HomeMy WebLinkAboutR-86-1021 (2)NNW
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
*v N..1M PLOR'DA
INTEROFFICE MEMORANDUM 55
Honorable Mayor and �.AiE DEC 51�e6 ``E
Members of the City Commission
Cesar H. Odio,
City Manager
RECOMMENDATION:
S-SA_1 Proposed Resolution:
Execution of Agreement for
Orange Bowl and Baseball
Stadiums Concessions
REFERENCES
ENCIOSURFS
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the execution of a negotiated
agreement, in a form acceptable to the City Attorney and in
substantially the form attached, with
for concession operations at the Orange Bowl and Baseball
Stadiums for a period of five (5) years.
BACKGROUND:
The Department of Parks, Recreation and Public Facilities has
worked extremely hard to expedite the competitive process wherein
a new firm is to be selected to operate concessions at the City's
Orange Bowl and Baseball Stadiums. Such urgency is dictated by
the City's need to have a professional Concessionaire in the
Orange Bowl Stadium in time for the January 1, 1987 Orange Bowl
Classic, perhaps the most nationally significant event on the
City's calendar. The contract is itself extremely promising to
both the Concessionaire and the City, which anticipates $450,000
in annual revenue from these concession operations.
Pursuant to public notice, sealed proposals were received
by the City Clerk on December 5, 1986. A Selection Committee
reviewed and evaluated each on the basis of consideration to the
City, capital improvements planned for the stadiums, experience
and financial support of the proposer, the maintenance and
operations program for these facilities and the extent of
minority participation within the proposal. The Selection
Committees ranking of the proposals is attached, with
receiving the highest score.
Subsequent to the
ranking and concur
most advantageous
various features
aspects of
evaluation, I reviewed the recommendation and
that submitted the
proposal. The attached agreement delineates
of the original R.F.P. and the particular
is proposal.
86-1021
CITY OF MIAMI. FLOWDA
INTER -OFFICE MEMORANDUM
TO Honorable Mayor and L A'L December 10, 1986
Members of the City Commission
`H Cesar H. Odio,
City Manager
RECOMMENDATION:
BILE
Proposed Resolution:
Execution of Agreement for
Orange Bowl and Baseball
Stadiums Concessions
E^ICLOSUkES
It is respectfully recommended that the City Commission adopt the
attached resolution authorizing the execution of a negotiated
agreement, in a form acceptable to the City Attorney and in
substantially the form attached, with Volume Services, Inc. for
concession operations at the Orange Bowl and Baseball Stadiums
for a period of five (5) years, with the option to extend the
contract for one additional five year period.
BACKGROUND:
The Department of Parks, Recreation and Public Facilities has
worked extremely hard to expedite the competitive process wherein
a new firm is to be selected to operate concessions at the City's
Orange Bowl and Baseball Stadiums. Such urgency is dictated by
the City's need to have a professional Concessionaire in the
Orange Bowl Stadium in time for the January 1, 1987 Orange Bowl
Classic, perhaps the most nationally significant event on the
City's calendar. The proposal is itself extremely promising to
the City, which anticipates a $450,000 increase in annual revenue
from these concession operations.
The following example demonstrates the financial significance of
the consideration offered by Volume Services. The last Orange
Bowl Stadium audit indicated that the Orange Bowl had gross
concession sales in the amount of $4,362,830 and the City's
revenue from said sale was $1,448,505, or, 33.2% of gross
concession sales. Under the 42.1% of gross concession sales
proposal of Volume Services Inc. the same gross concession sales
of $4,362,830 would have produced $1,836,750 of City revenue or a
net revenue increase of $388,245 to the Orange Bowl Stadium.
SG-1021
Honorable Mayor and Members
of the City Commission
page 2
Pursuant to public notice, four (4) sealed proposals were
received by the City Clerk on December 5, 1986. A Selection
Committee reviewed and evaluated each on the basis of
consideration to the City, capital improvements planned for the
stadiums, experience and financial support of the proposer, the
maintenance and operations program for these facilities and the
extent of minority participation within the proposal. The
Selection Committees ranking of the proposals is attached, with
Volume Services receiving the greatest number of first place
scores.
Subsequent to the evaluation, I reviewed the recommendation and
ranking and concur that Volume Services submitted the most
advantageous proposal. The attached agreement delineates various
features of the original R.F.P. and the particular aspects of
Volume Services' proposal.
WEG/DEJ/cm
8671021
,"'IN
Cesar H. Odio,
City Manager
page 3
During the analysis of proposals, each was reviewed and graded
according to criteria stated in the proposal documents. The
criteria included: consideration to the City (maximum 30
points), proposed improvements to the facilities (maximum 30
points), experience of proposer (maximum 10 points), proposer's
financial qualifications (maximum 10 points), maintenance and
operations program (maximum 10 points) and minority and female
business participation (maximum 10 points). After all proposals
were graded, the number of first through fifth place scores were
totalled. The proposer having the lowest score (i.e. the
greatest number of first place rankings) from this computation is
recommended for award. The final grades for each proposal are:
RANKING
FIRM
POINT
SCORE
1
Volume Services, Inc.
5.0
points
2
Service America Corp.
11.5
points
3
World Wide Concessions Proposal A
13.5
points
4
World Wide Concessions Proposal B
20.0
points
5
WOM Enterprises, Inc.
25.0
points
WEG/DEJ/cm
86-1021
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EXHIBIT A
Summary of Proposals and Ranking
FIRM
PERCENTAGE OF
MINIMUM ANNUAL
CAPITAL
GROSS RECEIPTS
GUARANTEE
INVESTMENT
RANK
Volume Services, Inc.
42.1%
$200,000
$575,000
1
Service America Corp.
41.1%
$675,000
$525,000
2
World Wide Concessions
Proposal A
40.4%
401,000
$250,000
3
World Wide Concessions
Proposal B
38.3%
$375,000
$500,000
4
WOM Enterprises, Inc.
40.15%
$300,000
none
5
I
s
EXHIBIT B
EVALUATION SCORING AND COMMITTEE MEMBERS
Evaluation Criteria
Consideration to the City: maximum 30 points
Improvements to the Facilities: maximum 30 points
Experience of Proposer Firm: maximum 10 points
Financial Qualifications of Proposer: maximum 10 points
Maintenance and Operational Program Offered: maximum 10 points
Minority and Female Participation/Classification: maximum 10
points
Selection Committee
H. C. Eads, Jr. Assistant City Manager
Walter E. Golby, Director, Parks, Recreation and Public
Facilities
John Gilchrist, Director, Department of Development
Carlos Garcia, Director, Finance Department
Edmund Connor, Structures Engineer, Public Works Department
Legal Counsel: Alex Vilarello, Assistant City Attorney
Advisor: Adrienne Macbeth, Minority and Women's Business Affairs
and Procurement Administrator
EXHIBIT B
EVALUATION SCORING AND COMMITTEE MEMBERS
Evaluation Criteria
Consideration to the City: maximum 30 points
Improvements to the Facilities: maximum 30 points
Experience of Proposer Firm: maximum 10 points
Financial Qualifications of Proposer: maximum 10 points
Maintenance and Operational. Program Offered: maximum 10 points
Minority and Female Participation/Classification: maximum 10
points
Selection Committee
H. C. Eads, Jr. Assistant City Manager
Walter E. Golby, Director, Parks, Recreation and Public
Facilities
John Gilchrist, Director, Department of Development
Carlos Garcia, Director, Finance Department
Edmund Connor, Structures Engineer, Public Works Department
Legal Counsel: Alex Vilarello, Assistant City Attorney
Advisor: Adrienne Macbeth, Minority and Women's Business Affairs
and Procurement Administrator
y
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 period ended December 31. 198•1.
in c•onformit% with general]% accepted accounting principles
applied on a consistent basis.
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Deloitte Haskins 8 Sells
r .
Nt-A link. New lurk
March 3. 1986
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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•all,. 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 with them.
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 \ ace Prr.,ident-Treasuret
Olaf S. Ronde
Srniur \ mr 1rrsident-Cent ral Eurol►r and
Eastern Mediterranean
Da%id F. Hoffman
Senior \ice President -Human Resources
Dr►elupmcot
Pierre R. Jaquillard
Senior Vice Prertdrol-Ueslern Eurupr. Gulf
and Africa
Kenneth S. Mies.,
Senior \►rr President-A.,aa and Australia
Fred Ruoff
Senior \ ive Prrsidrnt-Marketiug
Jonathan Berger
\ rcr Prrsidrnt-O:urjK)rdlr I )r%rlopmrnl
Alan Bridle
\ ice Pr". adent and Comldn-lle►
Anthon% Carpenter
\ icr President -I nrted State -
Reginald Iv. Groome
\ icr Prrsidrnt-CanjiLc
Richard Handl
Vice Prrsule-nt-Japan. Guam. tubed and the
Philippines
Jose A. !Menendez
\ ice Pre,idrnt-Canbbrdo and Latin Amem d
Mel%in Milligan
Vice Prrsidrnt. Grnrral Counsel.
and Assistant Secrrtan
Willem Sprokkreeff
Vicr Prrsidrnt-Australia and South Pacific
Oskar von Kretschmann
\ter Prrsidrnt-Indune.ia. Mala►sia. Singapore.
