIl1.0 1^ rIl( ^1^ 11(1111 IIL111\ ILal,H1 II,
1111% •11 rllt'^1^ 111( I11(1%•^ (1.1\1'1t'1 ^ tfulll: Ill.- 11111rd
`t,l' -. '�i�.:)r r : t.,u1,111.i. 1 1 .•►r r : { Ili,ln.—.a" i :
11u• 11111•t1KIllr(lt,111. ._.I'::tallll,lll\.1►.,rt:'Ind
I►.1 t (. t). it r .
The original frdm which this microfilmp
I
was taken was awfully poor. }
This is the best photograph we
could obtain.
>�'�1*****►u************�****�********at,**********aka
_AM
421
i
a
V,l 0 0,
Ph111/1: H..11.•It A h..A'k%41.
I'Ir-I.b•nt .uu11 .Ili,•(h v•• Illv• I Ijft. ,•1.
(.a I I tr. •II 11.m 1-1.1111.11
IIIl,.l1,: J,'Lltll'. J Ill. 11.1111-.,I1.
1 Pl,•-1.1, nt .uld I Ill. I F%- Illn, ( )Ill, vI.
Hotel Ser%ices I Hilton International Co.
!ilk I
Ph„ln: (.till H. ?11.u1.1.
I.Il.unu.ul.,l Ih1• M.,11-1. filil.al
.Illd (.. h 1t, In
(- I
• l:mill-I'll arrlm,retl Interstat(' l nitrd l:(►rl,m-milm flit-
V1r tit, lime a nun-iiperatinl: lac'tm- that %%ill sit,
1111111n in rash tin ! Irluher I. \\ ill) animal sale,
our re1,orte(1 t-arnings gnmth in 1986. Trapswirlll*s
ol• rllt,le 111,111 -�; 11►I► nlill;,nl ill n)rrra,r
elli•rti\e tax rate is rising; as the c•onipan\ c uml,lrtt-, i
(:,Intern', 111,11-kt ,Il,lrt . IlarliruI'll-] ;n kr\ ,t•"rnrrll,
transition frith tilt' highl\ capital-intrn,i\r air•Iill1• loll .-
•mrlt a, lierrvat It'll ;et-\ irt',.
ne,s Ili tilt- more stable. an(I lrr•c,fitahle. set•\ ire ,rrt'll
• llillt,n l0terilatimi'll tyene(1 Ile%% hotel, in Kansas
Umr• effCc•1;\e tax rate. \\high \\as 2:3 percent in 1981.
(:it\. Mt,.. alltl (Ikl: 11 nit (:11\. Ok• 13tith are olieratetl
ro,r lu 2; percent in 1985 all(] is like!\ Iu reach -10
untlt'r nl;miatetnrnt euntraet,.
percent ur more in 1986. Despite this transitional et, t•I
• S1lartan ullrnetl it, .;(Il)Ilt re,lamr.mil—in Slal'k\ ille.
\\t- remain confident that 7rans\\orlcl (,all arhie\r it-
\li„i„ililii—autl erule(1 FRI.) \\lilt ,i111' mn;l,. if 1:3
1►r(If;t ultjr•rt;\e, in tilt- fcllure.
I►errenl int're,l,l ,
• T'ill,wil l 1•, Bilaill atilht,riit•tl mallil"t'Inenl III l►ul.
Oil all t)lleratint basis. Transwirl,l ,hmiltl I11 .•-
fit Ilti, \,•at- from the 1,usiti\t• impact till H;Iluu Intel; -
( lid-r. ill the open market ur i0 nrputi,Itrtl Iran,artitin,.
I;unal', re,mll, ofa strengthening of 01'ri"ll c'urrr0r. -
tilt lu f�,ui nulli(n) If dw t,u1111,m1\', runuuln) ,hare, o\(.I
and anlic'il,alt•tl eruminir grimill ahrua(1: the full-\,
I►— \ear, t•ntli0r in \la\ P41 . \1 1•(•I,i iiar\ 28. 1'1t111,
runlr;ltutiuu of the lntt-r,late l nilet! ar(111i,;tilln to l n-
\►r hall ltuup111 2.1► n)illt(nl ,lt:ue,.
• A, a Illrfltrl \utr (ofrullll,l,'nt e. Illr I;u.Irll. ill
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-,
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S11. W, 111.1 -11 mr. ,It-) iiwica-r tll21) lit•it rill.
A, \\e inme MIA, 198 \\ilh a m(Irr,taldc tit
• I In I It-, vnil-ri :'.i ll.tn-\\1,1111 t'tvleetl cd flit'
u1,et'allll,_ eal'l)ill..', f-nlmll It, Ill, „
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flit-Iluttunl line. enaltlin� 'Ii:uls\\urltl to re11ti,I inll,i f•_
fill !s2fI.INI livi ,lt,me lllrl- a (h\itl-Ill l,III im-tnll'nl (,t Sll 12
In1 ill,;n t•arnilw: per share lu mall'h the undt-l-kill
\\ )III flit-,1, 11f111 ,mill ill. ,ill (11 ill, �rri,'. 11: I'l(It errs{
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hi it IIII alllllial 11111111 r:111\\III „l I.1 lu'Ir1.111 tit
III. Il.t, ,urrertlrll t.urt �Uantl a,•1u't•.IIIf•nl :unl 1 11'
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r\rt'uli\r ill/;errs (:urn \\;ll runt;nut• ills,.,'\,• nil a- .
etllli,, All 211111,14 1,111. \1„►, ,1\( t. „r \sill!! 1,1.Irc',1111111i•lt
t'ha►►'man t,r;t, h(land fall(+\,in" h;, re,ire,nt Ili 11,+rn
111+•1 A.Il411lit •('tl\(•.\\hill ►mint,)illillruur,IrtiII
w
Ilm.11lf'1.11 furl!l,All. It\ \, ill t•,ll! I,ml tleltl it, A -,I 'i 1.11 rallA
hild lt cii it'llm,'et! 1„ 21 Herren!. TIII-. lurelher a;Ili ill►
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'
„1-II flfl.iti,ln (,1 �l'+1,.') rrl;l1i,10 :It \e:m ells!, illfi trtl, it.1')�tt.
\\ill retire Irunl the 13tiartl till tilt• tirril,iun ill (,
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filt�llr (I 1'\r It Ilt/+i1�11 II111,Ni llllel'll.11lufhfl t ;U'm!llr,
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l:(lair011ill ar111 (Ailef E\eruti\e II.I' -ILO
11 :tit Il'?I. 198l, 1
I
Dear Fellow Shareholder: 1 it a near in H hich the 1.`
economk greA only 2.3 percent. Transworld*- tyrratin,
earnings increased 17 percent in 1985. Donis_ 14,5.
management also implemented several iinp,n•I.tw -Irat►
gic and financial programs to enhance the Yalu, ,I %ou.
investment.
Net income, including an after-tax rail. (.i. the
sale of Century' 21 of $102.8 million. was S217.7)
million, compared With $115.0 million in 19,' c i u,-,►nt
front continuing operations, excluding the.,al, . • .•n-
tur% 21. Was $101.8 million, compared with
million in 1984. Earnings from continuing u1,• -
%ere S2.56 per share, full% diluted. up from i i,.•r
share reported for 1984. Earnings per share It-w
net income ruse to S5.60, full% diluted. from �-3.i 1, I the
pre%ious year. Earnings per share. both on net iik '.nie•
and on income from continuing operations inchi i• - a
`.
one little charge equivalent to SO.13 per shat'r rt•I.,.•-d to
the redemption of the Series B Preferred Stock.
During the %ear. We sold Centur% 21 Rco' I -fate
Corporation. a slow that %ill gi%e improved fo, i,-
our company's management lalents and enable• t:-
present a clearer, more compelling imesUnent ,• �u-
nil% to the financial markets b% concentratin' it.
�-
lodging and related businesses. In October. herd
Interstate United Corporation %hose fuu►I ser% I. d
%.
leisure -time businesses Will augment the alrra„ -
cessful profit growth program at Canteen. In Jim:
began a common share repurchase program. and. ,:.
December. We redeemed the remaining shares of
h Preferred Slack.
Operationall%. Trans%orld's three major - -idi-
aries had an excellent year. Canteen continued
successful program to impro%e margin: and cull. rate
on its less capital -oriented operations. Spartaii> 1 nlers
division had another outstanding year. %bile th. iin-
c•%'s di%ision dealt with loAer traffic counts in it-
ment of the restaurant indumm In the hotel bu-
Hillon International's stronger operating pedant, r
became evident in our financial statements as GO n
c urrt-it( -ic.gained strength against the U.S. doll.,
OnOctober3I.Tran-
x tt
1985 Highlights rld
completed the sale of Century 21 to Metropolitan I
Insurance Company for $2.51.2 million in cash. 1l.
`
tltelll code laded that the gruN'lll potential CAettlntu 21
!of
N'iis 111 (Ile financial srrlll'eti area. whZI
inappropriate to risk sharehol&ri-.7 vallve�i I—
4 .e�
����
�—T--+airy:+. 'i 1s+'�. .�"
� ,:y
414
fAl
New Challenges ransworld Comorali
has made a transition over the past two years fir
having a primary focus in the airline business
having one in food, lodging and related busine:
The challenge for the company today is to grow
profitably in these areas through internal devel
ment and acquisitions.
" In pursuit of its goals of 15 percent can
ings growth and 20 percent return on equity, -
Transworld will continue to be managed on a
decentralized basis, with each subsidiary 6ini,
maintaining its market identity and its responsi
ity for internal strategy development.
Through reviews of financial and capita
plans, Transworld corporate management worlu
with the subsidiary companies in planning the
company's growth. Capital is allocated at die oa
porate level to various uses —new units, acquis
lions, share repurchases, and dividends —all
directed toward steady, profitable growth.
'1
Lout the Compare ran world Corpora-
tion is a diversified company in food and
lodging businesses, with subsidiaries in
contract food, restaurant and hotel services.
Its principal subsidiaries are Canteen Cor-
poration, Spartan Focal Systems, Inc., and
Hilton International Co.
Canteen is a leading contract food
service and vending concern based in Chi-
cago. Through its operations in business
and industry, recreation services and schools
and health care facilities, Canteen serves
millions of customers every day. �I
r,
Spartan operates 332 Hardee s res- t;
i
C taurants as a franchisee of Hardee s Food
Systems, Inc. and 216 Quinc:y's Family
Steak Houses, its own proprietary concept..
All units are in the Southeast U.S.
Hilton International operates 90 lux- I
ury class hotels in 43 foreign countries, the
U.S., Guam and Puerto Rico. It operates six
hotels in the U.S., including five under its
Vista International name.
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Transworld Corporation
f •_ -
Annual Re ort 1985 :fir 1n srhaieolder
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VOLUME SERVICES
Subs,d,ary of
Interstate United Corporation
Two Crossroads of Commerce
Ro I fi"Ing eaoo.s IL 60008
'31 21 398 7179
'4W AM
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Volume Services...
Large Crowds, Our
Specialty
Volume Services' recipe for success combines
a myr:ad of ingredients that blend toa_ether to
br::,-3 vcu the best operation
Facilities Design
We survey your locat:cn to develop the right
of fac:i:t:es equipment and
Personnel
and tra:ned staffs are
e: cer:en, ed pr foss:c^a: resident
Menus and Merchandising
Operational Control
s :re _ . e `: ... g fr�..• p: -f er _ :'at._:, an,;
........., _.......tee �.. t3. .....es .� +1.�.:r3._ ... r.�.::..'
Staff Support Services
',, ,.. ......�.l� •.ip ..:.�.r: _i ✓•'.;r _rerQt...:.J ..,tn a
•
:i—me :t C; staff suppert me:using
and Des:^n Research an
I abcr Re:at:ens Personnel and
Tra:r..-a_ Ins::rance and Tax Consultants to
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Banquets for 25
to 25,000...
The Volume Services professional approach is
aisc used in full service catering. We operate
...eet;ng facilities which accommodate from 25 to
25.: J0 people for breakfasts, lunches, dinners.
and receptions of all kinds. No matter whom the
custcmer. our dedication and enthusiasm for ex-
1 :
cel:ens, serv,,ce is the same.
Advertising and Sales Promotion
Our ccn%nuous merchandising cf banquet
facilities includes direct mail programs.
ad•: er%smg and personal sales contact with
ccmtnunity and business -related
.: -..:cations
Referral Booking
tint:,nal organ:zat,ons bccked into the
Volume Services convention center net .-. crk
i
--:e encouraged to repeat business in ether
1
Volume Services locations
Special Menus
e create unique catering menus for each
t:
iccat:cn that are attractive. flexible, and cover
a ...ge range of tastes and budgets
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Volume Services.
The Leader in rood Service to
the Recreation Market
Our People
Mana -iers %-.-i,.!e:s and :.-ai-esses chefs,
desion-:--rs standworkers. banquet salespeople.
'Carte -:-leis a cczun! -ants. super*;,.s.,rs
.. . ...- ; —1 -s of Volume Ser-
7,j :j- 7,7 p: o v e e
vices a--4 Interstate United Corporation %%-:11
-)b .nest
Our Experience
Our Training
car lcc-7,. .. Th:s
r S a.
Our Systems
Volume Services C --n :-S-z S., r
-ram an 3 Cu, C - MP L;*e:
Our Financial Capability
C-:1
PT C, .-.,e ha-.-e the f:nanc;a.
.,-.ex1bii-.,, req-,;ireci to ci2 !.he job
Our Pride
We eln;zy c-= -.-;zrk and take 1-!i-le :n say-
-n;; .-.-c- Jz) it best May yo-Y,
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4-Unit Concession Stand 064
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From Olympic Games to the Super Bowl...
Volume Services is There
The Summer Olympic Games at the Los
Angeles Coliseum & Sports Arena, Super Bowl
XVIII at Tampa Stadium, and the Arenas. Con-
vent-,::-, Centers, Fairs. Racetracks Recreation
Area_ and am place that people oa!her for
and recreation is here the
teams of Volume Services are pro -
Volume Services has earned a repu!a!:,—n as
*h& ..... :., prl.fessizna. fc.-d se!%%ces
...:n the re:rea!:= mark•e• Wh.. 1�
.. _. _ ..-erta:nment fac:!:.:es se'.ec: Volume
Services .-_ te::
Management
..-.. �_........ a: •; _....S :-•e .::e ICJ'• ...
Market Orientation
se:. ; ti e
Maximum Income
Teamwork
and
!hE. I A A M
IA... TFA`HTA AGTC'A I A F E NA a:.7 Ti:a
�A.. - P:cfess,nra: Basetall Lea7::e
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VOLUME SERVICES ,
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Thank you...
for reading about Canteen
Corporation in this RESTAURANT
BUSINESS article on foodservice
management.
Canteen Corporation
Merchandise Mart Plaza
Chicago, IL 60654
80-1021
Thank you...
for reading about Canteen
Corporation in this RESTAURANT
BUSINESS article on foodservice
management.
Canteen Corporation
Merchandise Mart Plaza
Chicago, IL 60654
0
I
86-1021
i
lh.st�•.,,,f�.•nt„ .,,1, t•1f.�\:,.,:.L.t,l�,•, .,,.'..._;�.... .,:.ut..,•.I,;.t,�..",'+
ttt•In.t_rttlrttl + +f + _ 111tTt+)it lt\ Uff11/:1-
tl,vll�n�r.un,
mid um%er,ittes on the
L: r I ,,r,.:. he:au%e tile% Mid 10 he
r main a les, proms,.
tits n:.lth.t t,+r Canteen I-lo+%e\er.
the :olllpan.% has recent)\ piAed up
In addition. there
Is ; '!:nllal for the Gulli\er's con-
:cpt In :++fle e, artd urli\erslnes. par'
If:u!.:il\ tit the gn+\\ing are.i :onl-
j I1lllillt\ IIe2C,, \\110se r++rulall++i1,
.ire I.u_el\ made up of:omnlurllW
student, At the Colleee of Lake
Count\. tit Ilhnol,. the'"5-,cat Ciu1
ll\er*, Il)c•re does more than ��.tICNI
In husine,s 111 .1 1%rival dad
Correctional insioun++ns repre-
sent another area of gr(m i h h+r Can-
teen \.itnte that population tit this
:.ifc orb is III: reasllll• at tile rale of
.1hotlt '11 percent a \ear. Krpan
p+unl, Out that prison adnnnistra-
tois. ilk, their:ounterparts to health
cart. .iri Iurt111W to outside profCs-
I .1„nals l,, pas: the hy�rden of,alisk-
' ills, hill) the dentatlys ol the:orrec-
1101).11 ,),It'll) alld Ih++,c• of 111111,IIC
r1:ht, aroUps. Alld I, III IIle :a,C of
elelltelltar\ 1:114+1,.:orre:111+11„iftl-
CI.11, must also deal \\ III) :,+r11111od-
Inr, tmWail-11 rrogranis File rn.i-
jorrt% of the eomp:itn's corre:uonal
.I::++imI% venerate \oltlille of 1�1 11111.
Iloll Or 1110re. I orlon Deiennon Ceti -
ter in Vir_Ini.t +zenermes j_ ; nnl-
hoil Canic•en I1:1-1 ei_llf corre:ltmial
acc+nnlis Indlcati\r of the _,rowh
Illode. most +,1 these a::omits \\ere
,),_tied \\rihnl the past \C.1r.
Boolld these opptlrtlltlltle,, Ko/-
10t\41 sees a i-+rear deal of polentlal
hostiles tit related areas. "We bast.
Call\ \\III explore .111\ opportunitie,
that :ome our \\:I).*' he asserts. "We
feel that \\e ha\e doeloped a mum -
her Of cIe,1011 :0II:C1st♦ that call be
III tnuall% henrticlal to the :oIII p.ul\
Mid 1,1 the :heat In se\eral area,.:.
Just .Is C\anlples. ho/I++\\,i.l cue,
:ounll} clubs ,old 1o:al• lilt) mo11al
cuff courses. i.of ee,hops and snack
hors tit hospitals hilt nldependent of
pallenl feednlg. resort%, mid selected
nuhian feednl
In addition. ,,r\, K /1, \\ sLl. the
:++Illp,lil\ I,III\C,II_,IIIII„1\ellllc'�f,+r
relate) nl.ul,lLemerlt ,cnice,. ,u:h
a, hou,el,eepnl_ .nld hutl�lln�+ maln-
tenan:e• \\filch \\ould heconlpatlhle
\\lilt C'llileell s e\Islltl,_ :IlenI Kl,e
Such ne\\ hostiles nli_ht he I,•-
yuired or doeloped utter11.111%
"Our altitude to\\ard acyul,in,+n
I, poslli\e. pro%Iced \\e can Lind the
ncht tit. Primarily, \\e'd he lookine
:II food,enice. hill po„ihh tit relat-
ed fTl.11l.l_cY11Ci11 ,\stein,." Ko/-
Io ,I,1 f++resee, tip Io per:elll ,)t
the eomptltl\'s,tNI.ulled ;'ro\\tll oc-
curring thn+ugh a:yui,lti+,n. both ill
term, of market till :Ind lie%% pro -
duo senIce capahllity
tine Ihlng, Canteen \\ill not do.
cat111111, [Ile :lllef C\C:1111\C, I, stra%
in and ,uh,tanli\c \\:I\ I'ronl
\ ice. 'Ak e'\ e made a place for our-
%el\es ill the foocl,er\Ice llIAIkC1-
pLKe."
th,ll', \\here \►e'll :,+nluuir to,lui It
ozi
r
residents li%e in complexes of cot-
tage. and apartments and function
to a great extent independentl%.
These residents take their meals in
central dining room%. and maN be
served b\ a waitress or eat bufTet-
st\le at breakfast and lunch. Dinner
is ser%ed at table. with resi-
dents ordering from a menu which
femLire% at least Iwo hot entrees.
Although only about 15 percent of
t he health :are market has opened to
contract feeders. the segment is a rel-
.tn)ek recesston•proof one. saes Da -
Id \\ itten. national director -Health
Care tin kion. The marketing thrust
for the dii,ision w ill he one of "con-
iiolled eyan.ion.— adds Witten.
concentrating in Canteen's estah-
Itshed strongholds in the midwest.
s0uthcast. and northeast. Currently.
Canteen has about 125 health care
ac:ount%. about SO percent of which
With the country's
economic base
shifting from
smokestack to
service, Canteen
has protected
Itself by pursuing
the more reces-
sion -proof white
collar account.
r
are connpa n�-oper ted and 20 per-
cent of"high are franchised.
Education is another ,_ro" th area
for Canteen Ha\nng recently ac-
quired Preferred `teal S%stcnns. a
proi,ider of plated. pre -portioned
lunches to school children to grades
K-6. Canteen can now pr)\ide full-
ser\Ice lunches to schools which
ha%e no prep facilities Another ad-
%antage is that I'N1S guarantees the
cost of product f')r tip to a %ear
I'mS'. market has been expanded
nationwide, and according to
Krpaii. Canteen expects the demand
for pre. port it meals it) grow.
This additional demand would au„-
ment Canteen's more traditional
business of prop iding foodsrr\ Ice
management to school districts.
Krpan adds that one of Canteen's
pnman roles in pro%idnng foodser-
0ce to elementan schools t% its
Srlt-sc'r)cr hars like the Earl) Bard hreakta%t niodule are One temple o 0titeen's etl;)rh to Cut .o%t%-
13
[ rr.;:' ,.', • •, .r,'.,;`'.,' .'..,' ut.rnt h'..r[r,';•• In, hr,ln{_ [ hr,,i_ ', W!"t Milli[.urinr.
_1!! ,h,`I" .1' `11 'fit'. flhhl,il-
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1AIIII-, to
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-:!u 1.'�.IJni I„ tiII111,L'I,::1lI11:111
,, f,, .l 1, 1,, (, JI1, ,1 1)L1'_I��„I1. I\i L11•
i,f c11,,,,I,. .•i I)i:cl,l.,.I\, hll`.ul.
II,, ,17, ,1i ,n l'llll,l,ll.11,V, .11, ,1i:i+lll�
Ilh:
If dwIll
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111,11i :,h1-a011,:1011, it, lhr loll ,'•-
10IN rti:,'t, Of DR( r, f,ll,:111iJ\C1-
.1_r h,"I'I:.II ,1,1\ \i.`\\n ill,• :h.l!.
I,h4f,ir\l:r I'hl'1.110t, I,
.t .Ili I.II hI, L'I,I I I A \1111 7 1
I, h,,th .1!,,,.'.tlln_ 1•` Iht' I�.Itiini .tnlf
Il„n. Nhlle ;irhrommatc)A, '!I! It` i1:
iWA.T111 Ill, hr,lhh care a::,nIIIII .11:
Ill a fir hwi,. Ihiri i, it twist to-
\\ard, a gu;u'anlecd :I„ t err I,aticnl
\la\ basis. \\hich funcnow, it hot
nu,re Ill,e a rS i a::stunt. ,a\ • Jmtnl�
Bhihar/. district manarrr-,lh(.r,t-
ti nts for Canteen's 11c.ilth CJIt•
Di\ i,itm.
Canteen',, health care a::,fun!,
trlltl hf hi:ll,I,�111rJt'll I,f 111i h.,111:""
h,Ihlll,tll,�il. Nhll: ,till llllll/I11_ IhL
III Ina II h,l,l, rInc r.ttttt_ ,
;ni\i,\,Irlm I I,rinstan:e.Ihi stein,
ol ;I ,Ill.11lir ;1:U1: :;Ire
the R,?-hcd Ltiw,lr\i Ho, j,1:.i1
i ol,111r. Ill . are suh,l.ullt.di\ ,1W.I-
illl lrom th,L: of the
Ill%:,in\ Iri'I,I11 iloil)t , In I '•..
Ill . , Ili Of'.1 `_I', \111L IILW0 I 01
,lihintlint ,hlllrtl-:Jli 11\ul� .�
plem.., 101 ihr iltl:rl\
At Ld\\.trd. \\il:ri ih:,• _ ' ; ..
th,u:
'11it1I1, I,ll:h ;1,
tllr lll,r. III addill,fll
,Icni,l nlenu,I l et ;11! r.t',,:fit, ,',!,
Iwill a Ilc\\I\
i'.I11f ,i\li" 111r11(1 .Iri,l ;tit l,agl t,
:,','hill. 11) Milk. I,',`1',ii: \ 11o% ,1,,-
,:r! ;Jrl. \\hrili,i u!!• r'., I�,ttl.: ' ,
100111 ;it Ill: rill of Ill, nli,1: I',I.
I:il;t,`li:, Ill,' ICILMl,tll:
At 1 hr Pic,h\ tirl.ut 11
S. 11. I,. I'.,•, .,.. .r!. rl'.;' ...I: r: ;`.ti, ,`[-(,1111„ ., 1, ',I ii !.'..;:;r_ V _ ..
-
861-10 21
e.
I?l.e Acoinirll_ it, [).tit hi -rail, re-
:1e,111011 .I:C0lIIIt% rase Certain ell;ll•
Iell _i• Iho tend It) he I,1nL-terns
1
:oilirii t% and the\ tend it, require
,uh.t,ultlal Ill\e,tnlents. In addition.
r1
Ole field I, :rt1\\dcd \\till competi-
wi, to oltnl_ fOr a riece rf the leisure
w.lr!„•t it) protect thenl,el\e, frtlnt
t
\1,1s,lllldes tic the tradlitoll,l!
10,1 •:_Ill,nl.
K;,rcmion ,::taunt, ,list\ lend it,
II?, hi\ .i.l,t1n,11 m nature. ,gild a:-
„`1,!ul_rresl-
i
,i,;i!•I-e:le.11l,tll stir\lie,, tllhseltlll;
lhl, ,Ca,ton,1111\ 1, tine tic the dill
s;,•n', ht_:;s► ,hallrn_:, In 1'ellt`\\
\.itional Park for nt,ian,e.
1
\\ hire C.ulteen'e I\\ Ser\ 1,es dr\ t-
i ;
,I,`n berate, ocr\Ihnl_ fn`nl food-
,; .Illd l,`.l_iti 1_"rll' rooms ill
i-
j
_11; s,p.lr,lte I,a,llltlCsl It, I,`ur hus-
i '
.Wd hoc ehack rides. ill, I,` `Ill per.
I re\rnui, .Ire `_ener,lted ill ,I
11 ,�
•� �-;n,�nth perl,ld In,lddul,ln. enl-
I:.'\:hint from a full -tint:
tto a ,Cas,1na1 hl_h
m.l!s,n_ Ir,umn_ xid I
,1:unnint 1 \er\ 111111011.1111
\!tht`u_Il aided I,\ the Iait that
lj'j'I0\IlIIJICI\ half tot the 111.111,1_ers
I11,1 :;1, to ',0 percent Of the 11OUrl\
\\,`riser, return each \ear, the first.•
1.1\ ,`rlentaiIt'll Al YCII1\\,1,1ne 1,
:!m,:j1 Sa%,1111 Fin:hle.e\e:uti\e
\ i,c• president and general Ill.11la_I-'er
Branch general
managers have
ultimate p&I res-
ponsibility at the
unit level, a sys-
tem which puts
decision -making
power in the I
hands of those
that know the
market best.
`t IIICiellto\\,1,111i P.Iti. D\I,It`n,`1
It, :,Cl :1 \\Mole tie\\ ,1;\\ tal h,`,Ir,l
tints read\ I,o \%ork ill ,I master
Its Ill,o,l ,ol_,IIII/,11;,111, 11
Likes \C.Ir, It\ tle\el,`r,l,llltllre We
h.l\c 110 da%% It, tit` It suits Then \\e
lia%c I,, tit+ it all o\Ct a_,un the nc\1
\car Pride ill the I,1h mid nior.11e,lie
:ru:t,ll. hc:ause those Ihnl_s ulll-
m.11el\ alle t the yuahi\ tit the \i,i-
t,`rs' e\rertenie In ill,- r.tik „
\\ hell I \\ Ser\lie, Ita`I, t1\er the
,::,hills 111 lu'y, the ltod,tlll_ 1,I,IIIIIes
! tillIt•,bnur_ 1%tare!:r,el t`l (.rnl„n', nrt1lrrrrr,` calla..
\\Cie III a slaic 01 ,II,I,r,11I ,Illd 1,1al
Mid he\eril_e \\as .uh.tan\I,Ir\I. ie-
i;ills KIIiIui. III ;Ill Lill pre:endenIcd
inme. theointract that IA% Scm,e•
nc_ coated \\ith the National I'mi,
Ser\ lie i:llled ftlr the ,operator It, Ill-
\Cst =2fells. till e\er\ dollar ,ol ,,Ili,
ill the fa: illness \\ hli h ,Ire to\\ nets II u l
rer:Cllt h\ the Pork Scmcc. In a,ldi-
tI011, L011 -Css h:ls ,IrrroI'!:.II:J
(tillds it, ulo ti`\%ards re\llaltItalian `I
ielltl\I,Itolle. It, I,Ir=C,1 I'mis
result. 111 Ser\ lie• has ,rent ,1 ,uh-
sl,ulllal .1111"wll t`I' llitlrle\ till ,11; t,11-
_oimz ul,_rade ,of htlsrit,lhi�-rilat;,l
!,.Irl. i:I,llltli,. In,! idmg s,mil-
holl It, :oII%IrLIt.I (it'.1111 \ II1,1_C. ,I
IIC\\ itlllll)lc\tit It41_III_,Int!
\ Ise t111 I Ac ) elIo%%%t,tlie
In ,order Io nl,l\nnve Its In\;,I-
Illeltl. the . olllrall\ 11,1, l,lllll,ll;tl .I
sari\l' I,` IILI;,I,e,`Il-,C,I,t`II I'it,il?i„
\1101 of lhl, thill,t I,
\\,11t1, 111, ri,I,IlI_ hu,llle„ dill ill-. Illi
\\n11;1 ,i.1a`n.\\hill urlt`-Iulul,11',
f.111,,`n thi rarIs 1 \\to h.';;I,
Ilt`\\ rt:111.1111 ilpCll ,Illrnl_ Illi \\Illk.r
I11t`Illlls..111d [lie .olllp.lill Ill,ll111,1111,
l Heil of ,1\er then, \\ \:hl,l;, I,`
Imnsr,ort supplies and \Isitor%,dikc:
III ,ld,illlt111. iII o\%%I,`IIC I, hills_
r1t1111toled As ,1 hiI%llles,
,im, r,lurlll_ non-rt:.ik nionth,
1111.111 o'll\,lllit`lls .Ill,i
nl;elnl_s sire als,1 file ft`,u, t`f.1 snnl-
lai markelin_ thrust ,it h\c I)h1,)
State I',Iri,s. \\here the Rc:rcan on
`Cr\ lit', dl\ I,I,oll operates ,111111.It' 1,1-
Climes. And at file dl\ 1s1,111'♦ Ile\\ ,1:-
coun► tit the F\er_ladc%. a rr:hmi-
riar\ Ilr_r,Idlll1_'0f1.1:IIIIIC, there h:ls
CII,tl,led tin' ni.lrl,ellll_ stall tit rrto.
I11,11C file till Illthltls of SeplClllt,er.
October mid No%eniher tin a
hasis.
Some tit' C meteerl', tether in.I1t11
Recreation tier\Ices ACCO IIIts Ill-
t:lude the North Rim of the Grand
Ciinwri cat Armin,. NASA Kenne-
th Space Center'. Spaceport l tiA. I
number ,tt state hta:he.. mid park, III
CalifOrnta. Mid HC• F'laee. a IIC\\ Sta-
dium comple\ cat Van:oti%er. British
Colunihia. Areas of pot enttaI
oroml1 IIIIJULIC 0111\CIIH011 :Chief'..
/fists, and stale chid national pall\,
\\ title C:IIIleCII's re:rCA1I tllal .1:-
:t11IlI1s II1\cal\C 11 Its e\el'\IhIII_ froill
r'lllllllll_.1- 1!:1, stations III I11.1111la♦ to
8E-1021
71
;clehlaIt' 10 _5Ih all ltrtcIsaI\ of Ihr
p I.II I l
oil tilt• Ncst Coast \\here the\
tirigIIIJICd, blllld-\our-o\\n harS are
part it: ul:Irlpopular. although their
poptilartl\ is rapid)% spreading
across the C0lIntr\ to more tradi-
Ilon-hound markets. These bar
hate also pi -men a, adaptable to
Io\t-hu"'yet account, as the\ are io
the flagship accoulits \\here Can-
teen's n1-1101.lse architects hate dc-
slelted the fa,:ihiies froni scratch At
the Sant., Clar.i Count \ Gmern-
nlenl CCfi1cr In S.111 Jose. Cal . for fit-
,l:nlcc. althou,0i Canteen has had
iili Jk';'Olilil f,or Ile p•i,l elghi \ears.
the f,ao,lscrl;r fa,11111 •s N%erc de-
,igne,l h\ the prolc;f ar;hne;i and
hI_h I.Ihol ;,1sts due 10 desi_I1 nlefli-
cirn;lc, t\rrca;,on,t.ulipr�hirnt In
1.1, 1. less 01.111 .1 \ r.tf ago. the 1(N i•,CAl
rc,t.,ur.mi p,ltmmof thcfl ilt(\ \\as
;i,1s;,1..+nd ,+n!\ .1 ?lul..c.lt ;afelrrfa
n'nl.uned Ill oper.dwil l fill lilall l_•
rr Ro-cf A\,on; sol%cd the prohlclll
h\ In,;.1111ni I1Ilt1111c,rlf,rr\I;chat
In tilt ,nlaller dJnnle area. Mid ofli'r
In_ .In lnlntenu•lt ,u;er,sful M-Ihr-
oun,r CIhnl; f;,+ld bar i im ch:ilr_es
dx1\ No%% tilt- fa,fhl:1 profit anti
los, a"olJnt M11;11 i, (11ml to the
putlll_ h, .:,t, 111171; of lilt' lool\r,t
t+a1,1 t0,1, Ill lilt- c,ofllpall\ s Iij.%
.11 t.t
lalkin_ ahoul \\Iml Call-
11 IJ I f 11 'It' " Ircll 1. cak
Ien \. �%C,IeI AICA \lit' presldrn) Ill)-
if \\1will •%\,kill', :I,oIifIII f,111,
,11e,1,11 , h.tl ltn _; t, o pro.
\ 11hI_ f0f I Ilt•I1t Iit•e111 ,Illd ,.Ili,k 111_
lilt tf1,1.11110 \\hell Ilse fa;illl\ I, Ilsol
„ll Ills pfltml\ list fslI repair, and
1111ph1%enlcnl,•..
Sit, If .u) .11111 udc is doouhl\ nllpor-
f.lilt Ill t11d.i\', e;on.1111\. \\hen Cnl-
pllo\crs arc taking an c\lri-hart)
1"ok at lilt. \,flue of Ihr henrlii, Ih.li
tile\ pro\ide And lilt' allitudc a111
111 lttel ♦i s Ire, .I t t,fp,lf.li C plI l Is 1,s,ph \
~sots h+'/I,mski "If Is our re%ponsl-
hllll\ 10 he ,IJ;;t•„fill Wide[ it,lldl-
11,111, ,,, \\t• tilld 11KIII. 11111 :is \\t•'ti
Ilk, 111;n11,1he Illollh;r\\,,ids.pL,�
\\ 1tl 111. fi.olJ r lt.1t', hoer tfeall tuts ..
( .nllcen h.t, Ile\cllyo,'t1 .1 numb;l
s1f prj 121.1111, , Illd 1)' '11, fe, 111.11 t'HAN,
11 loll ,1,1 (11s11i1.1h1\ itself, haild. not
0
At ) elhnt %imie. Canteen operate, re,t.wruu,. /,thin,:. rift shop, an,i tour,
the (cast of \\htch I, a general pro-
gram to re•neg maic man\ of Its p&I
account, into less spcculatl\c nian-
agentent fee b;lsr, In addition. Se\-
eral \cal, ago the ;onipan\ \\,I, cic-
ccnfrahird. creming :I nc\\ la\c•( of
grncr.Jl man.,_cr, \\ith ultlnl:lte rc-
spon,ibiht\ flor the perfornianx of
all account, \\illim their hrin,h. or
disc ric t t here arc Ml conip.m\ -
o\\fled bran; ic, \\shin tilt• Caniecn
.\,IOff. rep, oriIng to one of 10m area
\ I.-c president,
"-1 1111 s\,It'll) has :Ills,\\ ed ifs 11) he
ter\ trmcl\ fit our rc•,p,on,c to
elf,ul_c, Ill the marketplace•." c\-
pl.nns Haller. -because the people
\\Ito ►,non\ file local market hest arc
the ones making file decisions and
Ihr tone, \\ if,, arc accouniablr."
In addltion tit, it, company -m%ned
br.mche,. Canteen is the tilt]\ food -
Set \lcc cunlpan� of its kind to ha\c
franchised locations in fact. frail-
chi,ini \\;I, a major factor in the
conlpan'%'s pattern of c\pansion
There arc more than 130 IIIdI\IdILJI
(i.fllchi,ed locations. operltut_
ni.unl� ill Smaller cities Accorinf_
to hu�loi\,kl. franehl,in_ a terruor\
rather than ._loin_ into It on a c011111.1-
fi\-operaled h.I,I, \\as tilt, illu,i ct.
fell\C 11.t\ of cliliillig .III :lea
\\here the compan\ had no
manaocment base. A, the compan"
c\aluates a ne\\ area of the countr\.
it de,ides cooperarf\cl\ whether it
\\ould he more jlldt;itlll, t,, fawn; Ili,;
the territor\ or conilt.In� ,operate 11
Mmc\er. ac;ordine to h,vl,o\\,ki
Ile franchl,ee net\\tork Is at On,
point re]atnei\ mature F
sales. \\ hlch are nor In; hILICd in
ieen's results. amount 1,, ahout
nulllofi arltuall\.
As in most sucec„ ful
Canlcen'-4 frfli; hl,ees ll,;
the sarile prograins and s\ %tell), ff"":
in Canic•c•n', compafl\-operated .I; -
count,. The% ha\e first right of ic-
ftt,:ll tilt ne\\ piece, of husines,
signets fit their lerritor\. and are fret -
to take an% hpr of account --Ills, 1.
health care.recreation. Ho\\c%el.
most large recreation account, arc
handled h\ the conlp.11l\" ,eparalc
Recre. ion Sm ice, dl\ f,lorl. \\ lug h
has the rc,0nr;cs It, pl:l;c• al.1101ls,-
Ill,,ll, 111an;1._c•nicnl tcanl\ Ill the indl-
\idual accounts
Large recreation :Ic;IoLilli, h.l\,
pro\cd \erg SUCCC„fuI tilt (.1111er11.
M)IJJ hu,i-
Ilt•ss Ill ,I.11c Mid 11,010I1al p.lrk,. con-
\cimon centers. marinas. cmeri.tin-
Illt•I11 :Ill"' ,poor). ;,,Ill(tle\r,.:Iiltl III;
8E-1021
N
:ould add as man\ as 50 or 60 in the
upcoming \ear. The concept is all
.elf -sere. ernph.lWing soups. sal-
ads. sand\\iches. and similar light
tare Breakfast is also a\ailable. B\
the ounce serice is often used. De-
cor c;ut he adapted to almost and set-
ting. and t\pical size ranges an\-
\\ here from shout 50 seats to more
th.ln 100. A\eragecheck for the GtJl-
Iner'scl\ncept o\erall Isah\\ut SLMI,
_;ncrating a\erage unit \plume. of
61150.1 ) lip Food costs are
Jbout ?b percent. \\hilt labor costs
\\el,_h In at about _'" percent.
Kitchen and storage space re-
qulred h\ the GuIII\er'sconcept arc
timunial, e\en though the soup•.
chill..111d optional hot spe:Ial..Irc
cooked on premise The absence of
equipment requiring HVAC make,
the fr.m1-end in\esnrlent quite lo\\
knother I% Gunner'. calenng :.l-
Self-serve and by -
the -ounce food
bars featuring
everything from
soup and salad to
Italian food and
dessert have be -
come a key
com ponent of
Canteen's com-
petitive strategy.
Pahllll\ At 111r :idler Planctanum,
in Chtcago, catering corpr`rate.
school. anassociation tlllictiotlsis;l
tremendous part of manager [_arr,
Posen's business. Despite the lift
that the kitchen is less than ?00 sq
ft., Posen can and has catered eight
course Formal dinners for se\eral
hundred people. The only requlre-
nlellt It) hook the I'lanclarIUM or
Gullt\er's "Crater on the Moon"
dlntnz room tier a part\ I. that the
host a1.o hook the planctanunl. Sk\
Sho\\ .
Catering I. all rlrlportant t:J:et , t
.III C'anteen's manual tivod•er\ Ic,
,count• as \\ell At a nwwr 1 li \1
Installation In Sall Jose. Cal.. where
Catltcen operates toodser\ice III h\e
huddnlgs, a. much .1. 5I1 per:ent j`f
the hu•Ines. I. from c,tenn: func-
tion, The I;Irge.t \%.I•:III opell 11}`ll.e
for -0.000, held se\oral ,ears ,1_ ` I,,
hke Vt'll ) . }rk *% Y .inkee Si,id m twit : +glrrhe al V�IIIl1.'.!!J1 /+ `r1J '!1 .`I (,If71.Y'!; hu,n ,
L�
now-,
V.
\\,`!ki.! ill' l`!i-1,.l;k.l_c,l il.l\oC111Ls
.lilt! h.tsi I111\i•s 101 otlell•llsid Items
hk; s.nl;is and %nulls In :erlain a:•
:hunt.. unn nlan.l_irs h.r\r been e\-
rermwntin,, auh selhnc the sour
b,1si ntl\is (hne fur cream .huh and
olle 101 cleat ) to ctlstoniers.
Thiotighhui its operations. Can-
lein uses a if\c-%\eek standard menu
\\Ill, It \;Imes \\fill the siashn.
} Ii\Ihtlll\ it, Incorporate local fa-
\t,rili•s of II_\ out Ili.'\\ Idc.ts Is Milli
111111 the .\slcm. manaci Will
; :h.h,ss ,1111011_ filesu__t:sled Ilellls
a;;hrelnl_ 10 nred. and Is hee Ill suh-
sllllitt., ill, ill ti\c Items per:.tIq!or\
(:Is lit ii:ssiris or entre•s1 ref :\ale.
slihli;ll, lIll: .11,rlh\-11hllIll. dlstlla
nl.ui.t_ir } hI ntst,ul;i. at the } cder-
tl Kis;r\i li.lnk In S.111 pt,ut;Is:h.
\\L•;!, the ;u.t,,rl;! l''`hul.ltt�nl ln-
;fu,1;s 111.1m -\s1.111s ,Is %%ell :Is sh-
1`I��s'I,.t'..'. it:;I,1;nt.11s. h,t•, 1n,,t.t
olh,I (li lillLl! r,tsl-
Ilis .tli ul;lud,,1 Ill Ihi nit,rnnl_
htTi rntcs
�1:: 's!1\i s:1111t: t;;I111L{lles.11sh
Ili!!` k;ij' ,. sus III IIIIi 1 or Illst.111cc.
rn'_I.11n :,hied Mall.t i the
M' suht!% il!,I'll r.l_is:usi,mlers It,
!. t.,ls,t• ,: Ill .. � \\ I11; It ,II i 111hs1
s!•itTi,ll%; 10%L'I%i ()ni,1;h:%cIV
nl.h:.tied
It%!'..,..,ir, h `li' l opt:!.t! ..!t.l _•a,.l for
�� II Ill,t;.11 •!II ,114! ,Ilia*ii or
II: a si.t10, d rl,ltler)
II; Ii1s ,ti; hl,,lll.,lid h\ 111c.11ts
roster mounted
srlali_I,al!\ .it Ill, hi_nunn_ hl the
si l \ Ill_ Intl I II; ; t,llip.ln% also
hashes' Its sill sii\1,i modules h)
L „lint_ chin%. \\hini\ir rhsslhle.
Il:,tlist ill. I,,,I111 ,,filth\ 111111i illl-
,I(olllhllled 111s1tr-
.nl,r 1, I1.11nnt h:.ldyu.trl:rs lit
nlsl.ul:e. Ill;cuing it
s; ll •s,,l %; s.11lil\\till sl.11 on ticar-the
il, •I ri,lu,i.l s.drs hl nl,,ri :t,.tl\
s1:.1111 1.1111, Iliills to io itt l,ir:iill
t,l ioi.d s.1!:s. raih;l Ih.m Ills rri%1-
us `11 r;I.rnl t,t sales -\till Ihi: ri-
s1111.1111 IIUI'1 t,\iltlilll III I,lihlll:Il\ 11\
,Ittii;ti I,, ;om!idle It, rill!
11,. L1,IIt'. ,1s a s:ll•sIIsLllillll_
t:::l.,%,nih•�u_Ilthe:h;nth.lelri-
:tl. IiJu,i,I111..1111.,1L111 hfusstill
♦. !: ���� \%.Ill%;el I,, .Ii-illlrll.lsl/i
h I t I \%Ilh•,uI J11111n.ltul: It." r\-
p!.: !Is 01,i. k oll IL'1011.11 I,,,,.I dl-
Canteen has used
its network of
franchisees as a
means to enter
markets where
the company itself
does not have a
pool of manpower
and resources.
recihr. '• lI i're operating this I:i;iln\
the.:line \%:I\ \\e \wtild a rabid and
loss :1::ouni " Despite the L1,1 ill.11
tins a;;hunt is 10:.11iil Ill a husilln;•
tlr'h:ln ari.l. r:Irti;iratihn is
r:r:en1
13%-the-ounce ser%i:e Is also, used
\\hene\er the ottimin,n hermits The
iomrall\'s hr-sl lhr:l\ fill(, the :oil-
cef+t of by -the -ounce ser\ice \\its Ill
the area t)f salad bars. but this for-
mat has gro%%n it, incIlide sand\\i:h
bar,, (sonle accounts e\en 11,1\e hotIt
sere �uur.elf b� the \,tin:i \alld-
%\ich setups and ear\e-to-order sta-
tionN). ethnic bars such a. �9i\i:an
and Italian. and build Shur h\\n
:hn:ehls like baked Potatoes and
laths
Ciullner's is Canteen's self -.en i;e
deli ristauranl concert Desi nisi
prinlaril\ for multi-ten:uu tali::
buildings \\ here no indi\ idual itmant
has foodser%ice. Gulh%er'i, is lit Ills
irlli sense of lht: %ahrd a ruhli; rrs-
taurinit. The :,,n;ipl is ala; an nr-
rortant e\ran,wn \ehtae li,r Can-
teen, in III.tt it also has hc"n
su::issfull\ adapted it, co!l:_t . r.
creation. and licalth care settin
There are ahhut MO dhIen
\er's in oreratum current]}. and a:
cording it, Krran. the conlpan\
1 rh' .-.ire Kwihrh•s 1;,r ih.• chiral% are a srhu th irea 1;,r Oniv n
S.
J
N
s:Ill, II ♦IIIII.IICn, [fills a
sltln_ ,'1 l'llhll: rest,1111,1I11s I'AlleJ
ltuIII\CI ,IIIJ oper.11t.'s I�, hole),
\\11!! IIIII I.: IIIII 11 3,200 ItwnIs
'%IIII 111.1netulsl\. Call Ieel I ha.
\\I'! k,:,l it, nuke .Ill of Its olicrations
nl"I L. Cosf•efl-ectr\e A pioneer Ill file
h\-Ihe•t,tince method tit self-senice.
i he :,'nlp;ul\ :owinties to rcl\ hea\ i-
1\ on till. ctm:epl Labor sa\nl_s
h•1\ e hCetl .I_niti:;uu. hill In aJJI-
,�, n. .,1\. rrp.ut. parll:ip;ultln 1.
file 111ethl'J :IJJresses
•:,nlL'T n:eJ. hetler than set
.!1•';.Cs ,IIIJ set pt'rtll'lls. Ill :IJJI-
'! :l. (lie :oIll)\,Ill\ has Illadc a illalor
""?1t111C111 II' :oorer.ilI\C scr\I:C.
Il1C:hoit prok,Ittes
1't' IeAsed e.Iulpnicnl \\hlle
1`roi,ides the pr11Juct Ac-
t,' H rennet!? Halter. tit-
. t 1-iodu:t \ market
plan- .on:cpi \\as created
,ter !t' .IdLlrCSN file Llt! n.. \\here the :011111an\ Could
Clll-
\\llh Iladiil,'11.11 full-11nc
:!:.•.n. Ill I,1:1. 111.11 ,1 sip,t!.IIC JI\1-
'It 11.1% heCl1 :I'C.IICJ \\ ithul i ,'oJ ",
;I!JIiI_ it' aJnunlster it
• ;e, Ko/lo\\ slit. "()ill- su:ce..Ill
! lie 1 Lllll'C Is pfCdl:,ltell h1 IRIr
Iil_ :I`Il imimcm it, 11ro\IJIII_ file
!C\CI 11 quahi\ Ili product
x1d Ill.m.1- Neill. anti it, lit, till% till
Ill,: most :t'.t CtlCall\e h;l.ls."
11C''!l,1ps tilt: %C\ :,'Illpollellt tit
!! %irate_\ I. the C,►)lreen (lualit\
I ," d Sienice Pro-,r.lm (CCJI S11)..1
_notlp t'f h.ick-t,l*-Ilie -hlIli se and
ir,IIII- t- IIIC-IllWsC 111.11lt1.1Is \\111C11
.et torth file C'alllcen standards (Or
c\ er\ :on:el\ able operational proee
JIIl'e. imi ng, Ironi production lCCll-
nitlues It, phic presentation anti
Hier: h.tnJl,ln_.
"Tilt: heave\ of this oroeram is
that II enahlcs relalt\el\ un%{ illrJ la-
hor1l'su:cessfull\ produceand mer-
:ILUldl.e the C.Illleell 11R,Lrain.'
.:I1s ,,%m R,'I,m%0Ii. dlrCClor ill dl-
CICII:. .111d file chief :Ircimecl tit'
C'01141' "Crc.1me people call eo
tallh;l h\ implcinom l_ their t,\\n
iJe,ls \\(Shin ill 1'r.t�ie\\url. tit t,p-
11,'ll,tl pl",1,_Ialll♦ "
((►1S11 \\as mitoduced tit 11)"ta
6
(i11lAt,•r'...*-..•PI"t!t•ll r.l,,'.rlI,VI:tJII'rr:r,•It! -lC).ur!,•Ili.,''•;u?,!:r
,rl1J is tithe: t r\ el\ Ill pla:c Ill .111 Can-
teell ,I::oullts :t'1111',IIII,'ll prl,-
= rail ties unit maimocnienl'. incen-
fr\es it, him ch's,l\ file COI.11'
'`1011J:IrJ%:►re tt,llt,\\eJ III addition.
.I,IIIJard-he:Irm1'1 ai:t'tult. I11.1\ lie
Jesl_IIMCd ;1. Irainm_ :emers too
Will mallal_er..
C Q1 `il I' llctlon% as ;1 i`,ulern for
\Irlll.11l\ C\Cr\ I\pe Ut ack.o nt :t,il-
rnl_cn:\, For Iwomice, manu.lh on
Hot FOOLIS anti Cold foods are ar-
r:ul_eJ h\ module —such a.Soups'It
Such. Earl\ lilt Ll (hreakLisi ). Farm-
er'. \I.lfkct (salad hars). and Main
F\em (traditional hot entree•) —so
that 111.111:1_eillelll call adapt the pro-
grams to the requirements of a pair-
Ilcular :ICcolllll. Sllmllet a::oullls
n11_h1 h:oe ,,nl\ tine Ill till i-purpose
.elf -.en ice area. \\ pile hll!h \ olunle
ZI Cot1111. Il11Lh1 (llld it 161.11711C It► hat\e
separate ser\In_ area. Gir file salad
hair. a tiuit har. dessert., ell 1110
manuals alloy tOr all such \artation.
Full -color phmo_r.iphs Illu.irmc
,lep-h�-.lep dpproaclic. fur ploce-
.lure. like paimmu, hot 10od. tit h\-
111_ tali I lie salad har. Fell nici':hail-
JI.III_ Iechnlque, Such a, the
ilI spl,l',s ahI'\i s:1 III_ 1111:s .It:
spCll:.I kill h\ 111C
hI`url\ t','•al.er\I:: \\,`rl.:rs t ' pat
Colin the I.I,I. In ,LL}ut,`n. lire Ir.rl
11.1!s,11etl.etl;!I:,'I?;llll:lt.`!t \\!I!'. !1IT
and :''Itt J,ul, '
lt,_ ,1•IILJ tlhhl ItCill 1, s,I_: ,1_.W i
t�,retasled u�a_:. -InJ I'01 nl\::;l, I \
Alld I'f 11et pill pI'.es
i I' Illsll re :I'Ilslsl Clll tl ll.tlll \ 111
I,rt4lll:l..111 ra\\ Cood Is ptll':11.Is:J II
C•cuff;en'..pe:lli:,tll,nl.,ln,l .Ill
pes .Ire Niand.lydu d. Recipe !1'..m-
ll.Il. 111,111tIC I1111'I Inallt111 I'll tItI,11111.
IIC. I'Cgtlll CIA II,I' % X 1011..,lle. le\ t'Is
For I.tr_e \plume o counis. Canteen
Is pipit IC.III1: a colllptlt:rl/Cd s\s-
ICrll .11 (lie I11\t•rs11\ t'1 %\ I.:I,11.111.