Sri Lanka and Thailand
Carol%n S. Parlato
Corporate Srcreldn
41M. (data Naar Sri train ut Contras (.p►ldiratimi.
and SpendU F..dl 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
Tice President -Engineering:
Qualit% 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
Mel%in 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
8f-102 -
G5-
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
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.
. ---/ Iq
David R. Scoco
Sales and Marketing Manager
Enclosure
DRS:gat
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VOLUME SEFi VICES, INC. ,
December 5, 1986
Mr. Walter E. Golby, Director
Department of Parks, Recreation
and Public Facilities
c/o Office of the Cite Clerk
City of Miami
3506 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
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.
Enclosure
DRS:gat
0
Sincerely,
Volume Services, Inc.
David R. Scoco
Sales and Marketing Manager
GT7/9B-1
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. 531A()r)r1- 11)
BID BOND
Approved by The American Institute of Architects,
A.I.A. Document No. A-310 ( Feb. 1970 Edition)
&Noli' 111. BY 7711'.`EPRL•:5ENT.S, That we.
Volume Services,- Inc.
_ as Prin,:Ipa:, lleteinalter called the Principal
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 Sarct\ , hercuta:ter called the Suretj , are hc!d and f rntl) bound unto—___
__-- ---City of eliatrs — -- _ — -- _ as Oblige- het:;n:ifter called the Obligee
tt, the sum ,�!__--- Twenty —Five Thousand and Noi 100---_-------- _-------_ — — — — — Dollar
Is, ��,%C^v. QQ_ ), fur the p.n� nn;nt of which sum well and truly III he made, the paid Principal.and the said Surety. bin•
out ..!%c-ur heirs, exc:u!or,,. adwi:;istralors. succei,,ors arld assigns. join IIy and severally, fi;Ittly by these presents.
It'7/1 R1 .f.ti. the Principal has submitted a bid fur —_--Food and Beverage Concessions at %Baru
owned football and baseball facility from 1/1/67 to 2/l/91.
A011'. 711 Rt'FORE, of 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 hued or bonds as may be specified in the bidding o
Contract 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 in 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,
pciiah% hereof bomeen the amount specified In said bid and such larger amount for which the Obligee may in good fail
contract with another party to perform the Work covered by said hid, then this obligation Shall he null and vo;d, otherwis=
to remain in lull force and effect.
Signed and sealed this _-- _ __ 26th_.. _—_—_ day of--. _November _ November— , _ I c; -86
•
Vole Services, inc. — (Sea!
Principa
K. H. Sedlarz-'Vice/Presideln Tit1=
-� SAFECO INSURANCE COMPANY OF AMER10
Atloinev-m-Fac.
8f,-1Q
POWER
OF ATTORNEY
SAFECO
KNOW ALL BY THESE PRESENTS:
SAFECO INSURANCE COMPANY OF r
.3ENERAL INSURANCE COMPANY OF
HOME OFFICE SAFECO PLAZA
SEATTLE. WASHINGTON 98185
No. 4666
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
Bv.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
5 974 9 ' C' 3 66
this
day of
19
PRINTED IN U 5 A
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
-r 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 to the aforesaid Coui
u the day and year to this certificate first above written ,
Notary Publi ,ther.4 pf,
l a{(
(Seal) County of
5 Z30 as 6 78 PRINTED IN u
� p
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4 9
TABLE OF CONTENTS
IMODUCTION
A.
CORPORATE PROFILE AND PHILOSOPHY..................3
B.
OUR CREDENTIALS..................................13
C.
MANAGEMENT PLAN - OPERATIONS .....................36
D.
MANAGEMENT PLAN - MANAGEMFr*T AND STAFFING ........
42
f.,
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
"= v>
EXHIBITS
� hr
ry'
- 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
S(;..ILV 2
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
-1-
0
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-
_ ;1,
x;
l
During 1985, Volume Services Inc., became a part or rransworic
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- 8f,--i4?
f
i
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:
4
- customized design
- convenience to tenants
- tenant catering
;t
Build -Your -Own salad bars
prepared to order delicatessen sandwiches
kitchen fresh soups
m
- 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
-6-
C ' '
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
-8-
,.
* 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
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
t r
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
f
foodservice personnel.
Much of our future growth will come from our existing business base.
-�,..,..j
The on -going development of quality programs, sound controls, and our
*aF.
ability to out -perform our competitors will continue to provide us solid
growth opportunities.
0
s
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
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-1P1--
foodservice locations
managed by Volume Services.
You'll find out we
don't just talk about
w;.
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
-13-
8(; -1.Q2
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 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
(Total 200,000
sq.feet)
Arena
( 5,200
seats)
Concert Hall
( 2,190
seats)
Performing Arts Theatre
( 661
seats)
TYPES OF SERVICES
Concessions, catering and
novelties
START OF SERVICE
1985
0
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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)
�
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86
is
[ENT Hollywood Greyhound Track
831 North Federal Highway
Hallandale, Florida 33009
'TACT Mr. Les Schwartz
305/454-9400
:ILITIES Greyhound Track (15,000 seats)
Dining Rooms ( 700 seats)
'ES OF SERVICES Concessions, catering, restaurants
►RT OF SERVICE 1973
CLIENT
CONTACT
FACILITIES
TYPES OF SERVICES
START OF SERVICE
a
Hubert A. Humphrey Metrodome Stadium
900 South 5th Street
Minneapolis, Minnesota 55415
Mr. Jerry Bell
612/332-0386
Domed Stadium (65,000 seats)
Concessions (stands and vendors)
1982
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
•
-21-
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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
a
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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
a
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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
0
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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 Sodrac Park/Jefferson Park Racetracks
Box 195
North Sioux City, South Dakota 57049'
CONTACT Mr. Iry Epstein
605/232-4321
FACILITIES Thoroughbred Racing
Greyhound Racing
TYPES OF SERVICES Restaurant and concessions
START OF SERVICE 1978
•
—31—
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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
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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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4
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
•
W34-
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
f �i•�-fi1Y's `,Jr�l "i+..kpn��4� Y ?
kJ
Catering
n
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-
ran
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?
A
-39-
86°'1,02
C
A
Catering (Continued)
* Determining the size and sake -up of the audience
The number involved?
- Are families to be involved?
* Setting the specific objectives for each event:
Avards Banquet?
Presentation of the annual report?
Executive seminar?
ter,
* Setting the date and time
sR. "
Setting the budget?
sf
- On a per -person basis?
An overall figure?
* Determining the type(s) of menu(s) required?
- Several course formal dinner?
Cocktails?
Large Barbeque?
"Theme"
_
- Special menu, decor, etc.?
It's our sound planning that assures you of perfect execution, no matter
what the requirements.
s
s
5'
{
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.
-41-
$6..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
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
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
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
-42-
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
profit levels subject to the input of our corporate office.
Proposed Management Organization - Miami Stadium
Y r, l
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.
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
description; such as, Waiters. Waitresses, Concession Stand Manager,
etc. One unique employee is the Condiment Stand Porter.
•
-44-
86.100
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
0
-45-
A
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.
•
-46-
Management Staffing
i
This management team will be in contact with the Center on a continuing
basis.
Mr. Barry Freilicher - President, Volume Services. Mr. Freilicher has
3
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
,i
food service such as, coliseum, arena, stadium and racetrack management.
Ar`.. 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 Rent State
University, in Rent, Ohio.
Ll
-47-
& 1
"S0
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 -1U21-
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.
86-�s02a
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-
44
t
Capital Improvements (Continued)
Miami Baseball Stadium
n
W
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.
•
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 stand a
complete opening inventory is made by the Stand Manager, and the initial
bank counted and entered by the Assistant Manager.
s
-52-
86OW
JL021
19
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
-53-
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.
86.1021
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
-55-
86�1021
i
1
s
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.
a
Hourly Employee Development
i
It is Volume Services' objective that our employees be efficient,
P y P necessary skill level
courteous and professional. The must possess the
training not only to perform tasks properly but to understand the
,
!t
purpose for all procedures.
r
V.
�r,'. Volume Services Employee Development Program includes all of the
"r following elements:
Individual.Job Descriptions ... A separate and complete job
�4 ,tip
.�
description is written for each
P job and is reviewed with eachemployee.
*�-
It includes information such as: basic
qualifications, pay scale and benefits, responsibilities, and
.t,
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
"s a
individual job requirements.
e
-56-
86�1.()21
M
Training and Developmelt 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 :1Q
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 :1•t
Team Member Training
Tuition Reim biirsemviit ( For Full -Time :lei
Salaried People)
MOWee--102'-
u
Bourly Employee Development (Continued)
Training aids used in this process are Books I and II of Canteen's
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
- 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
I
I
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—. 1 21
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
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'u 67*-1021
x 4
1
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
F, � Cover food service skills, alcoholic beverage responsibilities
and sanitation practices, filmed at actual Volume Services
i
i
locations.
j4 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.
0
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86. 021
r =.
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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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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t - —
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:
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
i
A
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.
e
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86. 021
VA
Our Discounts Are Your Discounts
i
i
With a large number of accounts in each of our Regional Areas,
r�.