O%h rt,.li. \\lu:h c,lll Ile IISQd Ill
shrink ore\paid recipes
nunlherot'people. Sa\.I red Nichol-
%t,li. \ Ice president -nation 'if sales \iI-
reclor. " f llese piokill: i 1,111 .\.I Clils
Are unitlue It, file nldusln..1nd _ne
it, 0 ,(hale \\ 11,11 \\ C re dt,-
rll's. .are \\e pt,rflonul_ :t'Irr:fly'
Ale \\C tl,IeC.l.lnl_ .I::111,I1C1\ mid
1hIII_ UIII' i\:IC 111t'Ilti. It, file hest
Ill ;Iddilion. the conlp,ul% 11.1s
86-1021
%tsion can be classified as manufac-
turing. And, to part due to recent re-
co%er% in the econom% and in part to
Canteen's o"n impro%ements in op-
erauons. these accounts are shoN ing
marked netk strength. The compa-
n%, %%htch did humne. as Automatic
Canteen Corp. until its name was
chanced in lQt h to reflect its mme-
ment into manual food%erwe. con-
nnucs to operate more than 2W
%cndmc distribution center. and
owi-. ncarl% 2M.O(0 machuies. In
%endurc accounted fol .40 per-
Cettt ofsales
"%%c'%c restructured sot as not to
Walk a%%a� from industn," explains
Daniel R. Krpan. %ice president -
marketing. "Rather. He want to he -
conic less dependent on this type of
hu%ines. The business mix is
changing ..
Canteen has aggressi%el% pur-
sued "%%hits collar" accounts. In
fact. %%ithtn ns Fond d: Fending di%t-
%ion. 90 percent of the ne%% accounts
booked in the last four %ears ha%c
been non -blue collar, according to
Krpan. In addition, the eompan%
%ie%s seeral ne%%er markets as ha%-
ing high gro%%th potential. including
health care —acute care hospitals.
t
and retirement and cony alescent
home —leisure and recreation, edu-
cation, and correctional institutions
As a result of this push into alterna-
ti%e forms of business. Canteen's
prodigious list of accounts no%% in-
cludes eer%1hing from Yellom„tone
National Park and Yankee Stadium
to The Presbyterian Home and De
Kalb Count\ Jail in Georgia. In ad-
dition it) handlinc more than U00
traditional manual foodsemce ac-
counts and 100 executi%e dining
rooms. Canteen operates a dog
track. o%►ns a company \%hrch pro -
tides pre -portioned lunches to ele-
tit. M.ur.r_crrrcnt st.111 (I fit r / D, or Sch,u 1: r. I Ld Racluc. Lee G(r.c•. Due Finger. kin .-Garr". lip,'.*
Jolt': \411'.r. Govev l:)nnerson. Bob h,vhm,kr. And Du1Ii. Larn 14} kt, . Gwr'ge Toner. Karl Sedlarz 11:!
heir D.rtrd•,vr. Rrl/ a arl% n. F.1/t,�t KnonoR: 1-cil Arcs. D.rn Krh.m. Hj1 Br, .ur. and Darrell
no
t f
Canteen: Profit0
ing from a
diversified portfolio
Bonn a \ending compan, ill 111_U.
Canicen Corp. has sunned challe-
1112 Ck t\Ilk\Illl, tide, and it %Llc;C„loll
of ditfcrent parent oreaniratlons hli
rcmai n . .idaptable .Ind tomard-
thlnl.;n;_ \ol )use a \cndnle
n\ .In\More. Canteen lla,dr\er.itied
roll\ Milo the contract foodseriiice
1rina hi. ,eckinu ai-
;. tints nl the business S lndu,tr\.
t'C;rc.wtln. correctional. health care.
.Ind educ.ltion Segments. In lQ81.
Canteen a:hie,ed record pre- ta\
rr, tit. ,'f �_".h million on re\enue•
t "n" I million. malsin_ it the third
LIl est food,er, ice management
coniran\ in the countr% in term, oI
re\enue,. behind onl, ARA and
\Llrnott
E\plain, Robert A. Koilo,\ski.
\,ho capped a 15-%ear career \,till.
Canteen h\ hein_ nanied Its presi-
dclll and ihlel e\Ciutl\e othier earli-
er this %ear "One of our biggest
challenges today is hemp able it, an-
ticipate -and react to the changing
nature of the marketplace. For e\-
aniple. through ,killed management
and the ihllir\ to he fle\ihle. Can-
teen „as able to react quickl% during
the recent recession. „hen \\c con-
tinued to maintain and grtl\\ himom
line prolitandii% despite \olume de-
cline, in sc\eral of our major
market plaices...
Koiltm ski refers of course to the
fundamental change, \\high Italic
been occurring in the American
ccononl% mer the past se\eral %cars.
iall,lllt! a,slllfl front a %mokcaaik-
ha,ed ;eolh\Illle ,,,teill to title of ill-
forni.lt .m. io111Ill till 1;:ilion. and ,er-
\icc nldusirie, IThrou,houl the
lilld- and Iale "11s. „Mile C:alncen',
rc\enues _re,► slg-dil\. its income
dlpped and %\\a\cd. a %car or t\\o of
In the past several
years, Canteen
has diversified into
the realm of
health care, re-
creation services,
education, and
corrections in order
to strenghten its
bottom line.
impro\enient follimed b% one of dc-
eline Mosil%. the declines „ere the
effect of \\ork-fOrce reductions and
plant closings among Its traditional
large industrial clients. It \%.is clear-
I� lime to di\ersil•\ the husulc,s hasc.
Canteen's stratci* of \,gathering
stillness in hca\\ indu,tr\ h\ en-
trenching solndll, In less i;\Chcal
1) pas of accounts —like hulking and
high technology —and h\ dewmig a
great deal of its energles it, such
high-gro\\th areas as recreation and
health care. has been re\\arded at
the bottom line. Despite the fact that
re\enues dipped in lyti? to 5750.1
million from 5785.8 In lyrl. income
rose SIA mullion. to :'_.b million. in
that period. All increase in net ►n-
comeol'22 percent III Itl\Z I,al1C\ell
more posit, e harbinger of KoAl" %-
ki's plan to su.lain a compounded
annual net income,rowh rate of 1'
to 15 percent o\er the nc\I li\e %cars.
Mcan\\ hile. the past 15 \ car, ha\ c
posed tither challenges. The C'hica-
zt�-based itt111rMl\., �,\\netsh!r Ills
changed four Ittlles sII1;C l`1tjL). \\he'll
it \,as acquired h, ITT Corp In
Ill"=. ITT sold _0 percent of C.nl-
icell's stock till the open inarkel .Is
part ol'a Justice Dep.trtilicni decree.
.end Canteen hecanic an indercndent
rtlhllel\- held conlpan\ The frllo\, -
nr_ \ear. C.1111cen \\as snipped up h)
Trans \%orld Airlines. Inc. Are.ld,
parent of ililton Intcinatlonal
In J:Inllar\. Ill-O. a tie\\ holding
conlp.tn\ c.Illed Trans lit orld Corp.
\,:Is Formed. %%till the mrlutes. C.ut-
leen. and Hilton heconung \\hell\
o„ned subsidiaries. In the ensunlg
\cars. Trans World also cnicred the
real estate business \\till Its Icqul%l-
non of Centur\ "'I, and added Aldl-
nonal tood,Cr\ lie c.ip.lbiht\ N till It,
acquisition of Spartan Food S\s-
leniN. the imner-operator ill the
Outing%', Famll% Sicak House chain
and the countr\%. lar_est ilardee's
frani:111,Ce, [)ill de,plic the comrlbll-
tion, of Its film non-:urinlc hu,ln-
e,c,. Trans World'% results \\ere he-
1111! hurt h\ TWA*% losses. and ill
Februar% 1084. the airlines \\as spun
till'. Canteen's parenl ,\as sub,e-
quenll\ rechristened Trans\,orld
Corporation. and In the t\\oquarters
since the spin (Ill' has ,ho\\n protit
Impro\ements of o\cr I(X) percent.
C.111ICgn', longstallding autono-
ill% "Rhin its parent oreani/ation
has enabled the companyto pursue
its tmn goal of di\ersiticalion \\ithnl
the foodser\ice IlldLl,lr\. Yet Ktv-
lo\\ski .and other members of the
Canteen ewcuti\e leans are quick to
Point out that the compant, is hi. no
mean. ah:uldonnta us Industrial
contract and ,endm, businesses.
More than a thud of the .1 COUllts in
the company's Food S Fending DI-
A BILL PUBLICATION FAST FOOD'
77
6
November 20, 1984
�A
a
SPEC/AL
REPORT.•
'47
yyyyyy
There are a variety of ways to
develop a business. Take foodservice
management, for instance. Canteen,
in Chicago, has grown in its 55-year
history to become one of the nation's larg-
est contract feeders, with 1983 sales of more
than $768 million from about 900 manual
accounts and nearly 200,000 automated vend-
ing machines. The company has maintained its
strength by diversifying into all types of contract
foodservice, including Health Care and Leisure accounts..
I
City of Austin
NUZ Event
Facilities
Lesta;, E. Palmer
',a ••c h 21, 1 M Auditorium
City Coliseum
TC ::t!C" I T MAY CC'.'CTRN :
In Oc tcber of 19;`?. Volume Services Inc. ..As ay.arded the food and teverage
sorvIce contra . ir, Pus'.ir's Puhl is E v c,r: Facilities. T':_ c„arce f,•or' a
lcca. cunceLsii:r t(i s iat'_na'. fD' 4 arc! Bever:"F ccrr.,ar.v has o`'oven
:o t a vE--y pcsit �e a:varta,E .n u::` 1:.= Lee ce a. _i. Volume carefully
Panned the ti'ars.ticr, arc' curried it w-t:: no i.•terruot'on in ser-
vice to our cus ;.;::-.e•'s .
Oncz cn tcard, V,ey began renovation of
o,. c^!:cession areas and have to -
date Trade major i-rrovernt: to both the
facilities ar,4 equipment within.
As a res!jlt c` -.re;;* effo.•t anc.1
we are generating sore of
the highest per :aorta it the cointrv.
C :► uw t manac27erit works cl:sely
with r^y staff t; provide v::., Ecv r set-;:c
s ne:essary :o best serve the
even:. In Cu- `:._:lity we rar c-.:� :�
e.r : tars ?a_t :�cr, ar.c' trey rarge
fr:- %!,c'e:ns `_ :50 cornuraf.c e..�cu:
._s to F.r^,;' .__.,.a:��inc rocr, and roll
.
fa-,_. In all cgs=;. Sory ices h,;_
c?;•. -ed to thN reeds of the event
ar.. t_a5 rr:airita,-,e: the q„olii.j standard
:.. c.:-I!��-r:ors hate come to expect.
if yc:. are consira a Tout' ar,c' bFve
.Lnt,-a;t nor your faciii,ie� : .,
woulW" encourage j�u tO loot. at what V01u-'2
5er•,ices Inc. to offer your
operation and y;u,• customer;. They are
t., J), a rrofe5sional full service '
food and beverage company that have made
cur customers iirra my staff proud
to have them in ou- operation.
Fespect`ully.
Rcn k'cod
Director
R;J: rvb
1 CMMf,-%O/ " CONVENTION
CENTEM
August 21, 1984
TO WHOA! IT MAY CONCERN:
In April of 2982, Volume Services, Inc. was awarded the food and
beverage service contract for the Fresno Convention Center. The
change from a local concession operator to Volume Services, a nations:
company, has proven to be a very positive advantage to our food and
beverage operation. Volume Services carefully planned the transition
of services and carried it thro-sgh with no interruption in service
to our customers.
After the transition, Volume Services began renovation of our existin(
concession areas, and have to date made major improvements to both
the facilities and the equipment. Due to the efforts and expenditures
of Volume Services' management, we are now generating some of the
highest per capita we have ever had on events. The Unit managerment
works very closely with my staff to provide whatever is necessary
to best serve the customer during events. Volume Services has always
made every effort to maintain the highest standards and quality our
guests have come to expect.
R ert A. Schoettler
Director
RAS /wan
A
700 " W' STRUT. FI UNO. CALIFORUTA 93721 TLLEPJ10:;F. (209) 48b• 1511
86-1021
:a Y
I
is
i
! Pompano Park
November 8, 1984
I
io h'r:m It Fay Ccncerr.:
As executive rice president and general r.•ianager of Por:pano Park
Race Track, it ':as been my pleasure for the past year to ti:crk
with Volur.= F:rr:ces Gcrperation, our facility's foot and
a.
Leer ace catc:c:rs.
a�
Vc:lu-:- Ser•: ices has s: rved Fcm-ano fcr the last 12 ycar s, and
we re: Er,t 1y e- _: e� a :°.e:: tEr - •ear ccr,trr ct w th the^ ir. C.
�K
i�
Tnc'.' r.-ave Eh--. :. a Ei::cc•r C tc do their Fart in kc-te .^.0
�i
Por%panc as r.=dern and bc-2.::1Fu1 as it is, having r'.id•: r.ajcr ca ital
impr cvenents In several arEas of the <<ci lity including rer.:, v, bens
to t':.- dining room, liquor hL.-s a.,:: private clubs.
I:, regard to the quality of product and service, I am well
setis.iec with the way t::_y-rcvice fcr cur patrons a.-d the•
wev the:' ser�:ice c•ur 1,20� sca: czr.ir.g roo:.., our ccncessic:,
SL(_ •i.J anc OU_ 1r h r.
,..,.r
I- Fc.._ticr., V_?t::-.c S_rv_ces r.2nagemen_ at F_r; Inc is c,--tc
r:5t_..:. •'C tc Cur neECS a:,: the nee-^s of curFa:r�n5 as well
�= i:-7.- :cnszt..'e to the :cr,ar.c Park c;-c_a ic'n in c_.nera1.
h.:C...: 10En:r ... ��_ _ -"E Services and wcL'.G rECCrr. E•.d t}::
fc_ fcce. etn' teve.ace services at ycur fac-' y
1'. i:ra vc ry truly,
/ �.
Y.:3:c14 S. Duris
E�:__s:it•c Vicc Prc.4;c.L-nt
_
Kona c:•
5
NSD:kim
•
The Winter Capital of Harness Racing i pp��++ n
IM' S(1l'T"F�T THM, STREET PO%IF'&%O IBEACH FL 3.3r6 86-1o21
aimea Falls 01ark On Oahu's North Shore
August 21, 1984
To Whom It May Concern:
In 1978, Waimea Falls Park concessioned it's fjod and beverage operations to
Volimp Services, Inc. They agreed to employ their vast resources to maintain
our very high standards and maximize our profit potential. This was really
a fortunate marriage in many wa7s. They improved the Proud Peacock restau-
rant serving light lunches and fine dining in the evening. Volume Services
has also vastly improved the sales at the Country Kitchen, a fast focd outlet
with 4 windows. Several other food and beverage outlets on the property have
been created as well.
Catering special functions both on and off property for wedding receptions,
polo clubs, political functions, and the like have boosted our image i=ea-
surably. Volume Services's crowning success has been their ability to create
elaborate theme parties which our sales people are able to market to the luc-
rative travel incentive and association markets, competing head to head with
the highly sophisticated food and beverage departments in the major P..onclulu
hotels.
The greatest part about all of the increased business is that all of the un-
:; pleasantry and humbug associated with the food and beverage business belongs
to Volume Services. (Re^ember, we ran the operation ourselves for four years.)
The second greatest result is that the 150-ish employees collectively working
for both coapanies in the park operate as one family. We even have joint
Christmas and summer company parties. This healthy situation is primarily
due to the professional managerial attitude which we have experienced right
through the Volume Service hierarchy.
1007
Roberts Leinau
General Manager
'. RL/tdn
d jt
4E A
Park CIMCO 59.854 Kamehaneha Hwy . Halema. Hi 96771' Ph 638.8511
Waskiki Sales oric�. Sullp 1309 22?? Kaiakaua Ave. Honolulu Hi 9r.G15 Fr. 9?.1.844q
96-1021
WEA' PALM BEACH EXAJS
P.O. Box 2686
West Palm Beach, Florida 33402
6V>=
September 8, 1986
Mr. John Malloy
Volume Servies
P.O. Box 3087
West Palm Beach, F1.
Dear John:
Can't thank you and your staff enough for all the
help you've given us. Wish we had been able to
bring home the Championship Flag, Just think how
we could have promoted that — "Champion Hot Dogs",
"Champion Soft Drinks", etc, etc.
There's always next year!
Sincerely
W,U.e4/
Ann Sowers
•
OCR 1. jzco
86�-1021
E
I
{
1
Tampa Sports Authority
EXECUTIVE OFFICES 4201 NORTH DALE MABRY HIGHWAY•TAMPA, FLORIDA 33607 •813.870-3060
May 12, 1986
TO VEM IT MAY C3XIM:
Volume Services, Inc. has been the Concessionaire for the Tampa
Sports Authority ("Tampa Stadium") since July, 1977, and can only
be described as unquestionably a member of our team.
F
9
Although Volume Services, Inc. did not bid the highest percentage
payable to the Authority, it was selected nonetheless. It was
e primarily the plan of operation proposed by Volume Services and
' its effect on Gross Revenues that influenced the Authority's decision.
I'
We have newer been disappointed with that decision. They have main-
tained a program of updating equipment and facilities, and continue
marketing efforts as relates to new products.
They have always been sensitive to the image of "Tampa Stadium", and
work in partnership with us to maintain that image. All levels of
' tames management are available for consultation at all
• and special
Events at the Stadium draw cca>pany-wZde participation.
:- I have stated previously, and continue to state, that this relation -
AL ship has been excellent.
�a
(9velyc
Fjz
e r
S AUTHORITY RIY
d v
d
8E-1021
C
i
4
4
K
0)
August 13, 1984
TO WHOM IT MAY CONCERN:
Volume Services has been part of the Casper Events Center's
team since its opening April of 1982. In starting their oper-
ation in Casper, they were very organized and made our Grand
Opening and every event thereafter a success.
The staff of Volume Services works very closely with building
staff, working with all our needs and concerns. They have al-
ways maintained a quality of standard that is necessary in this
type of operation. We have re=eived many praises far events they
have catered.
If you are in the market of a concession, catering, and novelty
contract for your venue, I wholeheartedly encourage you to look
into Volume Services.
Sincerely,
James M. Walczak
Director
Casper Events Center
Number One Events Dwe, D O pox 140, CaS,)cf, %x,y mma 84'.1e , P►�onc 007; 577-096'
Wlntr• ?f InlenIM,Md, A: 'i 9' :Y O} A.�O•tti n 4W.3 r•,,
86-1021
Fo,6j Services Canteen Corporation
AqjQjj
f�
_ - -
Serving Our Cvi#Ww i in
_ w
1 NTF R' L
It
r
C
1
IU
4
gr..
e
>M1
r
-
i
6
Conteen*s operating ill-
eonlr• ple\\ 11). 22 and 38 lu•l.rent in 1983. 1981 and
Vm'.-) re-llerli\el\. The 1981.5 im•rea-e' \\ould hale
been 27 percent except fill. 1114• atc•clui-ilioll of Inler-
mate 1 niled l:or'1►oralion. Thi-double-di-it profit
grm%III will steadinll►ro\enleul ill lne-tat\ margin- is
laurel\ the result of it 1111'ev-llatrt "Oralen
.d hrllanred diversification /Irt►gram. Using its
e\l►rrli-e• ill nlanahinh contract err\ iec••. Canteen has
gl.oa II in ne\% nlarkel segillerlt- stich a- -rhool lunch.
delicate--em in office huilditlg and food .er\ ic•e in
rorrerliolt� 1,11•iiitie•.. In 1983 Canteen purchased
Preh•rred Meal \stems. Ili(-. . the largest pro\ ider of
l►re-l►ortiolled lunrhe. to sc•heeol children. (:on-i-lenl
\� ith managenu'rIl•�- Ilan. Canteen secured -V) ne\\
delicate --en ac•c minis (fill-in" 1985. Although profit-
have not met oririu.11 e\lertalion- due Ili an Mel
•uppl\ of.offirt. -parr and I'mer orelllal.11r\ r'ale-.
Canteen rolltlllut'- to -tee r111o1'1111111\ Ill the TI'o\�IIIr
office matrkel. In addition. the romlan\ ha•-urrt•---
full\ Iur�ued ill rount- in grim inr; -ernu•nl- of its
tiodiliollall ,ugh it- IliPh deli•rl.e.
I,.mkill_. and pt,\erlunenl.
1
I 1 turlullii7rfelfllt,/,loritli►1� 1ht•hfrhe.cl yurrlih
/rust wrl or Il div 111ml e111tYt'l11 INallrfer. ,�• tY111-11111-
et'- .Ile e.11111" Illt,le .11111 More Illt'ad- a\\a\ 11'r1111 ho111t•
I
a111t1 r\l,et'I High 4111.1111%. \allel\. alld allrarll\e• Il.e-
!-e111.111t,11 ill 1111111. I tllllllr I11 Illy %wrkldare fop' Inapt\
baps e\ell luv'oltle dw 111'111t'lll.d lile.11 ill the da\.
1{erurni�m� phi-. l:a� ee'n ha- de\elolc•d a •Iet•ial
rapal,ilil\ (o nu•e1 the dellland- of its ehanrin;: and
' di-t c•rnillr ru�lt,nlel. hat-e.
/'punt gmuth thrtmg,h ilfrrooed market .\bane
awll,rllellull,ul ill grow lh nmrl.o... Canieen ha- nu,\ed
to rl.u\\ ill loud -vlA Ire -erlllc I11- 1\ her(• 1►olellllal
a
Quality People .. .
L
I.
I:Prl
ww4ast f%m
0
r
0
Quality Products .. .
clients still operate their oHn facilities. such as local
l-% school districts. prisons. government institutions.
health care facilities, and retirement communities. In
the more mature areas of the contract food sen ice
business, Canteen has successfully marketed against
competitors, and, as opportunities arose, acquired
other food service companies.
In 1985. Canteen's revenues increased 18.4
percent to 8983.8 million. with most of the improve-
ment coming from food ser%ive. vending and recre-
ation accounts. Canteen achieved revenue growth
through new business. account growth. pricing. and
acquisitions.
Operating income in 1985 improved 37.7
percent to S42.3 million as the operating margin
increased front 3.7 percent to 4.3 percent. A continu-
ing strategy of diversification. a change in the bu-i-
ness mix. and cost containment. contributed to the-c
results.
1985 Food Ser,.ice & Vending Revenues
lincludmg 1wersldlr t nnrdI
Food ,er%ic•e revenues and profits increased
27.1 and 7.9 percent respec•ti%el% as a result of
higher volume. and a net increase of 629 ac•cuunt- to
a ne% total of 1.585 accounts. This growth includes
new business. Interstate United accounts and other
acquisition.-.
Fending revenues and profit: rose 11.6 and
22.8 percent respecti%el%. H ith margins in thi., area
increasing from 5.8 to 6.3 percent.
Recreation senic"reported increases- of 39.4
and 45.1 percept in revenues and profits respecti%el%.
The improvement Nas due to increased sales at The
penned% Space Center and Yankee 5ta J441.1i�; 1
impact of Interstate United*.- rrc reatio o
Food Services I Canteen Corporation
I
Expansion .. .
Preferred Aleal Systems. In(-. revenues and
profits increased 14.0 and 17.4 percent respectkelN.
In 19K5 Preferred Nllea1 Systems pro%ided 42 rnilliorl
schoul lunches to students and initiated pilot food
sen ice program, for the growing rlderl� population
market in 1%o geographic areas.
Canteens 76 franchised distributors enjoyed
imprmernents in both revenues and profits. This
franchised distributor system is unique in the contract
food service management indumn and offers penetra-
tion in geographical markets that othemise maN not
ha%e been de%eloped h% the corporation. This suc-
cessful partnership of 56 years provides local owner-
ship supported b% the purchasing, operating and
managerent expertise (if a large national orgirnizat)ull.
The'.1lilnot Compact%. a producer of canned
milk l►roduct, as well as a line of chili and beef ,tv%%
product enjoyed increased profits as a result of a
new packaging process for its products. and increased
penetration of the "pi-katr label" market.
Rmw Corporalion. Hhich operate, ci�arrtlr•
aml coin -operated nlu•ic and anal -relent dr% ice•• in
pill1114 111, athm-. ill-U-b„ ed l►1'1►fll illipl-merllt•Ill il,
the et --tilt of a partial %ear impact of Inter -tale l'nitetl'-
1►ul1lic \ernlin;: sale•- and prufit-.
Interstate l nited Oil October 1, 1985.
Interstate l sited I►ecann• part of Canteen and tilt-
• nit•rginpt (if, the tNu companies Ilas procet-ded sluuothl%
and on schedule. Tilt- acquisition of Interstate wa-
eonsi,tent Nith the of %reking collipanie,
%hich l,arallrl Canteeli s oprratiolls and share
its business rnissiun of greater growth. lnlerstatt:s t"o
majur business segments augment Canteen operating
di% isions. expand market penetration and offer oppor-
tunities for s%nergistic growth and efficienc%.
biterstate L'nited's tNu major di%isions include:
BusinNs% and Irictitutioms Gratij). It•n ing clients
in: corporale lit•adcluimt-rs. financial srnices. conl-
nterc•iel offict• buildings, manufacturing. gmernmem
facilities, sc hool., and colleges, health care. and
conununit% nutri(101Aprogranis.
Itilume a iCes Group. Pro%ides see ices ill-
cluding: food. souvenirs and related see ices at stadi-
ums. arenas. c•omention (-enters and recreational
a facilitits.
Food Services I Spartan Food Systems, Inc.
Serving Our Cus
rs..
Sparlaii oI ►erates 54ti
unit• in lhe;uulheast L.S.—the natiori4 faslesl-
UrMI im, region —about double the number at the end
ol' 1979. its first %ear H rlh lransNorld. This gromb
has been achieved thnnlgh:
Controlled unit e.rl►ansion. With its oHn
real estate and construction departments, Spartan can
control qualit% and costs during the critical stages prior
to the ripening of a restaurant for business. Careful
scheduling permits management to set precise open-
ing dart•, and plan suc•I► pre -opening acti%hies as
training and assigning unit management. cash flo%%
and markeling prugram,. In 1985. l►a units Were
added. an increase (if la percent.
lmprowd unit l►rolitanditt. Spartans oper-
ating profit margin in 198.-) Nas 13.5 percent. its
fourth highest in 25 gars in business. While the
Harder• di%ision achie%ed a record %ear. %%ith im-
pro%ed unit %olumv - and traffic. Quinc%'s nulr•gins
%ere 1(mer as it result of ad%er,r industr% condition-s
and gro%lh-related problem, di,cussed (►rlu��.
Operating Earning• nnlli.m.i
-z
m
H 1 IS_' Y S lit 11 1
Tirl►t ,perating man(igernent. Indi%idual
114111ger= valuable field experience is continually
-Upplemented %'lit ongoing training program%. often
designed N lilt specific curricula fin• each Ivwl of'
Illallagt Illt I11. lit 1985. apprommalel% 5W Harders
and (< mm-%'s management personttrl atlended thrsr
rour,t•,. Ihu, ht•II►ing Ili ryand Spartan s base of
,t•aw1►Ili•►I It•,t.11llallt IlrUft•„II IIIiII,.
I{r�< Hues front* parlari s reslaurant, in Ill
Southeast stale, ruse to Sto1.H million in 1985. 9.4
(►198 1. l Iperamw profits increased 6.9
prrtenl It► �l►'?. ; nlilliun.
Quality Pell) e .. .
Q 1
s"
�' � • .. .i•�rt,.,� �.tY�*J ; �z"y 'if�•�!3'�i"'yt�M1t �.� �'rx � +� . _
Y
i
G
Quality Products ...
Spartan's Hardees division achieved a 12.7
percent increase in revenues to 8281.6 million in
1985. Hardees operating profits Here $51.7 million.
18.1 percent above 1984. The breakfast program con-
tinued to gain strength during the year. Units in-
creased 16 percent marking a return to more aggressive
unit growth, and per store sales rose 2.6 percent to
$923,000. representing "real growth" of 1.8 percent.
Revenues at Quincy's grew 4.7 percent in
1985 to $183.2 million. QuincN's operating profit
declined 29.8 percent to $11.0 million. A 9 percent
increase in units was offset bN a decline. of 7.4
percent in per store sales to $88 7 ,000.
In 1985, the Quincv's division dealt %%ith: soft
traffic in the dinner house segment of the industn, in
some measure a reflection of the overall economy and
increased competition from various sources: the de-
mands of absorbing rapid expansion (Quincv"s units
tripled between 1980 and 1985): and significant
changes in consumer preferences.
1985 Locations
Q9FvqM oil
H�
O H 33
Q 43
In both its Quinc%'s and Hardees di%isions.
Spartans primar% concerns in menu expansion are
qualiiN control and operational feasibility. Spartan has
mined cautiousl%. but steadil%. to broaden the appeal
of both of its restaurant concepts. During the year
Quinc%"s added soup and hot vegetable bars. and a
childreiis menu. Hardees added a neA cinnamon
and raisin biscuit and Hash Rounds potato pufi� to its
breakfast program.
In 1986 Spartan management will continue to
stri%e for impro%ed unit economies in its Quin(.%
division, that compam"s high -potential F , l(� 1
cle. and to maintain the strung competitReVposition of
5a
G
v s'�
1- not" '
Hotel Seri -ices I Ilion International Co.
_ AR"
-ML ..
-A J!i
z
t
1
i.
•- -
-AW••' r -t
s
.A4�
Serving Our Customers Through
T.
j-V
17
a r
J
"4j
Hillon International has
achIv%ed profit growth averaging more than 15 percent
per year for the past 30 %cars through:
Emphasis on operating agreements. Hl pio-
neered in operating hotel properties around the world
t rather than o%ning or entering into fixed ohligations.
thus minimizing its risks. This was originally done
through ulcerating agreements in lease furor but Lased
upon a sharing of operating profils• and later through
management agreement.. As the c•ompam greA it
entered into some fired or minimum guaranteed rent
agreements and acquired the uHner•hilc of hotels
%here there Has political and economic stabilith and
the prospects %ere fa%orably. These hulels ha%e made
substantial income contributions but the nlajurit\ of
HI•s contracts are of the management t%lu•.
Operating Earnings ills„I ululi.l
r.' rF �-h'. �...y—.•y'1Y�(- � '..� CRY :... .
ry 1- to
electirrE.xpunsic►n. HI nlanagc•nlvrlt has
al"a\s been srlvc•tI%v in its de%vlupment of hotel
pr'ujrcls. prucredingunl� Kith those which. in its
OfIgnu•n1. Munld meet a nerd in the particular
markvt and br consistent with the standards of qualit%
fi►r Hhich it is hntmn. This has been parlicularl�
irnpurtanl in lbr re(•erll past. Nhich has'Aitrlessrd
.ul,slanlial ucc-r-building in the hotel Ituluarl in thv
t sited ;tales as Arll as in .unit• otersvas arras.
The•c• hack ha%v nut. ll(Me rr, pre%rnled substantial
ryan�Wll k Ill and bouts li'm Under o•unstt•ucliuu
till incrt-aa its rooms h% user 211 percent.
.4c cent c►n Pro%r.ytormli.vm. HI•s (Il) hotel, art -
operated b\ Ilnatlager•., front numerous countries Nho
L
hlt one thing in conunou—thr\ ha%r dv%rloped
r carvers %1111111Hl (ner the gars and ha%r be•t-nrfullc nliturrd at rich stage in their career
ancennrnt. Tllr% hoer also had the benefit of
�7 r"
Quality People .. -
�rW e.wyrY.srarr�` - -_-..�ct6n'• rlMfiii�bM,nwA
Hotel Services Hilton International Co.
1
Quality Products .. .
1
specialized training in Hl's Career Dewlo1111wIll I,,
stitute at various stages in their career� iuclu,lii,�
advanced training in their managerial capdritit•-.
Hi's revenues increased to $694.2 million i
1985. 2.8 percent above 1984. Operating pndit!-
increased 17.3 percent to $73.6 million, reflect ii,�_
improvement in operating profit margin from 10.3
percent in 1984 to 10.6 percent in 1985. (),•,.u1,u,,
declined from 67 to 66 percent.
Western Hemisphere hotels ac•hie%c,l a a. I
percent profit increase in 1985. including 11111In11 I•li
results in Canada. South America and nw,t L.S.
hotels. The Drake hotel in Chicago reported sul,st:u
tially improved results.
Asian and Australian hotels had slightl% liigh,
profits in 1985. The newly -refurbished Hong long
hotel had an excellent year. Recessions and o%er-
building in Malaysia and Singapore. and fiat full -
year operating losses in the new Tokyo properIN
restrained overall profit growth in this region.
Hotels Opened 1981.85
Nam:
�w L
MEN it ■
• ■■■■ . .■
_ Illl.l_1_111. I-ll-l-ll-_
,.
European and African hotels had
tiall% higher profits in 1985. primaril% from 11ir t1.,
London hotels. including the renovated London I I,!
ton on Park Lane. 119unich and Paris al.o hall
lent results.
During 1985. new properties. both urnl,,
management contract. opened in Kansas Cit% and
Oklahoma Cit\ in the U.S.. repro enting a nc•t i,,-
crease of about 8(K) room..
In 1986. HI plans to open three ne%% h.-t, '-
representing 1.448 room: in: Pittsburgh:
Japan: and Brisbane. Australia.
�� A,
h '�.
:al l,ruprrt% and equipment, net 607,280
486.720
429.448
413.660
430.200
:.cl aasrta 1,329,347
1.146.411
1.461,988
1.448.155
1.555.973
ail'-trrnc debt Ir.- current maturitir• 152,830
136,909
158.728
245,349
355,990
""jicurrrnt obligation.- undrrcapital Irasr� 38,613
43,818
52.381
63.166
76.666
• ;Arrhulder: rquit% 763,182
650.162
556.688
843.292
809.868
�,•lectrd Consolidated Ratio-- from
'
t:ontinuitig IIprration-:
1r
7
i.47c
6.7%
6.6%
6. 7t
wrn on awrage ryuit% 14.8
16.3
11.4
14.0
23.1
'-lit a� a l►rrcrn1 of lutal capital 21.0
23.9
30.3
48.8
61.6
l96-1021
�r -
V
Oks 00
Management's Discussion
and Analvsis of Financial Condition
and Results of Operations
•
Liquidity and Capital Resources
At December 31, 1985 and 1984, Transworld's working capita'
was $134.3 million and $163.7 million. respectively. This
decline is the net effect of several significant groups of transac•
tions: The sale of Century 21 Real Estate Corporation (Centun
21). capital account transactions —including the purchase of
outstanding common stock under a previously announced 4.0
million share repurchase program. the redemption of the Serie
B preferred Stock and cash dividends: the acquisition of Inter-
state United Corporation (IUCI: and the addition of almost
S160.0 million of pruper[y, plant and equipment with internal]
generated funds. Funds generated by continuing operations
Iinc•ome from continuing operations plus depreciation less
dividends) amounted to 9158.3 million in 1985 and $135.0
million in 1981.
Tran=world has a re%olying credit agreement pro% iding financit
capacit% of up to S200.0 million. all of which was available at
December 31. 1985.
Results of Operations
1985 Compared ao, 1984--Consolidated operating rrtrllue in-
creased S213. , iniIIIon t l 1.(i ► from 1984. Thy re%vnuv. of
Spartan Food S%slrnl-, Inc. 1Spartant increased �;lU.0 million
19.4 ii t primaril< due to 18 additional Quint%'- awl 45 addi-
tional Harder- unit- in operation. For 198.7) the l►rr More
rr%eno" of Spartans Qhlinc %'s unit- deulined to S887.(X
principal I% in rrsponsr to an inducer% wrde dr,-Ilne in the dine►
house segment Iraffic. The rr\elillr- (Of Canteen Corporation
(Cantren) increa-;rd S-152.8 million 118.4r t, principall% from
the acquisition of WC —which contributed S 101.0 million for
the fourth quarter of 1985. In addition. re%enue- from the food
and vending di%isiun increased by $33.8 million due to higher
volume:. The re%enue%of Hilton International Co. (H11 in-
creased $19.2 million (2.8%1 mainl% due to increases in the
average room rates, as stated in U.S. dollars. offset h% a slight
decline in occupancy from 67% in 1984 to 0Of7r ir► 1985.
Consolidated operating expenses increased S189.1 million (10.51,
from 1984. Spartans increase in operating exprn•rs of SM.9
million (9.8%1 was primarily attributable to increase: in payrol
and fringe and product costs due to additional units in opera-
tion. Canteen's increase of S141.3 million 117.61/r) was primar'
ily due to the RIC acquisition ISt10(1.9 million) and also to
inerea.rs in the cost of food and vended products sold. Thr
operating expenses of HI increased SBA million 11.4c/c 1 mainl%
due to increaser, in payroll and related expense..
8671021
al I v
icing
at
Consolidated operating income increased $24.6 million -from
7.4% of revenue in 1984 to 7.8% of revenue in 1985. HI's
margin improved from 9.3% in 1984 to 10.6% in 1985.
other charges (credits) increased by $8.6 million 154.47c 1 due
primarily to two factor-.. First, a 1984 credit of S3.2 million due
to an o%errstimale of losses from Transworld's ownership of Trans
Qlorld Airlines. Inc. (MAI for the month of January 1984 and
second a decline of $3.3 million in interest income fur the full
►ear. despite an increase in lemporan cash investments, pri-
marily due to the proceeds received from the sale of Centun 21
nrl of funds used as discussed alotne under "Liquidity and
Capital Resource,.- which occurred in the fourth quarter of
1985.
The pro isiot for corporate income tax tit) income from c•ontinu-
mg operations increased $9.3 million 13L6 ii I mainly as a
rr-ull of net operating loss l►eneftts generated by TW A and
utilized by Tran.wurld in 1984 and increased foreign taxes.
Lamings per common share from continuing operations de-
c•rrdsed it, $2.56 in 1985 from $2.62 in 1981. The decline in
rarnings per common share reflects the increase in the weighted
in- avrragr shares outstanding partially offset by a reduction in the
rf preferred stock dividend requirements. The weighted avrragr
Oil •hares in 1985 increased 1►% 4.1 million tit 30.4 million shares
i. dur to lit(- conversion of series C Preferred Stuck in 1981.
!981 Contpun•d it, )vast -Consolidated operating revenue in-
7'000 redsrd S103.8 million 15.7 K I from 19M. The revrnurs of
linnet sleirtan inc•reasrd .470.1 million 119.7 i'r I due to 35 additional
rl 1t►tuncy's and 14 additional Hardens unit- in operation and
rom increases in menu price., and per store volumr. The rrv'enurs of
t for Lantern increased $6:3.9 million 18.317H, principally resulting
fcxxl from higher volume in Ihe• food and vending division. The
;her rrvrnurs of HI declined $34.6 million (4.97c I. mainly due
he "a decline to food and be►rragr rev'enttr as well as unfavor-
g1it ►h\c foreign exchange dur to the continued strength of the
.. . dollar.
'51%) .onsolidated operating r►tprnses increased 884.0 million (4.9% )
9 n-m 1983. Spartan had the largest increase in operating costs.
*roll 401.6 million 119.89i I, compared lit 1983, mainly due to
tJume increases. Cantern s increase in operating expenses of
t- _ ! iK.3 million 17.917 I was primarily due to an increase in the
tar ,st of food and vended products and increases in payroll and
'rrtFr rusts. The ul►rrating expenses of HI declined $39. 7
III w1hun 16.1 % I, mainly slur Itodecreases in payroll and fringe
►sIs as wrll as decreases in cost of sales.
.unsolidalyd uperating income increased $19.8 million -from
A% of rrvrnur in 198:3 at 7.4ch of revenue in 1981.
►thrr charges (credits) (-hanged favorably by $7.8 million
i3.97c I. principally due to a $3.2) million overestimate in 1983
t losses from Transworld's awnerahip of TUA for the month of
inuan 1981E and it $0.8 million decline in interest exprusr,
artially offset by a $2.0 million dre•line in interest income.
The provision for corporate income tax on income from continu•
ing operations decreased $18.2 million (38.1cl,1 as a result of
the recognition of tax benefits generated by TWA. The decreast
is partially offset hvincreased state, local and foreign tax
provisions due to increased profits and by the effect of a $2.0
million 1983 provision underestimate.
Earnings per common share from continuing operations in-
creased to 82.62 in 1984 from $0.98 in 1983. The Cmurable
impact of the increase in income from continuing operations
was partially offset by the increase in weighted average shares.
Outstanding share. in 1984 increased by 7.5 million (26.67c I it
35.6 million shares. The additional common shares did. how-
ever, have a positive effect on debt as a percentage of total .
capitalization as did the 537.8 million net reduction in debt
in 1981.
Impact of Foreign Operations
HI conducts a substantial part of its business in foreign coun-
tries. During most of 1985. 1984 and 1983, the strong U.S.
dollar versus most foreign currencies had an ad%erse eflec•t on
the results of HI. During the latter part of 1985 the declining
value (if the L.S. dollar. which on average finally weakened
below the pre% ious year le%el in September. Irssrnrd the advrrst
impact of foreign exchange on the results of H I.
Rv%entjrs and eyensrs of t►yrrst•as hotel operations decreased
to the extent that they were generated in foreign currencies
which during 1985. 1984 and 1983 were worth less than in
previous years. Correspondingly, net income and div idends
remitted by these overseas hotels also decreased to the extent
that Ihr decrease in revenues was not offset by the decrease in
expenses. In 1985. HI reported an exchange loss of $4.8 million
compared lit exchange losses of g 1.2 million in 1981 and S3.6
million in 1983.
Discontinued Operations
In the accompanying financial statements. Centun 21 is
reflet-Ind as a discontinued operation in 1985. 1984 and 1983;
and TV►A is reflected as a discontinued operation in 1983.
Inflation and Changing Prices
For information on the impact of inflation and changing priers on
Transworld's rr►enues and income. see Note 15 it) the Cur►soli-
dated Financial Statements.
8f -021
P. 00
Statements of Consolidated Income and Retained Earninr,s
IAmuunt. in Thuuband. Eiwept Per Share Amount-4
r_._.L. ♦. C..A-A h.. .,,1....3t
1985
^,Ilt•.
Operating revenues
$2,151,556
Operating expense,
1,983.390
Operating income
168.166
Other charges (credits):
Interest expen.e
22.700
Interest income
(1246901
Other - net
14.403
24,479
Income from continuing operations Iwfore income taxes
143.687
Provision for income taxes 2
38.901
Income from continuing operations
104.786
Discontinued operations: ; t
Income from operation- t►f Centun 21
(l.r.• alll►bUdIllr iuctimr Id\ of: 1985—$3.397.
1 `+�� 1—:2.11'►1► dn/1 11+� �a— $111.1 t;1 I
y.r+`+;
(.dill till -alt• tit Ct-wur\ 21 Ile.. alllllll•dlilt.
ill, milt, Id\ of a52.11121
1112.75ll
l,tt„ hmn tilit'railtill- of %\ \ Iltr., applicable 1111'ulllt•
tit\ 4-red II III 1983 1tf 121
—
la.., tin diy►o.aI of TWA (Irss allplu-al 11r income Id
credit in 1983 of 91.99111
—
Net income I (o..)
217.530
Retained earnings at beginning of year
82,888
Di%idends, etc.: "t
Di%idend. tin common stock
(16.234)
Di\idends tin preferred stuck
("166)
(hhrr
-_—
(4,770)
Retained earning. at end of year ---�-
$ 2'2,248
Earnings (loss) per common share:
On income fn►m continuing operations:
Oil a\rraFe outstanding and equi\aleni share.
i 2.56
Assuming full dilution
2.56
Oil nrl in1•o111t•:
On a\rragr outaan lint; and equi\alenl share.
5.66
Assuming full dilution
5.60
tier Notrs to Consolidated Financial Slatrment..
19811
19f
$1,937,823
$1.834.0(
1,794,267,
1,710.22
143.556
123.77
22.242
(15.944)
9,552
15.851)
127.706
29.571
98.135
29.01
08.50
13.11
23.61
100.16
4 7. 7 5
52.40.
16.8141 1
7.80.
1
t
—
112.JJI
—
(55.32t
115.029
(7 ,662-
-
284.805
18.65Oh
—
(19,2871
119.795
(4,2M 1
1257.35]
- —
82.888
S —
ott
S 2.62
$
0.9ft
2.54
1.0(I
3.14
(1.37
3.00
11.26
8671021
Statements of Changes in Consolidated Financial Position
Amount- in Thuu-,ind�t
Fir the lrar� Ended net-eml►rr 31.
1
-
j Fund- Pro%ided b,.
a Incomr from continuing operation.
Add (deduct► nonca.h item.:
Depreciation and amortization of propert). including capital leas.
Amortization of intangible a.,et.
Deferred income ta\ pro% i.ion (credit 1
\rt Irism continuing ol►rration• _� -'---
Ih-continurd operation.:
Cain on disposal of Centun 21 (less applicable
incun►e la\ of 152.4021
Net change in imr.tment in Crntun 21
l.►.-e. frim TVl A
Drcrc-a-r in Itnr.tment in T11 A
D1%idrnd declared -equity holding in TIVA
1-tiance of cummor►-1ot•i,
(anlmin acN•L i..urtl in debt re.lructurinp
Ling -term delft i..urd
\rt INK& %dlUe of prol►ert% di.pimtioll.
`
n'
\et UnrrdllZV41 (irt•Igit a\cI1d11Fe (ga1111 li.- in fl\rd
asset►and long-term debt, inciudnlg capital Ird.r•
�*"_
t.Illher
+••'.,, :
�Incrrd.rldrt•rra.rl i11:
4> ..
lccuunt- pa%ablc did at•crurd lidl,ilitir.
Other nincurrrnt hitbilitiN- and deferred credi(-
Fund• 1. I,rd fir:
Pit idendpa%ablr-equity holding it) TR.a
I,mg-term dehl l►a) mew.- and capital lea.- obligaticnl., di.t•hargr(I
currenv% adjustment
Creign
hdit idt - on capita) .fuel.i%ersion
and redemption of preferred .loch
l'urclta-r of trea.un -ltm-k
+Jru frd.r Idecreasel in:
1985
8 104,786
66,871
10,030
5,781
894
188,36'2
102.750
120,619
29,545
6.845
(9.774
7.941
38.084
29.764
514.166
186.899
3l ,836
(9,945)
23.400
W.168
43.587
nrt
27,051
Y- -
-,
h1�Ntltirle-
14,605
='
Other current a-.ct-
S.b911
Other •
80,831
-
454.122
-_ - - - . -- --
- - --
ry
Increa-e (decreasel in Cash and Trrnl►orar) Cash lmestmrnt-:.
60,044
':ash and trmporan cash imrstmentr at:
3rKiuning of war
136.840
19111
8 98.135
57.154
7,652
(7,2041
(3.1561
152.581 1
12.879
4(x).379
15-1.771
63.817
7.042
9.615
t 4.4t)91
42.587
831. 753
4()0.37y
137.231
101.295
6.559
27.937
124.530
5.227
324
w)
- 47.5_34
--851.882
120.1291
156.969
198:3
$ 52.408
54.263
6.367
2.505
2.360
I I7'WO
(6.519)
167.87t►1
8.1.157
(400.3791
80.310
70.941
33.7(K)
15.142
9.293
3.981
14.5111
12.911►
100.45.
14(x).3791
99.352
130.098
7.445
19.795
7.86 ,
1.268
(2.0781
14_651
(121.9781
55.521
s�
i
Consolidated Balance Sheets
Unniunis in Thnu%ando
Deceml►rr 31. 198.3 1981
Assets
Current Assets:
Cash 18.145 g 34,81.7
Temporary cash investments, at cost (approximates market) 178,739 101.993
Receivables. leas allowance fur doubtful accounts uf:
1985—S5.6y0; 1981-85.310 129,071 102.020
Merchandise and suppl inventories 80.589 65.981
Investment in Century 21 i — 110.65.5
Other 16,163 10.473
422.707 425.972
Propert-:
Prol►em owned tat cost(:
". I
Merchandising: equipment
200.015
Land. buildings end improvements
394.395
Other propert% and equipment
273.050
Total prupert% owned
867,460
Less accumulated depreciation
290.391
Pmperi% owned —net --
— --- -- ` - - i - 577,069
Prul►ert� held under capital leases tat cal►italized value►:
!Here handising: equipment
Land. buildings and imprui,ernents
Other pruprrt% and equipment
Total propert% held under capital leases
Lrss accumulated ainurtization
Prul►rrl% held under capital leases —net - - -- — --- -
Other Assets:
Goodwill
Other lung-terni invemnients
Other
71
Srr lutes to Consolidated Financial ,tatrn►ents.
•
7.246
57.284
124
04.654
_3.1,44
-- -- -- - — ------607,2811
149,879
88,601
60,880
-- ----------299,36(I-
-- -- --..- - --- -- $ 1,329,347
162.855
31 1.722
216.552
694.129
_243.338
45f I.791
1o.757
57.7 30
- - — 131
74,618
38.689
35.929
480. 720
82.397
93,516
_ 57.806
233.719
S1.146.411-
86-10 21
Liabilities
Current Liabilities:
Current maturities of lung -term debt and capital leases
Accounts paNahle
k 4c enlyd salaries- and vacations earned
Accrued lases
4c•c•rurd rents
Other ------ - -- -
l.c►ng-Term Liabilities:
l.c►ng-term debt. less current maturities
Noncurrent obligations under capital leases
Deferred incunlr la>,rs
(Idler noncurrent liabilities and deferred credits
Commitment% and Contingent Liabilities
Shareholder, Equit,.:
198.i
1981
(Amuu►►t, in Thuu,.cncl,i
Preferred slc►c'h, aithoul par %clue:
AIlthurizrd -Ildrrr, issuable in series
20.000
20.(KK)
p;,;
(Illl�latldlll�'
%rrie. A-S2.00cumulative comertible.
limiled %utin11:
Share! dI stated %alur. 82.5(► per share
1.0-15
1.04(►
prfrne. SMI per se
52.27LicuidatitF 1
$52.27 5
t
Series ti-81.9(I cumuldtke nu►►comertible.
limitrd voting. no slated valur:
Sharrs at redemption Iialuv. 820 per share
-
2.512
E>.c rss c►f redemplic►n %aloe c►%rr earn ing
valor
Liquidating l►referem e. S20 per share
S -
$50,159
1.411111114111 %toed,. 85 par %alue:
Authorized sharr-
75.000
75.(KKI
Issued shares at par %slue
35,728
35.598
Capital surplus
Furrign currrnc % adjustment
Retained rammgs
1'rra.un stc►c (. (at cost l
1.140
-
to
1 o1
_'.Ill.II.I:.
1985 1984
S 12.021
91.394
48,654
47.159
19,069
70.111
288 _408
152.830
38.613
42,496
43.818
277.757,
8 23,931
90.820
37.738
27.402
20.985
61.298
136.909
43.818
14.212
39.076
234.015 1
2.614 2.61-1
- 50.159
(4,7521
178.639
171.990
386.864
381.804
(33,596)
(43.5411
272.248
82.888
_ (43,587)
-- _ -_
763,182
650.162
S1.329.347
$1.146.411
IL 8611.021
r
Notes to Consolidated uncial Statements
File the lrars F:rtded liert-Mi".r 31, MI.,). 198I and 1483
Note 1. Summary of Significant Accounting: Policies: (h) Pension Plans. Accrued pension cost is funded on a
Ac•counling: px►lic•ies and methods of their application that current basis except that prior sera ice benefits are amortize
significantly affect the determination of financial position. and funded over periods front ten to 40 Near,. See Note I I f,
-11 f further description of the plan,.
changes in financ•lal position an resu is o opera, fins are as
folio%,:
(a) Consolidation. The consolidated financial statements in-
clude all significant majority owned subsidiaries. All significant
intervompany transartions havr been eliminated. Trans%orld',
ime,tntent in Century 21 6 accounted for hx life equity method.
See ;'lute 3 fur a description of life disposition of Centun 21.
(b) Propene and Depreciation. F'nq►rrty and equipment
vAned are depreciated principally on the straight-line method
on an annual basis. 1 rt►perty held under capital Irases tat
capitalized xaluel is amortized over its eslimated useful life.
limited b% lift- lease 1►rriod.
The fullu►+ingestimated useful senire li+es were in effect during:
198.5. 1984. and 1983:
Mercliandising rquipntrnt-1'rinc ipallx eight to left Nears
Building:--1Aenrx to frail xrars
Other equipment —Two to fiftt-en %ears
Leasrhold inlpnnrmrnts—Estimated useful life limited In life
lease period.
(c) Ini,entories. blen•handi,e and supply imenlories are %alurd
primdrily at lift- hmer of a.erap- cent or marl,t-t.
(d) Goodicill. The unanlortized exe•ess of cost uxer tilt, fair
%alue of net tan€ible asst,ls of c•ompanit-s acquire-d is hying'
amortized oxer a -1O-year period on lift- straight-line mlethod.
During IW.I. 1981 and 1483. S3.077AM. $2.,%l.(K)O, and
(K►
S2.f70.O, re-p►ectitely. herrd]
chargedlr1income. GueAill
an -sociatrd Kith life acquisilion of Centu21 is included in
the rrsulis of di --continued op►eralions. Amounts ,u e•harg ed are
W. fol lo►. s: 1985—g 1. 7 O 1.(KK►: 198 4—$2.012.(K K) anti
1983—g2.039.(KK►.
(e) Erunchise Rivhts. The cost of restaurant franchise rights is
amortized ratablx oxer the- life of life franchise ag:reenlent, (2(►
years) from the date retail re�laurdrll operations comnit-rlce.
Agrrements c•utering p►rt-sent uperating locations expire on
%ariou- dales from 1986 to 2005. Certain of these agreements du
not contain rene►,al oplions.
(f) Pre -Opening Expenses. Expenses incurred in conjunction
with lift- opening of hotels are deferred and amortized, getterallh
o%er five sear. ]q charge., against the operations of life rebpec-
tixe hotels.