Canteen/Volume Services is able to combine the needs of all our
customers and sake 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
,g4 ,
t'CZ`
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,
�t
w {�
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.
s
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1
Our Discounts Are Your Discounts (Continued)
i
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
fondservice 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-
M%
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
K, them.
s Operations personnel are charged with the
responsibility to seek new items when visiting
restaurants and dining establishments.
47—
Employee recipe contests are conducted twice annually.
.r
With recipes available from a variety of sources, our challenge is to 1f I 1 -1
-Rl-`-I�n-k' -- 1
refine them for the clients we serve, adjust them for regional tastes,
and adept them to volume foodservice production. Using our test
E I
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 foodeervice experts from Volume
Services. If the menu item to well received. It is then taste tested by
7�
customers In our Training Centers.
0
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1021L
1�0
Menu and Recipe Development (Continued)
Only after passing all these tests are new dished introduced into the
I 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
r
the food we serve all foods are purchased according to
°x specifications and standards. You will not find higher
quality standards anywhere in the foodservice industry.
tix� �r
Z � i
-68-
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
V
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.
e+`
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:
aFF.• s`
Row many of each individual item were
i
prepared.
rTtnh
Row many were purchased.
Over Production.
-69-
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,
:,.
WE
72
i
s
IN
,^ ..WA
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
w
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-
86. am1021
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.
fs..
The program includes:
* Entrees
Finger foods
* Vegetables * Fruit and cheese bars
' * Ethnic specialties * Contemporary fun -food
Desserts
{r ie t
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
86. 1021
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�-1021
FA
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.
J Since the program can be updated easily, flexibility in menu planning
I J' 11
and custom designing of menus for specific client requirements can be
quickly achieved.
0
-75-
86-1021
ig
DECLARATION
DOCUMENT 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 wittiout
connection or arrangement with any other person anal 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.
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 $25,000.0O (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:
a
- 16 -
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)
S6. am1021
I
,
70M .: -.
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
-17
Partner)
PROPOSER: (If Corporation)
Nami
By:
Atte
(CORPORATE SEAL)
86r1021
UESTIONNAIRE continued)
Q �
PROPOSER'S Name:
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:
20 -
s
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
CT Corporation
8751 W. Broward Blvd.
Plantation, Florida 33324
Barry Freilicher
Christopher Bigelow, Craig Trimble
R. Skadow
Section 5/Document #3
8-1021
s
QUESTIONNAIRE (Continued)
If a Partnership, answer this:
Date of organization:
General or Limited Partnership:
Name and Address of Each Partner:
N/A
4
N_
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
operated similar business,
together
with the dates of
.Y
operation:
Type of Operation Name
Location Dates
(a)
Please see attached section
`RLiz
(b)
B - Client list. Volume Services
k`
(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.
`t
y Section 5/Document No 3
- 21 -
86-1021
QUESTIONNAIRE (Continued)
3. List below the names and addresses of PROPOSER's landlords
for the operation listed in Item 2:
3
Operation Lan_ Address
I (a) Please see section B
(b)
i; (c)
3
(d)
i .. (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
i (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
s the operation of concession similar to the proposed
concession ever been cancelled?
YES ( ) NO (g )
u-
`F. If yes, give details on a separate sheet.
rp
7. Bank References:
B_ ADDRESS
Barnett Bank - Timothy McGuire P. 0. Box 2340
~' Jacksonville, Fl 32203
r
Continental Illinois - Robert Curley 231 S. LaSalle
Chicago, IL 60697
• Section 5/Document #3
-22-
86-IL021
t'
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.
a 10. Have you carefully inspected the STADIUMS?
z
a Yes ( x ) No ( )
_ F
i 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
i proposal:
A. List all pending lawsuits:
None
B. List all judgments from lawsuits in the last five (5)
years:
None
0 Section 5/Document #3
- 23 -
8f -1021
5
QUESTIONNAIRE (continued)
C. Have the judgments listed in "B" been fully paid and
satisfied?
f N/A
i
9
5'
D. Are the judgments listed in "B" and "C" currently being
eooealed?
a
-f
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
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
T:
AU
A
•
- 24 -
If Individual:
Signature
Print Name
If Partnership:
Print Name of Firm
Address
By:
General Partner
Print Name
If Corporation:
Volume Services, Inc.
Pr i r, 1. 1A ... `. v 1 V V• .
120 S. Riverside Plaza, Chicago, IL
�dres
By:
-e,--
Pr VTdEe
nt
(CORPOSEAL)
6060
86-1021.
r
SECTION 5 - DOCUMENT NO. 4
INSURANCE STIPULATIONS AND STATEMENT
A. GENERAL:
1. UNCEMONAIRE 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
t' 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, with at
least a combined single limit of $1,000,000 per occurrence
for bodily injury and property damage liability.
25 -
86-1021
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
e
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
Yt;
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
1
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.
5-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.
r ;.
26
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
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 GW 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
$5,000,000
AMDLN''T OF COVERAGE
_January 1, 1968
E?TIRATION DATE
R
86-1021
SECTION 5 - Document No. 5
MINORITY CLASSIFICATION AND PARTICIPATION
INFORMATION AND ACKNOWLEDGEMENT
1. Indicate CLASSIFICATION of Business Enterprise (PROPOSER):
E ] BLACK E ] HISPANIC E ] WOMAN E ] OTHER
2. Detail MINORITY/FEMALE PARTICIPATION within your firm or as
it may apply to this proposal, if awarded:
Please see Exhibit 2
A. JOINT VENTURE:Provide information regarding Minority/Female
firm(s) participating as such and the extent of participation
..% of Dollar
Firm Name Business Address Proposal Amount
B. SUBCONTRACTORS: Provide information regarding Minority/Female
-
firms that will be subcontractors for this proposal, and
their extent of the work
y
% of Dollar
Firm Name Business Address Proposal Amount
s
a
C. SUPPLIERS:Provide detail regarding Minority/Female Firms that
will Supply you with goods or services, and the extent
3
% of Dollar
r
Firm Name Business Address Proposal Amount
y
D. AFFIRMATIVE ACTION PROGRAM
3
If existing, Date Implementegetail of program must be attached'
If planned, Date of Proposed Implementation:
The undersigned PROPOSER acknowledges that it has received a copy
of Ordinance No. 10062, the Minority and Women Procurement
Ordinance of the City of Miami, and agrees to comply with all
applicable substantive and procedural provisions therein,
including any amendments thereto.
PROPOSER; Volume ervices, ne.
s
SIGNATURE:$
fi
• 28 -
86-1021
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
i
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
I
4
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
9
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 'roor Press Box, Orenge Bowl Stadiu-, 15L
.M. 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:, -'re:
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 Or:inan_e
No. 10062 which established a goal of awarding 51% of tys
the the Ci
total dollar volume of goods and services to Black, HlCi anc
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 «ai+e Br-,
informality
in any proposal; and the City may reject any a-ic �11
proposals and re -advertise. (ad no. 4605k
CITY OF MIAMI
ADDENDUM NO. 1
NoveMp'er 20, 96E
Cesar H. Odio Received by: �.��
City Manager l
s
CITY OF MIAMI — REQUEST FOR PROPOSALS
CONCESSIONS AT ORANGE BOWL AND BASEBALL STADIUMS
i
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
3 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 _ e St. fy I Ter,
DATE: / 2�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
z
of Miami is expressly prohibited without prier written permission of
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Volume Services, Inc."
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50-1021
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
f
covered the growing liability concerns very well, the primary concern
i„ 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.
i Define the legal responsibilities of the employees and Volume
Services.
Reduce the possibility of alcohol related problems.
Decrease the potential for litigation.
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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.
8E-1421.
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
contribution to the communities we serve.
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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
86.' ow1 21L
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
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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.
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86-1021
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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.
SG71021.
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VOLUME SERVICES
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UNIFORM PRO
GRAM
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Our Uniform Program
The Volume Services Division is proud
to present our new uniform program
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which has been developed with
comfort, style, easy care and versatility
as the uppermost goals of the program.
o N
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
r>
same time will upgrade the overall
appearance of our enure food service
+=r
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
x
O) Restaurant/Catering Lounge
CacaAay Apron --Black & Wrnte Pinstripe
r: F' Format Bowie —Red or Black
Employee's Own White shirt/Blouse
Y : Emp;oyee's Own Back Pantsr
y M
� 1",
VOLUME SERVICES ORDER FORM
REM
SIZES b OUANTITIES
TOTAL.
PR+CE
TOTAL
OTC
EACH
PpCF
S
M
L
XL
XXL
VENDOR'C ONCE S90N
(34 36;
(38.401
141-44)
145 481
150 511
WORKER SHIRT
Xs
S
M
L
XL
SERVICE PERSON
F"ruok
68
10.12
14.16
18.20
40-41
C<XF yM1T•
MAk
31
34-36
38-40
47-44
46-48
YAN
FEMALE
One Sze•Frts•All
JOCKEY STYLE CAP
MALE MESH
One -Size -Fits -All
BASFFAU CAP
3•POCKE T
One We-Fits-ft
CHANGE APRON —BROWN
REST AJRA%T,
O ne-&?e-fits•Ali
CATER'NG :OLNCF
CALLA%4,AY APR0%
FORMAL BOwTIE
One-Sipe-fils•Ao
RED
FORMA, so"TIE
One Sre F.Is A.