(p) Income Tuxes. Trivi ►%orld and its qualified subsidiaries file
a eonsulidaled Frdrral incumr Id% return and account fur
imr,lmrnl lax c•redtt, off life flo%-through method. tier Note 2
for a further descriplit►rt (if Trartsaorld', accounting: fur
income tags.
•
Note 2. Income Taxe-.:
Transworld and its qualified sul,sldiarit-- file cunsolidalt-d
Federal income tax return.
A summan of the prucisiulf for income taxes is as fullu..s:
l Amount, inThou,and-1 1985 148I l4
Current — 133.1211 tic.i gt;•2
D_eferted 5.781 1, ►u; I 2, �1
Psi.iun for income
taxrs on continunii:
uprtat funs
Tax pru.lslon dieneful
from ulwratlon- of
discunimued .vgmvw.:
TU A
Cenlun 21
Tar irro.lsmit on pin on
bait, of Cenlun 21
Tidal pro.rsion fug - -
MC0111e to\e•+
38.901 2r:+..i;1
3.397 2.0210
1 47.7:,
133.49-
10.18;
S41.7t►n f3l.rl(N) $21.441
Fur 1985. 1981 and 1983. foreign incurne• Ahic•h g kes rise it)furrig it income lags repro-enl- approxiinatt-IN
$5l).7OOAKK), an(] $13.3W.(KK), respt-vtixel\. of the total in-
c•omt- l►efiat. muoint, tags.
The current pro% isiun for Federal and stale and local inconte
taxes includes taxt-s payable hx suhsidiarx corpordliuus ►.hich
are not includable in tilt, TransMorld con.d Federal
income tax return. The current pro% isiurl for fore-ig:n tags rrlatr,.
primarily to Hl.
An analysis of the current incurne tax 1►rot i'mil i, es folluNs:
IAmuunls in Thuusandsl 198; 14}:1- -- 14F;.i
Frdrral:
(,toss
� 19,IMN
Art ulwracinp loss
—
Forril.'rl fax rrrdits
118.J111 I
_ 1mrstmenl lax credlls
-�— -- ^_
(j91
-^- - --
Net currentFrdrral
381
Stale and IrK al
4,894
---.7.81_-2
Current incurne tax
pnr.Iblurl on 1'o11111111111F
ullrraouns
CUrtelll tax pro. lblur111wllefll I
_ dw untnlur+l srKnu•nt- _
Tidal curreul nu unit, tax
pn1\ isum
i145.831
c 34.624
It►e1.3811
—
112.o211
113.c11311c
63., )1
13. ; 44 1
1 l t.3(lts
22.222
..i+11
4.fi1,1
18.r►(k)I )8.1t►7
33.120 1 36.".i 1 4-,.2itl
IF 61.117(► 1 t 4oX.3 I f
86�-1021
a
Thr deferred ineomr tax lmwision rrsults from timing differ- At Deceml►er 31. 1985. available foreign ta\ credit camfunvards
ences in the recognition of re%enuv and expense for tax returns aggregated appnlximalel\ $20.600.000. %hich if not utilized
and financial statements. The source of such timing differences in future consulidated Federal income tax returns. will expire
and the ta\ effect of each art- as fullu\\s: as fullu\\s: S1.500.(K)) in 1986. S2.100.000 in 1987 all(]
I Amount- in noucand-1 198•1 1"1 148:1 S M(MAKN) in 198fi.
I.n•-- deferred lat, url`Inr franc
Atrrlrrdlyddrillrllauuu = :.581 F 4.159 S 4,665
(.allllJl 11-d-r it roul11u1}: 1801 I:3(121 1:11
I llrrrl ftlwnt Ing Ira-r- 23.11210 (87,3 01 -
Iu-lJlhut•nt null illirlr,l 1.6-9 (1. T > 11 -
( Ilher liming diftrlrnre- - 4.351 15.5 131 11.31No
Unt--delenrd Frdt•rJl Id\ 39..Wl 14.i.8io1 a.42a
Tit\ tw•nefit fmm TN 'it 19.3281 1H.:"1 -
F trt lgn Id\ rrrdll- (2.1911 12.6-11 -
In\t•-Inlrnt ld\ t Milo- ---- (23.39(11 53.4416_ -- -
Urlrnrtl Irdrrdl mruulr
Id\ llnt\i-It.nIt retill1 4.652 14,:r1fli1 3.423
11t41•rrr11 ,IJIr end It- 11
III, wo.. Ia\ ltrm l-Wn 1,211(1 1.19; 35:1
I►rferrrd harign lilt 11111 ' Id\
pn1\I-utnu'ndul - I�TI 1.l(l: 11.2731
I+elrnrd lilt unit• 1:1\ lth t\ IsN to all
ronllnulnF olperatlttn- 5.781 1 7.21111 2.ittl.i
11.4t." -tI Id\ dwilt•I m-
dl-t ttululurd -c �rnrnt- 21.411:3 -I 1.30111 -12. 331
l .lal dt Irnrtl ult I'm, l.n
pnnl-nallrrl•IIII 1 30,681 c 18.13731 i 12281
is Deferred income ta\es arr inuluded in the balanct- sheet- a-
(6" btlloh-:
� klnmi ll- lit Thtnl-,uu1-1 198..1 1481
t hh1•r t urrrnl a--rl- f (2.3911 ! 9
1 llrlerred Income IJU•• (42.196I 114.2121
1• a.,l ! 1 �1.K8" 1 c 114.2r1131
1'he diffrrt-rive hrlNven tilt- statulun Federal income tax rate ant]
Trans%or]d's efircti\r ta\ rate is as full(,\\-:
1985 1981 1983
`Idllltun rJlr
W4
46r4
40ri
I+lfll.rencr rr.ulunF fntnl
cu1111nlIIpF ullt•rdllun-:
In\r-tnirttt la\ I rrthl-
(161
-
141
sldlr' drld Ila ill ld\t•>. IIt'I
Uf federal lilt tlrllr IJ\
Irrnrfil
2
4
3
F.Ifl.ct of furriFn-tnlrcr
Ini vlrlly drltl lulr1gli IJ\
rrl.dll-
(31
I 1
2
lJ\ IM'III•I II (rullt 1
((11
14l I
-
\morlvJlu,n t11 Ktl,rthlll
s,
and other lrt•nn.uu'nl dil•
frrrnrr• Ilrlttren Ihr 1J\
rruln) doll lilt- .lJlrmrnl •
t11 rurl.nllddlr•d lilt tame
4
a
. `
t Ilrl IIvr 1.1% rill. I'll
'
t ulllllllllll� uln'rJIIIr11-
. t
•i !
48 ri
it
Note 3. Sale of Century 21 Neal Estate Corporation:
On October 30. 1985. Trans%orld's stockholdvrs appro\vd the
sale of G-rilun 21 for S251.2(MI.(KK). The ac'c•ompam ing
Transworld financial statements present the financial position
and results of operations N ith the impact of Centur\ 21 st-grr-
gated and condensed. The revenues of Centun 21 I\\ hick are not
included in consolidated re►vnut-sl \\ere as follu\\s: For the tell
months ended October 31. 1985: S(>(t.(MKt.(M10: for the \ears
ended December 31. 1981. S(i1.132.0(K): and 1983.
S55.230.000.
Dote 4. Acquisition:
Oil Ociolivi 1. 1985. 7rans\\orld acquired and transferred to
Canteen all of tilt- outstanding stud. of IUC for S93.5(N). M
in cash. Tilt- resultant co. -I in ewes of net assets acquired
of appro\iniatvl\ S03.301.000 is living amortized o\er 40 \ears
on tilt- straight-line nielhod. hIr fiscal \ears ended Decvnliler
:31. 1985. 1981 and 1983. Truns\\orld's profurnui rr\enues. in-
cluding IL C. would ha\e been: ``2.4(r2.150.(KMI, S2,339.123.(MK)
and S2.213.8813•(N11.
Note 5. Separation b% Transworl(l of Trap, \Xorld
Airlines, Inc.:
Oil Februar\ 1. 1981.Traw-world distributed all its equit\
holdings in T11.A to Trans%iirld's common stocl.holdt-rs. The
ae•compan%ing financial statements present Tn a a` a discon-
tinued upt-ratiun in 1983.
Transaorld•s in\estinew in TA A at December 31. 1983 \\as
recorded as a di\ idend pa\ab]r b\ a charge against retained
earnings in tilt- full amount of S256.2 FO.(MKI existing at that
dale and tilt- remaining balance of S141.l39.(XK) Has charged
to capital surEdus.
8E-1021
�1
�ote- to (:on-ulnl,ltclf Fin;In1 fiat �t;ttrmcnt� (t ttntinuctll
Note 6. Foreign Currency Translation:
(d) On October 4, 1984. Transworld announced the accelera.
•
tion of the expiration date of its 1986 warrants from the orig-
lulluwi ng is an analysis of the changes in equity during 1985
final expiration date of Uctol►er 1, 1986 to December 3, 1984.
' and ]984 fur cumulati�r translation adjustments:
As of December 31. 1984 approximately 3.03 7 ,0(10 warrants
IAnNlunt III TINtultanlls► 1985 19M
were exercised and approximatel% 3.031 000 shares of com-
Halanve at Januan 1. i(43.5111 S06.9821
Mon stock were issued. The remaining balance of approximate.
1 Aggwpatr sdfu•tmrttl for thr 12 mumh•
32.0(Kl warrants have expired.
! ended 144-rmllrr Al. re.ulunl; front III,•
trarl,lallon of iore1111t vurrrllt't slalemrnl. 9.945 (6.5591
(e) The holder of a 1987 warrant is entitled to purchase one
-
share of common stock at a prier of c 18.06 per share, subject I
Hal.+n1 e• tit I►errmller 31. M33.5961 S143.5411
adjustment under certain conditions, until Januan 15. 1987.
Note 7. Capital Stuck:
(f) On December 23, 1985, Transworld called for the redemp-
tion of all its outstanding Series B Preferred Stock for cash.
Cortinion sloi-k issued during the year and resrned fur cuutin-
As of December 31. 1985. substantially all the 2.512.64i
gent issuance at December 31. 1985 and 1984 are as follows:
shares of Series B Preferred Stock ha%e been redeemed for the
Nundwr c►f Share-
$20.(K) stated redemption price plus accrued dividends for an
Isurd Hesrnrdlal
aggregate redemption cost of $50.554.0(K► retiring the entire
(Amount- 01 Th1lu.attll-1 1981 IU81 1985 1981.
issue. On October 25. 1984. Transworld announced an offer to
•,11
exchange its ne% 111/4% sukwrdinated debentures due June 1,
k.nlplutre• .at ulE• plan-111 - - t3r8«II
2(Kl7 for each share of Series B Preferred Slock. Approximately
k:wn l-e of cwttcrunl u1.
Prr(rrrrtl -I,% I.
2,0(X),(1(K) shares were exchanged for the debentures.
!t•rlr-
1l•nr-
Mttt l I -lit, ha-e• warranl•.
198(11d1
k:n1I11�1trr .Ittt I. uplt.111-
Int rltme contlN usatrnn plan
-
1
738
738
-
4.'W)
-
-
-
3.037
-
-
-
2
1.798
1._19H
1:341
5V)
2.().)4
2.82 t
-
263
_ 2(13
7. W"
130
6.2:8
6.444
( o I A- of the close of hu,int-.s on December 28. 1983. the
record date for the di,tribution of Transworld'. rquit% holding in
TU A. thr contusion ratio of Transworld'. Series A Preferred
Stuck was adjusted (run) unr half 10 one to 0.706 to unr.
(b) I. nder the plans the Trustee, purc•hasr prrt iouslt unissurd
conumn stock Irom Ti-an.world al market talur or, wilh thr
con,rnl of Tren-world. purchase common sltwk in the open
market.
(c 1 On Orioltrr 29.1981.Tran.4urld called for the redemption of
all its uut.tanchng Series C Preferred SIcK•k. Each share of Srrirs
C Preferred : tot k Aa. cumertible by the holder into 1.412
s;harrs of Tran.world's summon SIMI until No►embrr 26. 1984.
AS of Deceml►t•r 31. 1981 appruximatel% 3.1(18.0(Kl shares of
Series C 1'rrferrrd SI(K•k were converted into approximately
4.389,(XXJ shares of common stcx•k and approximately 10(1AIM
shares of Series C Prefe•rrrd Sluck Aerr redeemed, retiring the
entire i.sur.
•
Changes in consolidated capital surl)lus are as folhms:
1Amounts in Thousand -I
Balant•e at Januan 1.
t)n Idrntt td'1'N 4
Net I1n14rrd- from Iht• -ale of conunon
%11K.k III of 11a1 w1llt•
Comer,mn- of 5% and 12`.r
sullurdulated dellrnture- ul rwr--
of par %aloe of conttnun steed.
issued
Contelattln of 1e•rtt•- C Preferred
Sltwk and exercise of 198(1
warrant- ill rxcrs, of par talur
of t.oIII111Ut1 blwk issued
Other _
Balanct• at I ecrmltt•r 31.
1985 1981 1983
Ea81.8111 �_^".i..i1Ml 9292 722
- - 1144.1391
65.352
11 .(142
2.I60 _ 18.3381
1386.8(t 1 8381.8n 1
58.526
3.039
!12�5.ifNI
Various loan agreement, place certain restrictive cotenants on
Transworld and its consolidated subsidiaries, including certain
requirements as to pa%rr►ent of dividends on common stuck.
Pa)ments. including the payment of din idends. to Transworld bt
its subsidiaries; are also restricted b% variou, loan agreements.
Under the most restrictive of these agreements at December 31,
1985, Canteen. Spartan, and HI would have bren permitted to
male S13.60"i AM. $80.644.0M. and $11.594.000. respec-
tivel%, of additional payments to Transworld.
8f -10 21
- ,r
Note 8. Earnings (Loss) Per Common Share:
Earnings per common share are computed as fullu%s:
19R., 19R3 1983
Adlu-tmrnt of Net Ir► o ne:
Net Income as rrlKlned S217,534)
81 15.029
c 17.6031
Redu, tiun In inlrrr.t riillrn.e GIr the ah.,unled eo,rn•rr Into common slot l of the 1108e, warrant- —
5,45-1
`
lleduct dnidend requlrrn►ente on prrfrrrrd towli, and thr amortization of the excess of rede•ntplion
%slur met cam ing talur of 4•nr- B Preferred Sl,r t, 01.5081
1 N.2221
01.8971
Inrrra*r In dit Mend "turrments for the ac•umrd exert isr inlu tirnr. 11 Preferred lilt 1,
of the 198 7 warrant, —
—
16.41181
131,4tItt1
_
AdIu+Ied r►rt incume apphcahle to avenge outetarahng and equnalent common sham 20h.022
101.261
Adlu,tment- a-sunng full dilution:
Reduction in inlrrea ei liens fur the a„urne•d cumt•nlun Into c•ummun mot L of:
5% drllrnture. iaeurd IWO —
—
332
12rk delienturr• wsurd ItOl —
—
I.5-15
Keductiun of Iwrlerml dI►Idrod requlrrment. for assumed cunver*Ion of comenlhlr preferrrd .to, L
Into, unimun .I,K L:
4 nr- A 2.091
20)]
hnr-l. —
--- -
i.821
•
8111.173
Adel-trd ne•I earning- a. umntg full dilution 12118.113
133.0611
kdiu-tmrnl of cornown and rqui ialrot OtJre s:
Awragr common shirr, oUlAdridnlg 35.628
28,8(1)
27.209
Avrragr trra.un shirr- 13151
—
—
As>umrd camrrsum of summon sut•L Into '%enr.� 1► Preferred !%I,K L —
—
11.8tM11
A-unlyd eiteri v e of -I,K L warrant- and option- 1.076
3.3.i1
31
7i,1a1 J,rragc oat.tandnlg and rgumilent common .ham 36.389
32.253
25.503
Adlu.tnirnl- d--umnlg full ,Illation:
A.�umed rLrr(Ise of •ttK L %artdnls and option. 61
'r4
25
4ddillun.il .orl Jg, common .harr- it•-ulting fmnl the a--unird „mtrrwn nID, I onanon >1,,( k tit:
51:i tfe•IK•nture, 1—tied 190I —
—
I-Q
12q drhrnlurr,.I..urd 1y1f1) —
Preferred Suit L.
;e rlr. A i 38
7 38
•
tirrlr• (. —
I ,1M11
•
1 37044
idjuwlyd dtrfJF,' , onlnion .lUt - d—uring full ddutioo 37.188
26.21"
•%,. ddla-totem I. nladr .Incr thr rffr, I ii. andddutitr.
Sec lute ; for a description of the right,- and privileges of
out-t.ctnding conneriiblr .rc critic,, %arrant% and options enter-
ing into the coniputation of earnings per common share. The
trra•tm %i w•k ntt-dio d it u-.rd to c•dlc•udale the diluti%e effect of
the 198; %arrant-, and uutaanding stock pun•hase ol►tion,. The
lay rate u.rd i!. U)Ih for incurne front continuing t►perations for
IWi. The la% rate. u.rd are f1.11"Ic for income front cuntitwing
ol►rralion.% and net income for 1984 and 6.9r/1" for net income
for 1983.
u
Due to the redemption (if the 5erie.- B Preferred Stock net
incun►e aliailahle to common Sharchulder., has been reduced h%
file unanwrlized portion of the excess of rede►nption value otter
earn ing t,alur t►f lerie.. B Preferred Stock. thrreh% reducing
earnings per share on average uut.,tanding and equivalent share,
l►% appro*imale1% $0.13 fur the %ear ended December 31. 1985.
r._
Cott'• to Const,ltdated Finallr'tal Statement- trot nintroh
Dote 9. Long-term Debt:
Lung -term debt outstanding is as follows:
(Amounts in Thuueando
1985 1984
Notrs. 9�/,SE dur IQWi 4; - - -- - --= 1U.400 g 1 17so
stoles. 5v1% lub!�tn
due 191k,.I"1161(Ft
1M")
Notes. Ill'7r to 12%
due 191k)-2010tbrtp
9.598
Ault.. 12.18 . rq dur 191kt.M.it
12.180
tiu1>,trdcnalt-d dt-ltettturr•. IIK•i
due 1WN• 14W((I1
30.792
Sulourdinalt-d dri,enturr•. 11 V& n
dur 14yK-2tMt yet
34.571
New1mig •rrtht agrrrnteimh
—
Nutr.. dur I1081
_
Sundn utdrtdrdr,r••tgi
Toted
_51.192
161,7, 33
1xs. rurrrul ntatunttr-do
8.903
S1a2.8.i11
11.137
10,674
30.232
33.523
9AM )
49.a1.o
(a) The notes are drnuminaled and pa%abie in SAiss francs.
(b) The- note, are denominated and pa%ablr in Canadian dollars.
(c) The notes are denornindted and pa%ahle in British 1munds.
(d I The 10,( sullordinated debentures, which were issued in
19-Y with an rffet'IM- rate ul appro\imatrl% 1 ar1i had unarnur-
lized urigiudl i-sus discount of $5.383.(KK) and S:i.913.(KK) at
Ue-centlwr 31. 1985 and I981. rrsprc•tl%vi\. The original issue
discount was calculated on the basis of the nlarkel value of the
c•omnitm stt,t k purchase warrarlls atldchrd at issuance.
(e) The 111/c r subordinated debt-niures which %err issued in
1981 wilh an effrcti►r rats ofappntxinlatrls 13 r in eac•hange
fur approximate)% 2.1K111.(KK) shares of Series B Preferred Sltn-k
had unanlorlUrd uriginal issue discount of S5.4350K1 and
So. WOK) at December 31. 1985 and 198). respeciisc•h. Thr
original issue discount was cdlculdlt-d on the hasis of market
%dlurs at issuance.
0
(f) A resolving credit agreement with a group of hanks permits
Transwurld to lwrrow amounts up to 8200,0(K).000 through
March 31, 1992. and reduced amounts thereafter until Septem-
ber 30. 1993. Borrowings in domestic dollars will bear interest
at either the prime rate or the certificate of deposit rate plus an
additional 1/. of lr, through September 30. 1989. and thereaf-
ter to maturity at either the prirne rate plus all additional I/tt of
1% or the certificate of deposit rate plus an additional 3,;% of
lrlc. Eurodollar borrowings will hear interest at the London
Interbank Eurodollar Market Offering Rate UBOHI plus •i/e of
lr through September 30. 1989 and thereafter to maturity at
LIBUR plus 1/2 of lrk. Fee-, are paid based on the asai►abilil�
and utilization of the total commitment.
The agreement contains certain restrictive financial covenants
applicable to Transworld. including several financial ratios and
sales of substantial subsidiaries.
(p) The notes and sundry indebtedness include certain trots%
secured b% mortgages on carious operating properties of Canteen,
HI and Spartan. The net book value of thew properties was
8 i 1.2 i 0.(K)O at December 31. 1985.
(h) Aggregate annual maturities of lung -term debt are as follows:
t Armmji1� in Tln,uwndsl
lydr:
140t c 8.903
141„ 21.193
1988 c,,t►-:
1411,11 9.184
194141 9.010
;ulOwyurot 103.461
(i) Various loan agreements place certain restrictive cosenant%
ton Tran�wurld and its subsidiaries including ceridiu require-
ments as to maintenance of minimum levels of working capital
and limitations ton additional borrowings.
Note 10. Leases and Related Guarantees:
Transworld's subsidiaries utilize pruper1%. facilities and equip-
ment leased from others. In addition. certain owned and Irased
prupert%. facilities and equipment are leased to others.
Buildings and facilities leased from others are primaril% for
hotels. restaurants and support facilities. At December 31.
1985. 39 hull-)% and 127 restaurants were operated under lease
arrangements which general)% pro►ide fora contingent rental
based on a percentage of gross operating profit or gross rrsrnuv.s
and, in some instances, (61 a Gard basic rent. Initial terms of
hotel. land and restaurant building lease; generall% arr nut less
than 20 -vrars ex(-lusise of options to renew. Lrasr% of other
equipment primaril% consist of merchandising equilm►rni. com-
puter systems. ell..
I
ttw.
nits
Test
ian
'eaf-
.of
of
t of
at
t�
its
and
R
c
y�rn.
lows:
9
.t
�\
t.
y.
1►d
urn
►m-
r
As leasing operations consist principall% of merchandis- Note 11. Employee Benefit Plans:
ing equipment under noncanc•rllablr leases fire a term of eight Transworld and its subsidiaries have several pension plans
yean to franchised distributors of Canteen. Certain hotels also covering mans employees. Amounts charged to income (includ-
lease retail store space to tenants. Numerous miscellaneous ing amortization of prior service costs) were 8 7.656.19M.
sublease agreements also exist. 89.17LOW and 88,613,000 for 1985. 1984 and 1983.
insets subleased to others under direct financing leases and respectivel%.
included in other assets at Devember 31. 1985 and 1984
aggregated S1.691.(KKl and $I 1.338.(KK). respectivel%.
Informalion regarding Transwurld's leasing activities at Decem-
l►er31. 1985 is as follows:
Callital b-a-r- Olwratinl:lxasrs
Arta mlt- in Tbr,u-.unl—
Minimurl
Lea-1.
I' %nlrnt-
irJl
1101
1487
14ta;
5.211
I vt: I
4.8r, ;
14'N l
4.827
?uh-rllurul
62.0 . 4
•1:del
8'1.rK1I
Lr In1pulrd Illlrlr-1
48.173
Vrr-rnl %Jlur ul 1 a1l1t d
41...i 1
I,• (unrnll-I-ligalnm-
i.I18
\.m� urn•nt �.Id11:Ju.n1- uml, I
rallil.d Ira-r-
M1trnrmurn lxasr
Pa%mvrct- \rt of
Atinimunl
Sublr•asr Rental.
Suhtra-r•
of Immaterial
Pal ment-
Arnuunl-
$2:2
$ 31.501►
—
28.257
—
2c1.21
—
21.218.
—
333.17:
8272
The Iutal rental rx1►ensr for all operating leases included in the
determination of operating results for thr gars ended December
31. 1985. 1984 and 1983 was as fulluws:
l iroounl- m Thln,-Jnd-1 1985 1991 1983
kJ-11 will. $33.25f. $:il.:illi $24.8:►.i
I.llilt nlgrut Will. Si.Bh" S .a20 52.811
0
As of the latest benefit determination date, the actuarial preset
value of vested accumulated Ilan benefits was appnl\ima1el\
852.6(K)AM. the actuarial present value of nomested ac-
cumulated plan benefits was approximatel\ S9.7(K OX). and tl
plans net assets available for benefits were approximately
875JO).000. The range of assumed rates of return used in
determining the actuarial present value of accumulated plan
benefits was from 6c/r to 107c for the year 1985. depending
Oil the plan.
hwentl%e compensation plans pro%ide for award to managemer
employees based on meeting or exceeding certain lr%r)s of
income as defined by such plans. The amounts charged
to income under the above plans were S5.957.(XK). 57.3560KI
and 85.205AXK) for the years ended December 31. 1985. 1984
and 1983. respectively. In addition to these inc enti\r c•ompen,i
tiun plans, certain subsidiaries have incenike plans in place
under wlltcll regtcltlal. divisional and ItK'al managenlenl IlaliicIpat c
The inc mike stuck option plan permits the Board of f)irec'tors t
grant to certain ke\ offic en. of Transworld and its sul Isidiarirs
purchase options for shares of Transworld common stuck at a
stated option price not less than the market prier at the time the
option is granted. The options become exercisable in whole or it
part from time to time during a period of five year.. from the date
of grant commencing six months to one year subsequent to the
date of grant.
Information regarding outstanding options and option activit\ is
as follows:
198i 1481
Outstanding at Januan 1.
667.9041
79.;118
Granted
373.875
053.015
Canceled
84.873
5.4 G
Ellrrrisrd
129.582
54.440
Oulstanding at Decemlier 31.
82 7.320
66; .4tK►
Ellemi,abir at Decenllwr 31.
209.382
20.278
Prier rallgr of opliuns:
OulatandolK
$11.95442.25
$11.9543o.13
Eilrrrisrd
$13.28-130.13
$11.8r,-S23,411
Y
86--1021
W
�ntr'• III I I6II-401It1.III'61 hMill IIVial �till 'I wllI• li Ill itIIitll'd;
Vote 12. Quarterly Data (Unaudited): Note 13. Contingencies:
The results for each Quarter include all adjustments which are.
in the opinion of Management, necessan• for a fair presentation
of the results for interim periods. The consolidated financial
results on an interim basis are not necessarily indicatiite of
future financial results on either an interim or an annual basis.
;elected consolidated financial data for each quarter within
1985 and 1984 are as folloMs:
i Amount- in Thou"nd< First Sel-nnd Thud Founh
C PU %. l.nr.. inr...nl-I 01rt .r (luarler Ousrier Ouarler
liar tided DrcrnAwr 31. 1985
01wraling wlrrtur- SVP4.(Wi
SUN.(►fl.1
E522.341
S654.681
Ulwraling income 27.0U1
41.2412
47. 7111
52.1(rt1
Inriimc from cuniin-
uing ullerall..n•
twfurr income
lat,t• 21.48.i
35.8(i.1
41.1(i,
4S. 17(i
Nel rocomr 10.211
30.811
30.81NI
133.585
Eaming- per common
nharr:
011 alrr w,- uul-
slanding awl
equi%alent -h;lrr- i 0. 111
i 0.74
i 0.9(i
S 3.51
A--unung full
dduuon 0.4c1
0.79
0.91i
3.49
tear tndrel tlrl'rmlirr 31. 1981
(het -riling rewinit • it A1.0i
$48(i,4-7
t?111a, 1,117
$507.231
Olirraimp inronn• 26.144
35.275
411.930
41.157
Inclimr (rum cmum-
uirlF ulwrjntm*
twfure till i nlr
IdXr-- 24.(so,
311.423
38.110
34A17
Net nn omr 19.3(Mi
21).851
36.319
29,55(1
Palming. Iwr comnu.11
i,hdrr:
Oil airrdpr oul.
rlanduip dnd
equoideni shirr- 1 0.47
>F (1.82
>< 1.114
>E 0.74
A%suminp full
dilution 0.47
(L78
U.4li
0.70
There are various claims and pending legal actions against or
indirectly involving Transworld and and its subsidiaries, includ-
ing actions concerned with civil rights of employees, taxes and
other matters arising out of the ordinan conduct of business and
financing matters. Certain of these are or purl)ort to be class
actions. seeking damages in substantial amounts. The amounts
of liability, if any. on these direct or indirect claims and actions
at December 31. 1985. over and above any insurance, coverage
in respect to certain of them, are not specifically determinable
at this time. It is the opinion of Management (including General
Counsel I, however. after considering a number of factors. in-
cluding but not limited to the views of retained counsel. the
nature of the litigation and the prior experience of the consoli-
dated companies, that the ultimate disposition of these matters
will not materially affect the consolidated financial position or
results of operations of TransNorld.
Note 14. Business Segments and Foreign Operations:
The operations of Canteen, HI. Spartan and Transworld are
included in the consolidated financial statements. Canteen is
engaged primarily in the food sen ice business and conducts.
directly and through its subsidiaries and independent fran-
chised distributors. itending and direct GKlel sen ice operations
in the United Slates and Canada. Hl. directh and Ihruugh its
subsidiaries. operates hotels in 43 foreign countries. the United
States. Guam and Puerto Hico. Spartan is engaged in the
operation of franchised fast f(Kid and proprietan fanlilit-st%le
restaurants. principall% in the southeastern United States.
Information concerning the major business segments and the
extent of operations in each significant foreign geographic area
is presented in the following schedules. Foreign operations of
the vending and food services business segments are conducted
primarily in Canada. Identifiable assets at December 31. 1985.
1984 and 1983 include $297.1110110, $276.58:3AX) and
$2W.410,000. respectively, of assets used in foreign opera-
tions. A further disaggregation of foreign operations %ithin
specific geographic areas is not deemed significant.
T
8E-1021
rN ,.,I1
�olr- ter ( nll•�dltlalt'tl I' Illatlt'I:11 �1:Itt'Illr'Ilt- 1, .,Illllnu ,ll
Note 15. Changing Prices (Unaudited):
The following supplementan income computations adjust in-
come frum cuntinuing ul►eratiuns for the effects of changes in
specific priers (current costs) of the resources used in providing
srn ices and products sold. The effect of inflation is particularly
e%ident in comparing the historical and adjusted cost of fixed
assets and the related depreciation expense because fixed assets
are held for an extended period of time yet remain at acquisition
cost in the balance sheet. Depreciation expense allc►c'ates. on a
ratable basis, a portion of the historical cost of assets stated in
dollars having varying amounts of purchasing power. Since this
purchasing power has changed significantly from the time these
assets were acquired. tht• change must br considered to be the
estimated efleui of inflation on the financial statements. A much
less significant relationship exists with inventory held fur sale
since the goods in Transwurld%. iti%enturies. principally fot,d and
beverage items. hale been purchased just prior It► their sale.
The supplementary financial statements prepared in accordance
with the current cost concept assume the xaluing of fixed assets
and in%enlon at year-end using costs in existence at December
31. 198i. Since these c•urrrnt custs are higher than the older
historical costs fur equipment and properly current) in use. the
related depreciation exi,ense incrrases Correspondingly. Infla-
tion also affects rnonetan asset. and liabilities such as cash.
rrcei%ables and pa%ables. Companies with net munelary liabili-
ties experience gains because the amount required to satisf% the
i net liability. expressed in purchasing powet. drerrases w ilb
inflation. In a defldtionar% perlutl. the effect would be re%ersed.
i
Management's Analsis (if The `upplenlentan Information:
Under historical accounting mrasuremenls. Transworld has
reported re%enur growth of $434 million from $1. /2 billion in
1981 to $2.15 billion in 198.i. Adjusting for general inflation
using the Consumer Price- Index for all l'rban Consumers
(CPI-l!l shows that this increase has been the result of erosion
of the purchasing power of the dollar. The resultant effect on
earnings is shown, understandable. to be more dramatic. Depre-
ciation expense, based on the restated value of assets for 198.5.
is substantial) higher because the current cost of merchandis-
ing equipment and other property is higher. Holders of mune-
tan liabilities benefit during inflationary periods because cht•aper
dollars are used to satisfy liabilities in the future. The decline
in income from continuingoperations is partially offset b% this
purchasing power gain. Due to the current nature of Transtsorld's
inventories, the adjustments for changes in specific prices do
not have a significant effect on cost of sen ices and products
sold. For the current year the increase in the current cost of
merchandising equipment and other property has been less
than the rate of general inflation thereby generating a holding
loss. net of inflation.
Statement of income from continuing operations adjusted 1i,r
changing priers (unaudited. dollar amounts in average 1985
dol tars l:
liar Ended
December 31. 1985
A, Mated ----Adjusted
In Ilse for ChanFr
i Animmi- In Thou,a ol- Fnldm 1.11 in Spe, ifi,
Em ew Per Sltdtt• 4m„U111.1 lalerllrnl- Pri, r-
Ulwratinp rrwnue,
$2.151.3:u6
$2.151.356
(:o.l of srnow, dnd prrrlu,•t, sold
wm lu,nr of drl,rrriduuu drld
amortlzallon of pn peri% and leas•(
1.182. IN,
1.182.40;
Depreciation and anwrti wilun
06. 87 1
88.238
tllwratin€r%pensrs.olhet
T,34.413
Ulhrrcharge.tcredlt,l
24.474
24.4C)
Income la%r,
38.y(I1_
38.901
2.046.770
.2_(K)8.138
In, umr from continuing o eraliun-
F 103.78p
F 83.118
Edming. lver.Aary
F 2.5o
F 1.9;
Purchasing puat•t gdin tin net munrtan
habilitirt. held during the %rat
0.3310
Incn•a,r in current co,l of imenton and
equipment held during the %ear
F 2.1(►1)
EfletI of un.r I he in r (r%el _
31.Its,
Exurt.s lbhurtfalh of Incrrasr,. in t.1wt iftc pncrs
o%rr increase,. in the enrrdl ,ri, t• Iewl
F OJAkil
linrnlunes and Prolwo al
Irrcemlrt•r 31, 1985:
Imrnlonrs
F 0.317
Pro ,cru. tie) of Irr rrecialion
t 841.WXI
8E-1021
h
f
_
1<
'01
T
5
Belk ,
��
...N
Mlle- Itt t .fill I Illalll'IA !%11111.1111'lllr I. Itltl Itlllct11
Fiti'e•year comparison of selected supplementary financial data
adjusted for effects of changing prices (unaudited, dollar amounts
in average 1985 dollars):
Years Ended December 31.
I Antnttnt- fit 71ton.and, EU'eltl tier Share .Amninh.
U1%1111md• and Indrk Dd1al
1985
1984
198.3
1982
1981
01.r.raultF reu'rlut•-
S2.151,5i6
32AM.90-4
11.979,017
11.954,241
62.032.111
Curren) rn,t information:
Incomr fnnn runtinuulF Uperatlun-
83.118
78,160
32.071
18.943
35.(X1.1
Iucumr fhwK l fntm continuing oltrration�
per e•onlnxPo .harr
1.97
1.98
0.09
10.431
0.5
Eu•e,> (Aurtfall1 ed Incrraw in specific
prn e- tner incn•a.r in list- general prove
Ir%rl
129AK161
1.110
117.5871
41.W5
.11.094
�rla• t'l-a►
1.fM12.335
91o.6f►0
831.W1)
1.208.204
1,265.382
thher lnf tmillon:
Pun hu•111F lwtar•r guilt on net mnnrWn
hab11111r- ht•1d dunnF the %ear
6,339
0.405
8.526
17 .5 10
46.035
Ca-h dlt ldend- drrlarml Ifet common shirr
0.46
0.31
—
—
_
%I.tri.rt parr 1"-1 common .hare at %rdr-e•nd
39.(l
31.7
41.5
30.9
17.2
Average can -timer once. tndr%
32.2.2.
311.)
298.5
289.3
272.4
(a) Basis of Presentation. Transw'urld's historical financial
stalen►ents are prepared principal!} on historical priers in effect
%hen file tran.ac•tions originallN occurred and were recorded.
The supplementan financial information discloses certain ef-
frcl► of challges in price of prlllleri% and equipment owned or
held under capital leases that have occurred since the pruprr1%
was originalh a(•qutrrd In Transworld. Property acquired b%
merger feu lu.itir of l►,loling of interest) is considered to have
been acquired by Transworld at the date of the merger rather
than the dale of original acquisition (if the item.
(bl ln%enton and lost of Senicrs and Products Sold. Merchan-
dise in%entun has been adjusted for changes in.specific prices.
Such imrnton generall% has a rapid turnover and c•onsequrnil%
imrnton values approximate their current cost.
a
(c) Current Cost of Property and Equipment, and Related
Depreciation.
Hotels, Building: and lmproti'emenis. Merchandising and Other
Equipment and Properi�. The estimated current cost of this
proper)} and equipment generall% was computed b% appl%ing
prier indices published b% governmental and private organiza-
liuns to the historical cost of the assets. Selected indices were
Used filr carious classifications of buildings. improvements. and
other proper)% and equipment. The historical cost of each
classification was aged by vintage }'ear of acquisition for pur-
poses of applying the proper index. Management believes that
the resulting current cost data are reasonably representative of
the specific price changes for these categories of propert% and
equipment.
Depreciation. Accumulated depreciation and the provision for
depreciation expense expressed on the basis of current costs are
based un the same methods and rates of depreciation as are used
to prepare Transworld's historical financial statements.
(d) Income Taxes. No adjustment is made to income tax expense
for the increase in costs determined under the current c ust
computations.
86-1021
r
Directors and Corporate Officers
Transworld Corporation
Board of Director.-
L. Edwin Smart
Chairman of lhr Board
and Chirf Executive Officer
Transworld Corporation
Charles J. Bradshaw
President and Chirf Operating Officer
Tri+nsw(irld Curitoratiun
).ester Crown
Chairman cif the Board
and Chief E xeculi%r Offit er
Material Service Corltctration
(pniducer and dittributur of building matrrial )
R.L. Hadle% Griffin
Chairman of the E%ecuti%r Committer
FlruiAn Group. Inc.
la consumer products compam dealing with
operations in fitctlwrar. recreational prviducts
and sltrciall.% relaileup)
Jewel S. Leforelani
Partner.
Ve dder. frier. Kaufman & Kammholz
daw firnel
Howard M. Lo%e
Chairman of thr Pittard
and Chirf E.%rculke Met rt
National Intergroup. lei( .
Imulu-industr% compam in distrihututn and
ser%lcr Iluslllrssea With unestments in mrlal-
indu-Inc-)
John P Mascotte
Chmmidn of the Huard
and ('hirl E:%rc•utive Officer
The Continental CorlKtranon
)holding curnpan% in the insurancr• and
insurance sin ices firld>i
Ruhrrt S. )[McNamara
Retired President
Thr %%orld )lank
c•onipan% dirre•trir. unitrhit% tr %we
C. Edwin Nlr%er. Jr.
President
and Cheri E:%rcutl%r OffirVr
Hlhon Intrrnational Co.
Arja,, Miller
Drrn Fmrriws
Slanfunl 1'ni%rnil► Gradualr. r-h ad of liusinrs
c•umpan*%% dirrclnr
Andrall E. Pearmin
Profs %oi
Hanard Husinrss Sclwol
Jerome J. Richardson
Prrsidcnl
and Chirf Execuli it• Officer
Spartaii FikNl,lslr•111>. I11( .
}rank L. Salizzoni
Vice Chairman
Transworld Corporation
Morton 1. Scesland
Director and President
Sosland Companies. Inc.
Idivemified activities including publishing
and venture investing)
Patricia Carr% Stewart
Vice President
The Edna McConnell Clark Foundation
(non-profit charitable foundation)
Curt R. Strand
Chairman of the Board
Hilton International Cie.
Jack Valenti
President
Marion Picture .AssoK•iatiun of America
Itrade a"twiationI
Transworld Corporation
Officers
L. Edwin Smart
Chairman of the Board and Chirf Fxrcuti%r
offh e•rt
Charles J. Bradshaw
President and Chirf Operating Mcr•r'
Frank L. Salizzoni
Vice Chairman
John J. O'h.eeffr. Jr.
Vice Prrsidrnl-Administration. General
Counsel and CorlNtralr lrcretan
James K. Painter
Vice ['resident and Controller
Nicholas C. Morin
Treasurer'
I • At-, Cl,aurn m. Canirrn Corltttrawm. and I;hatrnwn t,f
thr Uri uti%r Cummrtirr. I-Panan F,.,d !,%.trm•. lei . and
Hdtun Ireirmauunal t.u.
Z. Ah.0 Chairman. Spartan Void Svorm.. In, .
3. Alm. Trra.urri. Canirrn Guilt ranun and wipanan F-ml
S%nlrnr>. feet .
Transworld Corporation
Board Committees
Executive Committee
L. Edwin Smart
Chairman
Charles J. Bradshaw
Jewel S. Lafonlanl
John I'. llascotle
Frank L. Salizzoni
Murton 1. ;osland
Patricia Cam Stewart
Audit Committee
Morton 1. Sosland
Chairnan
Jewel S. Lafuntant
Howard M. Love
Andrall E. Pearson
Compensation Committer
W.L. Hadle% Griffin
Chairman
Lester Crown
Atja% Miller
Jack Valenti
Finance Committee
Frank L. Salizzoni
Chairnan
John 1' k18,c•orlt.
H olw•rt S. McNamara
L Edwin Smart
Patricia Cam Stewart
[Nominating Committer
Andrall E. Pearson
Chairman
R.L. Hadle% Griffin
Jewel S. Lafontant
Public Affairs Committer
Arja% [Hiller
Chairman
Charles J. Bradshaw
John P. Nla,c•otty
Robert S. McNamara
C. Edwin Mever. Jr.
Cum It. Strand
Jack Valenti
Retirement Plan Committer
Frank L. Salizzoni
Chairman
Lester Crown
Howard AI. I. ne
Jerumr). Richardson
Monoii I. Sustand
Patricia Carl Stewart
�'CLiJME SEfa 1//CES, INC.
December 5, 1986
Mr. Walter E. Golby, Director
Department of Parks, Recreation
and Public Facilities
c/o Office of the City Clerk
City of Miami
3500 Pan American Drive, 1st Floor
Miami, Florida 33133
Lear Mr. Golbv:
Volume Services, Inc. is pleased to submit this proposal for food and
beverage concessions at the Miami Orange Bowl and Miami Baseball
Stadiums. We have developed a response that addresses all items
included in the RFF, and are excited about the prospect of serving the
patrons of these facilities.
Our operating experience, resources and strong management presence in
Florida is prepared to meet the challenges of the early_ transition date
as prescribed.
If during your review of our submittal you develop any questions or
require further information or clarifications, please contact me.
Sincerely,
Volume Services, Inc.
David R. Scoco
Sales and Marketing Manager
Enclosure
DRS:gat
86--ID
GT'/9R-1
*Oper. #4800 EAS: $1,200,000
® SAFECO INSURANCE COMPANY OF AMERICA
GENERAL INSURANCE COMPANY OF AMERK
AC FIRST NATIONAL INSURANCE COMPANY
SAFECO OF AMERICA
HOME OFFICE SAFECO PLAZA
SEATTLE. WASHINGTON 98185
slid 'fond 'i'o. 511601r1- If)
BID BOND
Approved by The American Institute of Architects,
A.I.A. Document No. A-310 (Feb. 1970 Edition)
13)' 71l1'Sl:' PRI•SLNT , ThaI Ise. _ ___ _ Volume Ser.,ices, Inc.
as Proicip al, heteltlafter called I!lc Principal.
and the SAFECO INSUPANCI COMI)ANY OF AMERICA, of Seattle, 11'asl'i•igton, a coipnration duly organized under
;i.e of the State of 11'as! it tun. i, Sarct\ , hercri,,:. ter :.illed the Surct} , are he!d and lit Ink bound unto_.__
- -- Cit'. o=;iar-d - —_ ---- a� 0! :gc . Lc:.,na'ter called ;he Ohligee.
----^,ent,-Fi-:e Tl:ousand and No, 100------------------_--------- Dollars
t� 2�,OLv.04_ ►. for the p,nrll:rlt rild truh be made, th•c ,.nd PtiticlpJl and the said Surety. hind
•�tII :!�: �'Jr Ilei rs. e\ec;11W...ldi:lr:.UtlaI� rs. SU%:%X,, 1r alld aslr"tls.)mI,tIy arid !,C%raIk, thinly h} Ihese prexilis.
It'I11"R1.IS. (he Ptracipal has submitted a hld for --__Food and Be%-erage Concessions at Miand
as-ned football and baseball facilit%- from 1,'1/6-1 to 2/l/91.
\0W. 7111:R.1'I'ORL', if the Obligee shall accept the hid of the Principal and the Principal shall enter Into a CUitIract with
the Obh_•ee in accordance with the terms of such bid. and give such bond or bonds as may be specified lit the bidd:ng or
Contr.ct Documents with good and sufficient surety for the faitltiul performance of such Contract and for the prompt
pa*mcnt of labor and material furni>hed lit the pmsectinon thereof, or in the event of the failttre of the Principal to enter
,a;h Contract and give such bond or bonds, if the Principal shall pay to the Obligee the difference not to exceed the
pc:,a!t) h.rc. f bet\%ecn the aniow-t Npecrtied lit said bid and such larger amount for which the Obligee Islay in good filth
contract with M(11110 party to perform the Work Covered by said hid, then this obligation shall he null and v.,;J, otherwise
to terlarn in toll force and effect
Signed and sealed this 26th
_ -- _ -- day of __-_. Noveritier --- - I 86
11'i(ness
et
11IIness
Volume Services s - nC . _ t Sea! I
-- - - -- 1 " — principal
K. H. Sedlarz-Vice President Title
SAFLCO INSUR..ANCL' COMPANY OF WFRICA
c f n
:lttonuy•iu-Fact
86-1021
SAFECO INSURANCE COMPANY OF AMERICA
POWER
OF ATTORNEY GENERAL INSURANCE COMPANY OF AMERIC
HOME OFFICE SAFECO PLAZA
F` SEATTLE. WASHINGTON 98185
SAFECO
No. 4666
KNOW ALL BY THESE PRESENTS:
That SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY OF AMERICA,each
a Washington corporation. does each hereby appoint
------- ----------- --------------ALICE ALBANO----------- ------------------------
its true and lawful attorneys► -in -fact with full authority to execute on its behalf fidelity and surety bonds or undertakings
and other documents of a similar character issued in the course of its business. and to bind the respective company thereby
IN WITNESS WHEREOF, SAFECO INSURANCE COMPANY OF AMERICA and GENERAL INSURANCE COMPANY
OF AMERICA have each executed and attested these presents
this end day of Nnvt-,n fpT . 19 R''
CERTIFICATE
Extract from the By -Laws of SAFECO INSURANCE COMPANY OF AMERICA
and of GENERAL INSURANCE COMPANY OF AMERICA:
"Article V. Section 13 — FIDELITY AND SURETY BONDS the President. any Vice President, the Secretary and any
Ass,sta-! Vice president appointed for that purpose by the officer in charge of surety operations shall each have authority
to appoint individuals as attorneys -in -fact or under other appropriate titles with authority to execute on behalf of the
compare `ioe!Ry and surety bonds and other documents of similar character issued by the compary in the course of as
buslnPss Or any instrument making or evidencing such appointment. the signatures may be affixed by facsimile Or anti
irstrurne^t conferring such authority or on any bond or undertaking of the company. the seal, or a facsimile thereof, ma, be
impressed or affixed or in any, other manner reproduced, provided. however. that the seal shall not be necessar, io the
va .'I I, c4 ar, such instrument or undertaking "
Extract from a Resolution of the Board of Directors of SAFECO INSURANCE COMPANY OF AMERICA
and of GENERAL INSURANCE COMPANY OF AMERICA adopted July 28 1970
Or any certificate executed by the Secretary or an assistant secretary of the Company setting out.
(i) The provisions of Article V, Section 13 of the By -Laws. and
(ni A copy of the power -of -attorney appointment. executed pursuant thereto, and
(ml Certifying that said power -of -attorney appointment is in full force and effect.
the signature of the certifying officer may be by facsimile, and the seal of the Company may be a facsimile thereof "
I. Bon A Dickey. Secretary of SAFECO INSURANCE COMPANY OF AMERICA and of GENERAL INSURANCE
COMPANY OF AMERICA, do hereby certify that the foregoing extracts of the By -Laws and of a Resolution of the Board of
$ Directors of these corporations, and of a Power of Attorney issued pursuant thereto, are true and correct, and that both the
s By -Laws. the Resolution and the Power of Attorney are still in full force and effect
IN WITNESS WHEREOF. I have hereunto set my hand and affixed the facsimile seal of said corporation
. t
this day of 19
8G
PRATED iN u 5 A
0
STATE OF
ss
County of
0
ACKNOWLEDGMENT BY SURETY
On this day of before me personally
appeared Al l c' Albano known to me to be the Attorney- in•Fact of
SAFECO INSURANCE COMPANY OF AMERICA, GENERAL INSURANCE COMPANY OF AMERICA, FIRST NATIONAL
INSURANCE COMPANY OF AMERICA or SAFECO NATIONAL INSURANCE COMPANY, the corporation that executed the
Within instrument, and acknowledged to me that such corporation executed the same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal• at my office in the aforesaid County,
the day and year in this certificate first above written ,
Notary Publi ,n'they $pf4 of. _ - '
tSeall County of l uur.
$ i30 04 E 78 PAINTED iN u 5 A
8f -1021.
0 0
TABLE OF CONTENTS
INTRODUCTION
A. CORPORATE PROFILE AND PHILOSOPHY....... ........ %..3
B. OUR CREDENTIALS..................................13
C. MANAGEMENT PLAN - OPERATIONS .....................36
D. MANAGEMENT PLAN - MA.NAGEMFh"T AND STAFFING ........ 42
E. CAPITAL IMPROVEMENTS .............................50
F. FINANCIAL CONTROLS AND ACCOUNTING................52
G. EMPLOYEE GROWTH AND DEVELOPMENT..................55
H. CORPORATE SUPPORT SERVICES AND UNIQUE PROGRAMS...61
I. PROPOSAL DOCUMENTS
EXHIBITS
- Alcohol Awareness Program...............El
- Affirmative Action/EEO..................E2
- Uniforms................................E3
- Corporate Capabilities Brochure.........E4
- Volume Services Brochure................E5
- TW Financial Statement..................E6
- Certificate of Insurance................E7
- Letters of Recommendation...............E8
86-102
0 0
INTRODUCTION
The provision of quality food and beverage services is an important and
Integral function of the operations at the Orange Bowl and Miami
Stadium.
The undertaking of such a responsibility is not to be treated lightly,
or as simply as "just another Stadium Foodservice". Volume Services,
Inc. understands and appreciates your objective to offer the tenants,
visitors and guests of Miami, the highest quality products and services
at outstanding value.
We have developed this response to your request for proposals
incorporating our significant experience, proven operational programs
and management resources into an innovative and comprehensive management
plan for the facilities. The diverse food and beverage requirements of
the stadiums will require an equally flexible and creative organization
to ensure customer satisfaction and financial performance.
The Volume Services Division of Canteen is prepared to meet the
challenge. As you review our proposal, we invite you to establish the
standards by which to evaluate our performance. The operating concepts,
management plans and financial projections contained herein are our
commitments to the City of Miami, and to the patrons of the Orange Bowl
and Miami Stadium.
ov,
z 8f—i00c.1
0
t
Our proposal is organized into topical headings, each section detailing
specific information as it relates to a successful foodservice operation
at the stadiums. Every element is designed to ensure that Volume
Services' contribution to the overall success of the complex is
complete, and exceeds your expectations.
86 -1021
0
A. CORPORATE PROFILE 8 PHILOSOPHY
Corporate Profile
Volume Services Inc.. recognized as the leader in excellent quality food
service to recreation, sports and convention center markets is a wholly
owned subsidiary of Canteen Corporation, one of the nation's finest food
service management firms. Volume Services specializes in the unique
food service requirements of convention centers, stadiums, arenas,
racetracks, and numerous other public facilities. We have distinguished
ourselves in the industry by means of the Volume Services System,
providing management, merchandising, controls, financial return to our
clients, and, most importantly, excellent service to our customers.
Volume Services has significant experience in successful operations plus
the desire and flexibility to continually learn new techniques to
improve our performance. We have served six World Series in three
different cities, numerous Colliegiate Bowl Games, national political
conventions, many of the most prestigious international, state and
regional conventions, as well as many other high attendance events. We
were privileged to serve the spectators of both Super Bowl RVIII at
Tampa Stadium and the 1984 Summer Olympics at the Los Angeles Coliseum
and Sports Arena.
Our ability to provide our convention centers, arenas, and stadiums with
maximum gross revenues and the highest possible per capita volume has
enabled us to continually renew contracts in the facilities where we
operate and add new business to this growing market each year.
-3-
8E-1021
0 t
During 1985, Volume Services Inc., became a part of Transworld
Corporation's family of service organizations via Transworld's purchase
of the Interstate United Corporation. Now as a wholly -owned subsidiary
of Canteen Corporation, Volume Services benefits from the significant
experience and resources of this major contract management firm.
Canteen Corporation
one of the nation's
largest service providers, this 1.3 billion dollar
concern is rapidly
becoming known as America's Foodservice Company. The
corporation's rich
history began in Chicago in 1929. Since then, by
broadening its markets and operations, the company has enjoyed steady
growth while this
diversification has lead to a leadership role in
virtually every area of professional service management.
x
In addition to Volume
Services, Inc., Canteen Corporation is divided
into the following
network of operating groups:
r,
r
r ;
a-
8G-1021
-4-
0 0
Canteen Corporation (Continued)
* TW Services, Inc...provides food, lodging, gift shops and tour
services in National, State and municipal parks, conference
centers, and training facilities, services include:
- resort management
- marketing and sales promotion
- rentals, tours, exhibits
- quality dining programs
- facility maintenance
- security and transportation
* Gulliver's... This deli concept meets the needs of office workers
and visitors in multi -tenant commercial office buildings without
company sponsored foodservices. The services include:
- customized design
- convenience to tenants
- tenant catering
- Build -Your -Own salad bars
- prepared to order delicatessen sandwiches
- kitchen fresh soups
- breakfast service
SF-1021.
-5-
0 t
Canteen Corporation (Continued)
* Corporate Foodservices... meets the dining requirements of American
Business. The services include:
- Executive Dining Rooms
- Employee Dining Rooms
- Special Function Catering
* Educational Foodservices... Canteen's Educational Foodservice
provides nutritious, tasty lunches to North America's primary and
secondary schools. The services include:
- sophisticated management methods
- trained quality management
- employee training and motivation
- high quality, tasty food
- appetizing menu choices
- imaginative merchandising
* College and University Foodservices...Canteen's menus, meal plans
and style of service reflect what students and college
administrators demand in foodservice. The services include:
8f -1021
-6-
0
flexible meal plans
credit cards and computer deductions
rathskellers, delicatessens, pizzerias, pubs,
and soda shops
student involvement
special events
cost-effective management
* Correctional Foodservices...0ur management programs, which meet
court mandated standards, provide prison administrators with
efficient, cost effective approaches to growing populations. The
services include:
- Use of Federal Commodities
- Use of prison -grown foods
- computer menu controls
- religious and denominational menus
- design assistance
- skill training for inmates
- security procedures and contingency plans
- nutrition standards which exceed American
Correctional Association guidelines
8E-1()2
-7-
9
* Health Care Foodservices... Provides dietary departments and coffee
shops for hospitals, nursing homes and life care centers. The
services include:
- menu development and analysis
- patient meals
- nourishment programs
- purchasing services
- administrative reports and financial forecasting
- in-service training
* Vending and Automated Services...Canteen provides vending services
through 200,000 vending machines in 180 markets across North
America. The services include:
- state of the art equipment
- national brands
- kitchen fresh foods
- trained professional personnel
- responsive maintenance
- detailed computer reporting
- Quality Assurance programs
8E"1.0n� x
-8-
0
* Preferred Meal Systems...provides 42 million preportioned,
single -service meals each year to school children across the
country. The services include:
- top-quality food at reduced costs
- reduced demands for equipment
- lower labor factors
- less administrative involvement for school administrators
- firn! price quotations
- purchasing, production and distribution systems
* The Rowe Division...provides cigarette and refreshment services,
amusement games, phonograph music systems for restaurants and other
businesses across the United States. The services include:
- prompt, efficient, dependable service
- stringent accountability
- top quality products
- the finest equipment
It becomes evident that the Canteen family of operating groups truly
provides food and related services to every aspect of daily activity.
SE-1021
-9-
0 0
Transworld Corporation
Canteen is a wholly -owned subsidiary of Transworld Corporation, a $2.5
billion New York based holding company that guides a network of
service -oriented companies. Besides Canteen, the Transworld family
includes:
* Hilton International - one of the world's foremost hotel management
companies, with 89 hotels in 43 foreign countries. Domestically
Hilton International operates under the Vista International name.
* Spartan Food Systems.- Canteen's sister company in the Transworld
"Food Group" owns and operates more than 300 Hardee's fast food
restaurants and 200 of its own proprietary concept, Quincy's Family
Steak Houses.
The common denominators linking each of the divisions of Transworld
Corporation are food, service and hospitality. Transworld's
concentration on these common elements has resulted in one of the
world's largest and finest service organizations. Each member of TWC
Family shares its resources with one another. Regular exchange of
training, marketing, and operational information is encouraged. The
1985 TWC Annual Report has been included for your review, as an exhibit
to this submittal.
86-102t
-10-
IM
0
Volume Services' philosophy for foodservice operations is based upon the
development, implementation and maintenance of the highest professional
foodservice standards.
Our approach is to test and refine programs which can be duplicated in
each of our operations and which are adaptable to our clients'
facilities and requirements.
The ability to deliver quality programs again and again under very
different circumstances for clients with very different objectives is
unique in the food service industry. This ability says more about our
management philosophy than anything we might say in our proposal.
Volume Services has enjoyed exciting growth due to our sensitivity to
our clients' needs and understanding of foodservice trends. We will
ensure our continued growth through imaginative marketing, professional
management, innovative systems, and the development of creative
foodservice personnel.
Much of our future growth will come from our existing business base.
The on -going development of quality programs, sound controls, and our
ability to out -perform our competitors will continue to provide us solid
growth opportunities.
-11-
# 0
Volume Services places great emphasis on developing and training its
people. We constantly review the talent pool from academic and industry
sources and hire quality people for management training positions to
aWport our growth plans. Once affiliated with Volume Services, new
employees receive a formal curriculum of training programs, workshops
and programmed study.
Our philosophy of demanding quality service and performance excellence
ensures continued growth, expansion and leadership for Volume Services.
In a market populated with discerning clients, we stand out as the
choice for excellence. We encourage you to visit foodservice locations
managed by Volume Services. you'll find out we don't just talk about
quality and consistency, but we achieve it.
8E-1®21
-12-
0 #
B. OUR CREDENTIALS
We are all known by the company we keep. At Volume Services we are
proud to say we keep some impressive company. Our complete list of
clients and their facilities we serve is included for your review.
-13-
CLIENT LIST
We encourage you to contact each of our clients for a first person
appraisal of our performance. The following is a list of our valued
clients, in alphabetical order, indicating our client's name, address,
and telephone number, as well as the facilities, size, type of service
and year service started.
CLIENT American Royal Center
25th Floor, City Hall
Kansas City, Missouri 64106
CONTACT Mr. John Burge
816/274-1316
FACILITIES Kemper Memorial Arena (18,000 seats)
American Royal Building ( 6,150 seats)
Governors Exposition Building (120,000 sq.ft.)
TYPES OF SERVICES Concession (stands and vendors), programs, and
novelties
START OF SERVICE 1974
CLIENT Arkansas State Fairground Complex
P.O. Box 907
Little Rock, Arkansas 72203
CONTACT Mr. J. R. "Johnnie" Holmes
501/372-8341
FACILITIES T. H. Barton Coliseum
Arena (10,000 seats)
Hall of Industry (37,000 sq. ft.)
Grandstand ( 5,000 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
novelties, cafeteria and banquet catering.
START OF SERVICE 1979
86-102t
-14-
0 9
CLIENT Arrowhead Stadium
Vne Arrowhead Drive
fansas City, Missouri 64105
CONTACT Mr. Jack Steadman Mr. Robert Wachter
816/924-9300 816/924-9300
FACILITIES Football Stadium (78,034 seats)
TYPES OF SERVICES Concession (stand and vendors), programs,
and novelties
START OF SERVICE 1972
CLIENT Baltimore Civic Center
201 W. Baltimore Street
Baltimore, Maryland 21201
CONTACT Mr. Charles Neustadt
301/837-0903
FACILITIES Arena (13,000 seats)
TYPES OF SERVICES Concessions, programs, novelties and catering
START OF SERVICE 1984
P
L
8�-1Q21
�j
0
CLIENT British Columbia Place
777 Taylor Street
Vancouver, British Columbia, Canada V6B4Y8
CONTACT Mr. Harry Renaud
604/669-2300
FACILITIES Stadium (60,000 seats)
Stadium Club ( 75 seats)
Luxury Suites (80)
Exhibit Hall (230,000 sq.ft.)
TYPES OF SERVICES Concessions, catering, restaurants
START OF SERVICE 1983
CLIENT Casper Events Center
200 N. David Street
Casper, Wyoming 82601
CONTACT Mr. John Nath
307/235-8354
FACILITIES Arena (10,000 seats)
Exhibit Space (44,000 sq. feet)
Theatre ( 3,500 seats)
TYPES OF SERVICES Concessions (stands and vendors)
START OF SERVICE 1982
-16-
9 9
CLIENT
The Centrum in Worcester
c/o Spectacor Management
50 Foster Street
Worcester, Massachusetts 01608
CONTACT
Mr. Neil Sulkes
617/755-6800
FACILITIES
Arena (13.500 seats)
Exhibit gall (40,000 sq. feet)
TYPES OF SERVICES
Concessions and catering
START OF SERVICE
1982
CLIENT
Century II Complex
225 West Douglas Avenue
Wichita, Kansas 67202
CONTACT
Mr. James F. Clancy
316/264-9121
FACILITIES
Exhibit Halls
(Total 200,000
sq.feet)
Arena
( 5,200
seats)
Concert gall
( 2,190
seats)
Performing Arts Theatre
( 661
seats)
_ TYPES OF SERVICES
Concessions, catering and
novelties
START OF SERVICE
1985
8G-102t
-17-
9 9
CLIENT Victor K. Copps Trade Centre/Arena
101 York Boulevard
Bamilton, Ontario, Canada L8R3L4
CONTACT Mr. Brian Conacher
416/526-4450
FACILITIES Coliseum (18,000 seats)
Exhibit Space (87,000 square feet)
TYPES OF SERVICES Concessions and club
START OF SERVICE 1985
CLIENT Erie Civic Center
P. 0. Box 6140
Erie, Pennsylvania 16512
CONTACT Mr. Jay Armbruster
814/453-7117
FACILITIES Arena ( 9,200 seats )
Exhibit Hall (25,000 sq. ft.)
TYPES OF SERVICES Concessions, programs, novelties and catering
START OF SERVICE 1984
SC-1321
-18-
9 9
CLIENT Five Seasons Center
150 First Avenue, N.E., Suite 250
Cedar Rapids, Iowa 52401
CONTACT Mr. David Pisha
319/398-5211
FACILITIES Arena ( 8,500 seats)
Exhibit Space (28,500 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1979
CLIENT Fresno Convention Center
2101 "C" Street
Fresno, California 93706
CONTACT Mr. Ernie Valdez
209/488-1511
FACILITIES Arena ( 7,410 seats)
Theatre ( 2,359 seats)
Exhibit Hall (32,000 sq. feet)
TYPES OF SERVICES Concessions and catering
START OF SERVICE 1982
86-1021
-19-
0 9
CLIENT Hollywood Greyhound Track
831 North Federal Highway
Hallandale, Florida 33009
CONTACT Mr. Les Schwartz
305/454-9400
FACILITIES Greyhound Track (15,000 seats)
Dining Rooms ( 700 seats)
TYPES OF SERVICES Concessions, catering, restaurants
START OF SERVICE 1973
CLIENT Hubert A. Humphrey Metrodome Stadium
900 South 5th Street
Minneapolis, Minnesota 55415
CONTACT Mr. Jerry Bell
612/332-0386
FACILITIES Domed Stadium (65,000 seats)
TYPES OF SERVICES Concessions (stands and vendors)
START OF SERVICE 1982
8E-1021
-20-
CLIENT Jacksonville Sports Complex
Department of Recreation and Public Affiars
851 North Market Street
Jacksonville, Florida 32202
CONTACT Mr. Dan Lee
904/633-3808
FACILITIES Stadium (Gator Bowl) (70,000 seats)
Coliseum (10,228 seats)
Auditorium ( 3,200 seats)
Beach and Miscellaneous City Parks
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1976
CLIENT Jones Beach State Park
Long Island State Park and
Recreation Commission
Belmont Lake State Park
Babylon, Long Island, New York 11702
CONTACT Mr. John Sheridan
516/669-1000
FACILITIES Beachfront (33 miles) Softball Fields
Golf Course Theatre
Fishing Piers
TYPES OF SERVICES Concessions, restaurant, banquet catering,
cafeterias, vending and liquor services
START OF SERVICE 1931
86-10 21
-21-
0 0
CLIENT
Kansas City Convention Complex
1310 Wyandotte
Kansas City, Missouri
64105
CONTACT
Mr. John Burge
816/421-8000
FACILITIES
Arena (
10,000
seats)
Exhibition Hall (
50,000
sq. feet)
Exhibition Hall (200,000
sq. feet)
Music Hall (
3,500
seats)
Theatre (
1,000
seats)
TYPES OF SERVICES
Concessions, banquet
catering, cocktail lounge,
restaurant, cafeteria
START OF SERVICE
1976
CLIENT Lawlor Events Center
University of Nevada, Reno
Business Center North
Reno, Nevada 89557
CONTACT Mr. Robert Dagitz
702/784-6552
FACILITIES Arena (13,000 seats)
TYPES OF SERVICES Concessions, bar, catering and novelties
START OF SERVICE 1983
8f -1021
—2 2—
I
I
CLIENT Los Angeles Memorial Coliseum
and Sports Arena
3911 South Figueroa Street
Los Angeles, California 90037
CONTACT Mr. James Hardy
213/747-7111
FACILITIES Stadium (88,000 seats)
Arena (15,400 seats)
TYPES OF SERVICES Concessions (stands and vendors), programs,
and novelties
START OF SERVICE 1977
CLIENT Ted Makalena Golf Course
Waipio, Ewa, Hawaii
CONTACT Mr. Kiyo Tenjome
808/259-5350
FACILITIES 18-Hole Golf Course
TYPES OF SERVICES Concession stands and catering
START OF SERVICE 1981
-23-
86-1021
0
9.9
CLIENT
Oakland -Alameda County Coliseum Complex
Nimitz Freeway and Hegenberger Road
Oakland, California 94621
CONTACT
Mr. Ray Ward
415/569-2121
FACILITIES
Stadium (54,000 seats)
Arena (14,260 seats)
Exhibit Hall (50,000 sq. feet)
TYPES OF SERVICES
Concessions (stands and vendors)
START OF SERVICE
1966
CLIENT Ocean Center
101 N. Atlantic Avenue
Daytona Beach, Florida 32018
CONTACT Mr. Jerry Mac Donald
904/252-7766
FACILITIES Arena (10,000 seats)
Exhibit Hall (62,000 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors),
liquor service, catering
START OF SERVICE 1985
6E-1�21
s
F-
-24-
11
I
CLIENT Orange County Convention/Civic Center
9800 International Drive
Orlando, Florida 32809
CONTACT Mr. David O'Neal
305/420-3773
FACILITIES Convention Center (165,000 sq. feet)
Arena ( 8,500 seats)
Meeting Capacity ( 12,000 seats)
Meeting Rooms ( 40 )
TYPES OF SERVICES Concessions (stands, vendors), catering
START OF SERVICE 1983
CLIENT
Lester E. Palmer Auditorium
P.O. Box 1088
Austin, Texas 78767
CONTACT
Mr. Ron Wood
512/476-5461
FACILITIES
Coliseum
( 6,200
seats)
Auditorium
( 6,000
seats)
Exhibit Area
(87,440
sq. ft.)
Banquet Facilities
( 4,500
capacity)
TYPES OF SERVICES
Concessions (stands and
vendors),
programs,
novelties, and banquet
catering
START OF SERVICE
1979
8F-10ti1
-25-
E
.1
CLIENT Pompano Park Racetrack
1800 Southwest Third Street
Pompano Beach, Florida 33060
CONTACT Mr. Harold Duris
305/972-2000
FACILITIES Harness and Quarterhorse Racetrack
TYPES OF SERVICES Clubhouse dining rooms, concessions, bars,
and catering
START OF SERVICE 1973
CLIENT Richmond Coliseum
Dept. of Community Facilities
600 E. Broad Street - Suite 615
Richmond, Virginia 23219
CONTACT Mr. Jerry Johnson
804/780-5093
FACILITIES Coliseum (14,000 seats)
Exhibit Space (50,000 sq. feet)
Mosque Theatre ( 3,667 seats)
TYPES OF SERVICES Concessions, catering and novelty sales
START OF SERVICE 1982
S
F�
86 10 21
-26-
CLIENT Riverfront Coliseum
100 Broadway
Cincinnati, Ohio 45202
CONTACT Mr. Don Schumacher
513/241-8500
FACILITIES Coliseum (19,000 seats)
TYPES OF SERVICES Concessions, programs, and novelties
START OF SERVICE 1975
CLIENT Riverside Convention Center
3443 Orange Street
Riverside, California 92501
CONTACT Mr. George Condos
714/787-7590
FACILITIES Exhibition Hall (32,000 sq. feet)
Banquet Hall (16,000 sq. feet)
TYPES OF SERVICES Banquet catering and concessions
START OF SERVICE 1976
86-1021
—27-
CLIENT
Rockford Metro Centre
401 S. Main Street
Rockford, Illinois 61101
CONTACT
Mr. Douglas Logan
815/968-5600
FACILITIES
Arena
(10,000
seats)
Exhibit Area
(91,000
sq. feet)
TYPES OF SERVICES
Concessions (stands and
vendors),
programs
and novelties optional
START OF SERVICE
1981
CLIENT
Royals Stadium
One Arrowhead Drive
Kansas City, Missouri
64105
CONTACT
Mr. Joseph Burke Mr.
John Schuerholz
816/921-8000 816/921-8000
FACILITIES
Baseball Stadium
(40,613
seats)
TYPES OF SERVICES
Concessions (stands and
vendors),
programs,
and novelties
START OF SERVICE
1972
-28-
�e y
l
k
;4
CLIENT
Sacramento Community Center
1300 "K" Street
Sacramento, California
95814
CONTACT
Mr. Sam Burns
916/449-5291
FACILITIES
Exhibit Hall. with Stage
( 7,200
seats)
Exhibit Hall
(40,000
sq. feet)
Auditorium
( 4,500
seats)
Theatre
( 2,500
seats)
Activities Building
(10 banquet rooms)
TYPES OF SERVICES
Banquet catering, concessions, and meeting room
services
START OF SERVICE
1974
CLIENT St. Louis Arena
5700 Oakland Avenue
St. Louis, Missouri 63110
CONTACT Mr. Jack Quinn
314/644-0900
FACILITIES Stadium Club (400 seats)
Luxury Suites (50)
TYPES OF SERVICES Concessions, restaurants* bars, catering
START OF SERVICE 1984
st--2 JAZl
-29-
CLIENT St. Paul Civic Center
143 West 4th Street
St. Paul, Minnesota 55102
CONTACT Ms. Marlene Anderson
612/224-7361
FACILITIES Arena (17,700 seats)
Auditorium (10,000 seats)
Exhibit Space (Over 100,000 sq. feet)
TYPES OF SERVICES Concessions (stands and vendors), programs.
and novelties
START OF SERVICE 1977
CLIENT Sea Life Park
Makapu Point
Waimanalo, Hawaii 96795
CONTACT Mr. Robert Moore
808/259-7933
FACILITES Marine Show and Viewing Tanks
TYPES OF SERVICES Concessions, bars, restaurant, and catering
START OF SERVICE 1975
86--1.02i.
-30-
s
a
v
CLIENT
Seattle Center
-
305 Harrison Street
Seattle, Washington 98109
CONTACT
Mr. Ewen Dingwall
206/625-4227
FACILITIES
Coliseum (15,000
seats)
Exhibit Space (40,000
sq. feet)
Arena ( 6,100
seats)
Opera House ( 3,100
seats)
Display Hall (37.000
seats)
Playhouse ( 800
seats)
Banquet Rooms ( 10
rooms)
TYPES OF SERVICES
Concessions, catering, and novelties
START OF SERVICE
1964
y
CLIENT
Sodrac Park/Jefferson Park
Racetracks
Box 195
*.�
North Sioux City, South Dakota
57049
CONTACT
Mr. Iry Epstein
y, "•
605/232-4321
FACILITIES
Thoroughbred Racing
Greyhound Racing
TYPES OF SERVICES
Restaurant and concessions
START OF SERVICE
1978
LO :.
k.
8E-021
—31-
0
0
CLIENT Tampa Stadium
Tampa Sports Authority
4201 N. Dale Mabry Hwy.
Tampa, Florida 33607
CONTACT Mr. Joseph J. Zalupski
813/872-7977
FACILITIES Stadium (72,000 seats)
TYPES OF SERVICES Concessione (stands and vendors), programs,
and novelties
START OF SERVICE 1978
CLIENT Thomas and Mack Center
University of Nevada, Las Vegas
4505 Maryland Parkway
Las Vegas, Nevada 89154
CONTACT Mr. Dennis Finfrock
702/739-3761
FACILITIES Arena (18,500 seats)
Silver Bowl Stadium (32,000 seats)
TYPES OF SERVICES Concessions (stands and vendors)
and catering
START OF SERVICE 1983
86-1021
-32-
C
NNW-
i
CLIENT Tucson Community Center
260 South Church Street
Tucson, Arizona 85703
CONTACT Mr. Robert J. Sullivan
602/791-4101
FACILITIES Arena ( 9,550 seats)
Exhibit Hall (35,000 sq. feet)
Music Hall ( 2,300 seats)
Auditorium ( 575 seats)
TYPES OF SERVICES Concessions, liquor service, and banquet
catering
START OF SERVICE 1974
CLIENT University of Washington Stadiums
Tubby Craves Building
Seattle, Washington 98195
CONTACT Mr. Michael Lude
206/543-5828
FACILITIES Stadium (60,000 seats)
Arena ( 8,475 seats)
TYPES OF SERVICES Concessions
START OF SERVICE 1985
86-1021
-33-
E
0
CLIENT Veterans Memorial Auditorium
833 5th Avenue
Des Moines, Iowa 50309
CONTACT Mr. Roger Newton
515/283-4168
FACILITIES Arena (15,000 seats)
Exhibit Hall (30,000 sq. feet)
Total Exhibit Space (76,000 sq. feet)
TYPES OF SERVICES Concessions, liquor service, banquet catering
START OF SERVICE 1981
CLIENT Waimea Falls Park
59-864 Ramehameha Highway
Oahu, Hawaii 96712
CONTACT Mr. Roberts Leinau
808/259-7922
FACILITIES Botanical Park and Waterfalls
TYPES OF SERVICES Concessions, bars, restaurant, and catering
START OF SERVICE 1979
8E~1021
-34-
CLIENT West Palm Beach Municipal Entertainment Center
1601 Palm Beach Lakes Blvd.
West Palm Beach, Florida 33401
CONTACT Mr. Randy Carillo
305/683-6010
FACILITIES Exhibit Space (27,000 sq. ft. exhibit space)
Auditorium ( 7,500 seats)
Baseball Stadium ( 5,000 seats)
TYPES OF SERVICES Concessions, catering, novelties
START OF SERVICE 1985
CLIENT Yankee Stadium
161st and River Avenue
Bronx, New York 10451
CONTACT Mr. James Naples
212/293-4300, Ext. 230
FACILITIES Baseball Stadium
(60,000
seats)
Luxury Suites
(19)
Stadium Club and
Lounge (430
seats)
Combo Club
(125
seats)
Yankee Club
(125
seats)
Press Dining Room
(65
seats)
TYPES OF SERVICES Concessions. restaurants
START OF SERVICE 1964
-35-
86-1021
C. MANAGEMENT PLAN - OPERATIONS
Concessions
Volume Services' proven systems of concession operations combines the
advantages of creative merchandising with optimum stand employee
efficiency to provide maximum sales and the fastest service in the
industry.
The faster service and higher volume of this system is proven daily at
all of our locations throughout the nation. Volume Services has been
awarded contracts based on our ability to provide higher sales and
per -capita spending. This ability to generate the highest possible per
capita sales converts into a higher net income to your facility, as
witnessed by Mr. Len Zerilli, CFE, Manager of the Sacramento Community
Center.
"Since 1974--the opening of the Sacramento Community/Convention
Center --we have had the service for food and beverage by Volume
Services. Initially, our community was much concerned about having a
national firm represent our Center in this phase of our operation.
Although Volume Services was not the high bidder, they were chosen over
other bidders, and truthfully, we have not regretted the choice. Each
year they have continued to increase revenue to the City. This has been
accomplished by a complete evaluation on a continuous basis of their
service and products to the patrons of the Center and for each event
accordingly.
Although Volume Services is a national firm, we consider them a
local since they have now been in our community for so long, hire
locally, and purchase as much as possible from local purveyors.
We expect the high degree of professionalism experienced in the
past to continue into the future. Should you choose Volume Services, I
am certain that they would also provide your facility with the degree of
satisfaction you can be proud of."
8E-1021
-36-
A it
Concessions (Continued)
The principles of the Volume Services System are quite simple. Building
upon the design of the food and beverage concessions, the following
I elements are developed:
°
Creative Merchandising
°
Quality Menus
°
Employee Training
°
Courteous Service
°
Operating Policies and Procedures
°
Accurate and Timely Reporting
This combination
of location specific procedures results in customer
satisfaction and
increased per-capitas. That is the success of the
Volume Services
concession system ... the most efficient ...the most
productive in the
industry.
E #`
Our Unit Operations Manual is available for your review, however, its
contents are proprietary. Upon our successful selection as your
contractor, a manual
specific to the Miami operations will be prepared.
-37-
Catering
Volume Services is a full foodservice management company. Our
professional management approach is used in both the concessions and
catering operations. We operate catering facilities which host from
five people to 13,000 for breakfasts, lunches, dinners, meetings, and
receptions of all kinds. The interest, enthusiasm and flexibility for
creating an individual catering package for each tenant and serving him
in a "distinguished" fashion with no surprises is the foundation of our
successful catering program.
Volume Services has the ability to meet even the most unique catering
requirements. From clam bakes to cocktail parties, we have the
experience and expertise to fully handle the gamut of catering
challenges.
The same expertise, which we display in catering a Presidential
Inaugural and employee company picnics for as many as 50,000 people is
available to satisfy catering needs with the usual no surprises results.
* Catering assignments will be met without disruption in the
daily foodservice/concessions operations.
* Any event of any size at any time for the year will be
handled.
-38-
8E-1021
a ;..
Catering (Continued)
* Both regularly scheduled and specially catered events will run
smoothly.
* The theme, menu, presentation and type of service for each
event will be specifically tailored to meet the customer's
objectives.
* Finally, the customer can be assured of operations within a
specific budget for each and every event.
The net of no surprises catering is what Volume Services will provide:
A superior service specifically planned to meet the client's needs.
No surprises catering achieves what it does because it views each and
every event as a separate foodservice situation requiring its own
separate "Event Plan".
Elements which go into each "Event Plan" include:
* Determining the characteristics of the audience to be served:
- Visitors from a foreign country?.
- Civic Group?;
- College Organization?
- Political Group?
- Private Industry?
m
8E-1021
-39- F`
w
.fits{J. .'
{
Catering (Continued)
* Determining the size and make-up of the audience
G,
- The number involved?
} - Are families to be involved?
*
Setting the specific objectives for each event:
}
- Awards Banquet?
- Presentation of the annual report?
}
- Executive seminar?
*
Setting the date and time
Setting the budget?
On a per -person basis?
- An overall figure?
*
Determining the type(s) of menu(s) required?
Yv�
- Several course formal dinner?
,rA
- Cocktails?
- Large Barbeque?
fla-
Special "Theme" menu, decor, etc.?
;.
It's
our sound planning that assures you of perfect execution, no matter
what
the requirements.
�XF 4
-1021L
-40-
Catering (Continued)
By asking all these questions and getting the right answers, we will
provide a superior service, which is pre -planned, flexible, imaginative
and uniquely in keeping with the catering requirements at the Orange
Bowl.
86-1021
-41-
0
D. MANAGEMENT PLAN - MANAGEMENT AND STAFFING
What follows is a detailed description of our management team planned
for the facilities, our organization in the Miami area and how both will
interface with the complex.
1
Senior Management and Corporate support staffs are vital to any
business. But in a service and people oriented business the critical
- element is the relationship of our local management with you and with
4;=
your patrons. Therefore, our focus here is on key members of our local
3
and on -site management staff.
General Manager Concept
Foodservice responsive to your objectives and sensitive to the
customer's needs requires continuity, coordination and management
direction. To achieve this, one individual must be responsible. With
Volume Services that is the task of the General Manager. The Resident
_3r
General Manager for Volume Services will be responsible for planning and
r.
directing all operational, financial and personnel activities for the
foodservices at the Orange Bowl and Miami Stadium .
The General Manager must comply with corporate policy and procedures to
assure quality service. The Manager has the expertise and latitude to
'j�,
institute specific procedures for the facilities.
irF =ILL
-42-
A(
i
4
General Manager Concept (Continued)
Be has the authority to make his own managerial decisions subject to the
directions of the Director. The General Manager participates in setting
his ow goals and priorities in order to achieve overall service and
profit levels subject to the input of our corporate office.
Proposed Management Organization - Miami Stadium
Office Manager
General Manager
Assistant
General Manager
—43—
Product
Supervisor
86.jo"II
- ,w
I General Manager Concept (Continued)
In addition to the resident General Manager, several key staff positions
are:
Assistant General Manager - Supervises the operational department heads.
The Assistant General Manager is an operations manager responsible for
administering the policies and programs of the General Manager including
purchasing, training, merchandising, staffing, and cash control.
Product Supervisor - Directs the warehouse, receiving, stocking and
sanitation programs, and personnel in those areas. Reports to the Asst.
Manager and is responsible for maintaining the physical plant as well as
all products purchased by Volume Services.
x z'
Office Manager - The office manager reports to the Assistant General
Manager and is responsible for maintaining accurate accounting records
for sales, costs, payroll, accounts payable, accounts receivable,
perpetual inventory, event statistics, rent reports, and cash control.
The office manager supervises all additional office personnel necessary
including the Head Cashier.
There are many other regular employees, each of whom has a complete job
f
description; such as, Waiters, Waitresses, Concession Stand Manager,
etc. One unique employee is the Condiment Stand Porter.
rti q i r5
86-021
-44-
14
1_
General Manager Concept (Continued)
Condiment Stand Porters - Specific stand attendants will be assigned
each event to maintain the condiment stands and other public areas in a
sanitized and orderly fashion, fully stocked, as well as maintaining all
concourse areas free from dangerous spills. This unique service is
extremely important to the overall appearance and safety of your
facility.
All of our employees and staff are trained to provide the quickest, most
1 courteous service to the customers while providing quality products.
i
Our employees are well aware of the responsibilities associated with
selling food and alcoholic beverages as well as strict adherence to
proper sanitation practices. With our well defined job descriptions and
�x
proper training you will find the Volume Service emplovees a true asset
to the stadiums.
gym;
Volume Services is fully aware of the management requirements of the
j
facilities. The on -site management staff will have the necessary:
° Education
...
° Skills
° Experience
° Training
r� �
:
1 86-,-1021
-45-
It
The on -site management team at Miami is supported by the Volume Services
Eastern Area. This includes the South Eastern Regional Manager, Rob
Forbes, and the Eastern Area Vice President, Craig Trimble. The
complete corporate support structure can be depicted as follows:
Miami Stadium
General Manager
South East Regional Manager
Rob Forbes
Eastern Area Vice President
Craig Trimble
Volume Services Corporate Office
Barry Freilicher, President
Additional support can be readily obtained by virtue of the presence of
the local Canteen Regional Office in the Miami Area.
86--1021
-46-
W
Management Staffing
0
This management team will be in contact with the Center on a continuing
basis.
Mr. Barry Freilicher - President, Volume Services. Mr. Freilicher has
been with Interstate United for ten years, progressing from General
Manager to Regional Manager to Senior Vice President and recently to
President. His management skills encompass many areas of recreational
food service such as, coliseum, arena, stadium and racetrack management.
Mr. Freilicher was formerly in the airport food service field. He has a
B.S. Degree in Hotel and Restaurant Administration from Cornell
University, Ithaca, New York.
Mr. Craig Trimble - Eastern Area Vice President, Volume Services. Mr.
Trimble has been with Canteen/Volume Services for twelve years,
progressing from Regional Controller to General Manager to Regional
General Manager, and most recently to Eastern Area Vice President. In
this position, he will be responsible for all Volume Service accounts in
the East. Mr. Trimble has a B.S. Degree in Accounting from Kent State
University, in Kent, Ohio.
-47-
86-1021
44
r-3
Mr. Robert Forbes - Southeast Regional Manager, Volume Services. Mr.
Forbes has been with Volume Services for seven years, employed at the
Riverfront Coliseum and Convention Center, both in Cincinnati and also
at Royals and Chiefs Stadiums in Kansas City before becoming general
manager of Baltimore Memorial Stadium in 1981. He is a graduate of
Miami University of Ohio. obtaining a B.S. degree in business
administration. Recently Rob was promoted to Southeast Regional Manager,
his office in Orlando, Florida.
Consultants
Mr. William A. Cunningham - President of Coliseum Consultants, Inc.
assists Volume Services as a Facility Management Consultant. Mr.
Cunningham has over 23 years of experience in managing major public
assembly facilities. 16 years as General Manager of the Oakland -Alameda
County Coliseum (1964-1980), and previously as the Assistant Director of
the Philadelphia Trade and County Civic Center from 1957 through 1964.
He was President of the International Association of Auditorium Managers
in 1974, and the 1977 winner of the McElravy Award, IAAM's highest honor
for professional achievement. He also has been designated a "Certified
Facilities Executive" (CFE) by this professional organization. He has
served many communities in a consulting capacity. Mr. Cunningham holds
a Bachelor of Science Degree in Education and completed three years of
graduate work in Governmental Administration at the University of
Pennsylvania. He also attended the Professional Auditorium Management
Symposium at the University of Illinois.
-4 8-
86-1Q2l
Mr. Vince J. Pantuso - President of V. J. Pantuso Services, Inc. and
consultant to Volume Services, Inc. Mr. Pantuso was with Interstate
United Corporation for over ten years, most recently serving as
President of Volume Services. Twenty of his 25 years in the food
' service industry have been spent in the sports and recreational
facilities area. Be holds a B.S. degree in Business Administration from
1
a
St. Joseph's College in Philadelphia and attended graduate school at
i Drexel University in Pennsylvania. He is a member of the Board of
Directors of the National Association of Concessionaires and is listed
in Marquis Who's Who in America.
-49-
86-1021
-777-77
Y a
t m
1'n
E. CAPITAL IMPROVEMENT PLAN
Volume Services proposes to expend a sum up to five hundred seventy-five
thousand dollars ($575,000) at the Orange Bowl and Miami Baseball
Stadiums. This investment will be used for operating equipment and
leasehold improvements throughout the concession areas. A preliminary
outline of how these funds may be expended is below:
Orange Bowl
Full Service Concessions - upgrade and equip all locations including a
grill/fry menu capability. Illuminated Menu Boards, graphics package to
include neon and canopies - All locations $260,000
Beer Stands - Upgrade utilities and equip all beer rooms, add graphics
and menu boards. Purchase beer portables $52,000
Vendor Commissaries 6 Support - Improve layout and equip all
commissaries, provide distribution equipment, storage facilities, etc.
$143,000
Office b Cash Room - Provide equipment, as necessary, safe, alarm system
and telephones. $20,000
86-10 �.1
-50-
A OW
Capital Improvements (Continued)
Miami Baseball Stadium
i Concession Areas - Upgrade and fully equip all permanent locations,
t
establish one vendor commissary, Menu Boards, directional graphics and
f
neon. $100,000
Total - $575,000
In the event Volume Services, Inc. would not be granted the additional
five year option period, book value protection is required for the
remaining asset balance of these improvements at the end of the
contract. 10-year straight line depreciation, from the date of purchase
will be employed to determine the net book value.
8E-1021
F. FINANCIAL CONTROLS AND ACCOUNTING
S
We utilize a full range of electronic data processing equipment,
1
accounting systems, and security methods to insure the integrity and
accurate reporting of operational results.
i
At the operational level, we employ retail accountability and inventory
controls, yield analysis, independent customer shopping, and per capita
analysis to monitor the cash receipts and product control of each facet
}
i
of our operations.
j
The basic control of cash is recorded each step of the way from the
customer to the bank with several checks and balances built into the
system along the way.
A perpetual inventory of each item to be distributed to the outlets is
kept in the commissary. Upon receiving the orders for an event, the
k
:u
product supervisor deducts each item from the perpetual inventory and
A
distributes it to the individual outlets. At the concession stand a
_ l
complete opening inventory is made by the Stand Manager, and the initial
-
bank counted and entered by the Assistant Manager.
1
FINANCIAL CONTROLS AND ACCOUNTING (Continued)
i
At the close of the event, another complete inventory of
everything --cups, hot dogs, candy, etc. --is taken and entered against
the opening inventory. The calculations give exactly the number of
items sold. The money is counted and entered against the total inventory
consumed. A cash flow sheet pinpoints the accuracy of each cashier.
Our books are open to your inspection and audit at any time.
As you can see from our accounting controls we will provide you with a
detailed audit trail of individual items and locations, not merely a
conglomeration of total sales. On a daily basis, the previous day's
receipts are deposited in a separate bank account maintained at a local
bank. We will furnish you with a daily report following each day's
operation, detailing sales by outlet and product category.
Our fiscal year is divided into four quarters, each consisting of one
five -week and two four -week periods. Following each four or five -week
accounting period, you will receive a detailed summary indicating a
total sales analysis for the period. Commission payments to the City
will be made the 15th day after each period closing.
In every facility where Volume Services operates, there are unique
accounting and reporting systems to be used based on particular contract
specifications for that facility.
-53-
8vr`021
FINANCIAL CONTROLS AND ACCOUNTING (Continued)
Our resident manager will work closely with you to establish a
F
reasonable accounting and reporting system to fit in with your
ti
operation. Where possible the cash register requirement will be met.
Our sales and operating records and accounting methods may be audited by
your representative at any time. Our own internal audit staff conducts
unannounced audits of each of our accounts on a continuing basis.
a
86--1021
-54-
t..
E
i
1
1Z_
i
G. EMPLOYEE GROWTH AND DEVELOPMENT
ti
Volume Services approach to employee development is to provide an
organization of foodservice professionals to properly serve our
customers and assist all of our clients in meeting their foodservice
objectives.
We accomplish this through programs for educating management,
supervisors and hourly employees in people skills, foodservice skills
and management skills. These programs are all based on an enlightened
personnel philosophy that recognized individuals and their career growth
objectives.
Training and Development
This Canteen department supports our field organization's efforts in
developing management personnel. It supplies results -oriented training
services which help bridge the gap 'between advanced foodservice
management theory and proven on-the-job practice.
The department publishes an annual catalogue of courses and seminars
offered. A study of the curriculum will reveal that Canteen Corporation
and its subsidiaries responded to the challenges facing foodservice
managers in an age of rapid change. Seminars and workshops cover such
topics as leadership skills, time management techniques and better
personnel selection.
-55-
86-1021
00% A
Training and Development (Continued)
In addition, ve utilize proprietary training programs from outside
sources to further enhance the perception, skills and performance of our
people. A copy of the Table of Contents is included.
Hourly Employee Development
It is Volume Services' objective that our employees be efficient,
courteous and professional. They must possess the necessary skill level
training not only to perform tasks properly but to understand the
purpose for all procedures.
Volume Services Employee Development Program includes all of the
following elements:
* Individual Job Descriptions ... A separate and complete job
description is written for each job and is reviewed with each
employee. It includes information such as: basic
qualifications, pay scale and benefits, responsibilities, and
criteria for evaluation and advancement.
* Show and Tell Training —Volume Services uses the Show and
Tell Technique. In new accounts, the manager, opening team
members and senior employees will walk all operations
personnel through their assignments. This procedure assures
the supervisor that each employee completely understands the
individual job requirements.
-56-
SG-1021
e
Training and Development Catalog
t rrt£EN Tib!e of Contents
Nr'
We have kept this trainingcatalog flexible. As programs are added or revised, a new table
of contents page will be sent to you for inclusion in this catalog.
How so Schedule a Seminar I Advanced Management or Supen►isory
Ski1L Series.
Foundation Series
The Principles of Foodservice I
Management Field Seminar
The Principles of Foodservice 2
Management (for Upper and Middle
Management)
The Canteen Personnel Development 9
Seminar
The Management and Administration 4
of the Canteen Personnel Process
Seminar
The Labor Relations Management 5
Systems Workshop
Specialized Personnel Series 6Dr Managers:
R'cruiting for Canteen 7
Canteen Selection Interviewing 8
How to Orient Employees to Canteen 9
and the Industry
Boomerang: Canteen Management 10
Training in Equal Employment
Opportunity
Making Canteen Performance Reviews 11
Productive
Basic Management and Superviso" Skills:
Productive Leadership for 12
Canteen Managers
Planning for Performance 13
Time Management 14
Performance Management: Preparing 15
Foodservice Supervisors and Managers
for Handling Critical Supervisory
Situations
Pattern of the High Performing 17
Foodw. rvice Manager (Coal Setting
with Subordinates)
Managing Part -Time Foodservice
Employees 18
1W -•"=- --"W
Creative Profit Improvement 19
Coaching and Motivating Foodsvrvice 20
Personnel
Executive Development Series:
Management in Depth —Managerial 21
Manpower Planning
Foodservice Presentations That Work 22
Conducting a Meeting Workshop 24
(How to Hold Effective Meetings)
Foodservice Problem Solving 25
for Key Results
Marketing and Sales Development Series:
Systema Program (Interpersonal 27
Communications)
Canteen Marketing Corporate 2K
Overview Program
Canteen Foodservice Marketing 29
Seminar
Special Workshops; Programs:
Stress Reduction :K)
Japanese Style Management in 31
American Business During the 1980's
and Beyond; A New Approach to
Customer Satisfaction, Quality of
Service and Productivity
Can1e n Quality Service Improvemvnt '12
Team Administrator's Workshop
Canteen Quality Service Iinpr►►veniviit 'S'1
Teams Leader Training Workshop
Canteen Quality Service Impmveniciit :t•1
Team Member Training
Tuition Reimbursemem ( For Full -Time '15
Salaried Peoplel
86-1021
if
M5 e
� y Pik
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4
1
j
j Hourly Employee Development (Continued)
jj
I
3 Training aids used in this process are Books I and II of Canteen's
i
Quality Food Service Program which demonstrate graphically
Canteen's procedures for:
- correct production methods
- exciting counter display and merchandising
- serving the customer
Additional training tools include:
- Canteen Recipe Files
- Canteen's Evaluation of Food Service Standards
- Canteen's Sanitation Checklist
a - Canteen's Safety Checklist
Canteen's Cold Food and Dessert Picture Guidelines
r
Cashier Training Manual
+� Pre -Service Briefings...Before every serving period our food
service managers conduct a pre -service briefing. Menu items and
how they have been prepared and how they should be served are
reviewed and demonstrated. Panning, garnishing, plating and
counter presentation are all covered. Each day different employees
are asked to participate in conducting this review.
-�r
-s7-
8f-1021
Hourly Employment Development (Continued)
f
This procedure accomplishes two things. It ensures that the foodservice
i
is properly staffed, and that it is merchandised as planned by the
sanager. .
Most importantly it provides daily training in good foodservice
practices and Volume Services' standards of service. This results in
the development of a cadre of skilled and knowledgeable professionals.
+� Regular Personnel Review and Evaluation...
Each General Manager and his staff will regularly sit down with
each employee and review and evaluate individual performance.
Training Centers
Canteen operates 17 National Training Centers across North America.
These Training Centers provide a unique way to offer education and job
skill development in an authentic real world environment -- something
that's often missing in education.
The Centers are actual client facilities where Canteen is the
foodservice contractor. They are selected because of their location,
and their adaptability to a full range of programs.
-
1r, .,-..
—58—
1 /04
_Training Centers (Continued)
New managers, key production personnel, and other appropriate
Individuals are sent to Training Centers for training and orientation to
Canteen systems and programs.
Foodservice subjects covered include:
+� Preparation
* Merchandising
* Customer Service
* Sanitation and Safety
* Recipe Use
* Financial Administration
* Ordering and Receiving
* And a host of others
The Training Center program is thorough, and prepares the employee to
implement our systems. Each Training Center is evaluated a minimum of
once per calendar quarter by a member of the corporate staff.
In addition to the National Centers, there are 55 District Training
Centers where training in standards and procedures is provided at a more
local level.
86--1021
-59-
Specifically designed for our Volume Services operations are a number of
tsulti-media presentations and other training materials. including:
A. Fourteen Bilingual Slide and Audio Tapes
Cover food service skills, alcoholic beverage responsibilities
and sanitation practices, filmed at actual Volume Services
locations.
B. Study Guides and Tests - Used to reinforce learning.
C. Handbooks and Orientation Guides - for employee reference
during their employment.
D. Posters - Highlighting job skills throughout the work place
to reinforce training.
E. Certification - For graduates of the training program.
including public recognition of the employees and monetary
incentives.
The certification program has been so successful that our developer has
prepared an adaptation for the National Association of Concessionaires
for their professional development series.
86-1021
-60-
A. CORPORATE SUPPORT SERVICES AND UNIQUE PROGRAMS
Throughout this submittal ve have made reference to the many corporate
resources available to Volume Services We also presented a number of
unique, proprietary programs that tray be incorporated into the
foodservice operations at the Center. For your review a brief
description of the following services and unique programs is presented:
° International Foodservice Council
° Facilities Design Division
' Purchasing Department
Menu Development
° Canteen's Quality Foodservice Program
° Health Fare
° By the Ounce
° Quality Beverage Program
° Colombian Coffee Program
° Automated Menu Management System
86-1021
-61-
International Food Service Council
t
This important council is made up of senior executives, marketing
experts, food service managers and district managers. Members selected
for this prestigious group have demonstrated creativity, vision and
enterpreneurial style in developing new ideas, concepts and programs in
foodservice in the areas of:
* merchandising
* presentation
* preparation
* promotions
i
The Council meets quarterly in different operations across the country.
At each of these meetings specific programs and recommendations are
presented to enhance service to our customers.
1
a
,i
The exchange of ideas and information results in program improvements
and exciting new concepts which keep our service fresh and innovative on
a continuing basis.
i
8f -1021
-62-
i
s
Facilities Design
t
i
Canteen's Facilities Planning staff is made up of professional
foodaervice designers, interior designers and engineers with the
knowledge, experience and creativity to satisfy all of the design needs
of our customers irrespective of the size of the operation. Whether
designing an existing facility, or starting from scratch on a new one,
each project blends front -of -the -house aesthetics with back -of -the -house
efficiency.
The Facilities Design functions in support of operations personnel and
are called upon to provide services to our clients including:
* kitchen and dining room design and layout
* equipment configurations
* traffic flow and space planning
* decor options
* foodservice equipment specifications
* furniture selection
* problem solving
+� modular planning
86--1021
-63-
no
Purchasing
I
Volume Services purchasing program begins with the department's
development of standards. These are quality levels to which all
operations must adhere whether purchasing food, small wares, or capital
equipment.
The purchasing staff selects approved suppliers based on standards of
quality, service and price. In order to meet the needs of our network
of operations, these approved supplier lists include national, regional
and local purveyors which meet Volume Services standards and who will
provide performance, responsiveness and quality products to our clients.
With standards set and suppliers identified, the purchasing function
takes several direction. First, contracts are negotiated for
commodities that are most appropriately and effectively purchased on
national agreements. Fountain syrups, canned goods, coffee, groceries,
confections, foodservice equipment, fleet vehicles, etc. are items we
contract for nationally, and the price is guaranteed to all our units.
At the regional and local level an effective purchasing program is also
in place. Based upon the needs of the market we serve, the General
Manager and his staff evaluate local suppliers and entertain competitive
bids from those purveyors who meet our standards. The bidding process
is administered under corporate guidelines to ensure that sound business
decisions are made.
-64-
8f -1021
Our Discounts Are Your Discounts
` With a large number of accounts in each of our Regional Areas,
Canteen/Volume Services is able to combine the needs of all our
customers and make volume purchases that give us great purchasing
leverage. The discounts we effect are your discounts because we pass on
all trade and product discounts to our clients.
We want to emphasize that we do not use our commissaries or warehouses
as profit centers; these are support functions. There is no "up -charge"
for products supplied to individual clients, so the money saved by
combining volume is money we save for you.
Our purchasing people are vigilant to ensure that contract terms for all
our operations are honored by suppliers. We continually renegotiate
contracts to more favorable terms as major new accounts are acquired, or
as the market changes to provide more attractive prices.
Beyond the basic purchases (foodstuffs, fresh and frozen products,
meats, poultry, etc.) there is another area where our programs can
result in substantial savings. Canteen is an authorized distributor of
all major lines from smallwares and appliances to institutional
equipment.
86-1 21
-65-
{
i
i
Our Discounts Are Your Discounts (Continued)
We are able to purchase for our clients at Canteen's national price.
There is no mark-up; our discount becomes your discount. So when you
remodel or need to replace equipment, wares, china, etc., Volume
Services saves you money.
Our purchasing organization is sophisticated, professional and
effective. It is also flexible and capable of adjusting to a clients
unique needs or a client -preferred supplier. The ultimate benefits
accrue to you and to each of the clients we serve.
Menu and Recipe Development
Developing an exciting, quality -oriented menu is not a simple task. It
requires complex technical functions and a thorough knowledge of
foodservice production. It also requires a great deal of imagination,
skill and creativity.
The keystone in this process is the recipe, and we develop recipes in a
variety of ways:
+� Executive chefs, working in a development
kitchen atmosphere, develop new recipe items.
86-1021
-66-
1
Menu and Recipe Development (Continued)
* Our own chefs and cooks have provided recipes for many
dishes.
* Suppliers furnish recipes and information on how to use
them.
* Operations personnel are charged with the
responsibility to seek new items when visiting
restaurants and dining establishments.
* Employee recipe
contests are conducted twice annually.
r
'
With recipes available from a
variety of
sources, our challenge is to
Y
refine them for the clients we
serve, adjust them for regional tastes,
L
and adapt them to volume foodservice
production. Using our test
fir.:
kitchens, Volume Services chefs
work with
each recipe until the finished
item is just right.
-
Then final tests are performed.
Each new
item is prepared in a customer
environment and tasted by a panel of foodservice experts from Volume
Services. If the menu item is well received, it is then taste tested by
customers in our Training Centers.
a
4 4
!g, -6 %-
z
Menu and Recipe Development (Continued)
Only after passing all these tests are new dished introduced into the
menu. This constant menu enhancement brings new food items to our
accounts on a continuing basis.
From recipe development, to testing and final adoption, our program is a
blend of technical know-how, entrepreneurial flair and market savvy.
Canteen's Quality Food Service Program
Our consistently good tasting and attractively merchandised food is the
result of a program of planning and management. The foundation of this
program includes manuals and systems which cover Canteen's standards for
every conceivable operational procedure. The major elements are
Included in the following pages.
* Purchasing Standards ... To insure consistent high quality in
the food we serve all foods are purchased according to
specifications and standards. You will not find higher
quality standards anywhere in the foodservice industry.
86-iozi
-68-
{1, will 1,111 1..
* Pre -Tested Recipes ... Each item in recipe file has
been tested by our corporated recipe development people. a
taste panel, and in actual field unit to determine the item's
popularity and any regional variations required. The recipe
i
file provides information on ingredient quantities required
for various numbers of servings.
* Pre -coated Cycle Menus...Our menus are pre-costed on a
continuing basis to assure attainment of forecasted goals.
Pre -costing tells the manager and client the cost of each menu
item before being served, and it works because of adherence to
standardized recipes.
* Daily Production- Records...Managers keep daily production
records on all items served. These records include three
important statistics:
- Row many of each individual item were
prepared.
k
' - How many were purchased.
- Over Production.
B-1021.
t!Y
Daily Production Records track other factors which may have influenced
each day's sales (i.e.. climatic conditions, attendance, schedule,
etc..). By constantly comparing servings produced to servings sold.
your unit sanager will be able to make sure that we always produce the
correct amount.
* Portion Control...Each counter attendant is instructed as part
of the pre -service briefing as to the:
- Proper serving utensils
- Correct dish
- Correct portion
* Inventory Control... The "Ordering/Receiving Inventory
Control" book includes forms and procedures for every required
Item.
* Visual Panning and Plating Guides...All salads, fruit plates,
entrees, cold sandwiches and desserts on Volume Services menus
are photograph and numbered to coincide with recipe cards.
When employees prepare a menu they have a recipe to follow and
a guide which shows exactly how that product should appear
when presented for sale.
86-'1021
-70-
Canteen's Quality Food Service Program (Continued)
• Counter Merchandising Guide ... A variety of counter
merchandising techniques has been developed for each point of
service. e.g. Sandwich. Entree, Salad. Breakfast and Dessert
stations. Photographs of these include step-by-step
approaches to counter set-up merchandising.
Health Fare
Health Fare is a nutrition awareness
program which uses a variety of
methods to communicate information on
nutrition and good eating habits
to our customers.
INO
Information is provided on the various food groups. Which essential
elements of our diet are provided by
each, and how they relate to one
another. An extensive series of monthly bulletins covers topics after
_
that initial exposure:
�r �M
* Weight reduction *
Sodium
Weight maintenance *
Thiamin, niacin and
Sensational or fad diets *
B complex vitamins
* Exercise and fitness *
Vitamin C
* Fat and cholesterol *
Protein and iron
* Fiber
f`
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K
aD�
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— 7 1—
A series of "Health Fare Trivia" table tents covers valuable and
important information through the use of interesting questions and
answers. Countertop placards and handout flyers treat a variety of
nutrition topics in language and format that makes them easy to
understand.
Vest-pocket sized calorie counters are provided so interested customers
can monitor their individual caloric intake.
Each day our menus suggest health fare selections that receive special
emphasis on our menu boards. Our menus and recipes emphasize healthy
menu items, ingredients and cooking procedures such as:
* Fresh vegetable ingredients
* Broiled and baked items
* Introduction of more roughage
* De -emphasis on salt
* Pasta salads
-72-
* Fewer high -cholesterol
items
* More seafood, chicken, lamb
and veal
* Whole grain breads
* Low calorie dressings
8b-1021
i A series of "Health Fare Trivia" table tents covers valuable and
important information through the use of interesting questions and
answers. Countertop placards and handout flyers treat a variety of
nutrition topics in language and format that makes them easy to
understand.
Vest-pocket sized calorie counters are provided so interested customers
can monitor their individual caloric intake.