BLACK
NUMBERED
One S: a •Fits Al
RVyG4 AS
115C r,
•A! - ^�m p•� 11 Pie:es
NOTE: Vendor/Concession Worker Shirts will Come Complete with Agen D Insign.as applied on
ar Initial orders Employee Number Insignias wd; also be affixed to the number of Shirts ordered For
those initial orders totalling less than 250 the balance of the Employee Numbered insignias be
sent to you detached with your order Please return the exact number of these patches to Uniform,;
To You & Co when reordering
ORDERING INSTRUCTIONS
A standard Voiu'ne Service purchase order or letter mu5! ac-
CoT;.P-y a: o•Je•s Complete th ! order forr^ Inse" a corn
plete:: votu^ie Services purchase order or letter. and ma:' to
UN1FORMS TO YOU & CO
Customer Service Department
4340 West 47th Street
Chlcagc Iluno s 60c)31
NO P O BOX NUMBERS PLEASE
Ordered B)
Ship To
Add'PSS
P.O N
Dare
Telephone
Tote: A° 1�4e•rh2-,d « '
Applicable Sales T2, I !
I
TOTAL AN"OJ%7 TH'S ORDER
(ALL ORDERS SHIP F O B CH `ACO;
Clti Slate
Zip Code
Ay
DLivER+ NEEDEDE)i
7 �DAM
PRODUCER
VIVS CERTIFICATE Ei ISSUED AS A MATTER °F 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
COMPA `' D
LETTER
CHICAGO, EL 60654
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
00-k' Erqt '-T
DA'I MUM".
PDLK% EM;• 4'4>
CWT WODw.
LIABILITY LIMPS IN THOUSANDS
EA-
AG3RE:,a'E
tU
{
WMERAL LIABILITY
X• cammEaawE�
P%WOPERt►JAS
X E1(P.OS 3NA COLLAPSE HA 0C
CCP001701517
12-31
12-31-89X
7-:2-,—
$$A
PROaERSES
DAAu►GE
$
$
°
X; PFKDXTSCW.M OPERAT1OAi
B X cohTpAc-ruA. (Blanket)
X 00 WXAr D0ATRA;T09tS
91 • PD
OOVBINE�—
$ 1,000
$ 1,00D
X MO FORM PROPERTY MICA
PER5JF.4 IhJUR%
PERSONAL INJUgv
$ 1,000
X , Liquor LiabilitL
AUTOMOBILE LIABILITY
A }�X' Any A.^:
Hlvf�' A.. ONN. A.^ rP�g1.
A.: ChN►�:: A: T,E PRM� CPTIL
BUA001704516
(Except Texas)
12-31-86
12-31.89
NX.
$
ecn
$
_
A aohE: A,rX
CARAU .IAE1.
GCP001704517
(Texas)
,
-,
.ate
DAMAGE
$
Bcome'NEz Is
1,W0
w
EXCESS LIABILITY
C Ir UMVZ- , FOW
MR T►MA LIM6R�..A FDW
VARIOUS
12.31
12-31-89
B6 QED
$ 10,000
$10,000
A
wOlY�RS' COMPENSATION
AND
BlIPLOYEM uAaa,ITY
WOD01704519
WC W1704518 (Calif.)
12-31-86
12-31.89
6TATtJTORV - ; -;-
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5 (EAC« A:Z!.-
;5 OSEAS--P o— IJ ""-,
(DISEZ
0T1ER With respect to
Orange Bowl Stadium
NX ed Insured's
Miami Baseball Stadium,Certifi
oonoessi
operati
n at the
to Hold
'ty of Miami's !
Warned below is an
..
DESCRIPTION OF OPERATgNyLpCATIONS/VEHICLFSISPECYLL ITEMS
30 DAYS ADVANCE NOTICE WILL BE GIVEN
CERTIFICATE HOLDER IN EVENT OF
CANCELLATION OR CHANGE IN COVERAGE
e
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City of Miami •
Finanoe Dept./Risk Management Div.
65 S .W. 1st Street
Miami, FL 33130
NOTICE
PAN ITS SKE L I AJ UA&UTY
7
AJTHORIZED REPRESENTATIVE •
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E8* otters of Recommendation
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0 LIVESTOCK SHO`N
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June 28, 1984
To Whom It May Concern:
x Volume Services, Inc and now Interstate United Corporation has been
F operating food and drink concessions on the Arkansas State Fairgrounds
since May 30, 1979.
rg 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
X 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.
I We a well pleased with our Interstate United Corporation team.
Sinc rel
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J H R. HOLMES
xecutive Vice President
JRH/bj
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ARKANSAS LIVESTOCK SHOW ASSOCIATION 2600 HOWARD • P. O. BOX 907 • LITTLE ROCK, AR<ANSAS 72203 (5011172.§41 - ��
E
i grange County Convention /Civic Center
Thomas R. Sewel►, Executive Director
September 1, 19e41
TO WHOM IT MAY CONCERN:
i Daring 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 standarc!s for evchitec•tural desit-r• Here eNtahli,,hed.
Building service, were also mandated to maintain urn "Kbovc the aver,-r" 1ev41
of qualit:•. "
The "',1dn3gement Fee" concept, adopter4 b_. the Oran; c County Convention/Civic
Center. ollov ed the facility tc p;:rtir,pate tsith the fold service c•ontractni- in
co:,trollrn; service level, price and food quHlit�•. This t�pc• of b►rangemmnt <i�miinr'-
extensive catering. concession End mdnbaement experience from the- food ser>>ce
contractor.
Volume Service_ was chosen as the compaw. that %• a: be•t ae to m,et tl,e�e
demands after, a competitive bid prose=s, involvinn a numt,c of nnticnil firms.
The-v have dcrion;trated an rbilit• to modify its opc%tion to meet the cl,rn5ino
needs of the Civic Center and our cAicnt,.
Tlie Orange County Convention/Civic Center is ply;
Scry ce, -i-ion of lnterstatc lnit(-.: Corroratinn as can intogial pcsrt of
°.x budding, staff. he believe the\ hi:kc helped u� n,athi, rsr. cxf•cptior,::l fac•i�„�.
Sinrercl.
1
t 7•nomas 1{. Se%%cll
TRS!�:�J
f` 9800 Inte►nanonal Dave. Or;ando. Florida 32609. 1305) 345-96_r,
86-1021
0
SL Paul Civic Center
I A O'Snaignessy Plaza • St Paul, Minnesota 55102 a (612) 224-7361
Marlene I Anderson
Manapm- Oircctor
September 7, 19EW4
i
In :,ctoter 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 local co n: es:ion operator to a national food and beverage
y
co -._an-: has Frc•: er, to be a very positive advantage in our food
scr•:ice area. vel•ane Services earefilly planned the transition, and
ca:r:e- it thr:::cr: with no ir.terr::rtion in service to our customers.
Cncc on boor=, they be=:.n renovation of our concession areas and have
__ . -_ n ..
:c :e r..ade rz- i---e•:ore-:s :- t::h the facilities ar_ ecuiFnent
:-.:-.. Vcl:-.e ::-:ices w=rks closcly with o_r staff to prrvide
is nezessary to best serve the event. a Civic Cer.tcr
faz.13t•• w,s cvF: 350 event days wit-h attendance over 1.5 million
Events varae= from cvntinental breakfasts for 2;:. luncheons
far 5:•0, to sill -out concerts of 16,000. Vcluae Services catered
tc t%z nec = of the e•:cnt, an:: maintained the quality standard our
c.:_ :cr.r s havv cone tc export...
•.
•,
�_c.•_r. -':y 1:c1•_ e Services is ac:ivcly Fa:tici;atirc ir. c::: :1'
py.
r.::__. r�-�•:a___.. Frc.•ec: r.-.: in Fro:e_s. The:2 exrer.:sc hes bey^
:c :-, the ::es:=r. :: t`.c• ccnces_icn se: vice areas, an.. a
fl:s--e•:e: in hcuse ki:c=,c fay:li:y.
-
.. 1 .. art- consi:c r _ r.: a f cod and be•: cr age contract for you:
er.cc_-are .•�_ tr look to V:lur.•c £ervices,
i-.d w�.at the;; car, offer your e_e:ation and your cjstomers. It is
truly a r:cfess:onsl fu11-service food and beverage cor..pary tha;
has Fat__fie3 o.r eu_tcmc.s and made my staff Frond to have then
ire the Civic Centex operation.
Yo::rs Very truly,
Z
^^
art;
Marlene Anderson.
7
Managin: Director
fr
41C$h. sos 86-1021
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:url►tlr,ltit,ll. ullt' of tilt' rlalitni., lav"- Components of Revenue
t.^t t%Iitl �t,r\ 1t t t tiinli.uut,^. at•t•innit^ lilt, ul►I►ru\i-
n1, 1.1\ 16 lit•rt•t•rlt ut •l'r,lll!.\\urltl', rr\e•nut•. 24 pt•i-rent
,11 ^ ul►t•I'.Itill" lllt•olllt'. and .fit) pt'l't't•Ill ill its a: m+%.