Each day our menus suggest health fare selections that receive special
emphasis on our menu boards. Our menus and recipes emphasize healthy
menu items, ingredients and cooking procedures such as:
* Fresh vegetable ingredients * Fewer high -cholesterol
X�
Items
* Broiled and baked items * More seafood, chicken, lamb
and veal
Introduction of more roughage * Whole grain breads
* De -emphasis on salt * Low calorie dressings
Pasta salads
ie^
ifjyjy ��t °�y' W 7 2—
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4, ..hexfttF���W�Y
By -The -Dunce
I
Canteen pioneered Sy -The -Ounce merchandising in the corporate dining
s service arket. This program eleninates the take -it -or -leave -it.
pre -plated. portion sizes and combinations of foods.
Hearty eaters, light eaters and those on restricted diets enjoy it.
The program includes:
* Entrees * Finger foods
* Vegetables * Fruit and cheese bars
* Ethnic specialties * Contemporary fun -food
* Desserts
By -the -Ounce increases participation, check averages, and service
efficiency. It also reduces fixed -labor costs and that's attractive to
everyone: client, customer and Canteen.
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-73-
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Canteen's Colombian Coffee Program
i
Colombian coffee is recognized as the gold standard of coffees
throughout the world. It is the premium coffee served in the finest
restaurants and hotels. Canteen has launched a quality coffee program in
all our dining rooms and operations featuring 1002 Colombian coffee.
The program includes quality control, brewing instruction and training
of on -site personnel by experts on coffee brewing techniques. It
assures proper preparation of a perfect cup of coffee every time.
We have an on -going inspection program in place to make sure that
brewing standards are maintained in conformance with the Colombian
Coffee Federation standards.
Our 1007 Colombian Coffee program is supported by merchandising and
.. point -of -sale programs designed to increase our customers' awareness of
the premium coffee we serve.
86 •5�
Jr �,
i„tip $
H y -74-
Canteen's Automated Menu Management System (CAMMS)
{
Canteen has developed a sophisticated computer Menu Management System.
The heart of CAMMS is a system that provides:
* Pre -costing of recipes and portions
* Kitchen production recipes for exact quantity required
* Menu pre -costing and adjustment
* Customer -count forecasting
* Food item bid/purchase cost quotations
i
* Forecast orders by vendor
* Maintenance of back-up files/records for existing
Food Service Menu Management System.
This system eleminates or greatly reduces waste and over production,
..... ;
reduces the need for excess inventory, and presents concise cost/benefit
t
criteria for purchasing action.
Since the program can be updated easily, flexibility in menu planning
5
and custom designing of menus for specific client requirements can be
quickly achieved.
E _1021
_ a C
- / 5-
.!K
• / ti
TO: Cesar H. Odio
City Manager
City of Miami, Florida
-DECLARATION
DOCUMENT NO. 1
Submitted this �5th_ day of December , 1986
The undersigned, as PROPOSER, declares that the only persons
interested in this PROPOSAL are named herein, that no other
person has any interest in this PROPOSAL or in the CONTRACT to
which this PROPOSAL pertains, that this PROPOSAL is made without
connection or arrangement with any other person and that this
PROPOSAL is in every respect fair, and made in good faith,
without collusion or fraud.
The PROPOSER further declares that he has complied in every
respect with all the Instructions to Proposers issued prior to
the opening of PROPOSALS, and that he has satisfied himself fully
relative to all matters and conditions with respect to the
general condition of the CONTRACT to which the PROPOSAL pertains.
The PROPOSER agrees, if this PROPOSAL is accepted, to execute an
appropriate City of Miami drafted CONTRACT for the purpose of
establishing a formal contractual relationship between him, and
the City of Miami, Florida, for the performance of all
requirements to which the PROPOSAL pertains.
1
Each PROPOSAL shall be accompanied by a Proposal Security which
shall be a Certified Check or a Bond, and shall be in the amount
of $25,000.00 (Twenty -Five Thousand Dollars). The City of Miami
reserves the right to reject any and all security tendered to the
CITY because of any irregularities. Certified checks will be
returned to all PROPOSERS within ten (10) days after the City of
Miami and the accepted proposer has executed the written
CONTRACT.
The PROPOSER states that the PROPOSAL is based upon the Proposal
documents listed by the number as follows:
n
- 16 -
6f --t021
Declaration/Document No. 1 (continued)
I. Declaration of Proposal
2. Proposal Form
3. Proposer Qualification Questionnaire (and attachments)
4. Insurance Stipulations and Statement
S. Minority Classification and Participation Form
i 6. first Source Hiring Compliance Clause
7. Financial Statement
S. Proposal Security
9. Attachements
_. Corporation/ artnership
•
r
GNATURE
Barry Freilicher
PRINT NAME
-
President
K=
TITLE - IF CORPORATION
s
(President, if
Corpora-tion
Authorized Genl.
if Partnership)
SC-1021
- 17 -
CITY OF MIAMI
P R O P O S A L
Document No. 2
For the right to operate the authorized Food and Beverage *
Concessions' and Novelty Concessions approved in -Wr—itina by the
DIRECTOR, in the City of Miami STADIUMS for a five-year period
per the foregoing specifications) the undersigned agrees to pay
the City of Miami:
A guaranteed annual payment of $ 200,000 (Not Less
Than $200,000)
against
42.1 (%) of all gross receipts (Excluding Tobacco Sales)
10.0 W of all tobacco sales
*Please see alternative proposals attached
The CITY will accept proposals only on the above format. No
other proposals will be considered.
SUBMITTED BY:
PROPOSER:
Volu�Service�f Inc.
SIGNED:
ADDRESS • 120 S. Riverside Plaza
CITY/STATE/ZIP: Chicago, IL 60606
TELEPHONE NUMBER: (312) 930-2300
7za
Addendum No. 2/replaces original page 18
page 18 (revised)
86-102 1
0
Section 5/Document No. 3
PROPOSERS QUALIFICATION QUESTIONNAIRE
FOR
FOOD, SEVERAGEO AND AUTHORIZED NOVELTY CONCESSIONS
AT TWO CITY OF MIAMI STADIUMS
INSTRUCTIONS:
PROPOSER must present evidence that he is fully competent and has
the necessary facilities, experience and pecuniary resources to
fulfill the conditions of the Concession CONTRACT. To provide
the CITY with information on these points, PROPOSER must submit,
as part of his PROPOSAL, information stipulated in this
questionnaire.
EXPERIENCE:
The PROPOSER submitting this proposal warrants that the
individual, firm, partnership, or corporation or its parent
company making application, has been in continuous existence for
a period of two _ years and has been active and in good
standing with the Secretary of State, Corporations Division, for
this period.
WITNESSES: PROPOSER: (If Sole Proprietor
or Partnership)
Name: N/A
By:
SEAL
(TITLE) (Sole Proprietor/Genl.
Partner)
PROPOSER: (If Corporation)
Name
By:
Atte
(CORPORATE SEAL)
19
SG-1021
QUESTIONNAIRE (Continued)
PROPOSER's Name: .
+ Principal Office Address:
Official Representative:
Individual
Partnership (Circle One)
Corporation
If a Corporation, answer this:
When Incorporated:
In What State:
Resident Agent
Address of Resident Agent:
If Foreign:
Uate�gistration with Florida
Secretary of State
Name of Resident Agent:
Address of Resident Agent:
President's Name:
Vice -President's Name:
Treasurer's Name:
Members of Board of Directors:
10
Volume Services, Inc.
120 S. Riverside Plaza
Chicago, IL 60606
David R. Scoco
6/14/73
Delaware
The Corporation Trust Co.
1209 Orange Street
Wilmington, DE 19801
10/3/84
%C Corporation
8751 W. Broward Blvd.
Plantation, Florida 33324
Barry Freilicher
Christopher Bigelow, Craig Trimble
Karl Cp,41 arm
N. Dinelit
K. Sedlary
R. Skadow
Section 5/Document #3
SG-1021
-20-
QUESTIONNAIRE (Continued)
If a Partnership, answer this:
Date of organization:
General or Limited Partnership:
Name and Address of Each Partner:
NAME
N/
1. Number of years of
proposal has had in
twenty-five
N/A
0
ADDRESS
experience the PROPOSER making the
the operation of similar business:
2. Give the names and locations of places at which PROPOSER has
operated similar business, together with the dates of
operation:
Type of Operation Name
(a) Please see attached section
Location Dates
(b) B - Client list. Volume Services
(c) will provide copies of selected
(d) contracts upon notification of
(e) selection as the highest and best proposer
'PROPOSER shall submit copies of each contract listed above.
- 21 -
Section 5/Document No. 3
8f -1021
i
QUESTIONNAIRE (Continued)
3. List below the names and addresses of PROPOSER's landlords
for the operation listed in Item 2:
Operation Landlord Address,
(a) _ Please see section B '
(b) _
(c)
(d)
(e)
a. List those City of Miami or Dade County agencies or private
facilities with which the PROPOSER had and contracts or
agreements during the past three (3) years:
( a ) None
(b)
(c)
5. State approximately the largest gross receipts PROPOSER has
realized from the operation of the above mentinned facilities
at any one place in one (1) year.
$ 14.onn.nnn Year: IQgf, Location v.,j, s i=
6. Have any similar leases or agreements held by PROPOSER for
the operation of concession similar to the proposed
concession ever been cancelled?
YES ( )
NO (g )
If yes, give details on a separate sheet.
7. Bank References:
B_ AD_
Barnett Bank - Timothy McGuire P. 0. Box 2340
Jacksonville, F1 32203
Continental Illinois - Robert Curley 231 S. LaSalle
Chicago, IL 60697
-22-
Section 5/Document #3
86-1021
QUESTIONNAIRE (Continued)
S. Attach a Balance Sheet and Statement of Profit and Loss of
'. the PROPOSER for the preceding calendar year, certified by
either an appropriate Corporate Officer or an independent
Certified Public Accountant.
9. References: Give three references as to experience and
ability:
1. 14r. J. Zalupski 'Tampa Stadium
2. Mr. J. Holmes Arkansas State Fair
3. Ms. Marlene Anderson St. Paul Civic Center
PROPOSER shall attach letter from each reference listed
above.
10. Have you carefully inspected the STADIUMS?
Yes ( X) No ( )
11. Persons or persons interested in this Proposal and
Qualification Form (have) x (have not.) been
convicted by a Federal, State, County, or Municipal Court of
any violation of law, other than traffic violations. To
owning include stockholders
g over ten percent (1095) interest.
(Strike out inappropiate words)
h R1 Explain any convictions:
n - None
12• lawsuits (any) pending or completed involving the
corporation, partnership or other person submitting a
proposal:
A. List all pending lawsuits:
A5
None
H:.
k
S. List all judgments from lawsuits in the last years: five (5)
NnnP
Section 5/Document #3
QUESTIONNAIRE (continued)
C. Have the judgments listed in "B" been fully paid and
satisfied?
N/A
D. Are the judgments listed in "B" and "C" currently being
appealed?
N/A
The PROPOSER understands that information contained in this
Qualification Form is to be relied upon by the CITY in awarding
the CONTRACT and such information is warranted by the PROPOSER to
be true. The undersigned PROPOSER agrees to furnish such
additional information, prior to acceptance of any proposal,
relating to the qualifications of the PROPOSER, as may he
required by the City of Miami.
WITNESSES:
WITNESSES:
ATTE
T:
.r .iN vr�•
- 24 -
If Individual:
Signature
Print Name
If Partnership:
Print Name of Firm
Address
By:
General Partner
Print Name
If Corporation:
Volume Services, Inc.
Print
120 S. Riverside Plaza, Chicago, IL
��idres
By:
Pr dent
(CORPO TE SEAL)
6060
86-1021
SECTION 5 - DOCUMENT NO. A
INSURANCE STIPULATIONS AND STATEMENT
A. GENERAL:
1. CONCEMONAIRE will not be permitted to begin operations
unless they have obtained insurance coverage as specified
below. PROPOSER should review these requirements
carefully, as no modification of the requirements will be
made after conclusion of the proposal process.
2. All required liability insurance policies shall be written
on an occurence basis unless otherwise specified.
3. Additional Insured
CONCESSIONAIRE is required to name the City of Miami as as
Additional Insured on their policy or policies, and it
shall be stated that "these coverages are primary to all
other coverages the CITY possesses for this CONTRACT
only."
4. Company Ratings
All insurance policies required must be written by a
company or companies rated at least "A" as to management
and at least "Class V" as to financial strength in the
latest edition of the Best's Insurance Guide, published by
Alfred M. Best Co., Inc., Ambest Rd., O1dNick, N.J., 08858
5. Certificate
The CONCESSIONAIRE will furnish a Certicate of Insurance,
or other evidence of coverage to the CITY clearly
indicating conformance with these requirements.
Certificates should be forwarded to:
City of Miami
Finance Department/RISK MANAGEMENT DIVISION
65 S.W. 1st Street
Miami, Florida 33130
6. Evidence of coverage shall be submitted to the CITY within
five (5) days receipt of notice from the CITY. Any
questions pertaining to insurance requirements should be
directed to the Risk Management Division at the above
address, or telephone 579-6058.
8. COVERAGE REQUIRED
The following coverage shall be provided:
1. Liability:
The CONCESSIONAIRE shall obtain and maintain in force for
the length of the agreement Comprehensive General
Liability Insurance Coverage, or its equivalent, with at
least a combined single limit of $1,000,000 per occurrence
for bodily injury and property damage liability.
- 25
86 1021
e -
XTION 5/DOCUMENT #4: INSURANCE (continued)
y«
In addition to Premises/Operations Coverage,the following
extensions of liability coverage shall be included in the
required policies:
INSURANCE TYPE LIABILITY LIMITS
Products and Completed Operations 10000,000
Contractual Liability 1/0009000
Independent Contractors 1,000,000
Broad Form Property Damage 1,000,000
Personal Injury 190008000
Elevator 1,000,000
Liquor Liability shall be provided.
Contractual Indemnification:
CONCESSIONAIRE shall covenant and agree that it shall
indemnify, hold harmless, and defend the CITY from and against
any and all claims, suits, action, damages or causes of action
arising during the term of the agreement for any personal
injury, loss of life, or damage to property sustained in or
about the concession areas, by reasons of or as a result of
the CONCESSIONAIRE's operations and from and against any
orders, judgments or decrees which many be entered thereon,
and from and against all cost, attorney's fees, expenses and
liabilities incurred in an about the defense of any such claim
and the investigation thereof.
Automotive Liability
CONCESSIONAIRE shall obtain and maintain in fore for the
length of the CONTRACT liability insurance coverage, covering
all owned, non -owned, and hired vehicles used in connection
with WORK arising out of the CONTRACT. Coverage shall be
written with at least a combined single limit of $300,000 per
occurrence for Bodily Injury and Property Damage.
Workers' Compensation
CONCESSIONAIRE shall obtain and maintain in force, during the
life of the agreement, Workers Compensation insurance as
required by Chapter 440, Florida Statutes.
Cancellation
The policy or policies of insurance required shall be written
in a manner such that the policy or policies may not be
cancelled or materially changed without 30 days advance
written notice to the City of Miami. Written notice shall be
sent to the Risk Management Division/Department of Finance at
the above address.
86-1021
- 26 -
SECTION 5/DOCUMENT #4:
INSURANCE (continued)
Note: When using the "Accord" form of Insurance Certificate,
the following must be deleted from the "Cancellation" clause:
"endeavor to" and "but failure to mail such notice shall
Impose no obligation or liability of any kind upon the
company, its agents or representatives."
PROPOSER AND INSURANCE AGENT STATEMENT:
We, the undersigned, have read and understand the Insurance
Requirements of these specifications and acknowledge that
evidence of insurability will be required within five (5) days of
receipt of notice from the CITY.
Volume Services, Inc. *Please see attached sheet
PROPOSER INSURANCE AGENCY
SIGNATURE OF PROPOSER
SIGNATURE OF FLORIDA RESIDENT AGENT
SIGNATURE OF PROPOSER'S
AGENT
Agent's Error and
Omissions Policy:
NAME AND LOCATION OF AGENCY Company
Policy Number
Amount of Coverage
Expiration Oate
86--1021
- 27 -
0
C�
INSURANCE STIPULATIONS & STATEMENT
(See Attached)
0
WE, THE t=ERSIGNFD, HAVE READ AMID UNDE MAND THE INSURANCE RDQUIREIUMS
OF THESE SPDCIFICATIONS AND ACKNOWLEDGE THAT EVIDENCE OF INSURABILITY
WILL BE REQUIRED WITHIN FIVE (5) DAYS OF RECEIPT OF NOTICE FROM THE CITY.
Volume Services, Inc.
PROPOS.
SI PROPOSER
At Joseph A. Grillo
I -u'URE OF FWRIDA RESIDENT AGEN i
Fred S. James & Co. of Florida, Inc.
Ft. Lauderdale, Florida 33394
M%M AID LOCATION OF AGENCY
Fred S. James & Co. of Illinois
Chicago, IL 60606
INSURANCE AGENCY
Richard J. Lietz
-MGNATL741OF PROSER'S AGENT
AGENT'S ERROR AND OMISSIONS POLICY:
Yarmouth Insurance, LTD.
COMPANY
Renewal of P1006
POLICY NUMBER
$5,000,000
AMOUNT OF COVERAGE
January 1, 1988
EXPIRATION DATE
86-1021
1
i.
! SECTION 5 - Document No. 5
MINORITY CLASSIFICATION AND PARTICIPATION
INFORMATION AND ACKNOWLEDGEMENT
I. Indicate CLASSIFICATION of Business Enterprise (PROPOSER):
[ ] BLACK [ ] HISPANIC j ] WOMAN [ ] OTHER
2. Detail MINORITY/FEMALE PARTICIPATION within your firm or as
It may apply to this proposal, if awarded: Please see Exhibit 2
A. JOINT VENTURE:Provide information regarding Minority/Female
firm(s) participating as such and the extent of participation
..% of Dollar
Firm Name Business Address Proposal Amount
S. SUBCONTRACTORS: Provide information regarding Minority/Female
firms that will be subcontractors for this proposal, and
their extent of the work
% of Dollar
` Firm Name Business Address Proposal Amount
d
' C. SUPPLIERS:Provide detail regarding Minority/Female Firms that
will Supply you with goods or services and the extent
% of Dollar
Firm Name Business Address Proposal Amount
r'
y
D. AFFIRMATIVE ACTION PROGRAM
If existing, Date Implementegetail of program must be attached
If planned, Date of Proposed Implementation;
711
The undersigned PROPOSER acknowledges that it has received a copy
a r of Ordinance No. 10062, the Minority and Women Procurement
=k Ordinance of the City of Miami, and agrees to comply with all
applicable substantive and procedural provisions therein
including any amendments thereto. '
PROPOSER:
SIGNATURE:
- 28 - 86 -1021
t
�
3v
r - 1
Section 5 - Document No. 6
FIRST SOURCE HIRING
AGREEMENT COMPLIANCE CLAUSE
PROPOSER acknowledges that it has been furnished a copy of
City of Miami Ordinance No. 10032, the First Source Hiring
Ordinance attached herein as composite Exhibit C. The First
Source Hiring Agreement policy requires that as a condition
precedent to entering into this CONTRACT when such project is of
a nature that creates new jobs, a First Source Hiring Agreement
be negotiated between the CONCESSIONAIRE and the CITY's
authorized representative, if so applicable. CONCESSIONAIRE
shall comply with applicable provisions of Ordinance No. 10032,
including any amendments thereto.
-.r-= 4.e 1% - .
Signature
Volume Services, Inc.
PROPOSER
-29-
6E-1021
1
y
4.
C)
ee ALTERNATIVE PROPOSAL e*
IF
As an alternative proposal for your consideration, Volume Services, Inc.
presents the following:
Volume Services, Inc. will offer a first year Minimum Annual
Guarantee of five hundred thousand dollars ($500,000). Guaranteed
Annual Payments in year 2 and successive years will be at eighty-
five per cent (85%) of the previous year's earned commission rent
or two hundred thousand dollars ($200,000), whichever is greater.
This proposal is subject to a mutually agreed upon option for the
additional five-year period and an annual schedule of events to
include as a minimum:
5 - University of Miami Varsity Football Games
1 - Orange Bowl Classic
1 - Major League Exhibition Schedule
Under this alternative, the investment will remain an amount up to
at five hundred seventy-five thousand dollars ($575,000) with book
value protection, in the event the second five years are not
granted.
Percentage rental rates will be 42.1% of all gross receipts
excluding tobacco. A 10.0% rate will be applied to tobacco
product.
8E-1021
CERTIFICATE OF ASSISTANT
SECRETARY OF
VOLUME SERVICES, INC.
The undersigned, Kim S. Mitchell, hereby certifies that she is
the duly elected and acting Assistant Secretary of Volume Services,
Inc., a Delaware corporation, and the keeper of its corporate records
and minutes. In that capacity, I hereby certify that below is a true
copy of a Resolution passed by unanimous consent of the Board of
Directors of the company on December 4, 1986:
RESOLVED, that Barry Freilicher, President of the
corporation, Craig Trimble, Vice President of the
corporation, and/or Christopher Bigelow, Vice
,.
President of the corporation, be and hereby are
authorized and empowered to bind the corporation
in all matters involving, related to, or
incidental to the submission of a proposal for the
food/beverage concession services at the Orange
Bowl Stadium and the Miami Baseball Stadium in
Miami, Florida, and if such proposal is accepted
by the City of Miami, Florida, to bind the
corporation's full performance under the terms of
the food/beverage concession management contract
attached to said proposal.
Date: December 4, 1986 �kz��
Kim S. Mitchell
86-1021
L '
v
OR 0
State of Illinois )
) SS
County of Cook )
Barry Freilicher , being first duly sworn, deposes and says
that he is the President of Volume Services, Inc., making the
forgoing proposal; that Volume Services, Inc. has experience in
operating similar food and drink concessions in a major place of
assembly; such as a large sports arena, which has multi -purpose uses
Including Exhibition Halls, with a capacity of at least ten thousand
(10.000) persons and various sized meeting rooms; that Volume Services,
Inc., has conducted a first-class restaurant, bar, and/or cafeteria
involving the purchase, preparation and serving of food and drink to the
public on a mass basis; that Volume Services, Inc., has experience in
serving food to at least three thousand (3,000) persons in one day or an
average of two thousand (2,000) meals per day for five consecutive days;
and that Volume Services, Inc. has the ability to begin operations upon
execution of the contract.
Affiant
Sworn to and subscribed before me this 4th day of December ,1986
My Commission Expires C
86 -1021
CORRECTED NOTICE OF PUBLIC PROPOSAL S
CITY OF MIAMI REQUEST FOR PROPOSALS
Be advised the City of Miami ad no. 4604 published November 179
1986 has been corrected and now reads as follows:
Sealed proposals for OPERATION OF CONCESSIONS AT THE CITY OF
MIAMI'S ORANGE BOWL STADIUM i MIAMI BASEBALL STADIUM FOR A FIVE
YEAR PERIOD COMMENCING JANUARY 1, 1967 will be received by the
Office of the City Clerk at 3500 Pen American Drive, Dinner Key,
Miami Florida 33133 until 2:00 p.m. on December 5 1986. At
that ties, date, and place all proposals will be pub is y opened
and read aloud.
Proposal packets may be obtained from the office of the City
Clark (3500 Pan American Drive, Miami) or from the Department of
Parks Recreation and Public Facilities (1390 N.w. 7th Street,
Mieais.
A Pre -Pro osel Conference will be held at 10:00 a.m. on Nove-Ser
S e n the 3ch Floor Press Box, Orange Bowl Stadiu7, .50
.w. 3ro Strest, Miami, Florida 33125.
All proposers requesting pertinent information relating to the
operation of the concessions may submit their question: in
writing to the Director of Parks, Recreations and Public
Facilities located at 1390 N.N. 7th Street, Miami, rlcrida
33125, not less then ten (10) days before 2:00 p.m. on Dece-ioer
S, 1986. All proposals shall be submitted in accordance witn the
Instructions to Proposers and the Request for Pro, -.,sal
specifications.
All proposals snall include a Proposal Security whivi -.iv .% a
Cashier's Check or Proposal Bond, and shall be in the ancj-! :
$25,000.00, payable to the City of Miami.
A Performance Bond in the amount of $100,000.00 shall be reau:re.
of the successful proposer prior to the signing of the concession
contract and shall be in faithful observance of this contrast.
Prospective proposers are alerted to tha provisions of Ordfnanze
No. 10062 which established a goal of awarding 51% of the City s
total dollar volume of goods and services to Black, Hispanic ;nc
Women Business Enterprises on an equal basis.
The City of Miami reserves the right to accept any prc,cs31s
deemed to be in the best interest of the City, or to waivE :^,
Informality in any proposal; and the City may reject any anc :::
proposals and re -advertise. (ad no. 4605k
CITY OF MIAMI
ADDENDUM NO. 1
Nove►poer 20, 98E
Cesar H. Odio City Manager Received by:
,
8G-1021
0
CITY OF MIAMI — REQUEST FOR PROPOSALS
i CONCESSIONS AT ORANGE BOWL AND BASEBALL STADIUMS
NOTICE OF ADDENDUM NO. 2
LISTING OF REVISED AND ADDITIONAL PAGES
REVISED (NEW) PAGE REPLACES (OLD) PAGE
4
a
4
4
b
4
10
(revised)
10
18
(revised)
18
37
(revised)
37
39
a
39
39
b
39
41
a
41
41
b
41
46
(revised)
46
49
(revised)
49
50
(revised)
50
69
(revised)
69
71
(revised)
71
92
(revised)
92
149
(revised)
149
RECEIVED BY
PROPOSER
NEW AND ADDITIONAL PAGES
¢µ 94 b n/a
148 missing i
M 150 through 197 n/a
4
IN ORDER TO ALERT PROPOSER TO CHANGES IN THE TEXT OF THE REQUEST
FOR PROPOSAL, words and/or phrases have been underscored to
designate added or revised material: Deleted words and/or
phrases have been replaced by asterisks ice). All other material
T remains unchanged.
N:
PROPOSER ACKNOWLEDGES THAT HE HAS RECEIVED THE COMPLETE ADDENDUM
NO. 2 AND HAS FOLLOWED THE DI CTIONS CONTAINED THEREIN.
SIGNATURE:
` PROPOSER NAME: �/_ % ,i ,�,�••� Sc, f �/ CqJ Tr
a 1
t" T
J k DATE:
Notice of Addendum 02 86 —1Q21,
page 2
Pi
CITY OF MIAMI - REQUEST FOR PROPOSALS
CONCESSIONS AT ORANGE BOWL AND BASEBALL STADIUMS
NOTICE OF ADDENDUM NO. 2
LISTING OF REVISED AND ADDITIONAL PAGES
RECEIVED BY
REVISED (NEW) PAGE REPLACES (OLD) PAGE PROPOSER
4 a 4
4 b 4
10 (revised) 10
18 (revised) 18
37 (revised) 37
39 a 39
39 b 39
- ` 41 a 41 _
41 b 41
46 (revised) 46
49 (revised) 49
50 (revised) 50 ice/
69 (revised) 69
71 (revised) 71
92 (revised) 92
149 (revised) 149 /
NEW AND ADDITIONAL PAGES
94 b n/a
148 missing i
150 through 197 n/a
tl
IN ORDER TO ALERT PROPOSER TO CHANGES IN THE TEXT OF THE REQUEST
FOR PROPOSAL, words and/or phrases have been underscored to
?_ designate added or revised material. Deleted words and/or
phrases have been replaced by asterisks All other material
remains unchanged.
PROPOSER ACKNOWLEDGES THAT HE HAS RECEIVED THE COMPLETE ADDENDUM
r
NO. 2 AND HAS FOLLOWED THE DI CTIONS CONTAINED THEREIN.
-�� SIGNATURE:
Nr -
i PROPOSER NAME: /
``a 1
DATE: / 2!
Notice of Addendum #2 86 -1021
page 2
rr�w
171
PROPERTY OF VOLUME SERVICES, INC.
"This proposal remains the property of Volume Services until such time
as it is accepted and our services implemented. Any reproduction or
distribution of this proposal other than to the principals of the City
of Miami is expressly prohibited without prior written permission of
Volume Services, Inc."
86-1021
0
ALCOHOL AWARENESS PROGRAM
f E1
Volume Services pioneered the use of alcohol awareness training programs
to positively affect the facilities they serve. While the media has
covered the growing liability concerns very well, the primary concern
for the program is to promote the controlled responsible consumption of
alcoholic beverages that are a primary and necessary source of revenue
to public assembly facilities.
The Volume Services Alcohol Awareness Program has proved to:
Provide an understanding of alcohol's physical properties and how
It affects individuals.
Identify potential trouble spots, events and troublesome customers.
Instruct employees on correctly handling customers purchasing
alcohol.
Define the legal responsibilities of the employees and Volume
Services.
Reduce the possibility of alcohol related problems.
Decrease the potential for litigation.
86-1021
Improve the dependability of licensee, should litigation be
necessary.
Reduce the overall cost of liability insurance.
Enhance customer satisfaction at your facility by providing a safe
and pleasant environment.
Due to the continuing vigilance of education and supervision, we have
been able to provide our patrons with the full services they expect and
our client's locations with increased revenues.
86--1021
0 0 E2
i Equal Employment Opportunity and Affirmative Action
Regardless of sex, religion, ethnic background or age ... Volume
Services/Canteen has given people an opportunity to succeed and excel
for sore than three quarters of a century.
Our concern for human dignity and welfare includes working with
minorities, the handicapped and under priviledged youth to make a
contribution to the communities we serve.
We are in full compliance with every law and regulation in the EEO and
Affirmative Action policy area. Annually. Canteen's president issues an
EEO policy statement for all operations. A copy of the current policy
statement is included here for your information.
We shall make every good faith effort to comply with the EEO/AA
requirements of the City of Miami.
86-1021
u►�scN �rt�oR�►noN
All Employe"
?MR MERCiuw01lt MA,R0011.A60. MUNCIS O04s./M10 1f1•�soo
PW=mxy 3, 1986 .
ka
Cm=tem C=; z-at = As a Part of its eanaitrent to equal eaploymmt
prc ibits ants of t on the part of its GMlcy�ees on the
be g i,S of race, sex # C 1= / rcjjgi= I age,, naticr.3l origin, or ccrA :ti= Of
handicap. pw!- Maly, the Equal mmicymmt cj. o 'azity C,a�ssi= P�1-shd
;Tde1i-bes relating Spe ci#; 1 � Y to sexual i�ww;; ^.t which we else in
keep-Unq With O= la n stw dun catmitum,t against any fora Of
the wQk ernri.-ttmst.
'fie EEM ;-iieval nam pie thAt sexual acvat•.ces , rec. s:sts `: r
�• =095I of a swc:a"
seaal favors a� ot.er vr�al or piiys-ral
acrsti:.•tt '- ham%m.r-t when:
sutaa,ssion to such c==5=t Is awe ei.:.*� Lx;j c:."_y or
impj .�tly a tern or a relit = of an indiv,:ival" s ee"plcyse.^t;
r=ssir*+ t0 or rejectj= of suh cccrduct by an individual -
is used as the basis for eMloymw.t 4 .s af_ec+..rc,
such individual; or
rich cwj&2ct'bas the FaXm or e,f.ect of ant- -I
interfesiug with an i nc'ividual' s work p :%=W= Cr
eea'tinq an intisn faat�ug, hostile, or offers.:vre wozk:.nc
In k+Wiq with. the spi.^.'.t of these guidon --:es, we reais�3: cur '' =Lot
evicy cuvmm aplayse Mcst be treated with dignity and respec- re` -a d' e:ss of
sec, race, c=o1 reLigim, agyer,. r
raatio'nal orgies, oc ccrdittw.cln{.of�hhArdi p.
Wt ask he hp._i of LLi of y to all p s � V1�ii ObU gaiims by acII w•
a�x•.r'.-here wit' cur state ca�nnitt and by brngi.�g ary v;.clatcr.s of this
pcl:.cy to oar at-.at;.crn0
11
r %i oy W4"w-rt i vl: IMM91mr
s-sozl
nx
Lx vi as �s
,�xs
GAMIMV COWfLAMION TMt M9RG$1AM0WI MAP% ON agog ILAjNON MN I *It Nl•7�47
r
lrbrsvazy 30, 1966GA#rMy `N
IMtRT A.KQZLOVOKI
ArMwIMf a� CsM ZMMWMIKV OWAW
'm All IIwhoyees:
Mde the of Title V= of the Civil Rights Act of 1964, as
awl, the Age Cd sczIndmation in lmployment Act of 1967s, as amended,
Dmeutive Orders U141 and 11246, as amcsded, Section 503 of the
ARhabiI i,tation Act of 1973, aad Section 402 of the Vietnam Era veterans
Aeadjvstment Act of 1974, it is my legal duty to periodically remind You
Of Caateea Corporation's position oonaernityg equal employment
q F L.-T =ty and afiiazontive action. In addition to it being my legal
dirty, I sirerely believe that it is my moral responsibility to advise
you that Canteen Corporation's policy is as follows:
It is the policy of Canteen Corporation that it shall be
an equal opportunity employer. The capany shall act
aff4=aLtively to assure that it will:
1. ?A=nit, hire and pzzmete for all job classifications
without regard to rage, creed, color, national origin,
sex, age or c3ld4tlan of handicap.
cr
2. Base decisions on employment solely upon ir:civicjual' s
qzlilications for the position being fLUed.
3. Insure that all other personnel actions surh as
a�mpersation, benefits, transfers, layoffs,
from layoff , social and re=eaticnal prcgx
will be ministered without regard to race, creed,
color, national origin, sex, age or condition of handicap.
,ryr
4. Take app=prlate steps to correct any urders : , : anon
`a
of women, minorities , Viet-imm era vete_rars and h T4.�.: e3zeed
itYivsals In tale o=CPany' S w�rk.Qrce •
Merl A.i Mn O'C,��� has been appointed as Dires r of Leval
IIaFlopaient rg=r=v direct., y to Lawrence P. wilim ,vice
President, Di actor of M=n Aes=rces. All operations win
r
esL' once reports (applicant flow, hire, psacot.:on, as�d te..-ai.nat:cn
:
lo?s) Twice yearly on JLme 30th and December 31st to the Dirac,.: r of
ZED, 1430 Mermhandise Mart, Chicago, ILUwis 60654, in order that
their campl iance with our policy can be monitored.
I sec: that each one of you will do yUyr utmost to cMFly wits you-
operation' s Air_ :tea civ�e Ac-._on Plan and iAsure t'= our corporate ,ride
polio,► c=caes:Usyg ecva►l employment and af!- =ative A== Is gi"ran t'.
very highest pro.; os t f.
0
Minority Business Enterprise
11
Volume Services, Inc. will expend every effort to meet the goals of the
City of Miami with regard to Minority and Female Business participation
in this contract. In addition to the general corporate policy
statements attached, we have formalized some specific plans for
achieving these goals at the concession operations of the Orange Bowl
and Miami Baseball Stadiums.
I. Subcontractors - Volume Services plans to utilize charitable,
non-profit and individual groups for the operation of
concession stands at the Orange Bowl. We anticipate that the
MBE goals with regard to this conveyance of operations will be
achieved.
II. Suppliers - Volume Services, Inc. purchases frankfurter
products nationally from David Berg Products, a certified WBE.
Similar provisions for purchase of concession products,
supplies, service contracts and equipment will be developed
with MBE/WBE firms in Miami.
III. Contractors - Minority and Female firms will be selected to
provide materials and services to accomplish the capital
improvement program set forth.
This briefly outlines our approach to meeting the winority and female
business participation goals of the City. Upon award of the contract,
Volume Services will prepare a formalized plan for the facilities.
86-1021
0
0
E]
UNIFORMS
On the following pages you will find suggested uniform styles for
concessions, lounge and service staff. They are Intended to be
representative of the general style, cut and ensemble that will be use
at the center.
Selection of the appropriate color ache■es. Identification tags and
other details will be developed in concert with the overall plan for
the Orange Bowl improvements, if desired.
86—ID21
I
im
VOLUME SERVICES
U
/NTERSTi37-E
UNITED
96-M1
i
i
A
Tr
>T1rG'�i� is?+.t7
01 Vendor/Concession Worker
Unisex Vendor/Concession Shim
Female Jockey Style Cap
Employee's Own PantsrSacks
C) Vendor/Concession Worker
Unisex Vendor/Concession Shirt
Matte Mesh Baseball Cap
3 Pocket Change Apron—B,ovn
Employee's O%an Pants/Stacks
Our Uniform Program
The Volume Services Division is proud
to present our new uniform program
which has b.-en developed with
f comfort, style, easy care and versatility
o as the uppermost goals of the program.
The fabric —an easy -care blend of 65 %
Kodel Polyester and 35 % Combed
Cotton —is very comfortable to wear
and easy to maintain, while giving a
look of quality and professionalism to
your image. It has the hand of natural
fibers with the wearability and
launderability of polyester. Under
normal conditions, this versatile fabric
actually requires little or no ironing.
pl Restaurant/Catering Lounge
Cai.avtay Apron —Black & White Pinstripe
{t I
Formal Bowtie—Red or Black
-#
Employee's Own White Sheri/Blouse
A
Employee's Own Buck Pants5hnt
The designs of the selected styles have
a proven track record in that they are
both durable and functional, and at the
same time will upgrade the overall
appearance of our entire food service
team.
The complete Volume Services uniform
program order form appears on the
back of this brochure. For information,
call or write Customer Service at:
UNIFORMS TO YOU & CO.
4340 West 47th Street
Chicago, Illinois 60632
1312) 927-5601
86`1021.
61
VOLUME SERVICES ORDER it,
REM
SIZES b OUANTITIES
TOT AL
OTv
PRICE
EACH
TOT AL
Pprc
S
M
L
XL
XXL
VENDORKONCESSION
134 35;
f38 401
(42-441
145 48)
150 521
WORKER SHIRI
XS
S
M
L
XL
SERVICE PERSON
Frm%Me
10.12
14.16
18.20
40.42
C<Xt S►MRT I
MAK
32
34.36
3840
42-44
4648
TAN
FEMALE
One Size•Fris-Atl
10CKEV STYLE CAP
MALE MESH
One -Size -Fits -All
BASEEALi CAP
3•POCKE 1
One Sze-Fits•Au
CHANGE APRON —BROWN
RESTAURANT,
Or*'Szeflrs-&
CATER VGt0LN'GE
CALLAWAY APR0%
1
FQRMAL BOA,TIE
One•SITrFrts•Au
RED
FORMA, BOA TIE
One Sze F.rs A,.
&ACK
NUMBERED
One S irTirs•Ar
MVSIGN AS
I25:traW'.
!
NOTE: Vendor/Concession Worker Shirts will come complete with Age/I-D Insignias applied on
a1! Initla; orders Employee Number Insignias will also be affixed to the number of Shirts ordered For
those initial orders totalling less than 250 the balance of the Employee Numbered Insignias wrr be
sent to you detached with your order Please return the exact number of these patches to Uniforms
To You & Co when reordering
ORDERING INSTRUCTIONS
A standard Votame Service purchase order or letter must ac-
Co-" P-y a• O'JP'S Cornp;ete in! Order form Inw: a cc-
plete� Volume Services purchase order or letter. and ma;' to
UNIFORMS TO YOU & CO
Customer Service Department
4340 West 47th Street
ChICdgc III,no,s 60A2
NO P O BOx NUMBERS PLEASE
Ordered By,
Ship To
Address
DELIVERI NEEDEDB)i
864
TOtfi A1. kAerCh prid 5,�
Applicable Sales Tay
i
TOTAL AMOUNT TH!S ORDER
(ALL ORDERS SHIP F O B CH-CArOi
P.O.0
Date
Telephone
State ZIp Code
816-i9:'1
SSE7
VDI i
PPI C-kICER
TW CE1RTOWA7E 19 86= AS A MATTER OF Bwrw. aON ONLY AND CONFERS
MO IrGWTS UPOHI THE CERTIFICATE MOLDER THM CERTIFICATE DOES NOT AMEND,
!'
BxTM OR ALTER THE COVERAGE AFFORDED BY THE POLICES BELOW.
FRED S. JAMES & CO. OF ILLINOIS
230 WEST MONROE STREET
COMPANIES AFFORDING COVERAGE
CWCAGO. IL 60606
COMPANY A TRANSPORTATION INSURANCE CO. (CNA)
LOmPANY E CONTINENTAL CASUALTY CO. (CNA)
ETTER
CANTEEN CORPORATION,
COMPANY C VARIOUS CARRIERS
TI5 DIVISIONS & SUBSIDIARIES
MERCHANDISE MART PLAZA
�"R O
CHICAGO, II. 60654
� 'E
LETTER
TM E TO CERT1F1' THAT POLICES OF ROMANCE LISTED BELOW 14AVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR T14E POLICY PERIOD INDICATED.
NOTWTTHSTANDINC ANY AFOUIRIEMENT. TERM OR COWXTHON OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THUS CERTIFICATE MAY
K ISSUED OR MAY PERTAIN. THE VWJPANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN 15 SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI•
TIOfiS OF SUCH POLICIES
TYPE Or INSURANCE POLICY NUMBER POLO FRF".f POLO E►�, �c',ti, LIABILITr LIMBS IN THOUSANDS
'A DATE IMY %"; DA'E NM,ADDYY,
AG3RE:aA'E
GENERAL LIABILITY
EIODiIY $ $
-
A X. D%m-*w,-NE � CCP001704517
W1 12-31-89 ""'UR`
X' PREArSES E4R'1J►,5
P .T"V
$
Log Y.45R)U%:
A E11' 059% 8 CkLWSE W ACC
OAMAGE
X; PRDDUCTSWW'XM OPEgA O.S
B X cOATFAcTuk (Blanket)
BooLe ED $ 1,000 $ 1,000
CX Mt KIAW WNTWTORS
X; Baaw FM PgoPERTr Dalai
XI PER&)ht IAJu-
PERSONAL INJURY $ 1,000
X Lisuor Liability
FL
AUTOMOBILE LIABILITY
90(,
$
A an, A:^:. BUA001704516
12-31 12.31-89 IMF- �n
A., oaN_: ar^3c MR'. PASS (Except Texas)
DOD.
C
IPFi'
A 7H�'!: a.fTa< CGP001701517
vRoPEF-,
DAMAGE
CiARarf ;IAEI _ ^� (Texas)
: y
P^
COMBINED $ 100()0 -vr-
EXCESS LIABILITY
C �' �, „ VARIOUS
12.31 12-31.89 e6, a PO $ 10,000 $10,000
OTHEA 1rAh !�' X`:I FOFW
A r>OIII(ERS' OOI�ENSAT1pN WODD1704519
STATUTORY
12.31.86 Ml-89
AND
5 (EACm
WC001704518 (Calif.) i5 (WEW-POC, UM-.
,.. S (DISEASE EA.- EM
0T1ER With respect to
Named Insured Is oonoessi
opexati
n at the
ty of Miami's
Orange Bowl Stad.iun
Miami Baseball Stadiur►,
aextifi
to Hold
rkmlad below is an
DESCRIPTION OF OPEi1ATIpNyLOCAT1pN5/NEMICLE$/$PECiAI, fl'EIAS
30 DAYS ADVANCE NOTICE WILL BE GIVEN
CERTIFICATE HOLDER IN EVENT OF
r
CANCELLATION OR CHANGE IN COVERAGE r�21
.�
071, dig
City of Miami
IMA�fisI
Firla = Dept. /Risk Management Div.
t
65 S . W. 1st Street
WIT
NOTICE SMALL MPONE LIGAT LIMUTY
PANY, RS OR RE TAT
(L
Miami, FL 33130
XENTS
AJTHORIZED REPRESENTATIVE
1�
le" V179r iA9 1 r I Mir AAR7,11
A 11r1i ln�
'MD LIVESTOCK SHOW
June 28, 1984
E8#,etters of Recommendation
To Whom It May Concern:
Volume Services, Inc and now Interstate United Corporation has been
operating food and drink concessions on the Arkansas State Fairgrounds
since May 30, 1979.
Our operation and Interstate United Corporation's involve year around
operation of a number of facilities including 3 exhibit buildings, T.
H. Barton Coliseum and outdoor auctions and other events. To service
these activities and the Arkansas State Fair requires good management
and flexibility of operations to meet the different situations.
Interstate United Corporation has effectively served our patrons and
our operation with a willingness to meet each challenge with excellent
service, quality products, and steadily increasing grosses.
The Arkansas State Fair's income has continually increased during the
last five years from Interstate United Corporation's operations.
In 1978, our Association's income from Interstate United Corporation's
predecessor was $39,834.00 during the 10 days cf our Fair and $17,255.00
for the other 355 days or a total of $57,089.
In 1983, off -Fair income was .almost $146,000.00 and $62,321.00 during
the Fair. This total of more than $208.000.00 is almost four times the
previous operator's rental to us.
We a well pleased with our Interstate United Corporation team.
Sinc rel ,
J H R. HOLMES
xecutive Vice President
JRH/bj
8s-1021
' ARKANSAS LIVESTOCK SHOW ASSOCIATION
>4
2440 HOWARD • P. 0. BOX 907 • LITTLE ROCK, ARKANSAS 72203 • (S01)372 83lt
V
Drange County, Convention /Civic Center
Thomas R. Seviell• Executive Director
September 1, 1964
TO WHOM IT MAY CONCERN:
U.jrino .
April of 1978� the Orange County Board of County Commissioner
authorized the Orange County Convention/Civic Center project. From the start
of this process. the highest standards for- er•chitectural desi-r. were e%taulished-
Building service, were also mandated to maintain an "tibove tine averagr" lev,:l
of qualit:.
The "'•lanagentent Fee" concept. adopted by the Oran;;e County Convention/Civic
Center. allowed the facility tc, pur1ic,;s1e the focd service c•ontrCrtrir• in
controlling service level. price and food qutility. This t\pc• of brranoem"nt
extensive catering. concession bnd manbaement experience from the food ser%rce
contractor.
Volume Servicez was chor-en as the company that was be.t able to m,,et tlre-.e
demands after a competitive bid process. invo)ving a numbe•• of r.^tionul firms.
They have demon-trated an c5:lit• to mod ,`y its operation to meet the clrr;npino
needs of the Civic Cer.ter and our Z•lic:nts.
Tire Orange County Convent ion/Crvir Center is plvu-c•c to hove the
Scr%"ce• Divi:,ion of Interstitc lnitr.t Corroratinn us :,n inteors; part of u-..—
bu;lding staff. he believe they ha\c helped u� exCeptior,::l facit,ty.
�in�ercl
Tnamas H. Secti ell
TRS!1-:»
86-1021
9600 International Drive. Orlando, Florida 32809 • )305) 345-9E^0
SL Paul Civic Center
1 I A O'Snaugnessy Piaza • St Paul, Minnesota 55102 • (612) 224A-7361
Marlene 1 Anderson
Managln� DirCoto►
September 7, 19L4
TC W11:_-M IT M.:%
In :-ctober of 19.7, Volume Services Inc. was awarded the food and
revtrage service contract in the Saint Paul Civic Center. The change
frog. a iota! eonccssion operator to a national food and beverage
conLar. has prc%-e-, tc Le a very positive advantage in o::r food
sc-•:ice area. Vcl•r.e Se:-Jices carefully planned the transition, and
ca:r:e! it thr:_ct with no ir.terr.:ption in service to o;:r eusto-nerd.
cncc cn b:�:.:6, they brv=an renovation of our concession areas and have
tc __:e r..a4-e rz.-_ tc t_th the facilities ane e=uip-ne:.t
Vcl-_-.e=.r:iceE w_rks closely with our staff to prc,t:de
set-L- iE ne=esiar• to be:t serve the event. : a Civic Cc-.tc:,
fa: -lit: w be^;.cc cvF: 350 event days with attendance ever 1.5 million
i-. Events versed fro-i ccn.tinental breakfasts for 2;:, luncheons
for 5:.C, to s=11-out concerts of 18,000. Vclune Services catered
tc t:.: nec4s of the e•:cnt, an- r..a:ntained the caalit} standard osr
c.:r:c-_:s have ccne tc ex=,e.t.
.:vices is activcly Participating ir. e::r :1
r._:.: re-.n•:a:__.. F.c.,cct r.-., in p:c_e_s. Their ex=c:..sr ha!' bFC-^
In the :: —c• cence_sicn service areas, an-- P-
. � f2:•s�-F•.•c: 1r. hcuse k.t:s.c• fad:li:y.
1 c. t: c cor.sidc: a fcod aria be•: crage contract f cr ycu.
tie_, er.cc:::a_e ,•a_ tc look to Vc'_ur..c Serb•=.er,
6r.d w?.at they can cfte: yusr e�e:ation and your e::stor..ers. �it is
t:ul; a r:cfessiona: fu.1-service food and beverage co -par., tha:
has Fat.sfaed o:r eu_:c-.c:s and made my staff proud to have then
Ir.%•olved ir. the Civic Center operation.
f. Yours very truly,
r
Marlene Andersor.
w;
Managing Director
_ MA /r
r.
5
hZ�
i'
u
3
r.
August 13, 1984
TO WHOM IT MAY CONCERN:
Volume Services has been part of the Casper Events Center's
team since its opening April of 1982. In starting their oper-
ation in Casper, they were very organized and made our Grand
Opening and every event thereafter a success.
The staff of Volume Services works very closely with building
staff, working with all our needs and concerns. They have al-
ways maintained a quality of standard that is necesse:-y in this
type of operation. We have re:eived many praises f.,r events they
have catered.
If you are in the market of a concession, catering, and novelty
contract for your venue, I wholeheartedly encourage you to look
into Volume Services.
Sincerely, L0
ape"
James M. Walczak
Director
Casper Events Center
8G-1021
Nurner One Evcnts Dwe. P O Bok 140. CAr,rc , � yC�inc 8:ti'^., P^Onr: t30' " 577-090'
:} Inlfnte.cvv /�.. •i .1'�Y p! A.,r0•: r, nW4YaYjC'�
t`� r
CO)
a
Tampa Sports Anthority
EXECUTIVE OFFICES 4201 NORTH DALE MABRY HIGHWAY •TAMPA. FLORIDA 33607 •813-870-3060
May 12, 1986
TO WHOM IT MAY CCNCERN:
Volume Services, Inc. has been the Conaessioraire for the Tanpa
Sports Authority ("Tampa Stadium") since July, 1977, and can only
be described as unquestionably a member of our team.
Although Volume Services, Inc. did not bid the highest percentage
payable to the Authority, it was selected nonetheless. It was
primarily the plan of operatics proposed by Volume Services and
its effect on Gross Revenues that influenced the Authority's decision.
We have never been disappointed with that decision. They have main-
tained a program of updating equipment and facilities, and continue
marketing efforts as relates to new products.
They have always been sensitive to the image of "Tampa Stadium", and
work in partnership with us to maintain that image. All levels of
management are available for consultation at all times, and special
Events at the Stadium draw company -wide participation.
I have stated previously, and continue to state, that this relation-
ship has been excellent.
8E--1021
IV-
e
WEA- PALM BEACH EXA3S
P.O. Box 2686
West Palm Beach. Fbr da 33402
686=
September 8, 1986
Mr. John Malloy
Volume Servies
P.O. Box 3087
West Palm Beach, Fl,
Dear John:
Can't thank you and your staff enough for all the
help you've given us. Wish we had been able to
bring home the Championship Flag, Just think how
we could have promoted that - "Champion Hot Dogs"i
"Champion Soft Drinks", etc, etc,
There's always next year!
Sincerely,
4,,Z/
Ann Sowers
86-1021
"Taimea Falls Dark On Oahu's North Shore
August 21. 1984
To Whom It May Concern:
In 1978, Waimea Falls Park concessioned it's fjod and beverage operations to
Volttmp Services, Inc. They agreed to employ their vast resources to maintain
our very high standards and maximize our profit potential. This was really
a fortunate marriage in many wa7s. They improved the Proud Peacock restau-
rant serving light lunches and fine dining in the evening. Volume Services
has also vastly improved the sales at the Country Kitchen. a fast focd outlet
with 4 windows. Several other food and beverage outlets on the property have
been created as well.
Catering special functions both on and off property for wedding receptions,
polo clubs. political functions, and the like have boosted our image immea-
surably. Volume Services crowning success has been their ability to create
elaborate theme parties which our Bales people are able to market to the luc-
rative travel incentive and association markets. competing head to head with
the highly sophisticated food and beverage departments in the major Honclulu
hotels.
The greatest part about all of the increased business is that all of the un-
pleasantry and humbug associated with the food and beverage business belongs
to Volume Services. (Re=ember, we ran the operation ourselves for four years.)
The second greatest result is that the 150-ish employees collectively working
for both companies in the park operate as one family. We even have joint
Christmas and sumaer company parties. This healthy situation is primarily
k* due to the professional managerial attitude which we have experienced right
through the Volume Service hierarchy.
A
•
Roberts Leinau
General Manager
:i
RL/tdn
sfr �t
-,_ 86-t021
' Park Once 59•e5a Kameha-wha Hwy, Ha►eiwa. Hi 9c71 Ph 638-8511
Wa•kik, Sees Oric•� SuiP 1309 22�? Kaiawlua Atop . Honol,,lu. Hi gfz�5 P. 9''3.8aas
laimea Falls 01ark on Oahu's North Shore
August 21, 1984
To Whom It May Concern:
In 1978, Waimea Falls Park concessioned it's food and beverage operations to
VoliimP Services, Inc. They agreed to employ their vast resources to maintain
our very high standards and maximize our profit potential. This was really
a fortunate marriage in many wa7s. They improved the Proud Peacock restau-
rant serving light lunches and fine dining in the evening. Volume Services
has also vastly improved the sales at the Country Kitchen, a fast focd outlet
with 4 windows. Several other food and beverage outlets on the property have
been created as well.
Cntering special functions both on and off property for wedding receptions,
polo clubs, political functions, and the like have boosted our image immea-
surably. Volume Services's crowning success has been their ability to create
elaborate theme parties which our sales people are able to market to the luc-
rative travel incentive and association markets, competing head to held with
the highly sophisticated food and beverage departments in the major Pcnclulu
hotels.
The greatest part about all of the increased business is that all of the un-
pleasantry and humbug associated with the food and beverage business belongs
to Vclu=e Services. (Re^ember, we ran the operation ourselves for four years.)
The second greatest result is that the 160-ish employees collectively working
for both companies in the park operate as one family. We even have joint
Christmas and summer company parties. This healthy situation is primarily
due to the professional managerial attitude which we have experienced right
through the Volume Service hierarchy.
.r
Roberts Leinau
General Manager
. RL/tdn
8E-1021
Park Ot',Co 59-B54 Kamehaneha Hwy . Halerwa. H; 9E,712 Ph 638.8511
Vva-kski Sates Or sc._ Sullp QC9 2222 Kajakaua Aye Hanoi./lu HI 9c.G15 Pr. 9?;1.844g
8
I
9D
Pompano Park
November 8, 1984
Tc It May Ccncerr.:
As executi•:e rice president and general manager of Porpano Park
Race T: a.-k f it has been my pleasure for the past year to ti:crk
with Volur? Services Ccrperation, our facility's food and
beveracc catcri•rs.
Services has served Pompano fcr the last 12 years, and
we rE-ently ent_:ed a r.e:: ten -}•ear ccntr`:t with them ir. 1:02.
Thc: hive a si%ccr e cc=7-itnent tc co the:: Fart in }:_ei:ire
Por..ranc as n dern and bc•eut2f-,2l as it is, 2-avir.c r...:d•: r..ajcr capital
imprcvenerts in several areas of the fz.cility including renzmaticne
to the dining room, licuor tars an.2 private clubs.
In regard to the quality of product and service, I an well
satisfied with the way th-y r•rcvide fcr cur patrons and the
way the;• sera ice cur 1,203 scat dining roor., our concessiC
ztandz and our
V:1 ,nc S_rv_ces r.anage:men: at P=r; anc is cute
z:=c_-.:..-c tc cur needs ' the rc_e 5 F ����. O. Cur pc' Gns, as well
a:-i : cnszt;.•;e to trip ion.: ar.o Par; crEration in c-neral .
i': _""E Services and wzu:d rECC.:.—.E'.d th=„
be c _cc:e: fc: fccc ard tovezace ser%*zces at ycur facilzt}•.
vc ry truly,
* . .' ..
Y.zarcld F. Duris
i>::cu:iti•c Vzcc P. c:;;c:cnt
and GEne:a_ NFinage:-
NSD: kith
The Winter Capital of Harness Racing1k. 4�
�Ir�S(�t'71iuF�T TH:R11 STREET POMPANO BEACH FL 3Y6
i
0
CJMMC_aJ , CONVENTION
Vol CENTEA
August 21, 1984
TO WHOM IT MAY CONCERN;
0
In April of 1982, Volume Services, Inc. was awarded the food and
beverage service contract for the Fresno Convention Center. The
change from a local concession operator to Volume Services, a nationa:
company, has proven to be a very positive advantage to our food and
beverage operation. Volume Services carefully planned the transition
3 of services and carried it thro:-h with no interruption in service
to our customers.
After the transition, Volume Services began renovation of our existinc
concession areas, and have to date made major inprove.^ents to both
the facilities and the equipment. Due to the efforts and expenditures
of Volume Services' management, we are now generating some of the
highest per capita we have ever had on events. The Unit manage.^�ent
works very closely with my staff to provide whatever is necessary
to best serve the customer during events. Volu.-e Services has always
made every effort to maintain tYe highest standard: and quality our
guests have cone to expect.
R ert A.
Director
RAS/wan
Schoettler
86-102,
700 "W' STRLr . FI;rSRim, CALIFORNIA 93721 0 TELEP110:T (209) 48b-1511
0
4
',a-ch 21, 1993
TC "NC" IT MAY EC';EERN :
City of Austin
Publ,c Event
Facilities
Lester E. Pakmr
Auditorium
City Coliseum
In Oc:eber of 19,-?, Volume Services Inc. was ay.arded ti c- food and treverage
s o ry 4 c e cn n try n P ;.s' n's f'uh' i c E'/ter ; sac i 1 it 4 es . T. c„ar.ce f,•or a
lCC3� CUnC:�_;S—'r:;' cr-7—atJ1' t(: 1 '1311--na'. fD-,! an(', bevc,,: C:ft;_ary feel orcGven
to t' a very pcsl t've aivanta;� n u:;• s.._- .2�-. 'ee a,•aa. Volume cereful?y
planned the t►-a''S`ticr, ard curried it t-.,c:i h W°t:1 no is:terrupt'.on in ser-
vice to our eust;::-ers.
Once on board, t`•ey began renovation of o�.• c^!:cessior areas and hare 6 -
date Trade rra•;cr i-'rrovemc.ntc to both the facilities an•JO equiprrent within.
As a result o` Ire;: effo!•t aric'. we are rn:,►, generating sorre of
t►.e highest per cao i to in the co°intrv. Cur un't manage:-!ent works cl:sely
with my staff tc provide rrr;utever set-u: s nc:essary to best serve the
event. In Gu'' we rar cave- e.-2-t la:t veer, and Vney rance
fr:^ lurc. Ec ns �'. 150 corpuratt E..vcl.: :£S tC F •r v ti_.:�c;1,'.1f1c ro:,i: and roll
I e7. In all casz�. Noll me So�'v ices h,:: caz.,red to the nee ,s of the event,
ar-f `3S mainta'-le: the quel itf standard cjstvT�rs have corr.e 160 expect.
if yc:, are consi irg a food and bFVer, U`1t.-dCt for y-)ur facilities,
wu;:ld encourage ji:u tr, leap: at What Vol u"-e ;er•. ices Inc. ha; to offer your
operation and ytu,• custoner;. They are truly a profess Tonal full service '
food and beverage company that have made cur custorrers and my staff proud
to have them. in ou- operation.
Fesaectfully,
Ron Wood
Director
RW:rvb
86-1021
•
A BILL PUBLICATION FAST FOOD'
R
November 20, 1984
6
SPEC/AL
REPORT&
�y
There are a variety of ways to
develop a business. Take foodservice
management, for instance. Canteen,
in Chicago, has grown in its 55-year
history to become one of the nation's larg-
est contract feeders, with 1983 sales of more
than $768 million from about 900 manual
r-
accounts and nearly 200,000 automated vend-
ing machines. The company has maintained its
strength by diversifying into all types of contract
foodservice, including Health Care and Leisure accounts,
m
r-
40
f�%4
00
Canteen: Profiting from a
diversified portfolio
Born ,l A endllle :,\nll`:111\ 111 1020
Cant:cn Corp has sunned : hang-
111' e:,`tl,`t11I: tide, and
of diticient parent org:nuiations h\
r:;r,ulur= ,Idaplable and I' A'
\,`I III,t .1 %Cildllli:,Vtlr.l
n% .ill% ❑r,•re. Canteen has di%ersi ied
talimik, the :olll(d:t (A'OdNer%Ice
III the hu,mcs, & Indu,tr%.
heap h :arc.
Mid :du:,itlon segments. In lU.,�?.
C.tilt:cn .nhle\Cd re:t,rd pre-ta\
r.•ti;, of �_' h million on rc\enu:,
of, 1 n1111wil. rllakine it the Ihlyd
tars �,t tOod,cr\ t:e nnallagement
ul the:runtr\ ill term, , t
re%;nue,. behind onl\ ARA sin,!
Marriott.
Lyl,uns Robert A. Ko/lo%%ski.
:•bred a 35-\Car career \%fill
Cant:en h\ helm named It, presi-
dent and : hlef e\e:uti%e ofli:er carp-
er this \car "One of our biggest
:hallell es todai, is being able to .ut-
u:ipate and react to the :hancrtlg
nature of the marketplace For e\-
anipl:. through skilled managenicni
and the ahtlt\ it, he flemble. Call -
teen %%as able it, react qui:kl% during
file recent re:e„Ion, %%heft %%e con-
tinued tit maintain and gro%% bottom
line profitahihi% despite %olume de-
Chiles ill se%cral of our major
nrlrkei pla: a%.-
Kozlo%%ski refer, cif course to the
fundamental changes %%hich ha%e
been occurring tit the American
e:onom\ o%er the past se\cral \cars.
:au,I11L a shift from a simikeslack-
11ANCd ::0110111lc ,\,ICIII to One of ill -
formation. nndu,nies Throu pout the
nod- anti late•"Ils. %%title Calltecn's
rc\enuc, _re%% steadil%. its nlconic
dipped .old s%►a\ed. a %car or mo of
In the past several
years, Canteen
has diversified into
the realm of
health care, re-
creation services,
education, and
corrections in order
to strenghten its
bottom line.
impro\ement f011owed h\ one of dc-
chne Mokkil\. the decline, "ere the
etle:l u1 %%ork-lOrce redtl:11o11, and
plant :losing, among its Iraditional
large tndustnial clients. It %%as:lear-
I\ tittle to di\ ersif\ the hu,nlcs, haw.
Canteen's strateg% of "Catherine
sotiness in hea%\ ilidu,ii\ h% en-
trenching solidly in less c\:hcal
tik pes ofaccounts—hke h.utking and
high technology —:Ind h\ de\tit Ing a
great deal of its energies to such
high-,_no%%th areas as recreation and
health ::pre• has been rc%%arded at
the hottom line. Despite the fart that
re%enues dipped in 11482 to 5750.1
million from 5785.8 in 1481. income
rose �A1.3 mullion. to _'.b million. in
ilia period. An increase in net in-
come of _"_ percent ill IaS : is cut c%en
more positi%e harhinger of Koilo%%s-
ki's plan to sustain a compounded
AMILIal net Income artm ill rate of 1'
fo 15 percent Doer the ne\t fi\c \cars.
Memm hile, the past 15 Vicars ha\e
posed other ch.illellge,. the Cht:a-
p,-h•I,cd :oIllpan\', owicrshlr %Isis
Oianged 101tr tittle„in:e I`Itrl, \%hen
It %%a, .I:gUired h% ITT Corp In
ly72. I I F sAd _'tl percent (it' Call-
lecil', .lock on the topcn in.irkel as
part 01'•1 Justl:e Derarnricni dc:ree.
,Ind Cantcell he:anio ill independent
ruhIIJ\ held :onip,nn\ 1 he t;
III,• \Car. C:untecn %%,I%,narred Ill- h\
I ran, %korld :Airlines. hi . •Ilrcad\
parent of I llit"11 I ntcl n,ll lAalal.
In Januar\. a tie\% holding
:onnpan� :tilled Trans \kotld Carr
%%•I, 1',`rmed. %%uh the .iii-litle%. Call -
teen. and H11ton he:,`nlln:
o%%ned suhsidtanes In file Cn,ut1l_
\Car,. Trati, \korld al„` CtllerCd the
real estate husine,s \%Ith it, a:yu1,1-
titm of Cenlur\ :I. and added addi-
11onal foodscr\ice :.ii,ahilit\ \%iih it,
.I:gtI1,1111 Il Of �r.11IJII 1,00d \\ s•
telly, file o%%ner-oper.tior ,`t IIIC
(Milli: %', F.urlll\ Ste,lk Hou,c :ham
and the :ountn's Lrr_e,t llardee'.
fran:hl,ee fiut despite the:onlrihu-
11011, of It, ft`tlr non -airline bti%m-
e,es. Trail, \\ orld*% re --Lilts, \%ere he-
titg hurt h% 1 %% A', losses, and tit
Fehruar\ IL)S4. the airlines \%as spun
olf. Canlecn', parent \%a% ,uh,c-
yucntl% rechristened Tr:uls\%orld
Corporaf ion. and in file m o quarters
since the ,pin off ha% sho%%n protit
iniprmentents of o\er 100 percent.
Canteen's lomastandine autono-
m\ %\ithin its parent oreanization
has enabled the eompan� to pursue
its o%%n goal tit' di%ersification %%ithnl
the foodsenlce Illdtlstr\. Yet Kol-
low,ki and other niemhers of the
Canteen executi%c team are quick to
Point out that file:onlpall\ is h% no
team abandoning it, industrial
contract and %ending husitlrsscs.
More than a third ofthea::oums in
tlie :onlpan\'s Food S Fending Di-
BG--1021
F
v? '
%tsum can be classified as manufac-
turing. And. in part due to recent re-
crn en in the econom% and in part to
Canteen's ow it impro%ements in op-
eration%. these accounts are showing
marked new strength. The compa-
n%. w hich did husincss as Automatic
Canteen Corp until its name was
ch:utt:ed un Noo it, reflect its mo%e-
ment into manual foodwr%ice. con-
tinues it, operate more than 200
Neudinc distribution centers and
o%%ns nearl% 200.000 machines. In
1Q� � .,entlum a.�t�unted fife a0 prr-
cent of sales
• %\e'%e restru.•tured sip as not to
walk aua\ from industr}," explains
Daniel R. Krpan. vice president -
marketing. "Rather. we want to be-
come less dependent on this type of
business. The business mix is
changing."
Canteen has aggressivel\ pur-
sued "white collar" accounts. In
fact. within its Food & Vending dig t-
sion. 90 percent of the new accounts
booked in the last four \cars ha\e
been non -blue collar, according to
Krpan. In addition, the eompan\
\ie\%s sc\eral newer markets as ha\-
ing high growth potential. including
health care —acute care hospitals,
and retirement and convalescent
homes —leisure and recreation, edu-
cation, and correctional institutions.
As a result of this push into alterna-
tive forms of business. Canteen's
prodigious list of accounts nrn� in-
cludes e%erything from Yellowstone
?rational Park and Yankee Stadium
to The Yreshvterian Home and De
Kalb County Jail in Georgia. In ad-
dition to handling more than 900
traditional manual foodservice ac-
counts and 100 executi\e dining
rooms. Canteen operates a dog
track. owns a company which pro -
Odes pre -portioned lunches to ele-
If.-nrh•r. ,tt'( :rntvvn'. tn. iuemwnt %ta tl to r.l Dim 5.•hurti-r. Hal Ruchrc. Ltv Cyt^e. Dom Frneer. Jim .td.•Gutre. Bill Adam,.
\7.A Dun,l;;. John N.jpwt. Gov - Einmersom. Boh AtrlLm %ki. And Dint;.. Lam tl}IL.rs. Gntrec Tenet. Karl edlrrr. e!
Gt, .•h.r,. lkrn Att Own. AN (arl%on. Elhot /err. wff Ted Ar7.. Dan tirpw). H.d Brordon. and D.rrrell )'wA/et
a
L1
Ili.'11i,t1\ tilltlttl :1111,{fill, I'lllls ,1
Pit I,: ri,taur,lilt , called
61111\Cr,. ;llld t'rclalis 1.� hotels
\\Ith Illori illall 3,20111110111ls
N;III Llitalli,'Ll,l\, Canteen If.[,
\\,,1kcd to make all of Ili ol's ratitllts
moic:oNt-cI1e:tI\c. A pioneer Ill [Ile
!,\-tll:-ttlill:e Illelll,hl t11 ,rlf-,Cr\ lil'.
Illi :ttlllh,lll\ C0111111Lles 1,1 rel\ hCa\I-
!\ ;I this :on:cIli }sailor ,.I\III_,
h.t\: peen ,I_llllic;llll. hilt in addl-
❑. ,,!\. f�rran. rarn:Ir:lntln I,
h�,•,', hC:.IIIsC Il1C 111c't110d AidressCS
,:,l,tllCr n,:cd, Netter than set
,Illd sea r,trll,'I1,_ Ill :Iddl-
!!+':I. !!1; ,��Illr,l!!\ {Isis made a I11,II,tr
, .•• ..;!;!i.;l: 1, �., `('C Pall\e ,Cr\ is t.'s
I lit.' : 11CI11 Ill o\ Ides
t'I 1C,lsed C,Illlrlllilll Mill;
A:-
\ nlarkit Plan• ....
C111-
,;s \\it it Ir,Idit oral lull-Ime
I" .1dillifil'tel It
ttil_,t-
,.i �:Illi:lll 10 i1r,I\bill\_ Ihi
,tl' qualm fit rntducl
.t 11,'. !tl.11l.1_Cllii ills ,lilt.! to do IhlN till
ill •!!, ,I �.tsl•:tI::II1C h;lsis
is the C,IIIICCII OLI,1111\
f,,,,d Srr\I:c Prt'_ram (CQFS11i. a
_1,`till of hit:k-,tl-thi•h,,u,C ;Llld
fr,-lll-.,I-ihc-h,'u,e manuals
,CI forth IhC Canteen standard, tOr
i\rr\ :,'ll,c1%able operational pru:e-
,!;!r':. I,UI_ttl_ from pl'tldll:lit'll IC:II
n1,I1c, lit Plate presentation and
nlil,ll.tndl,ul_.
It,: he.IIII\ of tiles prtt_rain I,
fh.lt It cliallIes rclamcl\ unskilled la -
hot I,�,u::c,sfull) produce And lner-
,11.111,11,C l!Ir (,Inlcell Prtt_r,111C,
,,t',s �:.In Il��hlll,ttll. dIIC:IUr tit dl•
C1:11:, .Ind the :Illi) .irchit :i tit'
LiI NI' "( I:.Ifnr pi,q lc :all _o
nnr1CII)Cnlul, Ihclr ,'\\ll
\\1111111 IhC II.IIIIC\\„Ik 111 Op.
( I!I sl'
n
i/li///t C(', ,i//-,CCIC t/,// 1, 110,111Il'-d /;,I. I1111t'II-1'11.all offs, ' bad,11114..,
.uld I, in place Ill all C:ul-
ICCII ,I::,'lllll, A coillr,lill, Ill prtl-
_rmn Ile, unit man,l,_Cnlint's incen-
lit.eN to hit\\ Chisel\ Ihi CQVSI'
,I'ind:Irds ;Ire itlllimed Ili ,iddifio 1.
,I,IIItl,lrll-hCal'lI1C ac:ttllllls I11,1\ hC
desl_Il.lted as training xincr, lilt
LI1111 mana_Cr,.
C OFS11 I'ml:llttll, ;Is ;I pattern Ittr
\mLiAll\ e\er\ f\lteof account con-
nn_cnc). For Inst.nlce. manuals till
11of Foods mid Cold Foods are ar-
ran_ed h\ modUIC—,uch .Is S011p,'It
Such, Earl\ Bird (hre.lkfa,l). Farm-
er', Markel (salad hard, and Main
F: ent (traditional hot enirees)—„1
Ih.11 nl.ula_rnwnt caul .ulapl Ihi prtt-
,gram% It\ file requirements of a par-
Il:tll,ll :IC:OLlill. Smaller .I::ttlllll,
nl1_111 h.r\C oilk one nlulli purptl,e
,elf-ser\Ice arC:1, \Milli III_ll \tlllinle
accuulll, Ini_hl find it %1,&e to ha\e
,Cpai.Ue ,er\ul_ area, fOr the ,aLld
liar. a frtlil hat. dC,serI%. Cic l IC
mmnual,,lilt)\\ itlrall ,tich \armnon
I till -color photo_iaph, Illll,lr.11c
SICp-h\-Slip applo.id1C, 1411 1110cC-
dtlrr, like 11.111111112 Iloi food, or' 1.1\-
nl_ ,tut lilt: salad har, 1 \en nlerch,ul-
Ill,ul_ ICchlnyue, such as the
displa\s aht'\c ,ir\Ill_ lu1r, are
srellcd 01.11 h\ IIIC PRt r,llll. ill,lhl;tl_
liotirl\ 1,441,Cr\I:e \\t'rkcrs it, rci-
IOrm file task In .iddition. file tn.ul-
LLlls,fri Used Ill :t'lllllll:ll,tn \\ lilt h•`1
,111d cold d,111\ 1110dll:Iht11 slli:Is
It\_ .I:Ill,ll ttlt'd IICI11 ll,,l_C ,I_,tit+.,!
.Illd other rllfr,t,Cs.
To In,urc con%l,tcm yu.ihf\ Ili
product. oll ra%% food I, Pllf:h.I,:sl It,
C.Inl:in'\ ♦pC:lllcall,ill, and .111 rC,I-
re♦ ,11C %iandardl/Cd. Reopc II1,U1-
u.11, include Inl•,nnl.11it'll ,'ll Liu.11111-
Ile, Ic"ILIlled for \arl,tlls,.11C, locl,
For large %oltime acctunll,. C.uucen
Is 1111,11 fe,11112, .I :t'lllI'll tirl/:d ,\,-
ICIll.11 Ihi.' L Ill\CI'sll\ of ��h:,tllslll.
O%Il Ia"h. \\lti:h C.111 be u,cd 10
shrink or C\I1.IIld I V:Il1C, 1,'set \C.111%
number ot people. Sad, I red \111101-
,ttll, \ lei prc,idrnl nattttn.11 ,.dC, .f1-
lcoor. " I hC,C produ lit'll
,Ire unl,Iui It' IIIC nldu,11A. ,ul,l _r\e
Its .1 \\.I\ 10 0JILI:11C \\11.11 \\C rC'Lfo-
In g are \\e portioning co, Iccll\'
\rC \\C ""le ,Islip_ ,IC:LII,IICI\ Mid
tl,lll_ t1Llr :\:It.' IllORIN 110 Ihi hC,I
In addult'n. the ctvnran� h.l,
86-1021
•s'
1 0
\\,`eked up pre•p,l:ka_ed fl,l\onn;`�
and h.t,i 1111\:, Till oli'II-tlsed Item.
llk' ,:Ill:e, :Intl soups lit certain ac-
count,. unit managers ha\c been e\-
permiciiiing ailh selling the soup
bass till\i, Ittile fill- crea1 n soup and
otic 1,01 clear) it, iu%lomer\.
Thiouzhoul its operalions- Can-
leen us'sa ti\C-\\eel. standard menu
ci,cle, \\filch \uric. \\ith the season.
1 Ic\ihihf\ to in,:orpor.ile local fa-
\ortle, of it'\ oul tie\\ Liras Is built
mto the ,stem: manaccnienl
01001.i, ,Illl,tll_ tilt' ,Ilg_e,l'd ilt•Ill,
a:cordll1_ 10lWd. Mid I, Iree to,tih-
stnute uh I,` Ike items per catecor\
tas tit tie„eti, or entree,l pet e\cle.
,llhli:l lit the applo\.11 of Illc d1,Iri:l
I11,IIl,Grr' 1',`r Ill,l,lll:e, al Ills' 1 ider-
al R,,ir\c Kink ill S,.m i tmici,co.
lh, :ll,l,`Ill:r poptil.tllt'll II1-
clll,lt', Ill.im, 4,1.Itl, as \\ell ;I, stt-
h111,11, l l o.1,l
p,,! k h„n, l .111d +`t h; r OI I'tll.11 pa,t-
Ili, ,u,• ul:ladi,l tit the mornnlg
ttll'rll1;,
1t1__:,II\i ,;IiIIL 1::111111{Ill',.11,+`
licit' kcal` :,tins ill hn,- For install: ..
a tie\\ pr,t_I:nil called Luna_' the
ill\ ,llhll\ ell:,`llr,l_e„tl,l,`Illel', It,
pl:t,lt,l,i 1Ood I1011, cinch :Ire Illy,!
„r\' Oitea:h'\ile
nl; rlu. y`i; lal tienl, Me nidlcated
\\ 1tiA arc h.'ih poj't:l.lr .md _ooki for
,0,1, It Ill,t:,lrotll .111d -It eescI or
in.ir 111, it c 1 seat" t•t,l pl.11ler).
I ll:,: iicin, .Ile prolll,tl',1 h\ Ille,1111
of ,1 lar_'tlill-:Aor poster IlLtllllted
,1r,ili_I:.III\ at th' heelmlin: of the
,i rt ln_ Ilne -1 hi cnnlp:ln\ also
pit,lle,' Ili it'll -sir\ I:' Illthitlle, h\
them. ahcnc\er possthle.
ne.o:,l lh1 honit of entn. In theem
hl,t\ie cat;Iirla ofConihnicd Insur-
ul:e Co *% tr,unin_ hcadyu.iner% Ill
Chlca_o. for tilstalice. locatlnq! it
,t'll•,t'1'\t' ,.111d" :11 ,tAIIIII1 near the
dooi rctImcd ,:tie, of more cosll\
,1cmii Iallk., ileni% it, 25 It, 311 percelll
of tidal %.it,,. rather than the pre\i-
till, 411 pircelll of ,:Ile,. Alld lilt' re-
,llll.11ll IIIII,r,,\elllilll III plt,dl1:11\II\
ilLtitli,I (.illliill I,t :,,I1111111C It, mill
Ill. }.i.'III! \ ,1, .1 ♦ill-,l1,L1I1111L :1: -
„nuli. , \;u Ihltu_h lhecll:nl 11,111 re-
..'lint trtllt.,,1 Ili; .uutnnit ttl lls,uh-
,I,I\ \: a,ultitl I+t 11c•e1lhh.1,ve
It I I.t,t,I Will"Ilf rinnnl.ltnl_ ti." i\
It1.0111 DI.k S„t1I. rc_"ltv1.11 food di -
Canteen has used
its network of
franchisees as a
means to enter
markets where
the company itself
does not have a
pool of manpower
and resources.
rr:lor "��'r'r' ohera►nl,� till, Glcihl\
file %;title \%:t\ \\r could it prolil and
I ac:oIIIII " De,pll' Ill' 1,1:1 1It'll
1111, ,I;:,tlllll I, l,t:alell Ill :1 hll,lllll_
urhan ari,i. pare:Ip.ln,Ill i, ".
percent
B\-the-ot nix --cmcc I, ill,o Il,ed
aheiic\er the situalion hermit.. The
conlpaut\'s first fora\ into the con-
cepl of h\-the-ounce ser\ice \\a, ill
the area of salad hars. but this for.
mat has groan tr include sand\\ Ich
bars (same accounts e\en h:t\e both
sere-yourself-b\-tlle-ounce sand.
\iich setups and cane -to -order sta-
tions). ethnic hams such :Is Me\ic:ul
and Italian. and build -\our -oat
concepts like baked pol:rloe, and
tacos.
Gunner's Is Canteen's self-sen t:e
deli 'restaurant concept. Desi nid
priniaril\ for multi -tenant k1111 '
buildings \\here no iIIdI\Idual Icnanl
has food.cr\ice. Gulh\cr's I% ill the
true sense of tit,: \%ord a puhli: r',-
taurmii. The :,Vl'epl 1, also all 111;-
poriant e\pan,ioii \chicle fill Can-
teen. in that it ills" has h';I;
,I.I::e,stull\ Jddl"led 10 tttili_i. ,.
:realloll. and lie.iltll:are ,ii ;nz,
Thcr' are ahow lao diven Cjt:!!:-
ter's tit operation currentl\. and i:-
cordnl, to KI-pan. tilt' conipant
l;tr !fir t'111rrh are:r _roti rli are.i KV Canrrcn
Y
tmu ,Lw I% man) as `U or bV III t he
upContink! %ear. The concept is all
.elf-.er,c. emphasizing ,our%. sal'
ads. .and�,I:hes, and similar light
fare. Breakfa%t is also a,ailahle. B,
the oun:e ser,ice is often used. De-
cor Can he adapted to almost an% set -
tin;. and t\pical size ranee. an\ -
„here from about 4;0 seats to more
than 00 A\eragecheck for the Gul-
h, er's concept o, erall is about �,[W.
_;ncranne a,eracc unit ,olumes of
`I`I�.I,tptl to'5Ib0.000. Food costs are
about ?b per:ent. „hile labor costs
„etch tit at shout percent.
hit, hcn acid storage space re-
qulrcd h, the Guli, er'. concept are
miiiiniA e,en thttuch the soups.
C hlh. and optional hilt specials are
,:o,,kcd on premise. The ahscn:e of
equipment requtrnic HVAC stakes
tI;C !'rant -end in,01111 tit qultc lot,.
Xtiother Is Gullr,er's catcnn2 ca-
11
pahility At the Adler Manctarmru.
in Chicago, catenne c0rpt-ratc.
school. and association Functions Is a
tremendous part of manager Larry
Posen's husniew Despite the fact
that the kitchen is less than MO sq.
ft.. Posen can and has catered eight
course formal dinners for se,eral
hundred people. The onl% requlrc-
ment to hook the Planetarium or
Gulli,er's "Crater on the Moon-
dining room for a part\ Is that the
host also hook the planetartunis Sk,
Sho„.
Catering Is in Important facet of
all C:uttecn's manual food.er, ice
a:tulnts as „ell. At a manor I BAI
installation In San Jose. Cal.. "here
Canteen operates tothlsef,l:e III fike
huildin,_s. as mush is 50 perxiii of
the husiness I% front catering funC-
titttis The kirgest 1,,I% III ttrcit Houle
lOr "0.000. lield se,eral ,cars a_o it)
Kt'.'fc'.lfh'f1.1.11tUlilt hke .�c'll ) �t//t };111�c'c' 11,0111111 /loll t• wwri,va portion ofCanteen'. h1 ,we%%.
N.
_ -
woo
�. _ . tip .��fi
4
Kid
celc•ht•llc' to -III allimets.ln of Ihc•
PI.n11
oil the Nest Coast %\here the\
oricinalcd, build-win-tmn hors are
P:Irticularl\ popular, although their
popularih I% rapidly spreading
across the co11nm to Illore tradl-
tion-hound markets 7 hese bars
ha\e also pro\en as adaptable to
Its\\-hudeet accounts as the\ are ill
the flagship amounts \\here Can-
teen's m-house architects ha\c• de-
.ivned the facilities from scratch At
tit- S.mia Clara Count\ Gmern-
mcnt Center tit San .lose. Cal , for in-
st.nl:r. althou_h Canteen has had
tit- account for the past right \ears.
thi fo,,,ls;nl:r faciltlic• "ere dc-
sl-"n;d h\ the pr,,Ie:1 It:llllC:l and
ht_}l lahot :,,.t. due to destpn mefli-
:lcli:irs\\erc':1:,,nstantpr+blem IIf
Ia, i. Ie ss ►ban a \car a00. the 100-sem
rc'sIJII1.1111 p,,rilon 1+l the illcIIII% \%.1,
:l,,sr,l..11ld ,`Ill\ .I �IIILNe.11 :.11c•lrrl.i
rcm.imcd ill operation Unit inan.iC-
ci Ro-m A\som sol\cd file problcill
h\ ulsiall!n a %mipli self=see\ Ice bar
Ill tltc snl.11lrl duiIII2 arca. anal ofl'cr-
Ill_ All Inunrnsrl\ su:ccssilll h)•Ihi
oun,i elluu: fot,d h,ir that :h.ul�es
\o\% 111, fa:ilit\. .1 Prolit and
%\ill:lt 11 open It, the
I, ,,,.1. sonic of Ihr to\\C%I
t,a,.'. `sis IIl 111i cOMP,11!\ s B.l\
..�� ; rr tall.11l_ .Ihoul \\ Ii,tl (.nl•
Ic. n , J!I dI' untlel Icss•111,In Pt-rfc, t
i„ij, " ,,I%% DarrcII I ) c.il.-
li\. �1C"I:rII .area \I:t' Ill rsld:lll it11
d;! \1h„11: •�\si,ill's :I,:ollill I:Ilis
1•.1spr:I.11:h.11lrn_; I `Pro-
\ I.1:11_ f,,r .Ilelll nerd. alld %AI1%1'\ III_
Ihc :ust,uncr %%hen 111: f.1,lilt % Is 11"I
on lilt, priory list for repairs mid
Inlpr0%CIIIinls..
Sit, 11.III.111ItLIJi 1%doubt\ Itllp,,r-
I.1111 Itl I,hl.l\'� r:ollollll. \\hell C111�
plo\cr. are t.lhm an c\tra-hard
it,,,1, .11 the %,hut- ol' the ht-llt•lils 111.11
ttit, \ pro\Idc And Ihc .11lnudc :Ilso
111ldt•I% t,rC%.I:orpt,l.11e p1111„sopll\
ti.I\• h„il ,\%s41 "It is our responsi-
ill\ Io he successful under :ondl-
Holl, .Is \%c Illid them, 1101 .1% %%t-'d
hi.c Ihrnl It, h, In 0111CI %%ord.. Play
\\ flit Ill,, 11.111d 111.11's been dc•.111 %ou "
C.r111ccn h,ls dc%eloprd .1 nunlhrt
of pl,• I.I11,s -lttd p,,ll:lc's 111.11 c'llal\li
If I,- I111 sl pl„til.ibl% Llsc' 11s h:Uld. 11,11
0
At ) c/h m %h ale. Clwec'li operates re%t.juranL. lodging. gift %hop% w7J rollr%.
the IeJ%t of %%hick Is a general pro.
grant to renegotiate man\ of it, p&I
amounts into less spe:ulatl\c nlan-
agetilem fee bases to addition. se\ -
end \cais ago Ihc :omp.an\ %%.Is dt--
centralvcd. creating a ile\% l.t\er of
imicral man.igers \\lilt ultim,itc rc.
\ponsiblllt\ toi the pertorllall:e of
all .i,counts \%iihm their hran,h. or
district 'lhers are SO :omp.im.
o%\nrd hranchcs \\tthm the Cantrell
s\drill, reporimi! to Ullc' of tUllr arr.t
\Ice presidents
"i fill s\dent Ilas:1110%\rd Us to hr
%en tlnlel\ tit our response to
char e% fit lilt- marketplacc." e\.
pi -lilt, Haller. " hc:ausc file People
%%ho I,no\% the local market hest are
the oils. makiiq! Ihc' dr:lslotls Mid
Ihc ones \%ho are accountable..,
In :addition 11, Its :oniP:ni\ -o%% nod
hran:hes. Canicen is the only food.
see\ I: ccompam tit 11s 1,Illd It\ 11.1\ c'
franchised locations. III fart. Iran -
chi% lag \ka% :1 major tartoliit Ill%'
:ollip.m\'s pattern of r\pansion
There are morn than 130 Inds\ IdLIJI
trait hlsrd locaiit lls. open-JIII1_
Illallll\ in smaller cities Ac:ordnl_
it, Igoilim ski. franchising :1 iermor\
rather thin going lilt,, 11 old a:o11111.1-
n%-operated h.isls \%.Is Ihc moll cf-
ir:lnr \%.I% tit rllil'rlll_ all :Irc',1
\\here the :ompam had no e\i,lin
management base. As the compaii.,
e%alu.ltes a ne\% area of the:ountr\.
it decides :ooperati%eI� \\heiher if
%%ouid he priors Judicious to frin;hiss
the Ierritor\ or ronlpan\ operalc' it
11imc\er. according to Ko:1,m,ki
the franchisee nemor1, Is :,I Oils
Polio rclamcl\ mature
sales. \%hl:lt ,Ire not nl:llldrd II, C.0
Ieen'. results. amount to ah.T' : I,
nulhon .lnnuall%.
As fit Most sll::rsstlli h.Itl;lltsc
�\slc'I11�. �':Illlrell'� tratl:tllsri� ll�,
file same programs and s\ stem- us:,l
Ill Canteen's comp:nr\-of"CIJic,! J,-
:oullls 7lic\ ha\e first ri-,ht ,,f It:-
fLlsal kill Ile\\ piece" of hu%lllrss
signed ill their termor\. and are fre,
it) take :In% t%PC of 1.
hcall11 care.rc:reatlon. Ho%\c,ter.
most large recreation accounts ;,I*,
handled h% the connp.m\'s scp.lrttc
Recreation Senices di\ ,,1011. %%hich
has the resources to pl.i:r awono-
mous m.mapenncni icanns to Ihc ul,l!-
%iduaI J,-OIunts
Laf ,e re: re,lnon a::1\111111
Protcd %cn successful for Carltet-n.
%\fit:his a:inch pur%unl_ nc%% hull
Iles. III.lads and national Path%.:oll-
%cimon :enters. niarm.is. cnterl.lin-
Illelll chid sports :oIII I'll ews. and lltc
11
like it) Doll hl'l"Ill. re-
: t C,II 1,111 .Ic:toulit., pt,.e certalil Chal-
len_C. the\ tend to he long -terns
:oiltracts and the\ tend it) require
suhst,uulal rll\estmenis. ili addition.
the field I,, :rt•\\ded \\iih Co'mpeli-
tt`ts looking, for a piece t,f t11e ICI.(Irc
rt'.trk,t it, protect thcinsel\e♦ front
,!!, \!:L.itudC. tit* the traditional
iQ\ I .,:Illelli.
R,:Icmlto11 ac:toilill• also tetid it+
sca"011,11 In n.lture. and a -
i.`t,!II!_ It` Gc or_e I' one\. \ Ice presl-
u ;.' r::ICalit111 .CIANN., (111.C11111C
fill, .:.lst+nlllt\ Is one tot file dl\l-
Ill_, 'St :hall:tl_,s. In 1 Cllo .
\,Itional Park for Ill.1,111cC.
\\ i)i l e C,1111celOt 1 W Seo lies oil\ I -
\It'll Operate% oer\Ihinu, from illtod-
•,,:.; Mid Itltl_in_ 1230 room. In
•e1�,If;tic fa:Ihtiol I,, four h(1.-
!;'„I Ilor.Chack r'Ido. Ill, it, VIl per-
.'f re\enues sir, '_encimc l In I
period In .1d,111l,ln. enl-
!' '.::t:fll .\\,II. iloill ,1 full-111114:
f p,,lplt to .1 s:,ts,111.11 In_h
nt.iknl_ tramin_ ,Intl I'c-
1;I:1I11C111IlllI,'fl,lill
VIII,.u_h aided h\ file fIa Thai
hall'tof the mana_ers
.1141 ::1, to ',1) perxiii of Ilse hourl\
\\,'piers return each \car. the tirsi-
t1.I\ .'rl; nt.n It In at 1'ell,'\\.ttulr Is
:rnl;.11 S:1\sly L Ru:hIC.C\C:uu.0
\ Ise pre.idenl and general nianaec
Branch general
managers have
ultimate p&1 res-
ponsibility at the
unit level, a sys-
tem which puts
decision -making
power in the
hands of those
that know the
market best.
of i lle l elimt .look P.n k 1)r, lsloll t,I
T\\' Semler.. "I'\:r\ tear. \te ha%c
1,+ _CI .1 \\ }It'll• Ili \\ . i e\\ t'll 110.I1d
.tild re.itl. I" \\.'rk 111 a Mattel of
d.ns \\nil nl,+.t ,'1_.uni,ult+ns II
I.Ike. \e.u.It' t1:\CI,'p.l.lilt lll-C \\C
ha\e IfO da\s it, do It Intl than \\e
h,l\e It, tit, II III t,\Cr ;I_,un the ne\I
%car Pride ul the ft+h and 111,'r.\I:.lre
:rticl,ll. I,e:,lll.e lht'•C IiiIIL• lllli-
Ilt.tlel\ affect life ,ifl,llll\ of the \1%1-
tt+rs' C\perten:; ill the p.11k ..
\\ h,ll I \\ \Cr\l:e. i,a'k t'\Cr ih:
,I:ct'llllt Ill 10'14. the lodt'nl_ (A:IiIIIC.
M,IIc rnt" luhrt.•,"Ibi, .r,,•'lurt.
E
\\CI: Ill J .IM: Ill t11,1i1`.Iil'.I11t1 1t1,•tl
and
:.Ills Rlt:hte. Ili .tit utyr::cudc ltt:d
n111\C.IhCC0IIIr'J:ithat I\\
nCzt'1ialCd \tllh life NJI111n,11 I'Jrh
Senl:C:alled fOr ilic t+per:ittlr it, ill-
\ esi :1 :cliis toll e\ Cr\ dollar t,I .sole.
In I he f-wlllllc,. \\ rich :Ire t'\\ hell 1141
per,xiii h\ life !'.Irk Ser\t:e In Jtith-
It'll.f,llltl. It, _0 I„\\ to rds f.c\ ll:tl lilt 1. 'u of,
1 Cl1,+\. stt`ne, its lar_Cst Karl. \, ,1
I esult. I \\ Sen i,,c% ha,s spoil J sllh-
.I'lnllal ,Itllt+11111 Of Illt'tlC\ till All 011-
01110 up_rJti: Of h,lsplt.lht\•ri ;.I;it1
park t;l,lh,lis. nl.luthn n111-
il.'tl l,+ .,M1 lrll.i (it lilt \tll.l_e. J
IIC\\ :011111ICit t'1 (th1_II1_ .Illd I, 'd1L l-
Ice toot 1 .Ike 1 :Ill+\1.1t'Ilc
III ,'rtlii i.' I11,, \Iltll;e Its 111\"St-
111CI11. the iolli `.111\ 11.1, iml!I.1!;d .1
t11'11, C I,• Ill, t't1-.C.I,t'll hll'llit!"
\noels .'I* 111!s 111111.1 1.
tt.Ild, Ill, r;.1,111L hu'llic" dill III-, riff
\\h;:i up l,''llllln;l!,s
on ihC h.lrk i \\t'
nt'\t rinl.un ,'yell tlurul_ thi WHICl
nl,vllhs.,nldflit: vIIIp.ln\ nl,unt,un.
.I Ilect of tl\ er-I lle•siw\t \ elll. 1l ,% I,+
11.111.11of I supplies And \ isnt'i, Aikc
I11 .tdtltut`11. ; 11ow l olic 1%
pit`I11,'ICd .Is .I hlI.I11C..:t'lliit�Il:i
:oiler tlurnl_ non-pc.ik nitimli,
%irilJll om%CHI 1,lns .Intl hush
1111c 1111_..Ir, .lost' file li`at. t'f.1 .11111-
(.lr mari,Ciil1_ thrust at ii c (1h1,'
StMe Park%. \\ here the Reo,caiioii
Sel'\ Ice• t11\ I.It+ll t`pel':Ile% Silllllar 1.t-
.1h11C.. And at IIledl\Lltoil'.licf\ .1:-
couni ill the F%cr_l.id •. a prchim-
tlar\ up_r.ldlll,'- t+f f.l:Ilitic, there lists
ell,ihled Il1C inji-ketin,` •i.it1 it, prtl-
111UIC life tit]' months tit' Sepicinher.
October and Nmemba toll a Itical
haa..
Suisse t'( L.11leleeWs, tether MAJOI'
Recreation Ser\Ice% :IcC0LIIII% ill-
:lude tilt: North Rim tit the Grand
Can\l\n in Ari/ona. NASA henne-
d\ Space Center's Spaceport USA. a
number of state he,whes and parks fit
CalilOrnia. mid HC Place. a nett sta-
dium:tomple\ In Vanctnter, 11rul.h
Ct,lunlhia. Area. of potential
iro%th i11ClkldC COMC11ti011 CeIIICr..
ions. anti .t.11e and ii.11totial park.
While C.1111CCIV., I'::real ltlll,ll ,1: -
couni.1111t11\e It fit ocr\Thin: (roll)
rlllllllili' tea. .I.IIIt11N 111 Ill.11'lll.l. 10
86-1021
i
\J
(,,.. is 1,1', 1. •,, lmm.t l.', .1tn It, rn, lu Jut_ (Yu;.i_, I', -IJI,v I'Lim-1.tllun:
.11 ) iII. I\\,It 1111'. 114h1,c'I-
11„ III, ,'II11111. `II 1111ea,1 till-
I.I. 1. 32 1',,1„•111 ,,t 111III , I,I,,11', ,.II,',
,.IIi
n:.• 1, n� �1. .III.! nl•:I. ..I,,unl_
Vxti,ul.u-
uI� ti1.111,i I„ liuuhul,inlrnt
t,.111,,1 I)I,I_It,I,il, hilal-
i,l DR( I, I, ♦,I\, KIII.Ill.
I• ..,!I,III. .I'I,1 I,,1\III_ I,'.'.I,,r,l;i
1 1 h..11tl. ,.u,.
'•t! '., lid I,'1 II. 1
' i -
I. •,; , I II.,. \\ !•II. II I,I`It.11• 11;:n!
I1111Ie it„1-1OfIl;lt'ill .I, the It'llL'
Iiilltell,•,1,oI DR(l,ttll,i Ihi,l\CI'•
,I ,• h,`,I1u.11 ,1.1\ ,LI\\n 1li,-
lill_; 10 Ihi 1<1t,,l,;I'\I;i 01"c•1,1101 11
1„ 1�I t'\ Ill, .I ,Ili loll \ 1,I t,�r,IIII \1 ill; Il
1, h.,111 .1111*,•.Ilnl. I., Ihi 11.111en1 :Hill
;."I-,'tl,,ll'•, It'I IIII. ,liilll III ,I,I,I I-
0
tion. N hide arl,rt mmatil\ til l III 115
percent of health :aic ao.01LI ll, ar,
In .t fie ha,i,. there I, it trend I,,.
\land, a euaraniecd eo,I per hanenl
,da\ ha,],. \\ hick fun,:low, it Ills
Huge like a p&I account. ,a}, Jnnnl\
Ilhchari. dt,trict manaVer-urera-
uun, for Canteen', 11calih C,Ui
Di\iriun.
Camccn', health care a,:, ,ii t,
Wild it, he cu,it,mved III the I%Ilion!
Ialhulatllln. \Mille ,IIII u1llinn 111,
;t111111:111\', h,s,l, t,l-ira1111
'111d ,\,tens, 1't,r nl,ian,c. Ihi niiJ,
f a ,nt.11lir a;uti ;ari (.I;III!\ ht.,
life Ihi-hed L d\\:Ir,1 H,„1 t!.I! I1, \,I•
I1et \ lllc. III . are
:lit from thole ,If the
I'li,h\Icrl,til {Rollie In f
III t111c t11 J i1rim im—, Illlitlhei i1
,iehen\denl ,k111i,1-.'ari II\ In
111i\r, t 'r the il,dirl\
AI 1..d\\,n,d. \\hire Ihi
•lint ,I.n I, Ie„ Ih:u! t\\. \,.:'.,.
Iiit; ail ,r\in ,he;i.l! 1•.1 ... ,
nlinit, I,u;h a, h1.111d. 11,: !1,!
Ill,.- like. ill a,1,1111t,11 It' ,till, Iii-,I:-
,I�Ili,1 illilill,i Yet :III i-.Ilt,ilt, `'Ll
Ir,,lll ,1 Ili\\I\ Iil.11l_ll!,Il,',!
ranl ,I\Ir" Illellll .111,1 ,lid it`.',: 11
01AI',l. Ill hulk. 1,' .,r,l;; A Ili\\ ,I.,
,irt ;,li !. \\Ili C'li,! !!:1 •_ 11., .t' ,. ,
100111 .11 Ihi ill,! O Ili:
Iellif"Ile, till IC,1.1111,111:
Ai 7 he PIi•h\;erl,ln II
�.1,.,,.' h.I • .111. .111 Irr;l'.'I:,1111 px1 , Il.0 :11N,•ir, ', 011/`1,.I ,•i !�'r.hrl_ 1•:. ....,
86-1021
.10
y.,
11
86..IL
residents lice in complexes of cot-
tage and apartments and function
to it great extent independentl%.
These residents take their meal` in
central dining roams, and may be
sen ed b% a waitress or eat buf et-
%I%le at breakfast and lunch. Dinner
r. aI%%a%s ser%ed at table. with resi-
dents ordering from a menu %%hich
features at least mo hot entrees.
Although onl% about IS percent of
the health care market has opened to
contract feeders. the segment is a rel-
alk eIN recession -proof one. saes Da -
%id %%:itten. national director -Health
Care D i.ion. The marketing thrust
for the di%ision will be one of "con-
trolled expansion." adds Witten.
concentrating in Canteen's estab-
lished strongholds in the mld%%est.
•outhea•t. and northeast. Currentl%.
Canteen has about Its health care
account,. about S0 percent of %% hich
With the country's
economic base
shifting from
smokestack to
service, Canteen
has protected
itself by pursuing
the more reces-
sion -proof white
collar account.
are conlpan%-operated and 20 per-
cent of %, hich are franchised.
Education is another grtmth area
for Canteen. Ha%ing recentl% ac-
quired ['referred Meal S%stcnls. a
pro%ider of plated. pre -portioned
lunches to school children in grades
K-6. Canteen can now pro% ide full-
ser%ice lunches to schools %%hich
hale no prep facilities. Another ad-
santage is that PMS guarantees the
cost of product for up to a %car.
INS's market has been expanded
natimmide. and according to
Krpan. Canteen expects the demand
tier pre -portioned meals to iron%.
This additional demand %%ould .r►1<_-
ment Canteen's more traditional
business of prodiding food.er\lee
management to school districts.
Krpan adds that one of Canteen',
prrman roles in pros iding food•er-
%lee (o elenlentar% .Jl oils 1. 11s
tiph'-.erne har. hbe the E.rrh Bird hre.-AKAt rnodule are one ewtuple o1'Cvnteen'. effort% to.•ur co.r..
•
_*YTM1 44—
� � v
(
Im
•
�T
w
T
/L•�!: , ., ,!�,v11., such ,l• 1/rv..1:• ,;.,• . , , ..,..,.,. ;• . •r.r;... ,.. .:'�:�
man.l_rinew of comnlodlt\ ullllrl-
I= pnl runs
College, .ind urn%ersuies on the
'thcr hind. because they tend to he
,eii-opeiatcd. remain a less pronns-
ul_ market for Canteen. H1o\\e\er.
the :onip,nl his recenfl\ piked up
IC\,ral -owract, III addition. there
I, poicniial for the Gulliver', con-
cep, tit colle es and uni%ersifles. par-
ncul ik in the gro\\utg area of c1on1-
munln collects. \\hose population,
are lugel) made up of smununng
student,. :%I the College of I al.e
County. In Illinois. the 2'5-seat Gul-
h%er's there does more than 12JXMI
In hnsiltes, In .1 t�plcal day
Correctional m%tilulions repre-
sent another area of gro\\ th fur Can-
teen that population In 11111,
calcgorn is increasing at file rate of
about _`t percent a \car. Krpan
p1U111s 111i1 that prison adiumislra-
toi,, h1sc iheirc,,unterparts in health
Irc turning to Outside pr'fes-
vinlal, 111 else the hUI-den ofs.lusfy
mr: hm h the demands of the correc-
nonal ,\stem and Illow of Inmate
ngM% groups And ,1, in the case 11t
elei ientar\ ,chook coirection%I II1-
oil, mum also deal \\Ith cornniod-
Inc, utlll/alloll programs. The nta•
jorll\ ill the colllpAIIl ', correctional
Cen-
ter tit Vir inia gcneraies 52 Z mil•
lion Canteen his eight correctional
accounts, Indicati\e of the gro\\th
Wilkie, most of these accOnults "ere
signed \\Rhin file past dear.
Bee and these oppoi winties. Ko/-
hmso sees a great deal of polelltlal
husnless in related areas •'V1 e ha,l-
call� \\ill explore and opportunities
that come our v\a)," fie asserts. *AVe
feel that \\e We de\eloped .I nuill•
her of design concepts that can he
nu,luall� beneficial to the :011lpall�
and I,, the client to ,e\eral area, "
Just as eiainples, Ko/lo%%%ki cries
,lnulir\ cluh, and luc,ll, municipal
gnit ,oltrses, coffee shop, and ,nick
halt, in ho,pilak hilt Independent Of
Patient feeiiing. rc%orts. and selected
llllhlar\ fec'dIng.
III adt.1nion. %a1 ,- KoA,%%,ki. the
collll':111\ I, I11\e,ll :11111_ .1\ Cline' for
rc•laleJ management Ier\tcr,. Inch
as hou,ekeepnlg and hulidulg nl,un-
ten.tllce. \\ 11l,h \\11uId he conlp,ulhle
\\iih C'ateen', ciami lg client base
Stich lie\% husntes, night he ac-
"t►ur atnrlldr to\\ard acqut,iti on
h po,lll\e. pro\ Ided \\e ran find the
right tit I'rtnlanl\. v\e'd he to okink.,
of food,er\ ice. hilt possihl) in relit.
ed Inallagelllent ,\,lellls." Kit/-
lo\\ski foresce♦ lip to 25 percent of
the compaq`% sumamed gro\\th or -
curling through a,:quisition. both In
ferns, of market fill and ne\\ pro-
duct ,er\ ice capahihtn .
One flung Canteell \\ill not do.
Cautious the chief Is str,r\
in and ,uhst.ultly e a av from t�uodser-
\ice "Ae'\e made a place for our-
,r)\es III the food,er\ice Inallso-
place." enlpha,vc, Ko/lu\\sl.i.".Ind
Iliad's %\here \\C ll c011111111e 10 ♦Illg It
Out "
for reading about Canteen
Corporation in this RESTAURANT
BUSINESS article on foodservice
management.
Canteen Corporation
Merchandise Mart Plaza
Chicago, IL 60654
L
0
•w--.+��l+e � - ,'.-ter c __. _._ _ _: r_
I .♦
' J
VOLUME SERVICES
t'If
From Olympic Games to the Super Bowl...
Volume Services is There
The Summer Olympic Games at the Los
Angeles Coliseum & Sports Arena, Super Bowl
XVIII at Tampa Stadium, and the Arenas. Ccn-
•.enn:n Centers. Fairs. Racetracks. Recreaticn
Areas and any place that people gather for
e::!er;a:nrnen, and recrearcn is •..here the
r--ana::e::.en* !earns cf Volume Services are pro-
p gsa:av ,`ccd be•;era,3e and
Volume Services h;.s earned a rep;.i!a* . as
.` :e�._.... p::fess::::a: focd services,...:n the rec:e !:c^ ma-ke!