'lilt, l'ulul,an\ r1, 11 t I!. Ow t,t11'11411-illt, \\t►rltl tilrutlrll
r.11 '1"II1%r' ill ltI t,\t•t•tit 1\t• tlillillt,,. collll►tllI\ caft'It•t'iils
dll, \t'llelill�t.', I-elle•,luue•111 l't'lllt'1'�. (:illllt,Nll M'I'\t
-t,1 ltuu.. ar11I'l'. anti titlu•r 1'ect-cation fucilitit,?�:
Ikt• Itt,tt^. Illll'^itl_ Ilt%Illt•r: 1't•tilt•Illt•llt t•tlillitt11t11llI'•:
•, I %t%1 t'tillt'1t'^: ,Hill t'%il'It't•lW1I'll 1.It'Ill tII ^. It itl^Ii
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jji !II\1111,IIt'I\ 22 1n•It't•tll tit IIJII^NI1IItl It•\%'lint,
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" r•It ,t I1.11111,111_r•1^ .III/I Illt'.fAt.l^I 111^t'llllr. ;1� 1\t'll .►^
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ttl n11t,- 111,111 -�; )OI► nlilli'm Inter:-I,It,- \\ ill fill •rt•u,r
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\Av cut, hine a nun-ul,eratin): factor fluff %%ill sit'
our rel)Art ed earnings gnmtIt in 1986. Traits\\orld's
eITVcti\e la\ rate is rising; as the c'onipam c onll,lrtt , i
transition from the higlll.\ c•apital-inten,i\e airline' hu .-
ne,s ell till- m(we stable. and l►rufitahle. set•\ ice
Uur• effi•clke ta\ rate. \\hick \\as 2:3 percent in 1981.
role to 27 percent in 1985 all(] is likel\ II reach -10
percent or more in 1986. Despite this transitional ef, ,•I
\\e remain confident that Trans\\ur•ld call achie\e it-
l►rufil uhjeclke, in the future.
Oil an t,l,eratint hall,. Tram wirltl ,Mild Ill- +•-
fit Ow- \ear fi•um the l,u,ilkc impact tun Hilllm Intel; -
tiun;ll', re,ull, ufa strengthening of turci; n c'urrenc. and anticipated eummi tic grimill ahruad: the full-\,
cmllrillwiln If the lnter,lat,- L ailed actllli,ililn tI ( n-
fe,-n: and flit' llr(Ifit tur•nawillid m, are -trit ins 1,01, ilf
afun" \\ilh continued ,ucce„ im ]larder•
Inme into 1987, \\ilh a more,.taldc t,l
Ia11', Nt t'\1,t,-1 1111' (pperatlll,_ e'arnillg. - r1•I\\tll to
file IIIttIn1 line . enabling,'Ii:uls\\Irld to re1,11I in1I11
Int fill in earning:- per share 1/ match fill• underl\ iu
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d,-fit 11 It'll -tilue dirt —Om II "fill-t\nr1,1 I
l 11. h,+- succeeded t:urt ;U'and a-•l,rt'-id,-nl :old , h'
e\r t'llll\e I)II,-,-1'. l.11l'1 \\ill I.Illtl)llit, IAI r-A to }11 a -
chairman If i1, hl,nd f1111\\img: his relirt•nit•I)I 11,1111 . of
e\r c uti\t resl,In,illiIitic,.
Arif\ \filler. if directlrll "Tran.s%%orld ,int'c
1978. \\ Ill retll't• trmll tilt. 131a1•d Ill lilt' I,-,-asI111 If u
Am mal \lr,-ting in April. \1t' thanl, him till- hi, \e.n• i
cullstruclM. cllltrilout i/n, t1 the Board" dellk-l-alill
and \\e \\i,h 111111 \\ell in the \ear, to cIn►t•,
F'inall\, \\e thank all e►fthust• \\lit, cuntrihut,-, I
"li,11-\\Idd', Ilr/g:ress in lc)Y.i--•harehlldt r,, t�,i.(p
t n11111„t s arlmrld the \\urld. clit•nt,. cu,tlnl, 1-.lull
ItIt1{t III•\lard Ie1 .+II t'\t•11 hellt'1' ltliil►.
l.. F:d\\ in smart
1:11.lirmall and Chief E\ecuti\e UIT
March 21. 198o +I►3 i—ILQ;!I
I
Dear Fellow Shareholder: 1 it a near in i^ hich the I .`
economk greN only 2.3 percent. Transworld*- tyrratin,
earnings increased 17 percent in 1985. Dtitii,_ 14,5.
management also implemented several import,tnr -trat►
gic and financial programs to enhance the Yalu, •d %ou.
investment.
Net income, including an after-tax r;aii. (.i. the
sale of Century 21 of $102.8 million. was S217.7)
million, compared With $115.0 million in 19,' c i in, ,►m
front continuing operations, excluding the• sal, . • .•n-
tur% 21. Was $101.8 million, compared with
million in 1984. Earnings from continuing o1,•
%ere S2.56 per share, full% diluted. up from i i,.•r
share reported for 1984. Earnings per share Ii-w
net income ruse to S5.60, full% diluted. front �-3.i i, i the
pre%ious year. Earnings per share. Muth on net iik ,gnu•
and on income from continuing operations inchi i• - a
one little charge equivalent to S0.13 per sliare r,•{.,.`•,1 to
the redemption of the Series B Preferred Stock.
During the %ear. We sold Centur% 21 Rco' I -kite
Corporation. a nwme that Hill gi%e improved fo, i,-
our compam's management lalents and enable t:-
present a clearer, more compelling imesUnent I. �u-
nit% to lilt- financial markets b% concentratin' it.
lodging and related businesses. Ili October. sired
lnter.state United Corporation %hose fou►I ser% I. d
y.
It-isure-time businesses Will aurntent file alrea„ -
cessf•ul profit growth program at Canteen. In Jim:
began a common share repurchase program. and. ,:.
December. we redeemed the remaining shares of ,� s
- h Preft-rred Slock.
Operatiunall%. Trans%orld's three major - -idi-
aries had an excellent year. Canteen continued
successful program to impru�e margin: and cuiu rate
on its less capital -oriented operations. Sparlaii s 1 1,iers
di%ision had another outstanding %ear, while Ih, iin-
c•i's di%ision dealt with lower traffic counts in it- _
ment of the restaurant indumm In the huiel bu-
Hillon International's stronger operating perfurr, e
became evident in our financial statements as GO n
currencies gained strength against the U.S. doll.,
:f=
s:
1985 Highli Tits 0it C)ctuber 31
g.1'rau- rld
c•unipleted the sale of Century 21 to Metropolitan I
-�p
Insurance Conipam for $251.2 million in cash.
c; nienl concluded that the growth potential of CAe'ntu, , 21
was in the financial ser►ueti area. wh
WQZIL
inappropriate to risk shareholder:' valvc�i I—
4 .e�
- - ���-� ,
v'�" .m:
� ,:y
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ell,
f fit'
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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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Annual Re ort
1985 :fir
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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
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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 prc"ess:cna: resident
........':er and anj 3r'_3
Menus and Merchandising
Operational Control
pr :f er _ni'at._:, ana
........., _.......tee �.. t3'. .....es .� a-�.:r3._ ... r.�.:n .'
Staff Support Services
V. ,.. ...aCk •.;p ..:.ch, r _rerQt...nJ ..,tn a
•
�..: _:=P,etnent C: S.::. :aff support mc.ing
es P:ann ng and Des,= Research and
I abcr Re:at:ens Personnel and
Tra:n.na Ins::rance and Tax Consultants to
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Banquets for 25
to 25,000...
The Volume Services professional approach is
a,sc 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
custcrner. our dedication and enthusiasm for ex-
ce;:ent 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
ccm ^un ty and business -related
-...Zat.ons
Referral Booking
ti-zt:,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
create unique catering menus for each
iccat:cn that are attractive, flexible, and cover
a :'::de range of tastes and budgets
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I Volume Services...
The Leader in Food Service to
the Recreation Market
I
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Our People
Mana _iers .: aCers and :%ai esses chefs,
des»n�rs standworkers. banquet salespeople.
acczuntants. superr:;scrs
:j : 7,7 _ . � e~ p:cyees of Volume Ser
vices anu Interstate United Corporation :':;1;
'- q .nest
Our Experience
" Our Training
Th:S ... i_._
and ... .. .
Our Systems
= Volume Services C_.._ __._.. _.:r
Pr''.ra M d`:a C u, c_^ p ::e:
p package _' ser'... _ .;e
Our Financial Capability
P' C, .:e ha:'e the f:nanc;al
resz-.:rces and ex;b;rrr: required to d^ !.he lob
Our Pride
We en;: y .crk and take Treat l_!;zie :n say-
;nq t -..:e Jz) it best . May %e serve yoa`
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4-Unit Concession Stand
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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-
•; e„tip , 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& ..... :., p:l:fessizna. fc.-d se!%%ces
...:n the re:rea!:= mark'e• Wh.. 1�
.._. _..-erta:nment fac:!:.:es se'.ec: Volume
Services .-_ te::
Management
..-.. �_........ a: '; _.... _._ :-•e .::e ICJ'• :n
Market Orientation
� --- - __ .:...ors _ �... _ .:rs. ', : e se: •. ; ti-;e^.
Maximum Income
Teamwork
:eve.:- anu
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16
VOLUME SERVICES ,
Thank you...
C.
k,. = for reading about Canteen
Corporation in this RESTAURANT
BUSINESS article on foodservice
management.
h Canteen Corporation
Merchandise Mart Plaza
Chicago, IL 60654
80-1021
Thank you...
for reading about Canteen
y ;
Corporation in this RESTAURANT
BUSINESS article on foodservice
management.
s
Canteen Corporation
Merchandise Mart
Plaza
-_:
i.
Chicago, IL 60654
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0
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86-1021
i
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ttt,ItLt_c'ttic'tt1 ++t ��+111tTt,hllt\ Uffll/:f-
tl,vl rn�r.uns .
C. ile_e, .nisi uimersities on the
he:,ul%e file% lend 10 he
tits n:,lth.t t,+r C.utteen I ll, %e\er,
the ,,,mpan has re:enll\ piAed up
�e\era! :,+ntr.l:ts In addition. there
Is ; '!:ntlal for the Gullt\er's con.
:ept In :++fle es arld ulli\er, Imes. par-
it,ul.ltl\ tit Ilie gn+\\III, area
j I1lllillt\ IIe2C,, M10se r++rnlallon.,
.ire I,u_el\ made up of:,\mnluring
students At the C,,Ileee ill' Lake
C+nnit\. tit Ilhnols. the'"5-seat (Jul-
ll\er'% (licit• does more than �2.(ICN)
111 hll,ntess 111 .1 i\PICA d.l\
I, orre:►i+,nai insiouti++ns repre-
sent another area of gr(mih h+r Can-
teen \,itnte that population tit this
is Ill:reasmg at the rale of
ahotll ''t percent a \ear. Krpan
pollils out that prison administra-
tors. ilk, their:k,unterparts In health
:Jigs .Iri Iitrt1111g IU ItlltsldC pr+lfCs-
I I,, eas: the hyy��r.I-it ofsatisk-
' ulg hill) ill demanJ. uI Ifie :,,rre:-
1kg1.11 s\slc'rll .111d Ih++,c• of 111111,IIC
n hi, groups :end ,1, Ill file :,Ise ,d
elelllelltar\ ,:11h+1,.:,+rre:11++11, +tftl-
clal, lutist also deal \\Ith :,+llini d-
Irtr, tmWail-11 rr''granis File rn.1-
j,+rlt\ ofthe eomp.11l\', :,+rre:t1, nal
.I::0im1% umlerate \,,Itlitle of 1�1 11111-
I1,+11 Or 1110re. I orion Deieilnon Ceti -
ter tit Vir Inl.t +zenermes j_ ', mll-
h,al Ca►lic•en has elgllf :,\rrectimial
ae:++unt. Indt:ali\e tit' the _,rowh
Ilk,de. most +,1 these a:,viints \\ere
sl,_nrd \\uhnl the past \C.lr
Boolld (hese opportunities, K,+/-
10t\ 41 sees a !-'rent deal tit potential
hu,lues. tit retched .Yeas. "We hasi-
calk \\III e\plore .111\ „ppurt1.n11tle,
that :ome our \\.I)." he asserts. "We
feel that \\e ha\e doeloped a mum -
her Of dCslgil :,,II:Cpt♦ th.It :all be
nnnuall' heneti:ial Io file:,mipam
.Ind to the :heat tit .e\eral are.t..:1
Just ,Is e\anlples. Ko/h+\\,i I cues
:uunll} club% and lilt) mo11al
:,+tlrses. olffee shops and snack
hors tit hu,pifals hill nldepen.Ient Of
patlenl feeding. resorts, mid selected
nllhtan feednl�
In addition. ,,r\s K /1, \\,LI. the
:++Illp,lil\ I, III\C,IIg,111i1„1\ellllc',f,+f
relateJ nl.ulaLelnent ser\t:e,. ,u:h
as tl,ulsel,eepnlg Mid hutldlnl! nl.11n-
tenan:e. \0101 \%otlld he:ollipatlhle
\\lilt C.1111eell, e\Isll11,_ :Ilelll Klse
Such ne\\ husnless till_ li he ,I,•-
quired or doeloped mier11.111%
"Cher altitude lo%\ard a:yulsln,+n
Is r+l,ltl\e. pr,\\Ided \\e:an Lind the
nght tit. Primarily, \\e'd he houl.ine
m foodser\I:e. but p,+ssihl\ tit relat-
ed fTl.11l.l_cY11Ci11 s\steins " Ko/-
low,k1 f,+resees lip I,+ per:etll ,)t
the collipt lWN ♦INI.IIIIed growls oc-
:urnng thn+ugh acqui%in,,n. both tit
(erms ,if nt.Aet till .Ind tie\\ pro -
duo ser\ice :apahlluy
tine Ihlng, Canteen \\ill not du.
:al.114111. file :Niel C\e:n11\C. Is stra\
mangy suhstami\e\\.i\ I'n+nl t00dser-
%ice. 'Ake'\e fimde .I pl.i:e for otir-
sel\es ill the fOOLI.er\Ice I1LIIi.et-
pLKe." e111ptl.lsVe, h++/I,+\\ shl.��.11ld
th,ll', \\here \►e'll :,+nluute 1,, slug It
ozi
r
tesidents li%e an complexes of cot-
tage. and apartments and function
to a great e.ment independentk.
These residents tale their meals in
central dining room%. and ma\ be
served b\ a waitress or eat bufTet-
.t\le at breakfast and lunch. Dinner
is ser%ed at table. with resi-
dents ordering from a menu which
fem Lire% at least MO hot entrees.
Although only about 15 percent of
i he health :are market has opened to
contract feeders. the segnnent is a rel-
.tti)ek recession -proof one. saes Da -
Id \\ itten. national director -Health
Care tin ision. The marketing thrust
for the dii,ision w ill he one of "con-
tiolled expansion." adds Witten.
concentrating in Canteen's estah-
Itshed stron=holds to the midwe.t.
sOuthcast. and northeast. Currently.
Canteen has about 125 health care
sic:,,ant.. 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%sicnns. a
proi,ider of plated. pre -portioned
lunches to school children to zrtdcs
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 it,
Krpan. Canteen expects the demand
for pre. port meals it) grow.
This .additional demand would au„-
ment Canteen's more Iradaion.al
business of prop (ding foodsrr\ Ice
management to school di.trncis.
Krpan adds that tine of C.aneen's
pnman rules to pro%idnng foodser-
0ce to elementan schools is its
Srlt-sc'r)cr hars like the Earl) Bard hreakta%t niodule are One temple tit 0titeen's etl;)rh to Cut .o%t%-
Opt
,C
13
0
[rr.;.'',. ,.r,'.,;`'.,'.'..,'ut.rrrt h'..r[r,';•• In,hr,ln{_ [ hr„i: ', i'Va Mlili[.urir'r.
_1!! ,h,`I" ,It `11 'fit'. fta,tl,il-
tl„ 1, ,II" 111, 1111i.1d tilt-
,
I,IIII_ I,
I. ) .I,11!, .11:.I
I',� �, f� III•'1, .ttl,1 111 `';, 'Iti i1111_
I',11t1,111.11-
It i 11111i,'III , Ili\\ I,1 „•
-:!I! Iil.lJn,' I„ tiII11hL'I,tilllll:111
,, f,, .l 1, 1,, (, JI1, ,1 I)Ll:ll•„II, Ili L11•
itf c11,,,,I,. .•i I)i:cl,l.,.l\, hll`.uI
II,, ,11„ri ,n1n111,1,11 Jt,V, .11. ,i t:hnl:
1.' !,!, tits III. .ttltl lilt ill: l�'�',1,ii\ I,i
I 11 1 ,1 ,I\I„ i\I\ill
hkL
t1. ,•I .'I rl \\I'd.If „i�It.11, dwIll
•
III ,1ii :,)NI -A,tAtI"A,)II , it, ihr loll ,-
10Irl rtii,'t„ff DR( r, l,ti,i lilt' J\C1-
.1_r h,"I'l:.11 ,1,1\ ti.`\\n ill,• :h.l!.
leil_i I,` 111, I, t, 1111i1.%ItX A111t'l.110t, I,
„\Itlt .t tl I l.11\ hlt,L'I.I III \1111: 11
I, h,,th .1!,t,.'.tlln_ I•, Iht' I�.Itirni .Intl
Il„n. MIIII' ,irhrt,mmaft'iA, oi, 1" i1:
iWA.T111 All' hr,lhh care att,nIIIII .Ilt
Ill a fir hasi,. Ihiri i, :t irrntl l,`-
\lard, a gu:u'anlecti rt„ t err h,itirill
da\ basis. \\hich funcnow, it Nil
nu,re Ilhe a rS i at•:stunt. ,a\ • Jminl�
Bhihar/. district manart'1-0l,ir,t-
ti nls for Canteen's 11c,ilth CJIt•
Di\ i,itm.