_ e r;�:n^ e�• `ac:::!:e: se:r.! Volume
Services
Management
.=ze
Market Orientation
=.e first ser•. _
Maximum Income
Our .. a-.... ter.n~.s are =c e%% e -and .:e
X. —es
Teamwork
!c de•:e::p and maln!a :n a
Ser .:ce prc ra:;. ._ meet
nee-s
s pp���� a'.f.:.a1-, .%-:,h !hc- I A A M �'1�a � C7�y f , •I A Z .. 'TFr `HTA ACT:.A I A F E N A C anti The
�1�0.
Pr:'ess:^na! Baseta!: Leag-aes
to
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SC) woo jO 007.4 1-
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Volume Services...
The Leader in Food Service to
the Recreation Market
Our People
Nlana.:ers ;: a:ters and waitresses chefs,
desionArs stand•raorkers ban..,quet salespeople
far:�:ers. bartenders, accour:tants superc.sors
and a:: _.: e 18 1 C_ e.�.p!c�:ees cf Volume Ser-
vices and Interstate United Corporation :': ill
.. irk ...' ; .. to do 'he lob hest
`Our Experience
1��C _ G l.. r�. •. Ci r��..:d �� ......•i pe f_-r-
Our Training
%%'e cr,V.de '21r .nd.:s: 'ea_J,na tra:.... _ pr_-
7'arnS _, a.. of cur iCCa.: 15 Th:s
..sua. pr _ „ams and man:.;za
Our Systems
::e Volume Services .ur
Sza:es Pr---ra r and
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pr _ ; ide
Our Financial Capability
As ar. cf a �.-.ers:f:ed
Ha: scn Trust PLC..: e have the
resources and ..exibility required to dC the lob
Our Pride
We enl: our .. crk and take great F r:de :n say -
mg that .:c 7D it best May .:e sEarve Cu7
aNNISH
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sang:se
loans
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4-Unit Concession Stand
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Banquets for 25
to 25,000...
The Volume Services professional approach is
also used in full service catering. We operate
meeting facilities which accommodate from 25 to
25,000 people for breakfasts, lunches, dinners,
and receptions of all kinds. No matter whom the
customer. our dedication and enthusiasm for ex-
ce:lent service is the same
Advertising and Sales Promotion
Our continuous merchandising of banquet
facilities includes direct mail programs,
ad•: ernsma and personal sales contact with
community and business -related
o" n.zalio:is
Referral Booking
Na*::nal organiations baked into the
Volume Services convent:cn center net:-:ork
are enccura,-ed tc repeat business in other
Volume Services locations
Special Menus
We create unique caterna menus for each
iccanon that are attractive, flexible, and cover
a •:ride range of tastes and budgets
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Volume Services...
Large Crowds, Our S
Volume Services' recipe for success combines
a nn;:riad of ingredients that blend together to
r:ng ycu the best operation
Facilities Design
We Sur e•., your location to develop the right
c n:c:na :cn of facilities equipment and
Personnel
and tra:ned staffs are
exper:enced pr,:fers:c-,a: resident
and _ur reg:zna: a:... area
...Ne
Menus and Merchandising
_._ ..:e men:. deve:^p,reen. anJ me
J.... .:.� _ _nniques 4 G. .. _.-..
and beverages _ !eaS...ncie
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Operational Control
•,� .0 Pater: mnana_•-men' :n-
s::r= _:e•; ...rg from prcper san•tat:cn and
facilries to accurate acceun
procedures.
Staff Support Services
'ack .;p each of our cpera%ons ::ith a
`_.: c=pl.....rt
of staff suppo:nc:uding
Fac..:•:e� P:arming and Design. Research and
�,an --;a:ds. La: -or Reiat:ens. Personnel and
Insurance and Tax Consultants, to
pecialty
B6-1021
.I
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3
VOLUME SERVICES
S.bs,d,ary of
Interstate United Corporation
Two Crossroads of Cc,mme,ce
RO"Ing Meadows IL 60008
13121 398 7373
El
Transworld Corporation Annual Re ort 1985 Zrcaong sharcholdc'
VAIU
-ff dime Re
ry
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lout the Coml►auN ranswurld Corpora-
tion is a di wi-sif ie,d company in fowl and
lodging businesses, with subsidiaries in
contract focal, restaurant and hotel services.
Its principal subsidiaries are Canteen Cor-
poration, Spartan Foxxl Systems, In(-., and
Hilton International Co.
Canteen is a leading contract food
service and vending concern batted in Chi-
cago. Thn)ugh its operations in business
and industry, recreation services and schools
and health care facilities, Canteen serves
millions of customers every day.
Spartan operates 332 Hardee's res-
taurants as a franchisee of Hardee's Food
Systems, Inc. and 216 Quincy's Family
Steak Houses, its own proprietary concept.
All units are in the Southeast U.S.
Hilton International operates 90 lux-
ury class hotels in 43 foreign countries, the
U.S., Guam and Puerto Rico. It operates six
hotels in the U.S., including five under its
Vista International name.
New Challenges ransworld Corporati
has made a transition over the past two years fir
having a primary focus in the airline business 1
having one in food, lodging and related busine
The challenge for the company today is to grow
profitably in these areas through internal devel
ment and acquisitions.
In pursuit of its goals of 15 percent can
ings growth and 20 percent return on equity,
Transworld will continue to be managed on a
�+ decentralized basis, with each subsidiaryonmq
maintaining its market identity and its responsi
ity for internal strategy development. ;as.
Through reviews of financial and capita
plans, Transworld corporate management world
with the subsidiary companies in planning the
company's growth. Capital is allocated at the oa
porate level to various uses —new units, acquis
tions, share repurchases, and dividends —all
directed toward steady, profitable growth.
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Dear Fellow Shareholder:
In a year in which the U.`
economy grew only 2.:3 percent. Transworld'- gwratin,
earnings increased 17 percent in 1985. Duch,_ 19815.
management also implemented several import,in! -lratt
gic• and financial programs to enhance the %aluc of wu;
investment.
Net income, including an after-tax g,iii; ..ri the
sale of Century 21 of $102.8 million, was � 21-.:
a
million, compared with $11i.0 million in 191. i
from continuing operalitIns. excluding tht• : ;o I•n-
tur% 21. was $1U1.8 million. compared will;
million in 1984. Earnings from continuing q..
were $2.56 per share, full% diluted, up from 1 wr
share reported for 1984. Earnings per share li w
=s net income ruse to $5.60, fuII diluted. front ie
prr� ious year. Earnings per share. but on net III, tut'
and (in income from continuing operation- inclwi• - ,1
P
one time charge equivalent to SO.1:3 per share nl..;- d to
the redernptiun of the Series B Preferred Stock.
During the %ear. we sold Centur% 21 Nt•,1' I -I'de
Corporation. a nr(Av that will gi%e improved fut u-
'
our cunipan%'s management talent• and enable I: -
present a clearer. more compelling invesUnent �. u-
a.
nil to the financial nlarket�. In cuncentratillg 11.
.t;
lodging and related busiuesse . In Ue tuber. wt iired
r
interstate l nited Corporation whose food -rr% i, .1
Ic•Isllrr-little busirlesses will augtlle►11 illy all•ca,, -
A�,
cr-sfu) profit growth program at Cameen. In Jul:
organ a common share repurchase program. an,
v
)et -ember. we redeemed the remaining share- ul �• i,•s
s
B l'rrfi•rrrd ;tuck.
Operationalk. Transwurld's three major -
f;.
aries had art excellent year. Canteen cuntinlu d
successful program to impruye margin: and c mi. rate
?V`
on its less capital -oriented operation;. 5partali - t rtler •
division had another outstanding year. while Ih. rin-
'
cy's di%isiun dealt with lower traffic counts in it- -
'
ment of the restaurant industry. In the hotel bu- -..
.er
Hilton International's strungeruperating perfuru We
bec•arllr evident in our financial statements fi11
as Al
currencies gained strength against the L.S. dull.
1985 Highlights oil 0ctuber 3l, Tian- ,rid
completed the sale of Crntur� 21 to Metropolitan I
Insurance Compare for $251. 2 million in cash. M. ,agr-
merit concluded that the growth potential of Centuv, , 21
was in the financial service:, area, where we felt it �t.r•
indppro rialel,iri.l
m
11
• Canteen acquired Ittlerslall' t sited Corpliviltilnl Ittr
;93.5 million in cash fill October 1. \\ ith annual sale-
of Inure than 100 million Inter -tale \\ ill inc•rea-e
1:anteeli- market -have. particularl\ in kl-\ segnl.'nt
such a- liecrealion Set -%ices.
• Hi11c►n Illternalional openell ne'\\ holels ill has-a�
l:it%. Mo.. and Oklahoma (:it\. Ok. Huth are operated
under nl;ulagenlent t unlract�.
• Spartan opened i1- .itllltlt re-lattr:ult-in Slark\ illy.
11i--is-il►l►i-find ended 19815 wilt 518 unit-. if Ia
• 'li;u1-\\urld'- Board :mlhorized InaImp'lneul to l►ur-
cha-c, in the tyen nl.u'kcl or ill ncgoliatl-d U;In�at'liun�.
fill tfi lolls Illllboll fit III,, cfillll►.I11\•?� e•UIIIIIIuIImer
11\ i \e;tr-ending in \l,r\ 1987At [Cliru.u•\ 28. 1980.
ilw had bought 2.(1 milll(fn -hare
• A!. it 1ur111cl \utt• of col►tidcflcv. the Board. in Aril
199, i.1. III4'1e'l-i'd Ill,' t•fillllll1111 Ih\ Idt•Ild 1ru111 11. 111 Ito
SO. 18 Itr•r v--harc..ul incrc,l-l- (f- 2l1 licit cnl.
• (111 IIl-o vinli,•1'2., 11.1I1-\\nl'Id rt•Ilt•t•Illt•dIhr•lout-I.Illdlll_
-I1.111'- (it Illt' �I.tM St•llt•- 11 1.11111111.1111t• I'1411.1lt'II '-�loit•k
to11 "11,IN1I11-1 !-1 m Iv 1111!.1111\IIIt Iit I -it 111-Ilnew of ill, 12.
\\ fill I111-'1(1i11If mill the c.11l 411 Ibc �cril-- l : I'Icicrrcd
Nils k 111 I I,'t 1-1111r1'1 letiil. 1tt• ll.l\1' I'1'tlllt't'11 11111 IlIcII•Ilf•d
dif,ld,•11,1 I,'Illlllf Illf 111-b\ !.IA..i IIIIIIII1111u•I wm.
]goal- mill l tlltlfffik I.111-1\f11III 111.II1.IL't'111,'I11
11.1- -,•1 -fit111 , Il.dlcll_111_ 1111.1111.1al ofi.d- flop b11111 Ih,•
h(fldlnr ro1I11ILlt1\ .Illd c.1f•11 off dw-Ilb-Idl,lrll'-. \\1 N;I111
111,11'1111'\, -11 ,III\ allil11.11 11111111 g141\\Ill lit 1.1 l►t'Icent (If.
b1'll,'I..111d If, l-,llll .I clfll-1-11-111 It•1111.11 fill-11.Irrllfilde'r�
4•411111% 41120 Ilerl't'lll. \lfirc(f\cl. \\t• Nillil (o acculllloll-ll
Ih1•-t• t•ill'lllllg- fibl1-clI%l-- \\Illll. Illallltalillllg our.-trilli.,
Ilu.uu i,ll I►o-i1io11. Bo, \c:Il t-fill orlr dl-bt Ill callilal ratio
had been reduced lfi 2 1 l►crct•111. Thi*. together \\ itll our
c.1-II 110-ikon t►I 1911,9 million al \ear rnll. of fird?. lls
cfiu-idclablc tll-\ibilil\ for fill.nu ing inlcrna) gro\\Ih.
t'111 1'Illlg ►\111'1111\IIIII ;11't1111-It1e►11-. makmg toilicr ime-t-
nlf•nt-. fir accrll-rillill., the re1111rcha-t of culltlrl(In sham.
141•1 till- Ira -I -cwlal \l-ar 'li',ur-1\orld hit.
.14 1111'1l-d ►wadt IIIllllfl\elnl-lll 111 oIn 1'.Illllg ral'lllllg-. a-
\oil 1%ill nit11• Irfiul III,- ch.ul fill 11ag1• 2. This 11a- accorll-
1111-hill l-1l-11 Illwirh 11111/111 Illlt'I'11.111fi11.d - t'al'lllllg-
Nl-l'l- Irtllll'l-d d111111r llll- (u•Il'-d I►1 t,ifrlgll clll'rt'llclt'-
►\l-,lkl-nillg ,Ig.lin-I Ihl- t .*. Ilollar. \\e bellf-w each of
(fill ct111111.1111c- 1- callalil,• Ill -ohd fi101.1-illlllg Illcfilllt•
0
Vie do lim e a noel -operating factor Ihat \\ ill sic t
our reported earnings gro\cth in 1986. Trans\\urld's
effec•ti\e ta\ rate is ruing as the coml,am contlllete- i!
transition from the highl\ caFtital-inteu-i\e airline bu .-
ness to the more stable. and profitable. see\ ice suctol
Our effec•ti\e ta\ rate. which was 2a percent in 1981.
ruse to 27 percent in 1985 and is like]\ to react] III
percent or more in 1986. Despite this transitional el: ct
\\e remain confident that Trans\\firld can achie\e it-
profit objecti\es in the future,.
On an operatim, ba-i 'Irans\\orld -hould b, / -
I'll this \var from the positi\e impact on Hilton Inl,-n -
tioual'- rwuh- of a strenglhenirlg of liueign t orris]
and anticipated economic grtimli abroad: the full-\,
contribution fit till- Inter -late l nited acelui-Ilion III I I1-
tel-n: and IIIV 1u'ofil turnaround tow are -11-1\ in_' fur it.
l�tuiuc�'-. along \\ith continued success in Hardec'-
A- 1\e Ilmr into 1987 %%ith it rnfirc ,table t.l
role. \\t. e'\1tt'l'1 (fill' of w rat lilt" val•Illl)g- gl',1\t111 141 III. of
the bottom liar. enabling Trans\\orld to relt(frt 1111111 .
no•n1- in earning- per shart• to match the Itndvrl\ If,
-trru_lb of our tlll'et' cum pall iv!..
()1'gillllliltlt111i1I (.11:IIlrt'- e' \\t,llld Ilk,,
ctolllt' 111t' 111.111\ t•IIII,Iot\l-t•- of llllt'I'-tall• � Illlrol ttll.�
Ittlllrtl II- I11 19ii.1.
AI Hilton Internatimial. Ed \lc\t•r. furnu'l I. i-
deal of T\\ \ and it long-time director of li.ln-\\fight .I
H1. ha--ucceeded hurl Slt'and &-Ple•idt'nt antl f'h
e\,'I-uli\e fitt•icer. hurt \\ill continue to -rr\l- Hl ,I -
chairman of its board tullo\\ing his retirelnt•nl trltnl I of
N\t'l'11111t• 1'e�l►t►Ilslllllltlt•-.
Arja\ Miller. it director of Trans\\orld -incl-
1978. \\ ill retire from the Board gal lilt, occit-ion of (f
.Amnlill Meeting in April. \\r thank him Ii►r hi- \c•:Ir- ('
constructi\r cunlrihtllion- to the Board" drliberatiol
and \\r• %%Wl hint ►\ell in the \rat•:, tit colnr.
FIII dl\. ar thank all of those todw c,lutribull-, it
'Iran-aorld�- ]]]•ogre.,- in 19r;.i-sluu'rhuldrr-. Y.i.111
1111uplo.er•- around the wirld. client. custo►ut•r- ant]
trut.,t-. \\l- look lol'\\ard lib all cell befit 1' 1981►.
e, 4FO4..� ���
gl(f1\III Itl I'�iilt alld bl-\find• I.. I'.t11\111 Small ClIairn►all and Chief 1' wcuti\r Officer86"1021
MitFt 1 I. 1986
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I'n•-nl,•nl .uull:Ln I E�r1 ulnr I Iffi11•r.
1 ..uu=•,•n 1 .,u luq.ltu�n.
1 l'Ir-t,lrt=I .111.11 Am.1 Ew, Illm- 11111, ,•I.
}lotel See ice.,. }}ilt(on hitentatimud C.O.
)A
I ,11.n1 mall „l Ilu• 11".11=1. I llh.-II 1utt'11136,111WI (M.
u1,I t. f.,lt,111 %11•„ 1. I'1,'-I,Ir•nl .ul,t I:hl='I Ev•, ull%v I lilt, rioz .
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(.anittll l:ur1111rtUiun, unr uf,tht n.ltiuli, larr- Components of Revenue
V-1 '11ud >t•t'\ We t•tllllllatIW!.,. at•t•tltlillI it it- al1111•u\1-
tlt,, tl\ 1(1 1u Ic t►►1 t,l"Tran•\\urld'� rt\trint. 24 percent
tit - opel M11%, intulllt. and all l,rrc•rtll cll' i6 a�%eln.
The cvtllpall\ Sent, till- col-ilorille \\t,rld through
c;lt rillr,lncl r�rtuli\r dininr, c•u111paln c•:�fi-Ic ii1%
dill \t'lldlllr I't•fl't•.lime 1t telller,. Canteen se•r%(,s
IIIIII.. alY11a', and othel• rt•t•lvatiun (at ililir�:
h11• Ii1.11-. nur�inr lttlfiu•�: rttirc•ultnl cunuuunitit•:
I till-: c'ullt•rt•: toil c•urrtk tillal f;tt Itic ,. It a1M1
11j1� -.Itt� rr�ttu►I ;ult- told ltldrinr fac•ilitit� in natitlnal
till, Matt park. and i?� lilt tall ten al vollwilliun and
I� t ru11•r-.
Villa loll End Inc.. it rt•l,lunlnl t 1nu- Component- (of Revenue
I r,l '. 11111'l allllr I11 Iltt•,11lllllt'a �t f, .�.. atlilt
all 1lvnlattl\ ''_' lltnrnl IIf"li'an�\\urld'� rr\tuut�.
a.1 it'll fill Id II- tlllet.11111_ II11'u1111'. t11111•ill llt•tt'ew
tit
�-ILltlall- 111111- 1111t I 111'11IL1111\ .I
�•It �1 h,unlnitrl•1-told 11rt•a1,L1-I Ili-1'uil,, a� \\ill a-
�dl I �.Illd\\It'lt1'� alld rtllllldllllt'111.11'\ lltlnlllt lam.
•1 Ill• IIl1.1111 at ('I111111'\'-, �%Ilat'lall'- 111111.1 11•-t.lu-
I,11 1 11tIr1•111. Illrllldl'� .1 \:11'Irl\ Uf t111.d11\ �lt•al.-.
11,1: 1t 1 I11•d lt1.1•f I111-. t lit- k1.11 mid alld .11111)111-
III., -alad. lt111 \1•_1'tallk- alld 1t1111 Ilal'.
Illltlul ltII1 rll.ltilnl,ll. it Raiding iulentalitlllal Components of Revenue
L11t I t ltulll.ul\..0 l tunit- Itlr alI I . , Ivinl,lltl\ :i•_' 114•Il-tnl
11l I ,111�\\111 id - ft'\t1111t' 11 114-11 till of Ili uln•1.11IM,
uU fill' .tlul 32 licit tilt Ili ill a�-tl-.
Ill 1llltl,llt. cll► holly artlund Ow
tt-n I \\lilt a 1. 77 1 It11ufi St-r\ illy primm il\ hu,int,-
tt.l\ 11.1-. Ill .Ittlal t-rota- fltull nl,ul\ u.11itul�. Ill .
IIII� 1f rUra� Illt hlllt•- (t.ntltt� f171111: Illy I Illtttl
1 1 .21 : J.111.111. 7 ..1i"( :
Ill1 IlllydK1110.mi. ,.1t-t:(r1-1ma11\.(1.7i:and
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Food Services Canteen Corporation = =
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CallIvell"S operating
cunlc rrc�� iii-
11). 22 and :18 percent ill 1983. 1981 and
1983 resl►ecti%el%. The 108.5) increase %%mild pine
bitten 27. 1►crcenl t•wept firr the acclllisilion of Irller-
st:rte I, niled Corporation. This double-di;zil profit
gro ill and steadk illiprowillent ill 11re-tag nrargilrs is
l:n'rek the result of it IFlree-lnlrt s1rillei,:
.4 hala►lced diversification lnogmin. Using its
e\l►e►•li•e in managing eonlract sen ices. Canteen has
91,11rcn in Ilea nlarkel segnlenls such a- school lunch.
delicatessen- in office buildings. and food senice in
correction. Iacilitics. In 1983 Canteen purchased
I►refi-reed Mcal S\stenls. Inc.. the largest pro\ider(11
pre -pi ill Ilrlrc•hes to school children. CollsisleitI
%%lilt managements plan. Canleen secured 45 IIeN
delicatessen .recounts during 1983. .plough profits
him. not nlet ori"inal e\liectalions due to all MCI'
%IIpp1\ of"office space and lure► occul►anc\ rates.
Canteen continue. lip see ol►lDort till it% in the rror%inr
office marko. hl addition. the coml►am has success-
fulk pllr-ued accounts in 1111Mlnt; se"menu of its
Ir.+dition.11 hu,iue., such a- 111gh tr•chIlolop. dcfi•nse.
batikiIl_, and rowrlunvio.
111�eralin^ F::u•uinr•
1.
1 11ali lilnlenl h►lirmiclirlr the /u,:�he..l yualili
/curl writ, r• M lhr• nw%/ elllrlr•IU INUl1r1r•1. 1 S. 1.+►lismil-
ers .Ile 1111111. .11111 111u1'r• IlIctil- imil\ 1ro111 horlle
Will 1A1111cl high ►IIIA11%. uu i►•1\. and attraclke 1►re-
svio.111u11 ul /►trod. II+Illllr 111 Ilse wor'kl►lace for Ill:rin
ha- c%cn 1►4.4.4m • the 1lrirleil►ill nual of the dad.
liecornvinr IIlls. (:ilnl►•►•ll Nils dv%t.lolled it sl►eeial
cal►ab1111% to mcc-1 the +Iemalld- of its t•himplllg aml
disecrninr cusloln►•I base.
/'told J1rc►lllh thn►ugh increase/ nulrkel ../cure
aarllp•llr•lra1lu11 it/ prulllh ll ira el.k. Canteen has mined
to woh Ill loud s+•r11ce -t-gilIVIIIN %%li+•re 1141terltlal
Quality People .. .
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clients still operate their own facilities. such as local
l% school districts, prisons, government institutions.
l) health care facilities, and retirement communities. In
(� ^ the more mature areas of the contract food service
business, Canteen has successfully marketed against
competitors, and, as opportunities arose. acquired
other food service companies.
In 1985. Canteen's revenues increased 18.4
percent to $983.8 million. with most of the improve-
ment coming from food service. vending and recre-
ation accounts. Canteen achieved revenue gro%%Ih
through new business. account growth. pricing. and
acquisitions.
Operating income in 1985 improved 37.7
percent to S42.3 million as the operating margin
increased from 3.7 percent to 4.3 percent. A continu-
ing strategy of diversification. a change in the bu-i-
ness mix, and cost containment. contributed to these
results.
1985 Food Service R ♦en&mg Revenues
undudin' Inlrr-IdW t nnrdi
Food service revenues and profits increased
27.1 and 7.9 percent respecti%el% as a result of
higher volume, and a net increase of 629 accounts to
a new total of 1.585 accounts. This growth includes.
jnew business. Interstate United account., and other
acquisitions.
%'ending revenues and profit: rose 11.6 and
22.8 percent respecti%el%. with margins in this area
increasing from 5.8 to 6.3 percent.
Recreation services reported increases of 39.4
and 45.1 percent in revenue., and profits resspecti%rl%.
The improvement was due to increased sale: at The
Kenned%' Space Center and Yankee Stadium. plus the
impact of Interstate United*% recreation account.
Expansion .. .
Preferred Meal Systems. Inc. revenues and
profits increased 14.0 and 17.4 percent respec•tivelN.
In 198,-) Preferred Meal wstenis pro%ided 42 million
school lunches to students and initiated pilot food
sen ice programs for the groNing elderl% population
market in l%o geographic areas.
Canteen's 76 franchised distributors enjoyed
improl,ements in both revenues and profits. This
franchised distributor system is unique in the contract
fund srr%ice management industi-n and offers penetra-
tion in geographical markets that othemise may not
ha%e been deNeloped bN the corporation. This suc•-
eessful parinership of 56 Nears provides local oNner-
shill supporird b% tilt- purc'hasOlg. operating and
management expertist- of it large national organization.
The 1111not Compam. a producer of canned
milk products as Nell as a line of chili and beef slt-N
products. enjo%rd increased profits its a result Ada
ne% packaging process for its products. and increased
penetration cif lilt- "prillatt- label" market.
KIINt i,ul'ptlt'atlull. Nlllt'II opt'ralt c'Igart ttt
and t .1111-(Opt•1'ated III11-11' and alllll-elllt•Ill del, ltvt III
pllllll� b.1 atlilll-. if,(, s11,1%wd I)IIIIll 1111pr11%villt•Ill .It-
the Ic-ldt of it partial \e•.tl' impact of Interstate C nilt•d's
I'ubhc salt-. and prlllit�.
lntrrstatt l tilted Oil Octobt-r 1. 198.5.
biterstate l tilted lit-caiue part of cantt-t-n and the
nlerginr; of Ihr 1NU i'Ullll►.itllt has proceeded snwutlll�
and un scht-dule. The acquisition of Interstale Nas
consistent Nith tilt- philosophy of seeking companies
Nhich clt►. l\ parallel Canteens operations and share
its business mission of greater growli. Interstatrs tNo
major business seglllellts augluent Canteen operating
dill ision.%. expand market penetration and offer oppor-
twlitirs for s►nergistic' groNih and efficienc%.
Interstate l nitrd's i%o majordi%isiuns include:
Buai► e,%.s ancllnetitutiuns Group. lien ing clients
in: corporatt- hradquariers. financial sera ices, COM-
mercial offict• buildill"s. nlanufactur'ing. 901lrrnmenl
facilities. schools and colleges. health care. and
comillunilN nutrition prugrain%.
lulume ert ices Group. Proll ides -,.en ices in-
cluding: food. ,ouitrn'r., and related srr\ ices at stadi-
ums. arenas, cotii,ennon venters and recreational
facilities.
i I -
.j M
fS
I
Food Sei•Vices (Canteen Corporation
The original frdm`which this microfilm;,
was taken was awfully poor.
This is the best -photograph we'
could obtain.
S
X
Food Services I Spartan Food Systems, Inc.
A.
AL—
_ e
t
Cj
Serving Our Customcri;l%:,,.,,
1
ople
eople .. .
Pe
Qua !
Spartan
0 ►eralesI
Units in the Southeast V.S.—the rlatio►is fastesl-
9111"'llg regioll—about double the nunll►er at the end
of 1919. its first %eat' Nlth Irdnsv%or•ld. TI11, grmAlh
has bern achieved through:
Controlled unit expansion. With its off n
real estalle and constnu•tion departments, Spartan can
control yualit% and costs during the c•rilical stages prior
to the ol►enirlg of a restaurant for business. Careful
scheduling permits management to sel precise open-
ing dales and plan such pre -opening aclI%ities as �.
training and assigning unit manap-me . cash floe%
and nlarl.eting programs. In 198.5). 03 units %ere _
added. an increase of 13 percent.
Improwd unit Spartan*!- oper-
aling profit margin in 1983 Nas 13.5 percent. its
fourth highest in 25 %ears in business.'A pile the
Hardrrs di%isiun achiewd it record %ear. %%Ith inl-
prmv(I unit %(tomes and traffic. 4luinc%Is nIII I't, s
%ere Itmer as it result of a(ke•rst• industr% conditions
and gr•o%%di-related problems discussed brlm%.
In
_� 11
HI H: Y4 H1
Tight oprruting nuulu,eenrent. Indi%idual
manaper�%aluable field experience is continuall%
%tippl invi led %ilh ongoing training programs. often
designed %%Ith specific curricula fur each le%t-I of
nwnugenu nt. In 1985. apprommalrl\ 5M Hardee's
and trluinc�'s Inanagnlenl personnel attended the,t.
coul.es. Ihus helping to r\pand Spartans I►asr• of
!Vjsitllo'd It•slalillalll lll'l►fl'„II►Ilill,.
He%t•nues from ;parlan's reslaurant, in 10
Southeast ,tales rose to S tO1.8 million in 1985. 9.4
percent abc►e,e 1981- Oper•aling pnifils increased 6.9
H:,
►elt•t•111 (o SW.,- million. W-i,-,
e�;--iaz i mm.
r
hm
W.
R
,Ojaf9Z L ShaAW
49
I
Quality Products ...
Spartan's Hardees division achieved a 12.7
percent increase in re%enues to $281.6 million in
1985. Hardees operating profits were $51. 7 million.
18.1 percent above 1984. The breakfast program con-
tinued to gain strength during the year. Units in-
creased 16 percent marking a return to more aggressive
unit growth. and per store sales rose 2.6 percent to
$923,000. representing "real growth" of 1.8 percent.
Revenues at Quincy's grew 4.7 percent in
1985 to $183.2 million. Quincy's operating profits
declined 29.8 percent to $11.0 million. A 9 percent
increase in units was offset by a decline of 7.4
percent in per store sales to S887.000.
In 1985. the Quinc%'s division dealt with: soft
traffic in the dinner house segment of the industn, in
some measure a reflection of the overall econom% and
increased competition from various sources: the de-
mand., of absorbing rapid expansion IQuinc%'s units
tripled between 1980 and 19851: and significant
changes in consumer preferences.
198.5 Location. -
HI
`1 H 33
1 I I 1.943
■ ILu�i.��'• ■ ;hung.'.
In both its Quincv's and Harder s di% ision..
5partati s primar% concerns in menu expansion are
qualit% control and operational feasibilit%. Spartan has
mo%ed cautiou-,I%. but steadil%. to broaden the appeal
of both of its restaurant concepts. During the %ear
Quinc%'s added soup and hot vegetable bars. and a
children's menu. Hardees added a new cinnanwn
and raisin biscuit and Hash Rounds potato puffs to its
breakfast program.
In 1980 Spartan management H ill continue to
stri%e for impro%ed unit economies in its Quin,%',
dl%ision, that cumpam's high -potential growth %ehi-
cle. and to maintain the strong competition position of
1
Hotel Services I Hl toll Intcrnatio na1 Co.
Serving Our Customers Through
I A lid:
i I II ii t I t
®r
- . - -- . -T T, - -
73
r
Hillon
Quality People ...
Inlernatiunal has
achie%ed profit growth averaging more than 15 percent
per year for the past 30 Nears through:
Emphasis on operating agreements. HI pio-
neered in operating hotel properties around the world
rather than owning or entering into fixed obligations,
thus minimizing its risks. This was originally done
through operating agreements in lease form but based
upon a sharing of operating profits, and later through
management agreements. As the compam grew it
entered into some fixed or minimum guaranteed rent
agreements and acquired the ownership of holels
%here there vitas political and economic stabilit% and
the prosl►ec•ls %ere fa%orable. These hotel, have made
substantial income contributiunb but the majuril% of
Hl'- contract: are of the manarenlent ty(►c.
Operating Earning!_ ,ui nullnai
1E
HI H: H1 91 H-,
5ele tier•Exlalnsio►1. HI management has
always been srlecti+r in its (IVIA)lmlent of hotel
projects, J,rocrc dint ODIN with those which. in its
judrnlent. wt►ldd rneel a lire(] in the particular
market and be consistent %ilh the standards of qualih
fur "Inc ► it i► known. This has been parlic•ularl%
inlportalit in the recent past. %hick has witnessed
substantial o%er-l►uildifill in the hotel industr% in the
l sited Stites as %ell as in some u%rrsras areas.
Thrsc fact- ha%v rot. 1101MrIrr, prr�elllt-d substantial
ry�,ansion b% Ill arlcl hc►Irls now under consUuction
will incrca-c its roosts h� mer • 0 percent.
ac colt oil ion aIt's nl. Hl*s 90 hotels are
operaled b% ruanagers from numerous countries who
.b�uc one ]]ling in conllne►n—Ihr% ha%v de%eloped
the•ii carr•rr:.s within HI ,�vr the gars and hate been
carelilll% numitored at rash stare• in then, carver
all►allcrinr111. Tbrr• ha%v alsc► hall the 1► ilefil of
S
Oak
AO
ow
Quality Products ...
specialized training in HI's Career De%clopim-ii, Ir
stitute at various stages in their career- inc'lud11i,•
advanced training in their managerial capa( ili--
H1's revenues increased to $694.2 million i
1985. 2.8 percent above 1984. Operating profit-
increased 17.3 percent to $73.6 million. reflecl in,L
improvement in operating profit margin from 9.3
_ percent in 1984 to 10.6 percent in 1985. (),-c up,in,
.� declined from 67 to GG percent.
raw -
Western Hemisphere hotel- ac'hit-wd .i A. 1
percent profit increase in 1985. including i►ul�r �+� �i
results in Canada. South America and nw-t L.S.
hotels. The Drake hotel in Chicago reported o-tih,l;u
tiall% impro%ed results.
Asian and Australian hotels had slight1% high,
profits in 1985. The neHl�-refurbished Hung !hung
hotel had an excellent year. Recessions and mer-
building in Malaysia and Singapore. and fir-t full -
year operating losses in the neu Tokyo pro,per-t.%
restrained o%erall profit gromb in this r•egi�nr.
Hotel,. Opened 1981.85
OIL.
EEE ■t
- MEMO ■tm
MEMO MMMMMMMI
European and African hotels had .%uls-t,o--
tiall% higher profits in 1985. prinraril% from thc• tl,,. .
London hotels. including the renovated Londm4 1L'-
tun on Park Lane. Munich and Paris also had c • ,-
lent results.
During 1985. neN properties. butte undo 1 f4
management contract. opened in Kansas City an.l O
Oklahoma Cit% in the U.S.. representing a net in- Vol
crease of about 8W rooms.
In 1980. HI plans to open three, liv%% I1-.1, '- m
representing 1.448 rooms in: Pittsburgh: U-ate.,.
Japan: and Brisbane. Australia.
L, I
44
.c
.R
yy y �
WWI
Summary of Selected Financial Data
r
lmuunts in Thuusands LiLurpt NNr Share AnMtunl� awl Hatiusl
h-t the Yearn Ended hrcrmltrr:31. 1985
-elected Consalitlated Operating Data:
�'p eraling revenues:
Canteen Corporal it S 983,796
Hiltun International Cu. 694.216
Spartan Food Systems. Inc. 464.835
Transw•orld Corporaliun 8,709
I,-tal consolidated ulx•rating revenue. 2,151,556
'Iterating income:
Lantern Corporalion
Hillon International Co.
Spartan FiHtd %s(rms, Int .
Transworld Corlxtration
.-I'd consolidated operating income
ume from continuing uperatiuns
t ontinued operations
\.•I income (loss)
trnings (lus) appliral,lr It) common stud.
irning, I lust per share:
In itwome from continuing operations:
On aterage outstanding and equi%alent shares $
Assuming full dilution
l In nel income:
On a�ergt- outstanding and equi%diew .hare. g
Assurning full dilution
1• t ideti& drelarrd on common stock S
Iclected Consolidated Balance Sheet Items:
42.252
73,582
62.661
(10,3291
108.160
104.786
112.744
217.530
206,022
1981 1983 1982 1981
r
424.885
354.81:
6,992
2.55f
1,937,823
l ,834,(>U::
S 830,966 8 76 7 ,05'
674,980 709,5730,673 25.042
62.744 57.593
58.625 49.109
18.4861 (7.9601
14:3.550
98.1:35
16.894
115.029
101.261
2.56
2.62
2.56
2.51
5.06
S
3.14
5.60
3.011
0.46
S
0.30
.aunt assrl-� S 422,707
t %orl,ing capital 134,299
t.cl prultrriy and equipment, nrt 607,280
.tal a••rls 1,329,347
-•ng-term debt lrs• current maturities 152,830
'-m-urrt-nt obligatiuns under capital Irasrs 38,613
^;.crrholdrr: rquil> 763,182
`,-Iecled Consolidated Ratios from
l :ontinuittg Operations:
1;,erating incornr lu rrtrnues ?.8rlt
turn on a�rragt• rquil% 14.8
t,•Itt as a prrcrnt of total capital 21.0
8 425.972
163, 738
486, 720
1,146.411
136,909
43,818
650.162
7.4c1c
16.:3
23.9
123.778
52.408
(00.0711
(7, 66:31
134.9681
S 750.160
708,970
292,034
3.528
1,754.692
21.016
61.458
39.952
15. W 11
116.436
45.190
(15.265►
29.925
5,079
8 78.5, 784
681,190
243.416
4.633
1.718.023
21,019
67.972
30.489
0.4421
115.038
52.900 ;
8,668
61.568
40.269
0.98
S 1.00
S 1.69
1.Ut1
1.(K)
1.09
8 t1.371
S 0.25
S 2.15
11.261
0.25
2.15
8 729.414
101.998
429.448
1.461.988
158.728
52.381
556.688
6. 7 SJc
11.4
30.3
S 266.457
33.442
413.660
1,448.155
245,349
63.166
843.292
6.6%
14.0
48.8
S 309.233
51 AB
430.2ta11
1, 555.973
355.990
76.666
809.868
6.7c1
2:3.1
61.6
SG-1021
M
,,-
Management's Discussion
and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
At December 31. 1985 and 1984, Transworld's working capita
was $134.3 million and $163.7 million. respectively. This
decline is the net effect of several significant groups of transac.
lions: The sale of Centun 21 Real Estate Corporation (Centur%
21 I: capital account transactions —including the purcha.e of
outstanding common stuck under a previousl% announced 4.0
million share repurchase program. the redemption of the Serie
B Preferred Stuck and cash dividends: the acquisition of Inter-
state United Corporation IIUC): and the addition of almost
S160.0 million of properl�, plant and equipment with internall
generated funds. Funds generated by continuing operations
(income from continuing operations plus depreciation less
dividends) amounted to $158.3 million in 1983 and $I35.0
million in 1981.
Transworld has a re%ol ing credit agreement pro iding finaneit
capacity of up to 8200.0 million. all of which was available at
December 31. 1985.
Results of Operations
1985 Compared a► 198-1—Consolidated operating re%enue in-
crra.ed S213.7 million 0 I AG 1 Iroill )loll. 'I'he revenues of
Spartan F;,od Irlc. ISpartan) inl-rrased -S1(I,tl ulilliol
19. % 1 primarily due It 18 additional QuInc%'s and 15 addi-
Iional Harder, unit in operation. Fiji- 198:1 111,- ller slore
re%entle., (if Spartan'. Qn111v%*.- v nit del'1111rd , .-I"? In S887 A
principall% in rrsponsr to an indu:tr% wide decline in the dinn,
house segment traffic. The re\e1111e, of Canteen Corporation
Wantrenl increased SI52.8 million 118.4(/-( 1. principalh from
(fir acquisition of 1l C—which contributed S 104.0 million for
the fourth quarter of 1985. 111 addition, revenues from the food
and vending di%ision increased by $33.8 million due to higher
volume,. The revenues of Hilton lnlernational Co. Ml) in-
creased $19.2 million 12.8r/r) main) due to incrrase� in the
a%erage rcN►m rates, as stated in U.S. dollars. offset In a slight
decline in occupancy from 6717t in 1984 to 66% in 1985.
Consolidated operating expenses increased $189.1 million (MY
from 1984. Sparla►i s increase in operating expenses of $35.9
million (9.8%1 was primaril% attributable to increases in payro
and fringe and product costs due to additional units in opera-
tion. Canteens increase of 8141.3 million 117.6%) was primar
ily due to the IUC acquisition ($100.9 million) and also to
increaser in the cost of food and.vended products sold. The
operating expenses of HI increased $8.4 million 11.417c) main],
due to increase• in payroll and related expenses.
Management's Discussion
and Analysis of Financial Condition
and Results of Operations
A
Liquidity and Capital Resources
At December 31. 1985 and 1984. Transworld's working capita
was $134.3 million and $163.7 million, respectively. This
decline is the net effect of several significant gruul,s of transac•.
lions: The sale of Centur% 21 Real Estate Coi loration (Centur%
211. capital at -count transactions -including the purchase of
outstanding common stuck under a previousl% announced 4.0
million share repurchase program, the redemption of the Serie
B Preferred Stock and cash dividends: the acquisition of Inter-
state United Corporation (IUC): and the addition of almost
$160.0 million of proper►%, plant and equipment with internall
generated funds. Funds generated h% continuing operations
(income from continuing operations plus depreciation less
dividends) amounted to 8158.3 million in 1985 and $135.0
million in 1981.
Transworld has a re%oI%ing credit agreement pro%iding financit
c•apac•it% of up to 5200.0 million. all of %hick was available at
December 31. 1985.
Results of Operation
1985 Compared to 1984-Consolidated operating retenue in-
creased S21 a. - million i 1 1.(►Cc i from 1984. 'The retenues of
Spartan F,+,nl S%sirm.. Inc. ISpartanl illcrra�rd �1tl,tl IIIIIIton
19.4%1 piinlarilt due to 18 additional killing's an,) 15 addi-
tional Harder, units in operation. F„r 198:1 the per store
rrtenues (if Soil rl.ui s 4►uinc%'s units drelin,•d 7 Aci (o S88 0
pritwipall% in response to an industr% wide decline in the Jinn,
housr segment traffic. The re%rrlurs of Caniren Corporation
ICanterni increased S152.8 n1ilhoo t 18.4 ( i. princ•ipalh from
ihr ac•quisitiun of IUC-which contributed SM4.0 Million fur
the fourtli quarter of 1985. In addition. re%enues fruit) the food
and vending di% ision increased by $33.8 million due to higher
volume. The retenues of Hilton International Co. IHIi in-
creased $19.2 million (2.8% I mainl% due to increases in the
average room rate,, as stated in U.S. dollars. offset It a slight
decline in cx-cupancy from 6; r/r in 1984 to 66% in 1985.
Consolidated operating expenses increased S189. I million (MY
from 1981. Spartans increase in operating expenses of $35.9
million (9.8r1r I was primaril% attributable to increases in payro
and fringe and product costs due to additional units in opera-
tion. Canteens increase of $141.3 million 11 ; .6% 1 was primar
il% due to the IUC acquisition ($IM.9 million) and also to
increase., in the cost of food and %ended products sold. The
operating expenses of HI increased $8.4 million 11.4%) mainl,
due to increases in payroll and related expenses.
86-1021.
I +
i•
Consolidated operating income increased $24.6 million -from The provision for corporate income tax on income from c•ontinu.
• 7.4% of revenue in 1984 to 7.8% of revenue in 1985. HI's ing operations decreased $18.2 million (38.1 cli I as a result of
ital • margin improved from 9.3% in 1984 to 10.6% in 1985. the recognition of tax benefits generated k TWA. The dec•reast
i� rt' II M. t b i st 1 I 1 d f
.sac•-
tury
of
A .
cries
tter-
all�
s
Other charges (credits) increased bN $8.6 million (54.47c I dur
lirimarih to two fac•ton. First, a 1984 credit of $3.2 million due
to an o%errslin►ate of losses from Transworld's ownership of Trans
%orld Airlines. Inc. (TA'AI for the month of Januan 1984 and
wcund a decline of $3.3 million in interest income for the full
war. despite an increase in temporan cash investments, pri-
marih due to the proceeds received from the sale of Centun 21
net of fund. used as discussed alx)%e under "Liquidity and
Capital Resources.- which t►cc•urrvd in the fourth quarter of
1985.
Thr provision fur corporate income taw on income from confirm-
u►g ulwratiuns increased $9.3 million 131.6%1 mainly as a
icing rr.ult of net operating It 1►enrfil� generated by TA A and
at utilized b% Trans%orld in 1984 and increased foreign taxes.
Earnings per common share from continuing operations de-
rrrdsrd to $2..% in 1985 from $2.62 in 1981. The decline in
rarninl_s per common share reflects the increase in the weighted
in- mt-rage shares outstanding partiall% offset by a reduction in the
of prrfrrrrd stuck di%idend requirements. The %righted a%vrapr
ion •hares in 198.i increased b% 4.1 million to 36.4 million shares
li- dur to flit, comersion of .Series C Preferred Muck in 1981.
7.000 !VH1 Cuntparccl1,, 198 i-Consolidated operating rrvenut, in-
rrdsrd 8103.8 million 6. 7 ii 1 from 1983. The rrvrnurs of
linnrr ,I,drtan inc•rr•asrd $ 70.1 million 119.7rh I dur to 35 additional
to ;huncv's and 1-1 additional Harder. units in operation and
rorn
for mf redses in menu priers and per store %plume. The re%enues of
f for I.anlrrr► increased $63.9 million (8.3rh I. princ•ipalk resulting
ft►t►cl from higher %ulume in the food and vending di%ision. The
�hrr •e%rnur� of HI declined $34.6 million 14.9c/c I. mainly due
he •' a drelinr in food and I►r%eragr re%enur as %sell as unfa%or-
,hlr furrign exchange dur fit the continued strength of the
fight .... dollar.
0.5%1 '"nsolidatrd operating expenses increased $84.0 million (4.9% I
n'm 1983. Spartan had file largest increase in operating costs.
3' r v,(t.6 million 119.8 ii 1, compared to 1983. mainl% dur to
ra- „lumr increase:. Canterns increase in operating expenses of
ra- 'i8.3 million 17.9"h I was primarily dur to an increase in the
imar- ",I of foutl and tended products and increases in payroll and
utgr costs. Thr ul►rrating expent n. of HI declined $39.7
r 1illiun (6.1 rk I. mainl% dur to decreases in payroll and fringe
fairly ,1,ts as arll as decreases in cost of sales.
.onsolidatrd operating income increased $19.8 million -from
.8"/i of rr%rnur in 1983 to 7.4% of revenue in 1981.
Olin charges feredilsl changed fa%orai,l% b% $7.8 million
1'2.9% I. principalh dur to a $3. 2 million o%erestimatr in 1983
i losses from Transworld'• ownership of TWA for the month of
,nuan 1981 and a $6.8 million decline in interest expense.
artiall% offset b% a $2.6 million drelinr in interest income.
. pa to % o se .1 mcrea. et, . d r, oca an ure►gn tax
provisions due to increased profits and b% the effect of a 82.6
million 1983 provision underestimate.
Earnings per common share from continuing operations in-
creased to 82.62 in 1984 from SO.98 in 1983. The fa%orable
impact of the increase in income from continuing operations
was parliall� offset by the increase in weighted a%erage shares.
Outstanding shares in 1984 increased b% 7.5 million (26.6ric I tt
35.6 million shares. The additional common shares did, litm-
ever, ha%e a positive effect on debt as a percentage of total
capitalization as did the S37.8 million net reduction in debt
in 1981.
Impact of Foreign Operations
HI conducts a substantial part of its business in foreign coun-
tries. During most of 1985. 1984 and 1983. the strung C.S.
dollar versus must foreign currencies had an adverse effect on
the results of HI. During the latter part of 1985 the declining
valor of the U.S. dollar, which on a%rrage finally weakened
belo%y the previous %ear le%el in;rptetnber. lessened the adyrrst
impart of foreign exchange on the results of Hl.
Revenues and ryprnsrs of overseas lintel olcerutimns decry-asrd
to the extent that tile% ►%ere generated in foreign currencies
which during 198.5. 1984 and 1983 Men- worth less than in
previous years. Currespondingl%. net income and di%idends
remitted b% these o%erseas hotels also decreased to the extent
that the decrease in rrvrnurs ryas not uffsrt by the decrease in
expenses. In 1985. HI reported an exchange loss of S4.8 million
compared It► exchange Josses of S 1.2 million in 1981 and S3.6
million in 1983.
Discontinued Operations
In the ac•c•ompam ing financial statements, Centun 21 is
reflected as a discontinued operation in 1985. 1984 and 1983,
and TWA is reflected as a discontinued operation in 1983.
Inflation and Changing Prices
Fur information un the impact of inflation and changing prices on
Transworld's rr%enurs and Income. see Note 15 to the Cumsoli-
dated Financial Statements.
Y
Statements of Consolidated Income and Retained Earnings
(Amuunt% in ntpusan& E%tvpt Per Share Amounts)
1984
191
$1.937,823
$1.834,0(
1.794,267
1,710,2
143.550
123.77,
22.242
29.01
(15.944)
(18.50
9.552_
_ 13,11
_
15.850
23.61
1W.16
127.700
29.571
47.75
52,40
98.135
16. 8' 11
7.80.
1
-
1 1 '2.551
-
155.32(
(7,66".
115.029
-
284.80L
18.65(►1
-
09,2871
119.795
_ (4,2M 1
(257.351
- -
g 82.888
-
8 2.62
2.51
& 0.9v.
1.00
3.14 11.37
3.W 11.2(.
Y� T
Statements of Changes in Consolidated Financial Position
3m..Iml• III Thm..mikI
r...1... \....._ F... I...t 11........1.... 'tl
Funds ProN ided bN :
Income fnlm continuing operations
Add (deductl noncash items:
Dellreciulion and amortization of prglrrt%, including (•al)i►al leases
Amurttzation of intangible assets
Deferred incumr tax pro%ision (creditI
011iel
Ioperation-:
Cam on di!.IN)sal of Centun 21 Ile•• alllllicalllc
incumr tax of 852.4621
Nei change in imrMmt•mt lit Centun 2 1
IAlssr from TW 4
Decre.t-e in im"ttnemt in T\\
Di%idend drelarrd-ryuit% holding in T\\:1
1• Hance of cmnlmun Mock
I:Ilmnum Mocl, issurd in (it -lit rr,Irurturill"
LA-m -lerm (it -lit i.,surtl
\rt INNII, %dlur of limpem (kptisllioms
\rt trtlrwall/ed furrlgll exclldllgr (gallo III- un f1wil
dssrt. and Ilolg-trrnl delft. including I allital Ira -ram
I Ilhrt
1985
E 104,786
66,8;1
10,030
5,i81
_ _89.1
188,302
102. 7. 50
120.619
29,545
6.815
(9.;;41
.911
III, tvamr Idrerra�rl Ill:
AI -room- pa%dlllc and iccrurd liabdlllt•- 38.081
(hhrr mint urreml Ilallilitir• and deferrrd crc•dils - - - 29.764
514.166
Funds I red for:
Ih%idt•nd lid%illholding in T%\ A
14u1n•r1% addlliom.
IAIng-Iran drbl lld%meml- and callilal (Vast• obligations discharged
horrign currrnc% adju-tnlrml
I.ash di%idrlld on callilal Much
Immer-ion and redrnipliom of llrrfrrred sloch
Ilurchdse of tred-tin sloci,
.m rrd.w Idrert•a�el 1t1:
E" .: lir(•ri�ahll••. net
Imrnlloirs
Oilier cunt•tll d-cl-
. ` (Idler dsa t
Increase (drereasr1 in Cash and Temporan Cash 1Mrbtmrnt..:.
�T� r
and teml►orari, cash iniirstments at: 86-1021
186.899
31.836
(9,945)
23.400
50,168
43.58,
27.051
14.005
5.69( I
_8u.831
454.122
60.041
1981
S 98.135
57.154
i.652
17.2041
13.1501
-- 152.581
12.879
4W.379
1a1.��I
63.81
.012
9.615
14.46(►1
42..i8 7.
-- (7.4191
8:i1.,53
4(N 1.37X)
13;.231
101.29.5
6.559
27,937
124.530
5.22
324
860
4 7.5_i4--
851.882
120.1191
1983
S 52.408
51.26a
6.36 7.
2.505
_ 2.366
- 11 ; .96M1
(6.5191
167.8i61
84.15
14(N).3; 91
80.310
10.911
33. i(I(1
1.5.112
9.203
3.98
14.5111
i0o.4.i; I
14(NI.a;91
99.3.52
130.098
,.445
19.;95
1.2w
12.0 8t
_- 14_651-
_ 1121_9781
55..52I
-- 136.8411 - 156.969- 101.448
�3
lam. -
Deceml►rr 31,
Assets
Current Assets:
Ca.h
Temporary cash investments, at cost (approximates market 1
Receivables, less allowance fur doubtful account, of:
1985—Si.690; 1984—$5,310
Merchandise and supply inventories
Investment in Centun 21
Other
Properh
Prol►rri% owned tat cost):
Merchandising equipment
Land, buildings and impro%ements
Other property and equipment
Total pruperty o%ned
lass accumulated depreciation
Pn,l►eri% owned —net -------------------
Property held under capital lea -es (at capitalized valuet:
1985
\,a,
18.145
178, 739
129,071
80,589
16,163
------- - 422.70
200.015
394,395
273,050
867.400
-- -- -- --- — - ----- - - 290.391
577,069
Wrchandisi rig equipment
7.246
Land• buildings and impro%ements
57.284
Other prul►erly and equipment
121
Total property held under capita) leases
64.654
Less accumulated amurtizatiot►
3.1,44_3__
Prvl,rrty held Under capital leases —net --- -- — _
-_ - - --_- -�_ 30,211
- - --- - - - - - — ---- -- -... --
607.280
Other Assets:
Goodwill
Other lung -tern► in."tn►rnts
Other
tier .'lutes to Consolidmed Financial Statements.