Canteen',, health care iik:co :ir,
trlltl itf hi:ll,t,�I1lrJitl I,f 111i h.,ltl;"'!
h,IhuiJil,�n. \\bile ,till utlhnn_ tilt
III Ina II h,1,1, rInc r.tIiII
.Intl,\Jens, I t,r ni,tanCr. the IAVL:dI
,I I'll I,111ir ,I, if IA. ::I rC i',t, flit\ ilr,
the Ih;-he,1 Ltiw,lrti ll,"hl:.,; II
i ol,11Ir. Ill . air suh,l.ult;.di\ t1W.;-
:III Iron th,L: of the
I'ri,h\lii'1,111 il,fil); In I'
Ill , olli Of .1 `_1',`11111_ IILW0 I 01
,lihintlint ,hlllrtl-,Jli 11\ul� .�
ITCH.', tin ihr rltiirl\
At Ld\\.trd. \\h:rt tl'Ii ,• _ ' ; ..
th,u:
!10 , ,Ili ,0 011
!11i'Nil, I,llih .1,
the lll,r. III atltll1 on t,' ,ll,i. lit-tl,
,Icn:,l nlenu,I l el .11! r.tt,tfit, •',!,
Iwill a Ilc\\I\
i'.I11f ,flit'" 111r1111 .lilt! Jii loot I,
i,`,`l%t'd. Ill Milk. 1,`,`1'u:: \Il:\t,l,,-
,:r'
I,h,ill ,tl Ill: rill t`1 Ill, In-1: r...1 ',t.
lellll,`I,e, Ill,' It',i,Itll,tll: '1!,I:•,
At 1 hr Pic,h\ tirl.ul 11
iJli 1J,IIIt\. nl,'It th.:! � ,
,.I f. I,. !•.,•, .,.. .rr. nr,;` .:.cu ;`.r; • ,`7 Curt., , c'r: rf`!, .I A*,* l.,t;:;r_ V _ .. "•
861-10 21
e.
I?1.: Acoirdrll_ it, [).tit hrrail, re-
t.t:,111t111 .WC01111tit rt1.C:ertain ellill•
I:n_e. Iho tend it) he bong -terns
d
:owrii:t% and the\ tend it, require
,uh.t,ultlal Imestnients. In addition.
rl
Ole field I,, rt1\\dcd \\till compen-
wi, I,`t11tn1_ f%tr a riece tit' the lel,ure
i
It`.Irhit it, protect thenl.cl\cs frtlnt
t
\Itlssllllde. tit the 1radilloll,11
li,l •:_Ill,nl
K;,rcmion a::ttult. ,list\ lend it,
II!, hi\ .e,la1n,11 In nature. ,Illd a:-
„`1,!u!_ tt`l;et,r_e moue\. \1:eI—_
d
d;n!•le,le.11l,tn .er\l:e.. tltl'.ettul;
(hl, ,Ca,tln,1111\ 1, tine tit the dl\I
.;,•n'. ht_::•► ,hallrn_i. In 1'ellt`\\
,1.11i \.itional Park for nt,iancc.
I
\\ h:I: C.ulteen'e I\\ Ser\ ,-cs dr\ t-
i ;
,Ittl berate, ocr\Ihnl_ fn`nl food-
1
.nld l,`.l_Iti 1_'._'lll' rooms ill
i-
j
_11; s,r.lr,lte i,l:lllticsl It, I,`ut hus-
1
, .Wd h,,rsehack rides. ill, 1,` `Ill per.
I re\rnui, .Ir: `_ener,ited ill ,I
11 ,�
•� �-;n,�nth rerl,,d In,lddul,ln. en1-
l:.".:n:nt from ,I full -tint:
to .1 ,e,l„m.11 hl_h
mAin_ Ir,umn_ surd le-
t:ulin:nt .t \er\ 111111011.1111
\dtht`ugtl aided I,% the t:i:t that
lj'j'I0\I1II.IICl\ 11.11f oft the 111,111,1_er,
,rlld ::1, to ?U percent Of the 11OUrl\
:4
\\,`rl ers return each \car, the first-
-
,1,1\ t`rlenlailt'll Al YCll,1\\,1,1ne 1,
,rni,:j1 Sa%, H L Ftn:hle. ew uti\e
\i,e president and general manager
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 Ills' i ellt,\\,(,`II: 11.Ith Dw,t,`n
It, :,Cl ,1 \\ 1101: tie\\ , 1;\\ t`Il h,`,Ird
Allis read\ I,` \\firs, ill ,I master ,t
d,l\, \\ it11 Illtl,t ,,I_,IIII/,Il;t`Il, 11
Likes \e,lr, It\ de\el,`r.1 :(Illllre We
h.l\c 110 d,l\, It, tit` It Auld Then \\e
lia%c I,, tit+ it .111 o\Ct a_,un the nc\1
\car Pride ill the I,1h mid nior.ile,lie
:ru:till. hc:.mNc those Ihnl_s ulli-
m.11el\ alle t the yuahi\ tit the \i,i-
t,`rs' e\rertente In ill,- r.tik „
\\ hell I \\ Ser\I:e, Ita`I, t`\er the
a::,llllll 111 10'0, the to doill_ 1,I:IIIIIe,
! till t•,bnur_ 1%,me!:r,e/ t`/ (.rnl„n', nrt,lr rrrrt` itha.
1
'4
.`41111h.
\\C1: III a slaic 01 ,II,I:1`,111 ,Illd 1,10d
Mid he\ertl_e \\its .uh.tan\I,Ir\I. ie-
:;111, Rii,:Iue. III ;111 Lill rre:endenI cd
inme. iheointract that IA% Ser\I,es
ncg fluted \\ith the National Pmk
Ser\Ice :illled ftlr the operator It, Ill-
\C,t==:elll,till e\er\ dollar ,11 ,,Ili,
ill the fa: rhnes, \\ hl: h ,Ire t1\\ n:d II u l
percent h\ the Part. Scmcc. In a,ldi-
tI011, C 011_ -C„ h:ls ,IrrroI'!:.II:J
(buds it, ei` ti`\%ards re\Ilall/,loss n `I
iellt,\\,loose. It, 1,Ir=C,1 1'mis \, ,l
result, I \\ Ser\ ices has .rent ,1 suh-
s1,ul11al ,Inl,`wll t`I' llit,rle\ till ,11; ttl-
tul_ ul1_rade of htlsrit,lhi�-i:lat;d
h.Irk i,l,illtl:.. ni,ludmg s,-.` mil-
Ilt,ll It, :oII%Irll:t I. it'.1111 \ 111,1_C. ,I
no% :tlllll)lc\ tit 1t41_III_,Ind l
\ IX tnl I ,Ilse ) elIo%%st,llie
In of der Io 111,1\nnv: Its ni\;,I-
Ill:ltl. the .olllrall\ 11,1, 1,I1111,11;t1 .I
\1101 of 1111, thrtl,t I,
N ,11 t1, 111, t:,11111, hU,llli„,fill-Ill: IIli
\\nut? ,i.la`n.\\Itin urlo_(ulu1,11;,
f.111,,`n the rarIs 1 \%o h.•;;I,
I1t`\\ r:111.1111 i111C11 durin_ III: \\111k.r
111"IlIlls..111d [lie .olllp.lill Ill,lll11,1111,
l Heel ,`t-,1\er then, \\ \ chi, l;s I,`
Imnsr,,rt ,supplies and \Isitor%,1dikc:
III ,ld,lll It `I1. :III`\%%I,`IIC I, 11:III_
1110111t`ICtd As ,1 hli,lll:s,
,:m, r,luritt_ non-r:.ii, nionth,
1111.111 :t`II\illlit`ll. .Illtd
nl;elnl_,,Ire ass,, the ft`:us t`f.1 snnl-
I.Ir nlarl.elnl_ thrust ,it Ii\c I)hl,,
State P,Irhs. \\here the Rc:reanon
Ser\ I:t', ill\ 1,1,111 operates ,111111,1t' f.i-
:lime,. And at file dt\ I.It111's Ile\\ ,1:-
count tit the F\er_lade...I rr,hmi-
riar\ ltr_I,IdIII_ 0f1.1:IIIIIC% tile[,: h.ls
CII,Ih1ed tide ni.lrkoin_ shill tit rrt,-
111,11C fide till rllotilll. of SerlClllt,er.
October mid \t1\eniher tin .I
ha.is.
Stime tit' C' meteell', other in.11tll"
Recreation Ser\Ice, ACCO 1111s Ill-
:lude the North Rim of the brand
C'anwri tit Aniona. NASA henne-
da Space Center'. Spaceport Lti V I
number tot .talc: ht.a Aie, mid park., III
CalifOrnta. Mid HC• Place. a IIC\\ Sta-
dium comple\ tit \'an:oti%er. British
Colunihia. Area. of pill enttaI
oroml1 IIIIJULIC 0111\CIIH011 :CIIICr..