149.879
88,601
60,880
299,360
i1.329.347
1981
S 34,847
101.99.3
102.020
65.984
110.655
10.473
425.972
162.855
314.722
216.552
094.129
243_338 _
450.791
16.757
57.730
131
74.618
_ 38.689
_- 3..929 -
486.720
82.397
93.516
57.806
-—233.719
$1.146.111-
z-
Liabilities
Current Liabilities:
Current maturities of long-term debt and capital leases
Accounts payable
Accrued salaries and vacations earned
Accrued taxes
Accrued rents
llthrr
Lang -Term Liabilities:
Ling -term delft. less current malurilirs
Noncurrent obligations under capital Irtisrs
Deferred incomr lazes
(filter noncurrent liabilities and deferred c•redils
Commitments and Contingent Liabilities
Shareholders Equit.:
Preferred slc►tHithout par valor:
x
Authorized shares, issuable in series
Uulslandinr:
f
series A--92.(NI cumulative c•omertible.
limited wl{Il�rl,:
K .
lharr► at staled value. 82.50 per share
Liquidating preference, 850 per share
Sairs K-81.9ff cumulative noncon%emihle,
limited voling, no stated value:
c*
I'
�harrs at redemption value, $'20 per share
y;
Excess of redemption ►slur tner cam inr
valor
Liquidating preference, $211 per share
t:ottnrlon 414141k. 85 liar value:
Authorized shares
Issued Attires at liar valor
Capital surplus
lureign current} adiumnrrnl
hoained earnings
Trvasury stock fat cusp
tie
o:; a
1985 1981
tAmouwt inThmi-dnd-t
20.000 20,0(N1
1.015 LOU)
$52,271 852,2 75
2.512
i — $50,159
75,000 75,(N►)
35,728 35,598
1,140 —
1985 1984
8 12,021 1 8 23,931
91,394
90.820
48,654
37,738
47,159
27.402
19,069
20,985
70.111
61,298
-- 262.234
288.408
') 152.830
136,909
1 t t 38,613
43,818
2 42,496
14,212
43,818
39,076
_'.Itt.1 I.Ia
277,757
231.015
2,6)4 2.61.1
— 50,159
I4,752►
178,639
386,864
(33,596)
272,248
(43,587)
763.182
81,329,34,
177.990
384.801
(43.5411
8'2.888
650.162
$1.146.411
ss-lo21-
Notes to Consolidated P>tancial Statements
For the lrars F:tldrtl Iteerrntn•r :31, 198.1, 1981 anti 191i.i
■
Note 1. Summary of Significant Accounting Policies: (h) Pension Plans. Accrued lwiisiun cost is funded un a
Accounting policies and methods of their application that current basis except that prior ser%ic•e benefits are arnortize
significant!} affect the determination of financial liosition, and funded over periods from ten to 40 Nears, Set- \ote 11 ft
change.% in financial position and result., of operations are as further description of the plans.
folio%,: Note 2. Income Taxes:
(a) Consolidation. The consolidated financial statements in-
clude all significant majority owned subsidiaries. All significant
intercompam tran%ac•tions have been eliminated. Trans%%orld's
investment in Centun 21 i. accounted for by the equit% method.
See Nine 3 for a drscriptiun of the disl►u.ition of Centun 21.
(b) Property and Depreciation. Prol►eri\ and equipnnent
o%+ned are depreciated princ'ipalh on the straight-line method
on an annual bads. Pn►l►er1.\ held under capital (rases tat
capitalized %alurl is amortized over its estimated useful life.
limited b% the lease 1wriod.
The fullwAing estimated useful srnice lies Herr in effect during
1985. 1984. and 198:3:
Merchandising vight to ten %cars
Suildin):--Thent% to fur% gars
Utter equipnit-nt—Tv%o to fifteen %ears
Lea.rhuld intpnnrmrnts—F airnalyd useful lift- limited b% the
lease period.
(r) lniwntories. Illrn•handisr and sulyl\ in%eniurirs are ►alued
prirnaril% at the I(mer t►f a%rrage cost or market.
(d) Goodwill. The una imoizell excess (if cost u%er the fair
%aloe of net IdIigible d,•ets of c'oI1)1)alies acquired is bring
amortized over a 40-%ear 1wriocl oil the straight-line method.
[)urine 198.i. 1981 anti 1483, S:0O7 ; ,(MM), 82,5G1.W0. dud
S2,470.0Mt, rralrrc'll%rI%. %vre charged to income. Good%III
asstwiated aith the acqui,ition of Centur% 21 is included ill
the results of dl.continued uprratiuns. Amounts so charged are
as follow.: I985—SI.-,01.(MX): 1981—$2.012.(M and
1983—IR2.0390MI.
(e) Erunchise Rights. The rust of restaurant franchise rights is
amortized rawl,1% over the lilt- (if the franchise agreements 120
%rdr-1 from the date retail restaurant operations commence.
Agreement.- ctneritng I►rrsrnt uprrating locations exl►irr on
%arious date. from 1986 it) 2OU,i. Certain of these agreements du
not contain rrite %al upliurts.
(f) Pre -Opening Expenses. FxI►ense. incurred in conjunction
%%ith the ul►rning of hotels are drfcrred and amortized. genrrally
over five yrars. L)% charges against the uprratiuns of Il►r regwc-
ti►r hotels.
(R I Income Tuxes. Tran.rvurld and its qualified sul►sidiarir, file
a c•utlsulidalyd Federal income tax return and account fur
imestmew tax credit., un the flow -through method. tier Now 2
fur a further drscriptiun of Transaorld's accounting for
incumr tags.
W.
Transworld and its qualified subsidiaries file' a cunsohdaled
Federal income tax return.
A summan of the pn)%ision for income tars is as foll,ms:
(Amount— in Tlun)-end-1 1985 1984 19
Current
17efrrrrd _
Prot i,imn for inform•
ta%r- un runllnwrlF
t4jerartons
Tat pru%Isiun (lrrnefllI
from uprratiun- of
di-rnnitlmed -r �tllr9tl•:
TN A
Centur%21
Ta% Iint%tciun un Fain utt
halt- of I .rnlu_n 21
Tirlaltrro%rsiunlot '--
i111'41nle• ta%r>
$33.1211 S:16.775 S4.1.2
5,781 (7.21W 2.54
38.901 2'j.. i71 47.75
— 133.49.
3.397 2.024 it). 18i
594.7(dl S.i1.1ttN1 r'�4.414
For 1981.i. 1981 and 1983, foreign invollte %%hich gi%(•s rise to
foreign income taxes represen(:- aI)I)roxlmalrl% �15. 700. MMI,
$50, 7(M .O(R), and Q4:3.3(K).(XX). rrsprcti%t-l%. of flit, total in-
cumr before income tags.
The current pro% isiun for Federal and state and local invul ne
tags includes taxes pa\able b% sub•idiar% cor1wrati(Otis Which
are not includable in the Tran�%%urld cunsolidated Federal
incumr tax return. The current provision for fort-ign tags relates
I►rinnaril\ it, NI.
An anal%sis of the current incumr lax provision is as
IAtrlounls nl Thuusand-t 1985 141:1 14F;.i
Federal:
G ru—
flirt o1wralinf loss
ForriFn ta% credal
_ Imr:•intent w% c•redtt-
- Net c'uorlll Frdeta) - —
S141'. and Itn al
Eorrl►m- -- --
Current incumr ta%
pnn islti n on runnruml}
ulrrralltinN
Currrltt la% pnr%lauan ItK•nrfill
distow uutii st•gmrnt•
7irlal curn•u) in- umr ta%
prn% imwll
S 19A) t I S141.811 I� 39,624
—
I04.3811
—
118.5t111
112.1)210
113.6131
691
-
15a.It, I1
(3.7441
381
1 u.:3c H
22.222
4.894
7,SM
Mkrl
2'.812
1H. )(it r
I 167
33.120 1 :36. , 7-, 1 45.250
- 30.956) --_3.348 01.578t
S 64.076 1 : 40.17.3 1 24.672
K�� #
st;—
The deferred income lax provision results from timing differ- At December 31. 1985. available foreign tax credit carrfon\ards
ences in the revogniliun of revenue and expense for tax returns aggregated approximately $20.600.000. which if not utilized
and financial statements. The source of such timing differences in future consolidated Federal income tax returns, will expire
dnd the tax effect of each are as fulloas: as fullows: 81,500.(MIO in 1986. 32.100,000 in 1987 and
i %mounts in Thmmand•1 1983 1981 1119:4 314.0(XM IK) in 1988.
I;nl dr•fern•d 1.1\ Jrning fnmv
At velerdtrtl dr111e1 ldtitln S 7.581
F 4.159
S 4.605
t•df 111J1 lydsr do 11,11111111} (801
I.i1121
l i11
I),n't•t ftndnt 111f: Ir.1•r. 23.1121/
187.37111
-
111,IJllult•n1 nulr In1rn•,1 4.619
(4. 411
-
Oiber lrmmp dl(lero-m r. 4.351
15,5131
11.31)(11
I,n1.. drlt•rml it-dryal ldt 39.5M1
19:i.8.i111
3.423
Ta\ lwnrfit from TA 4 19.3281
1H._"I
-
F.Irt'tfm td\ t n•dlt• 12.1911
12.621
-
Ime.lrnrnl td\ t rrdlt•_ 123.38111
--. ---
53.4M
_ _ - -- -
-
-----�
I►r•Irrm) Ir•drrd! mrnrnr
Id\ f1T 1\hplh It redll l 4.652
1y..11181
3.423
110-wed •IJI,' dlld I.,, .d
111,'miw w% form i.1„ It 1,21K1
L I9.
35-)
Ilrferrrd lon•1}n i ntornt' 1a\
pn1\ I•oal itred111 (7 71
1.107
11.2":f l
Porned uo�umt• 1J\ ftn,tls11,t11111
----,
1 onlnnnnF of 1rrJ1 a 1n• 5.781
1 ; .2041
2.511:1
J ►r'fernYl la\ IfM•111.1111-
I11•1lglllllllr,)•1'I;tllrlll- -- 21.t413
II.36,11
-12.73:i1
1"tJl dorrtrd tit. tan, ta\
flnllt-t„ni,n•d11i IF 311,681
S 1H..i7.11
c 1221i1
Ifrfrrlrrl int'ultlr td\e.� art. Ill, lmh-il ill the balalllt•r ►11ee1• a,
t1111t 1\\•:
• �mounl• m Th„u•.nui•1 198:i 1981
I I111t•t i urrew d-•r1- >< 12.341 I ; 9
Uelt•rred mromr late. - -- - --._- (4-1.1901 114.2121
b,l,ll t I �1.88" 1 Q I 11.2n3
The diflerrncr belNren file stalutun Federal income tax rate and
Transaurld's effrcti\e tax rate is as follows:
198.1 1981 198:i
•I.dulun rdlt• 46% 461-,t
Rifle-rrewr rr:uhmg fnnn
t unllnuing nlrt•rimon•:
Ilnr•IIIIr111 ld\ vfrdll`
(It►I
-
%idt1• dnd tllcdt Id\rl., nel
of federal int-wnl• Id\
Iw11411
2
4
Effe-1-1 of barifan .tnlrt•t•
1111 41111r dllll (orrl$ll Id\
rre'd11•
(31
11
Tat I11'nefil frurnT'1l
1bl
1411
%111.1r11/J1t1,11 tit FYMMfN off
dlld 111111•F 11e•nn.1111.111 dll•
frrrm r• lwimo-vi1 dir Id\
rrlunl JIM 111P. 1.IJI1.1111.111
of cttllslllid ord tut utitc
4
3
I II1Y 11\r l.t\ rJlr 1111
r111111111111141111rIJlln11.
2_11'
23 Y
Note 3. Sale of CenturN 21 Heal Estate Corporation:
Un Oulober 30. 1985. Transworld's stockholders appro\rd the
sale of Ceniun 21 for S251,2(K).(MM). The accompany ing
Transwurld financial statements present the financial position
and results of operations \\ith the impact of Centun 21 segre-
gated and condensed. The revenues of Centun21 (which are nut
included in consolidated recenuesl were as fullu\\s: For the ten
months ended l)clober31. 1985: Q6O.0()6.0(X): fur the \ears
ended December 31. 1981. S64.132.(KK): and 1983.
855.230.(M O.
Note 4. Acquisition:
Oil October 1. 1985. 1rans\\orld acquired and transferred to
Canteen all of the outstanding stud. of IL C for S93.5(K).(KM)
in cash. The resultant co-4 in excess of net assets acquired
of approxinlafel\ $63.3(M).OW is being amortized o\er 40 \ears
on fhe slraigbl-line method. filr• fiscal \cars ended I)t•(•rrnl1er-
31. 1985. 1981 and N83. Trans%mi-It's prtlfurma re\enues. in-
cludin", It C. \\dull ha\e been: S2.4,62.156.1KM). S2.339.123.(MM)
Mid S2.213.883.(MMI.
Note 5. Separation b% Transworld of Trans %irld
Airlines. lit(-.:
Oil Februan 1. 1984.Transuorld distributed all if, equity
holdings in TA.A. to 7ransworld's e•ontnon stoc 1,bolders, The
accompanying financial statenlenls present TWA a� a discun-
tinued operation in 1983.
Trans%orld's investment in TWA at December 31. 1983 sit.
recorded as a di\ idend payable In a charge against retained
earnings in the full atnounl of 8256.24O.(MM) existing at that
date and the remaining balance of SI44.139AMM) was charged
to capital surplus.
I
4Z� '
x. s"
Null'• ttl (.tlntlIII lall'd 1'•IIIaIII'IitI �latenll'111- II „I11111UrI11
Note 6. Foreign Currency Translation:
Fullowing is an analysis of the changes in eyuitl during 1985
and 1984 fur cumulative translalion adjustments:
tAn►twnt m Thuusand-1 1985 1984
Kalitnl•r at Januan 1. $03.3111 S136.y821
Aggr+'Fate atllu-anew fur Ihr 12 month-
rrided Ilet•em11t•r 31. rr.ullmg from III,•
Iran-idluln u( lurrt�n rurrrnrt slalrmvnlr 9.945 16.5.i91
list an, ,' at I►ccrnlVl, r 31. tF133.591)1 i143.511 I
Note 7 . Capital Stock:
Contrrton %Io k issued during the tear and reserted fur contin-
gent issuance a1 December 31. 1985 and 1984 are as fullows:
Numllrr of Share*
Issurd Re-enrdlal -_-
1 kmonnl- it, Th,nl-:md-, 198i 11o: t 1985 1981
f.nt{flow'. satut}• t,lan-1V.1 - - 820 8211
f.%rr, 1-r ur 4unterunl uL
ftrelem•d -ItA i,:
'-wrl - 4 -
1
738
7:38
lrrtr•- 1.1, 1 -
4.-'w1
--
-
sl,a i, pun lla-,• %arrant-.
1981„i11 -
3.037
-
-
1487tr1 -
2
1.798
1.-48
f.nq,l.,tr, -I'W k ul,n.•n• 1:311
59
2.6:ty
2.82'I
fill rolm.(will lt•11-d 11,111111all -
203
2rt.1
I it I A. III tht• clv-r of ltusinc s on December 28. 1983. thr
reconl dab• for the distribution of 7ranswurld's equit% holding in
TU A. Ihr uomrr*ion ratio of lranswurld's -series A Preferred
duck was adjusted from unr half to one to 0.706 to unr.
(h) I. nder the plans the Trustees purchase prrt iously unissued
c4immon stud. burn 7ranswurld at market %slur or, with the
convent of Tramtvorld, purchase common-tt►c•k in the open
market.
(r l flit Oclul►rr29.198i .Transwurld called for the redemption of
all its uuta.tndlng'wries C Preferred Sttx'k. Each share of -st-rles
C Pre-fc•rred Ntlrk was c'umertible b% thr holder into 1.412
shares of Transwurld'.- common stcn•k until Nt►tember 26. 1984.
As of Dirt ember 31. 1991 dppruximatel% 3.1080)0 shares of
aerir, C Preferred Slcx•k were converted into appruximatrl%
4.3890110 --hart-- of common slcx•k and appruximairly 100.(1(K)
share, of 1t•rle- C Preferred Stuck were redeemed. retiring the
entire Issue.
(d) On October 4, 1984, Transworld announced the accelera-
tion of the expiration date of its 1986 warrants from the orig-
inal expiration date of October 1. 19W) to Decernher 3. 1984.
As of December 31. 1984 approximately 3.037AW warrants
were exercised and approximately" 3.037,(XX) shares of com-
mon stock were issued. The remaining balance of approximate:
32,(XK) warrants hate expired.
(e) The holder of a 1987 warrant is entitled to purchase- one
share of common stock at a prier of c 18.06 per share. subject t'
adjustment wider certain conditions, until Januan 15. 1987.
(f) On December 23, 1985. Transw'orld called for the redemp-
tion of all its outstanding Series B Preferred Stock for cash.
As of Decemher 31. 1985. substantially all the 2.512.(>•4(t
shares of Series H Preferred St(K'k hate been redeemed for the
WAX) stated redemption price plus accrued dil, idends foran
aggregate redemption cost of 850.554.(riK) retiring the entire
issue. On October 25. 1984. Transwurld announced an offer to
exchange its new 111/4r/c subordinated debentures due June 1,
2(X) 7 for each share of Series B Preferred Stock. Approximately
2,000,M) shares were exchanged for the debentures.
Changes in c•onsulidated capital surplus are as follow,.:
1 Amounts inThousand-1 1985 1481 Mi
RaLlnt r at Januan I. $381.Ho1
F27i..ilhl
f2l 12.,22
filmdroduf'I'%1 t -
-
t144.)391
NO 111`104'rl•11- ffnlll Ihr na1,' Itf t'0111111,111
--im k III rv.t! ul {far \slut' -
-
65.:352
Comerlon- 44 5Q and 1 _'i
ltultnrdtllalrll dr1wolun - lit rtl•r-,
of Ilar tdlut• oft u111111u11 spit i.
issurd -
-
58.5t2b
Cunterlun of %writ-- C Preferred
Stuck and exercise of 1981)
wsrranl- lit excess of liar talus
of t unuuun slack I'-urd -
117.642
-
(hhrr 2.0441
- 18._3381
38 8I.Holi
3.09
- -
Ba1am a at 1lrcrnthrr31. S386.861
Various lode dgreements place certain reslriclitr ctnenant-- (in
Transwurld and it• consolidated sub:idiarie.. including certain
requirements a,., to pa%n)ent of dividend. on c•ummun stuck.
Payment., including the pay meni of dit idends. to Transwurld ht
its subsididrie. are also restricted bt Various loan agreemen(s.
Under the most restrictive of these agreements at December 3),
1985, Canteen, Spartan. and H1 would hair been permitted to
make $13,607,0(x), 880,644,(10(1, and $l 1.5940M. respec-
tivel%. of additional pad nient. to Transwurld.
1 .
Note 8. Earnings (Loss) Per Common Share:
Earning, per common share are computed as fulloa,:
I Amounts to Thousands) 1985 1984 198.3
idlu-tmrnt it \rt Inc Ilmt
Net mcnmras rrllllrtrd S217,530
S115.02Q
,' 1,.6031
Rrdut tiun m intrtr-t r pr•n.e• fill the a.-Ilroed r►erche• into minion sltw i, of thr 1481/ warrant- —
5.4 .1
+
Ilwtluct dinidrru3 re•ctulrerrlrntt• on preferred elol•It and the amortization of the ru•r�s of redemption
valor oiler caming %slur of 4•nrs H Ilrefr•nrrd Sit, k (11,5081
119.2221
1:o.8471
Incrrasr in dig tdrnd requirement- for the a-sunlyd "rn Isr into;e•nrs II Preferred Not 1.
of the 1987 ltarrants —
Adlusled rle•t uu'umr applicable to d%MWe uul.ldlulnlg and equnalent common .hare. 206.022
101.261
131.1NI81
4d1u-trnent- a-suming full ddutlow
Rrllut lion in Irllrre-1 r\llrll-r for the n�Wmrd cumernlon Into c•ummun kim k of:
,it, delw•nlurrs Isplo4l 14e1'1 —
—
3:3'2
12 +• delienture- rt.sued ["I _
—
1..i75
Krduclu.rt of lwrlrrrr•tl dnulrod requirements for IL.umrd cun►entun of t•umrrtthle preferred slot i,
Into t ommon .t.w {,:
Srtlt•- A 2.1191
2.I w+1
�r•nr- 1--- -- -- -- - - ---- - —
7.821
Adlu-trd ne-t earnings as-umilg full dllutlorl $208.113
c 133.0611
S111.173
idjiustr Irm of conlllluo and rgltl%dlrlll Illdtl'-:
A%rrdj:t• summon shdrr- out-tdndlllg 35,628
28.8(M)
27.201►
Aterdgr trod-un -hare- 13151
—
—
As+umrd comrhum of common -hw k into h nt I I Preferred "Ilw k —
—
11.81N11
A..,unied rwn I— of •Itw f, wdrrarlt- dill] UplNutt-_ _ _ _ _ 1.076
.3.351
.34
li•Iel dtrrdpt' out -landing and rclunalent volninon Alan'' 36.389
32.2.1i.i
-25.511:3
4diu-Inn•nt- d--uoillip lull dlluhon:
A --holed eu•rt Pe of -Itw 1. %arriots and uldlull- 61
44
2i
Al]l]lr...I1Jl .I1rrap, . nrlmum -lidrr- rr-uhing fnlllt Iht• a- 1111I d nllcrr-lull Irll..l urltllwo3. ol:
5ri th•Iw•nturr- 1--urd lf,401 —
—
132
12 K dellelllurrs I--urd 140, —
—
587
Pre•fertrd ?bw G
\I•nrs A �38
7:38
;rfir- C
4d1u-tr•d dte•ra •.' , ommon -hdrr- a--umul • full dlluu111
')•\.. ddlu-Lloent I. made .Inn r the rffrt I is anttdllulnc.
Sri- lute 7 for a description of the right, and privileges of
p oulslan ding, comertihle .rcuritir,, ►+arrants did options enter-
ing into the cornputaticrn elf earnings leer conunun share. The
lrra-un %lock nletboll is u.rd to calcudalr the dilutite effect of
flit 198" Ndrranl. and uulaanding stock pun•hdsr opilons. The
� • fix ralt ust•d is 'kt"/i fur incunr front continuing operations for
IYM. The tag rates, used art- 0.0% for incunr from continuing
operdf ions and net income for 1984 and 6.9% for net income
for 1983.
Due it, the redrmlHiun of lbr Series B Preferred Stock net
ittconit d1lailahlt to common shareholder, has been reduced b%
the unamortized portion of the excess of redemption value utrr
earn ing %alur of Srrir. B Preferred Slack, thereb% reducing
earnings per share on average outstanding and equivalent Aare,
b% apltruximatel% $0.13 fur the �rar ended December 31. 19li5.
66-10� it
w -
r
,...,.
1.1
jI
1
1
i
\„tl , lit t:onsu1i11atcd Finanr•ial '�tatt-nit-nt• 11.lilt inul•,li
Note 9. Long-term Debt:
(f) A re%olv ing credit agreement with a group of hanks permits
Transworld to bc►rro% amounts up to 8200,0(10.000 through
Lvng-ternt debt outstanding is as folio%s:
March 31. 1992, and reduced amounts thereafter until Septem-
lAmuunts inThuubwidst
1985 1984
her 30. 1993. Borrowings ill domestic dollars mill bear interest
Notes, 91/♦ 6 due 1Qttt,-44
t 10.41MI
& 11.550
at either the prime rate or the certificate of deposit rate plus an
Note.. 5Vi% to 6b,r%i
additional 1/ of l %. through September :3O. 1989. and thereaf-
due 198t�I"hel1j:t
13,1K111
11.137
ter to maturil% at either the prime rate plus an additional 1,/u of
!lout.. 1t1 T it, 12 ,i
due IQW-201uthltp
9.598
10.t,74
1% or the c•ertifwate of deposit rate 1►lus an additional of
Mlle.. 12.18'S% due I►ft►-M.1, 1
12.18u
-
1%. Eurodollar burromings will bear interest at the Lun1111n
_
Suhordindlyd drl»•11lt1rr•. HK4
Interbank Eurodollar Market Offering Rate (LIBOR 1 plus l/rs of
due 1WJ-1IAP4t it
30.792
30.232
1% through 'September 30, 1989 and thereafter to maturit% at
SutKlydutetrtl drlwnturr•. 11', Ire
LIBOR plus 1/2 of l9c. Fees are paid based on the a%ailabilit%
duo- 19Q8-2l Ie1
34.571
33.523
and utilization of the total commilrnent.
R •% .hm rrethl a rrrntrmlfl
_
_
t1 F F
Auer,. due- 148.i
Sundn mdrldrdur>-IF1
Tahl
-, lr-- 1 urrrot matunur,lht - -
161.73:i
8.tM13
S152.831►
9.tKK1
49A40
155.7 e,2
F 13o.41r1
(a) The notes arr drnominated and payable in S%iss francs.
(b) The notes are droorttinated and lla%ablr• ill Canadian dollars.
(c) The now., are denominated and pa%able in British 1►uunds.
(d ) The 1(I r buix,rdinated debenture.,. %hie•h acre issued in
1979 %ith an efferikt- rite of approxirrlatt-1% 1:37c had uncuu,tr-
tizrd origindl issue discount of S5.383,(NNI and S 5.913.(XNI at
Drcrml►er 31. 1985 and 1981. rrsprcti%vl%. The origindl issue
discount %as calculated on the basis (If Ihr market value of the
cumnn,n seta k purcha.,r %arrant., altdcltrd at Issuance.
(e) The 1 l subordinated drl►rnlurrs %hich %err issued in
1981 %ith an rffrcti%r rate of approximatrl% 131ic in exchange
fur appruximatt-b 2.(KK).(KKl Meares of Series B Preferred St1►I•k
had unantonizrd uril inal issue discount of S5.435.tKK) and
fo.48301O at Decrnlbrr 31. 1985 and I Y81. rrspec•li%t•I%. The
original issue discount %a., c•alculatrd on the basis of market
%alurs at issuance.
The agreement contains certain restrictit•e financial cullrnants
applicable toTransworld. including se oral financial ratios and
SAC- of substantial sul►sidiaries.
(g ) Thr notes anti sundr. indebtedness include certain notes
secured h% mortgages on various operating properties of Canteen.
HI and Spartan. The net look %alue of th"r properties %as
S51.2 i G.(K)ll at December 31. 1985.
fh I Aggregate annual maturities of long-term debt are as follo%s:
IAnimmi- ill Thou-sendo
)rdr:
1481,
F 8.903
198;
24.141
1988
0.9.
I9 1
4.1841
199(1
9.110
;ul„r,turlit - -
- -- -- 103.461
F1td.73:i
W Various loan agreements place certain restriclie , cou•nanl.
on Trans%orld and its subsidiaries including certain require-
ments as to maintenance of minimum levels of Aorkiry capital
and limitations urt additional borrowings.
Note 10. Leases and Related Guarantees:
Transwurlcf..ubsidiaries utilize property. facilities and equip-
ment leased from others. In addition. certain owned and leased
properly, facilities and equipment are leased to others.
Buildings and fac•ilitieb leased from others are primarily for
hotels. restaurants and tsupport facilities. At December 31.
1985. 39 hotel. and 127 restaurants %err operated under least -
arrangements which genrrally prat ide for a contingent rental
based on a percentage of gross operating profit or grubs rr,lrnurs
and. in tome instance:, for a fixed basic rent. Initial term. of
hotel. land and restaurant building leaar., generally are not Ir.,s
than 20 years exc•lusi%e of options to rent -A. Leabrb of other
equipment primarily c•on.ibt of nierc•handibing equipment. cuul-
puier systems. rlc.
86-10'o'!I
k*'k,
Y� tf�
mits As lessor. leasing operations consist principallN of merchandis- Note 11. Employee Benefit Plans:
ing equipment under noncancellable (rases for a term of eight Transworld and its subsidiaries have several pension plans
Item- years to franchised distributors of Canleen. Certain hotels also covering many employees. Amounts charged to income (includ•
•rest lease retail store space to tenants. Numerous mkc•ellaneou►
s an sublease agreements also exist. ing amortization of prior service costs) were $7.6:S6.(XX1.
$9.171 AM and $8,613,(XX) for 1985. 198.1 and 1983.
reaf- „Its subleased to others under direct financing leases and respec•tivel%.
t of included in (ithrr as.rts at December 31. 1985 and 198.1
of aggregated S 1.bc)1.(XX) and 811.338.(XX). respectivel\.
H of Infrtrrnallon regarding Tranw.urld's (easing activities at Decem-
at ber 31. 1985 is as follows:
1\ CH11ilal LettUlrerarinl; I.r•a"•.
nts
and Mlnimur,
Ira•r
4111ounl. ul Tbuo-nmdl Pacnlrnl-
4013
193
1 K'+
010
401
;3a
lr•.0
14tu.
f h,tl/�;
14N-
5.023
14M
.i.231
I(iV1
4.lclri
14Ith l
4.827
�UIt•eY{llt'lll
02.1t 4
11.t1
frp.'All
Lr.- umpum ! nw 14 -1 -
48. 173
Vr-ent lalUc -if, apilal l al .
41.73
Lr•-• c urrrnt obligati, .
a.1 18
1'a1.11.11 Ir•a�l•-
f .Slt.t/13
1111mmunl Lea".
Panml•nl, Nel of
Allnununl
5ublrasr Rental-
S11111ra•r
of Immaterial
1,14%mrnl•
Am„unl-
S2 2
S 31.5111I
-
2'r.Wk1
-
28.257
-
2n.•2.i
-
21.218
-
333.1,.
Thr total rrnlal expen-r for all operating leat,rs included in the
detrrrtination (if operating result- for II►e• \cars ended Deuvinber
31. 1981). 1984 and 1983 was as ftlllov.s:
lab
4nnnna• In T6ou•aml. 1483
1481
1983
ka•u rem• E3:3.2.ib
t3:S1.3115
F24.8:1n
r..mun��m n•nl- 51A.7
5:.3$tr
52.ti11
S88.123
Sm.(131
&t2.tl�r►
ip-
sed
asr
t�
,f
less
1•
om-
r r
„rr
As of the latest benefit determination date. the actuarial prrsel
value of \esied accumulated plan benefit- %as appro\irnatrl\
$52.6(X)AM. the actuarial present value of nun\rsted ac-
cumulated plan benefits was approximatel% g9. 7 W.(XX): and tl
plan.s* net assets available for benefits were approximately
,F. ,.(XX).(XX). The range of assumed rates of return used in
determining the actuarial present value of accumulated plan
benefits was from 6% to 10% for the year 1985. depending
Oil the plan.
Incenike cornpensation plans pro\ ide for a%%ard to managemr►
employers based on meeting or exceeding cerlain levels of
income as defined b\ such plans. The amounts charged
to income under the above plans were S5,957.(XK). K.356.0M
and $5.265.(XX1 for the years ended December 31. 1985. 1981
and 1983, respectively. In addition to these inc entke c•ompens,
tiun plans, certain subsidiaries have incentive plans in place
under ubich regional. divisional and local rrlarla-rltlr111 parlicipatt
The incenti\r slot k option plan permits the hoard of Director. t
grant I,l overlain key officers of TransAorld and its �ubsidiarirs
purchase- op1lons for shares of 7iansvvorld conuuon stuck at a
stated option price not less than the market price at the time the
option is granted. The options become exercisable in %hole or it
part front time to time during a period of five years from the date
of grant commencing six months to one year subsequent to the
dale of grant.
Information regarding outstanding options and option ac•ti%it\ is
as follows:
1985
1981
Uul-landulg at Januan I.
66; .9011
i4.71 i
Granted
37, 3.87.5
653.015
Canceled
81.87:3
5.077,
E%erriwd
129.582
54.416
Ouls►andnlg at Decemlier 31.
82; .320
b( . Mml
Earn l,ablr at Drc•endwr :31.
269.382
2O.278
Prier wngr of options:
tluta►andulK
111.95-SI2.25
811.45-$30.1:3
E%env+rt!
$13.28-1311.13
ill.ticl-S23.4c1
86- IO011
AWI
Nul. -toll ull•uII11.11c1I 1'I11it111'lall *�IJI1'1111•III. 11 11111mll..d.
Note 12. Quarterly Data (Unaudited): Note 13. Contingencies:
The results for eae•h quarter include all adjustments which are. There are various claims and pending legal actions against or
in the opinion of Management, neressan for a fair presentation indirectly involving Transworld and and its subsidiaries, includ-
of the results for interim periods. The consolidated financial ing actions concerned with civil rights of emplo%ees, taxes and
WWII, utt an interim basis are not neceasaril% indic•ali�r of other matters arising out of the ordinary conduct of business and
future financial results on either an interim or an annual basis. financing matters. Certain of these are or purport to be class
tirlec led consolidated financial data for each quarter within actions. seeking damages in substantial amounts. The amounts
of liability, if am, on these direct or indirect clainvl and actions
1985 and 1984 area, fullows: at December 31. 1985. over and aho%e an insurance coverage
(4m.lunt• in Thou -and- FIrsl %'oe,-nnd Third Fourth in respect to certain of them, are not specificall% determinable
l:ncrpt Per Share 4nkounist (fuarlrl Qualirr Quarter Quartrr 1 this time It is the o ►inion of Management 1 including General
lrar Fluted tlet emllrr 31. 1985
011rrdling re%r11ur- Stc4.41r1
SVI' llM
S-122.11,1
011eralinginr-omr 27.045
41.202
47.701
InF unrr fnlm cunlin-
uing ulr•ratnal•
liefurr Inl,mlr
lair. 21.W
35.Hl)3
41.101
Net fluorite l0.24 3
30.811
300111
Larninp llrr common
sharr:
llu a)rrage uu1-
standing and
equl)al.•nt Atari. 1 0. U)
S 0.740
1 0.9t1
A --timing lull
dllutnnl U.411
0.'Ill
0.941
leer Lndrd 11rrrmh'1 31. 1981
(llll•ral►nj:rewnu.•- I VA).61:)
i4tt11.4"i
$14:1.1(1i
(Il»•raring im umr 2b. 141
35.2 T. 5
4(1.9311
In( umr Irum cilium-
u111g ullerd11.111.
lorhrr uo umr
ta%• 24.11111.
30.923
38.1111
Net lilt brit 19.31141
29.851
3G.319
(•.anung- lwr common
A. It-:
lh1 dwrdgr uul•
stdlld111g a11.1
eyunalrnl Am,— i 0.47
i (1.82
S 1.01
A%-umrlg full
d1lutwit 0.4.
(1.iH
(1.911
a F
Counsel I. however, after considering a number of factors, in-
>F 61.r,81 eluding but not limited to the %iews of retained counsel. the
52.1oH nature of the litigation and the prior experience of the consoli-
dated companies, that the ultimate disposition of these matters
will not materially affect the consolidated financial position or
results of operations of TransMurld.
45.1 "rl
133.S8.1 Note 14. Business Segments and Foreigtt Operations:
The operations of Canteen. Hl. Spartan and Transworld are
included in the consolidated financial state► ents. Canteen is
engaged primarily in the food sen ice business and conduct....
E 3.55 direcll and through its subsidiaries and independent fran-
chised distributors. rending and dine[ 6KI sir%ice operations
3.44 in the United State?. and Canada. Hl. direc•tl and through its
subsidiaries, operates hotels in 43 lilreign countries. the United
Statt-s. Guam Will 1►l(rr111 Hicu. Spartan is engaged III lilt-
41..)
•157, operation of franchised fast hKid and proprietan Tamil -stile
restaurants. princip:lll% in lire southeastern United States..
Information concerning the major business segrnrnts and the
extent of operations in each significant foreign geographic area
34.IN17 is presented in lire following schedules. 1•ureign operations of
24.5:110 the vending and food sen ices business segments art- conducted
primarily in Canada. Identifiable asset,, at December 31. 1985.
198.1 and 1983 include 8297.11 l,(K)0. 8276.58:3.(KN1 and
$268.4100K). respeclivel%. of assets used in foreign opera-
1 0.-4 lions. A further disaggregation of foreign operations w ithin
specific geographic area-, is not deemrd significant.
0.70
SG--1®"1
Nnlr- III I r/ll-I,ldawd f lllant•I'il slalt•Irll•111- 1, •,Illllno 111
Note 15. Changing Prices (Unaudited): (CM-U ) shows that this increase has been the result of erosion
The full(ming supplemenian income computations adjust in- of the purchasing lower of the dollar. The resultant effect on
come from continuing ol►erations for the effects of changes in earnings is shown, understandably, to he more dramatic. Depre-
spec•ific• prices (current costs) of the resources used in pro\ idling ciation expense, based on the restated value of assets for 1985.
sin ices and product., sold. The effect of inflation is particularly is substantiall% higher because the current cost of merchandis-
eyiden! in comparing the historical and adjusted cost of fixed in€equipment and other property is higher. Holders of mune-
assets and the related depreciation expense because fixed asset; tan liabilities benefit during inflationan periods hr< cruse cheaper
are held for an extended period of time vet remain at acquisilion dollars are used to satisfp liabilities in the future. The decline
cost in the balance sheet. Depreciatiun exiiense allut-ates. on a in income from continuing operations is partially offset 1) this
ratable basis, a portion of the historical cost of assets stated in purchasing power gain. Due to the current nature of Transworld's
dollarb having varying amounts of purchasing power. Since this inventories, the adjustments for changes in specific prices du
purchasing: pllwrr has changed significantly from the time these not have a significant effect on cost of sen'ices and products
be the sold. For the current }ear the increase in the current cost of
assets were acquired, the change must lie considered to
estimated effect of inflation on the financial statements. A much merchandising equipment and other property has been less
less significant relationship exists with inventor, held fur sale than the rate of general inflation thereby generating: a holding
since the gucxls in Transworld's inyrnlurirs. principally fi►c,d and loss. net of inflation.
lw%erage items. ha%e been purchased jusl prior to their sale.
The supplementan financial statements prepared in accordance
with the current cost concept assume the %cluing of fixed assets
and inentun at year-end using; costs in existence at December
31. 1985. Since these current cults are higher than the older
historical costs for equipment and proper(} currently in use, the
related depredation exg,ense increases c•urrespondingl%. Infla-
liun also affects nutnetan asset, and liabilities sw•h as cash.
rec•eiyablrs and pa%ablrs. Companies with nil munrtar% liabili-
ties experirru•e grains because lilt- amount required to satisfy the
nil liability, expressed in purchasing: pmAer, decrc-a-es will
inflation. In a drflationan penud. the effect would lie re%ersed.
Alanag•emenf:. Analysis of Thr• Supplementan Infurrnaiiun:
Under historical accounting: measurements. Transworld has
reported revenue grtmili of 843-1 million from $1. 7'2 billion in
1981 it, $2. 15 billion in 1985. Adju-zing for general inflation
using the Conswner Price Indry for all L rban Consumers
Statement of income from continuing: operations adjusted fur
changing prices (Unaudited, dollar amounts in a%erag•e 1985
dollar -I:
IAnwunt- in Thou -and•
E%. r ,I I cr Slmre •inmmiu-1
)ear i•:nded
Derr11011.1 31. Nh )_
.as Slated Adlu-ted
in the fur Change
Frnanrl.11 in Ipe, ifi,
�IJtettlrtll- 1'ncrs
011rraling rr%enor>
$2. 15 L 516
2.151.556
Cu-1 of sin icr- and product- moll
Iryrlu-rite u( d,qu. rl,u„'ll .old
amortization of propt•rt% and Ira-r-1
1.182.I0r,
1.182,44`1;
Drprec•Iati,m and amortization
66.871
88.2'58
Uprraung cyJK rises, other
734.413
ia;.413
01hrr charges lcrrdu-1
24.479
24.4711
38.901--_
_-.38.W
��.0 P'. , .I)
2,IRI .4.1/i
Inc emir front conilluillig o ,erarioll-
$ J01.786
—
S 8:i.1 18
Earning. Iler Share
$ 2.-it;
S 1.4
Purcha-ing powYt rain oil net monrlar%
habllttles held (luring the %rat
S basic(
Inrn•ase in current Soli of imenton and
equlpmrnl held durum the %car
>:2.1(01
Effrc I of "wrease in general Jtrn I. Ivitel - - -
-- - ----`31.
IeK,
I:ycrSs lahorlfall l u(inama rs in n1K ctfir prices
--
u%rr increase: m the eneral ,rice Ir%r)
S 124.0w)
llryrnlonrs and l'rtgwri% at
Dect•mber 31. IYH.-):
In%rntorlr-
S 11.31
Pro ,eri,. No of Dr ,r,-,
r B I I. W 1
SG
—i®21
w
"to111r- the ( .e011-1did llt•d I IctIt
Five-year comparison of selected supplementan. financial data
adjusted for effrcts of changing prices (unaudited, dollar arrwunts
in average 198S dollar!:
I
_
lear, Ended DrreniLwr 3).
1 Amount. in T'liom nnd- Ewept Npr Share .Arr►r►llnts.
_
f Vtttdvmld and lmlv% Deilal
198:►
19H1
19&3
1982
1981
i
OlwratutF rrue•nur•-
S21151.556
$2.((1(►.961
11.979.017
11.95,L24)
82.032.111
Current ro-1 In(urMatiun:
Inrnmr 1rt,n1 eunlinunlF ulwratiun-
83.118
78.160
32.0� 1
18,913
M.W.
111comr (hn-I fnem c•oniinlunp nlw►atitln-
per vivninMac -Here•
1.9 �
1.08
OAY)
10. 43 1
0.57
Eu•",s o-hurttalll of Inrrrane in slwcifit
pro, e, user irlrrra-r in the Rrnrral later
level
1291(Nkr t
1.111)
(17.5871
41 JN5
51.694
Net a --el- at wvar•etnd
1,(N12.335
916.666
8L")
1.2(1H.2(13
1.265.382
0111e•r Infurnliuun:
Pun ha-inp lkewer Rain an net munrtan
lualulltly- held during the rear
6.339
6.405
8.526
17.516
40.035
Ca-li (lit Mend- dr•r•)nrrel lwt cotntnun share
0.4t1
0.31
—
—
—
4larlet pnrr lwt summon Shaw st rear -end
P.11
31.7
41.5
30.9
17.2
Meral r run -user rni r ►ttdr%
322.2
311.1
298.5
2AQ.3
272.1
(a) Basis of Presentation. Transw•orld'► historical financial
statements are prepared principall% (lit historical prices in eflrct
Mheo the transactiuns onginall% occurred and were rec•urded.
The :upplrrnrnlan financial information discloses certain ef-
frci. of changes in prices of propert% atld equipment ow ned or
held under capital leases that have ex•c•urred since the prupert%
was original!} acquired bio Transpvorld. Propert" acquired bit
me,rl_e•r witch of 1w►oling of interest I is considered to hate
1►rrn at hot 7ransworld at the date of the merger rather
than the dale tit original acquisition of the item.
(h i Inventor% and (:list often ic•rs and Products Sold. Merchan-
dise imentun ha- been adjusted for changes inspecific prices.
Such irnrnton generalli, has a rapid turnover and consequent!%
invenlon values appn►tin►atr their current cost.
(c) Current Cost of Property and Equipment, and Relaied
Depreciation.
Hotels, Buildings and Improvements. Merchandising and Other
Equipment and Property. The estimated current cost of this
property and equipment genrrall� was computed l►'\ appl\ ing
price indices published b% guprrnmental and private urgani•ra-
tions lit the historical cost of the assets. Selected indices were
used for various classifications of buildings. improvements. and
usher propert% and equipment. The historical cost of each
classification was aged h} vintage year of acquisition for pur-
poses of applying the proper index. Management believes that
the resulting current cost data are reasonable representative of
the .specific price changes for these categories of pruprrt\ and
equipment.
Depreciation. Accumulated depreciation and the provision for
depreciation expense expressed on the basis of current costs are
based tun the same methc►ds and rates of depreciation as are used
to prepare Transworld's historical financial statements.
(d) Income Taxes, No adjustment is made to income tax exprnsc•
for the increase in costs determined under the current cost
computations.
C41 "
'Z
_.__.._.... - ._^N _
Accountants Report
n
Management's Rej)ort
To The Shareholders of Transworld Corporation: To The Shareholders of Transworld Corporation:
Re have examined the consolidated balance sheets of Transworld
Corporation and subsidiaries as of December 31. 1985 and
1984. and the related consolidated statements of income and
retained earnings and of changes in financial position for each of
the three years in the period ended December 31. 1985. Our
examinations were made in accordance with generally accepted
auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we
considered necessan in the circumstances.
In our opinion, such consolidated financial statements present
fairy the financial position of Transworld Corporation and
subsidiaries at December 31. 1985 and 1984. and the results of
their operations and the changes in their financial position fur
each of the three %ears in the period ended December 31. 1985.
in conforrnil% with generall% accepted accounting princildrs
applied on a consistent 1►esis.
Deluitte Has.kim, K Sells
Ne% )Orl,. !sew York
March 3. 1480
is
We have prepared Transworld Corporation's consolidated finan-
cial statements, including the notes and other financial informa-
tion appearing in this Annual Report. and are responsible for
their integrity and objectivity. In order to fulfill this respunsibil-
ity, policies have been established that require each s%stem of
internal accounting control provide reasonable assurance. gk-
ing due regard to the cost of implementing and maintaining the
system. that transactions are executed in accordance with
management's intention and authorization, that accounting books
and records are prepared and maintained so as to permit the
preparation of the financial statements in accordance with
generally accepted accounting principles and that acrounlabil-
itv for assets. liabilities and equity is maintained.
Compliance with these policies is verified. and the continuing;
adequacy of accounting policies and procedures is e%aluated.
through an internal audit program. In addition. Transworld
Corporations independent certified puhlic• accountants obtain
and maintain an unders-tanding of the accounting and adminis-
tralke controls in place and, based on tests (if those controls alit
of the accounting records, render an opinion on the fairness of
presentation of the finam-ial statements. The Audit Committee
of the Board of Directors. compot-rd of non►nanagenu•nt Board
members. meets periodic•all% w ith both the internal and inde-
pendent auditors to recei%e their reports.
Further. we recognize our rrsponsibilit% to c•unduc-1 Tran.w�uld'-
business in accordance with high mural and ethical standards.
Policies ha%r Bern rstab6hed and review pn►g:rarns arc main-
tained to ensure that the policies are understood anct that all
business activities are in compliance with there.
c
F. L Salizzoni
Tice Chairman
J. R. Painter
\'ice President and Controller
r]
Directors and Corporate Officers
Transworld Corporation
Board of Directors
L. Edwin Smart
Frank L. Salizzoni
Chairman of the Boanl
Vice Chairman
and Chief E%ec•utive Officer
Transwmrld Corporation
Transworld Corporation
Morton 1. Sosland
Charles J. Bradshaw
Director and President
President and Chief Operating Officer
Susland Companies. Inc.
Transworld Corl,oralion
(diversified activities including publishing
Lester frown
and venture investing)
Chainnan of the Board
Patricia Carr% Stewart
atni Chief Executive Officer
Vice President
Material Senice Corloration
The Edna McConnell Clark Foundation
(pnKlucer and distributur of building malrrial )
(non-profit charitable fuundationl
R.L. Hadle% Griffin
Curt R. Strand
Chairman of ►he E%ecuti%r Commirlee
Chairman of the Huard
Bruhn Group, Inc.
Hilton International Co.
la consumer prt ducts cumpam dealing with
jack Valenti
operations in footwear. recreational products
President
and sl,r•cialn retailing)
Motion I'lcture .Association of America
Jewel S. Lafontanl
Itrade ass twiation►
Pamner
Vedder. Pare. Kaufman & kammholz
Ila% firml
Transworld Corporation
Howard M. Love
Officers
Chairman of the Board
L. Edwin Smart
and lthief E%r•c•uti%e /Horst
Chairman of the Huard and Chief Exec•uti%e
National Intergnncp. Inc.
Officers
lmulli•industn c•ompam in distribution and
Charles J. Bradshaw
sen u•r businesses with imemmenls in metals
['resident and Chief Operating Of ver'
indu�tne.r
Frank L Salizzoni
John !! Mastour
Vice Chairman
Chairman of the Board
and (thief E%rcwi%r Officer
John J. O'Keeffe. Jr.
The Continental CorlK,ratinn
Vice President -Administration. General
(huldntg cumpam in the insurancr antl
Counsel and CorlKwale Seeretan
insurancr srnirrs frlds►
James R. Painter
Rubrri S. McNamara
Vice President and Controller
Retired President
Nicholas C. Moren
The World Rank
Treasurers
cumpam director. uni%ersit) truster
I. Alm- Charrrnmi. (.warm GIrl■rraitim. and Chairman of
C. Edwin Meer. Jr.
the L%rruntr (wtmnlNtrr. SluMan F-ld S%MVIn, Iw . and
trsulrrtt
Hdwn Intrma ninal C.U.[
and Chief E%rc•uti%v Officer
2. Ah•o Chatman. Slwrtan Rrw( s.%orrn.. in,.
3. Alit, Tn•a.urrt, Canirrn Cogn-rauon and *4la4rtan EK91
Hilt, International Ccr.
Stetrnt.. hit .
Arja% Miller
Ilran Emeritus
Stanfonl I. ni%t•rsu% Graduatr tichtol of Business
(wnipatt% dirr•41nr
Andrall V. Prarsun
Prufr.sur
Henard Bu•utrss SchtKd
Jerome J. Richardson
President
and Chirf L%euuu%r• l Ifflcrr
Spaman F/MNl his .
86-10 / 1
Transworld Corporation
Board Committees
Executive Committee
L. Edwin Smart
Chairman
Charles J. Bradshaw
Jewel S. Lafontant
John I'. Mascotte
Frank I.. Salizzoni
Momon 1. 4,sland
Patricia Cam Stewart
Audit Committee
Morton 1. Sosland
Chairman
Jewel S. Lafontant
Howard M. Love
Andrall E. Pearson
Compensation Committee
W.L. Hadle% Griffin
Chairman
Lester Crown
Arja% Nlillt•r
Jack Valenti
Finaner Committee
Frank L. Salizzoni
Chairman
John 1' Masctttte
Ruhrrl S. Mclamdra
L. Edwin Smart
Patricia Cam Stewart
Nominating_ Committee
Andrall E. Pearson
Chairman
%. L. Hadle% Griffin
Jewel S. Lafontant
Public Affairs Committee
Arja% Miller
Chairman
Charles J. Bradshaw
John P hlasc•olte
Robert S. Nit -Namara
C. Edwin Mrier. Jr.
Cum R. Strand
Jack Valenti
Retirement Plan Committer
Frank L. Salizzoni
Chairman
Lester Crown
Howard M. Lo%r
Jerunit• J. Richardson
hlomon 1. Susland �� �.
Patricia Cam Stewart
Subsidiary Officers /"`\
Hilton International Co.
Officers
Curt R. Strand
Chairman
C. Edwin Meyer. Jr.
President and Chief E\evuthe Officer
Hrlmut Hoermann
Eurcutive Vice Prr sident-Chief Operating
Officer
E. Peter Aird
Srniot \icr Prrsidrnt-Treasurer
Olaf S. 11ondr
.wmor \ice Prrsidrnt-Cent ral Europe and
Eastern Mediterranean
David F. Huffman
senior 1 ice President -Human lirsourc es
Ur%elupmeut
Pierre R. Jaquillard
.wnn►r Vice President-Uvistern Eunlpr. Gulf
and Africa
kennrth S. �Itrss
Senior 1 icr President -Asia aid Australia
Fred Ruoff
Senior \ icr Prr:idrnt-Marketirig
Jonathan Berger
%we Pre- ident-Cori KPrate I)ryrlopnlrnl
Alan Bridle
it Pi-rs►tlent anti Comptnillet
Anthony Carpenter
ice Prrsidrnt-1 oiled dates
Reginald h. Groome
1 or Pirsrtlrol-Canada
Richard Handl
Vice Prrsidrnt-japan. Guam. korea and the
Philippines
Jose A. Menendez
1 icr Pre.idrnt-Cdrihltrdn and Latin 4ntrncd
Mel%in Milligan
Vice Prrsidrnt. General Counsel.
and Assistant Secrrtan
Willem Sprokkrreff
Vice Prrsidrnt-Australia and %%outh Pacific
Oskar von Kretschmann
\ wr Prrsidrnt-Indonesia. Malaysia. Sing al►ore.
Sri Lanka and Thailand
Carob n S. Parlato
corporals Srcrrldn
41...I.nitlufMlr `a friary ut t Ylllrrll (.u►tMrt111uU.
end sparlan F..KI �t.tr•tn-. Im .
Spartan Food Systems Officers
Jerome J. Richardson
President and Chief E►ceculke Officer
F.J. Hammond. Jr.
Senior Vice President -Construction
and Real Estate
Louis P. Howell
Senior Vice President. General Counsel
and Assistant Secrelan
Samuel H. Ma%
Senior Vice President -Research
and Development
NVP. Phillips
Senior Vice President-Uperat ions
Walter M. Brice, III
Vice President -Administration and
Assistant Srcretan
Donald 1). Hasty
Vice President -Personnel
H. Stephen McManus
Vicr President -Harder s Operations
Robert Preyatte
Vice President -Harder s Operations
Olin D. Thomson
Vice President-Conslruc•lion
Canteen Corporation
Officers
Robert A. Kozlowski
President and Chief Execulke Officer
James A. Rost
Executive Vice President
William Adams
Vice President -Mitnot Operation, -
Harold F. Brogdon
Vice President -Engineering and
Quality Control
William H. Carlson
Vice President, (;eneral Counsel and
Assistant Secretary
Kenneth R. Davidson
Vice President -Purc•hasttip
Nicholas A. Dinielli
Vice President and Controller
Paul G. Duffy
Vice President and General Manager
FcKKI and Vending
Mel%in H. Grossberg
Vice President -Rowe Operations
Daniel R. Krpan
\*ice President -Marketing
John E. Napier
Vice Prrsidrnt-I)istrihutor Operations
Karl Ii. Sedlarz
\ ice President-Corpurate I)e%elopmen
Assistant Treasurer
Richard %I. Stein
\7cr President and Assistant General 1
Food and Vending
George B. Toney
Vice President-liec•reation Senice.--
Lau rence F. U ilkas
Vice President -Human Resources
86-1021
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