/tot,,, and state mid national 11:111\,
\\ title C.11ll:Cn'. re:l:,ltlttll.11 .1:-
:t11IlI1.111\ul\e 11 Its e\el'\tlllm-, froill
r'III1111111-1 1!11. stations III I11.1111la♦ to
8E-1021
71
:riChlaIC 111 _5I11 annnct,ar\ of file
p1,1111
oil tile• Nest Coast \\here the\
rrlgtillled, hulld-\our-o\\n harS are
partitularlpopular. although their
poptilarit\ is rapidl% spreading
across the Countr\ to more tradl-
(lon-hound markets These bar
ha\ e also pi -men a, adaptable to
loll-hu"yet a:Count, as ihr\ are io
the flagship a:coUlits \\here• Can-
teen'\ n1-1101.lse ar:hitects ha\e de-
,lened the fa;:il les froni scralCh At
the Sanlf Clart Count \ Go\ern-
nlrrll CCr11cr In Sall Jose. Cal . for ill-
,l,nl;C. althoueh Canteen has had
till Jk't'011111 floc the p,l,t elghi \cars.
the I'oo,isrrl:r f,t,11111Cs %%ere de-
,IgnC,l hl tilt prlle:l ar:hne;i and
hl_I1 l.lhol ;11,1s dll: 10 desl_I1 Illelli-
:Ion;IC,wrrra:lon,t,ultpr�hirnt In
1.1,1 less 01.111.1 \ r.11 ago. the l(w)-scat
re,t.iw.iw p,'tmmof thCLl;ilt(\ \\as
,i1'sC,1..+nd 11n!\ ,1 ?lul..C.tt :aft-irrla
n'nl.uned Ill oprr.dwil l tilt lilall l_•
et Ro ci N\,on; ,ol%cd the probleill
h\ III,1.11I111;-' ,I ,Ir)Ill IC i:II•-,cr\ I, e ha
In tIC ,nlallt-r dinnlc area. and ofli'r-
In_ ,In III)menscl\ ,u:crssful h\-IhC-
oun,r elhnl, Bola) bar that ch,rlr_C\
dx1\ No%% tilt- fa,f iiI profit and
los, a::olJnt M11,11 is opCII to Ihe
puthll:. h, .:,t, 11117I; of the I,lltrst
f0o,1 :0,1, Ill lilt clofllpall.\ , Iij.%
.11 t.t
talknl_ ahoul \\Iml Can-
letn :.111 "• unit-) IC„-IIIA1I-prrfr, f
„1n"rtll'It'. %.I\s 1),rrrelI I. )cak-
Ien \. �%C,ICI AICA \lee pre,ldrn) un-
elCl \11will 'ill I, .I,i1mill f,111,
" i h; I ; 1, ,1 y\t-, 1,11 , h.t l l: n _; t, 1 pro.
\I1°11_ f0f IIlellt I1t-,'111,IIId,,11i,1\111_
flit ,ll,I.11110 \\IWJI lilt f.WIIll\ Isllol
1111 IIf, pfitml\ list f11r repair, and
lifiphl\ CHICtll,
smIf .11) .Itlnudt is douhl\ Imp,it
[.lilt Ill t11d.f\', e;01101ni. when Cnl-
plo\ers are taking an c\lro-hard
io,tk at lilt. \,flue of Ihr henrlii, Ih.li
tile \ pro\ide And the aliftudC;I1,1,
IIII,1Cl ♦,1,re, ,I ,t,fpt,f.liC pllllt„oph\
ti.r\s h"/I, %%ski "If I, our re%ponsl-
hllll\ 10 hC \lJ:t %%llll Wide[ :01ldl-
Il1nl, ,1, wC litho tKIII. 11111 :is
Ilk, 111,111 I0ht- Ill 111hCr words. pLt�
\\11f1111. il.lnJ rII.1t',hrt•ndC,tll \uu ..
( .n)Itt-n h.11 1,le+t'I1,IVd .1 nunlh:l
t,l prl t21,1111, , I11d 1"''11, I1"111.11 CHAN,
II loll 11,1 ploill. h1\ ll,e ll, hand. llol
0
At ) rlloit,tonr. C.1weCn operare% re,t.lur.mt,. lodim_. rift shop, anti tout,
the least of will, h IN a general pro-
gram to reneg mate man\ of Its p,Cl
i:Count, into less ,peeulalne nian-
a_enienl lee base, In addlnon. Se\-
eral \cal, ago tilt :ompan\ \\,I, cic-
cenn-ahird. creating :I flew la\C1 of
grnrr.11 rrlanagc'r, \\Ith ultlnl.lte rr-
sponsibflil\ fior the perfornianx of
all ac,oum, \\illim theft branch. or
disin:l )here :ire SO conipan\-
o\\red hran:he, % whin tilt• Canteen
s\,lem, rep, oriIng to one of Hour area
\ I: c pre,ideni,
"-1111, \\,tell) has J111owed ll\ 11, he
\er\ tfinel\ ill our rc•,pkm%c to
Cli,ul_c', Ill Ihr marketplace'.- e\-
pl.nns Haller. "because the people
who kno\\ the local market hest are
the one, making file de;f,fous and
Ihr ,one, \\ if,, arc accouniablc."
In addliJon tit, it, Company -ow ned
hr.mche,. Canteen i, the onl\ food -
Set \ICe cunlpan� of its kind to ha\c
franchised location, in fact. frail-
Chi,ini w.I, a major factor fit the
conlpan'%'s pattern of nn r\pa,lo
There arc more than 130 Itldl\Idllll
fr.11l:hl,ed lucallon,. operllul_
mmidl ill Smaller cities A:cordiii_
to ho�low,kl. franchl,in_ a terruor\
rai her ilfan '_oin_ Into ll on a Conlp.l-
n\-operaled h.I,I, was tilt, illo,i el
fell\C 11.t\ of CI1I:IIII_ ,ill :Ilt-.t
%there lilt cornpan\ had no
mana;oement base A, the compan"
e+aluates a )le\\ area of the countr\.
it de,ides cooperarf\el\ whether it
would he more illdt;loll, tit, ffJn:III,C
the terrftor\ or conil\,fn operalr 11
Mme\cr. a:;ordine to h,vlo\\,kt
file fran;hl,et: network Is at ill),
point relamei\ nlaturr F
sale',. \\ hlch are nor In:lltele'el in
teen', rrsulls. aniounl i,• ahout c_I1
nulllon annual)\.
As fit most sucCc„ful trap;ill,;
\,Irrll,. Canteen'% fran hl,et-, ll,;
the Sarre prograin, and %tc•m, u,;,:
)n Cantc•c•n', compall\-operated .I:-
counl, The% ha\e first rf_ht of It--
fu,,ll on new ple;es of husines,
signed fit their ierrnor\. and .ire fret -
to take an% t\pe of account--I3,�I.
health care.recreation. Howe\el.
most large recreation accounts .,it,
handled h\ the conlpan\', ,eparalr
Recreation Sm ice, dl\ I,Iorl. \\ lu: h
has ihC re,0llr;e, It, plate' a111,,i11,-
Illou,111an:1;_c•nicnl Icanl\ Ill the IIIJI-
\idual account,
Lar_e recreation :Ic; t,lllli, Il,l\ t-
pru\ed \erg SUCC •„I'lfl tot C.rlilern.
will:)) I, a;tl+rl� pllr\!!!)lt flew husl-
Ile's Ill ,I.IIC Mid I1a01011al p,irks. con-
\e111 on seiner,. marinas. cmeri.mi-
111011 :Ill" ,pt,rl, :rill)+Ie\e,.:Iild Zile
8E-1021
a
could add as man\ as 50 or 60 in the
upcoming \ear. The concept is all
.elf•ser\e. ernph.1%l71ng soups. sal-
ads. sand\\Iche.. and similar light
tare Breakfast is also a\ailable. B\
the ounce ser\ice is often used. De-
cor c:an he adapted to almost and set-
ting. and t\pical size range% an\-
\\ here from shout 50 seats to more
th,uloo A\eragecheckfortheGul-
Iner'scl\ncept o\erall I.ah\\ut SLMI,
;ncrating a\erage unit \plume. of
61150.10) lip �Ibn,W Food costs are
about ?b percent. \\hlle labor costs
\\el,_h In at about _'" percent
Kitchen and storage .pace re-
qulred h\ the GUIII\er's concept arc
timunlal, e\en though the soup•.
chlll..111d optional hot .peel tls ,Ire
cooked on premise The absence of
equipment requiring HVAC make,
the fr.m1•end IMCsnrlent quite lo\\
knother I% Gunner'% calenng c.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.
pablhl\ At 111r Adler Planetarium,
in Chtcaeo, catering corpr-r,lte.
school,anI &ISOCIM1011tslut:hodsis,l
tremendous part of manager [_arr\
Posen's business. Despite the fait
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 rcqutre-
nlellt It) hook the PlanclarIUM or
Gullt\er's "Crater on the Moon"
dlntnz room tier a part% Is that the
host also hook the planctanunl. Sk\
Sho\\ .
Catering Is all rlrlportant t.t;el , t
:III Onteen'. manual twodser\ Icy
,counts .Is \\ell At a nwwr I B \1
Instaliatton In Sall Jose. Cal.. where
Cantcen operates ttaidser\ice III h\e
huddnlg.. as much ,1, 50 per.enl `f
the hushes. I. from c,tenn: func-
tion, The I,Irge.t \%.I, III opell I1OLINC
for -0.000. held se\oral ,ears ,1_ ` I,,
K;, rc'.InorJ .la uf»1s hke Vt'll ) . irk *% Y .inkee Si,id m twit glrrhe J V�IIIl1.'.!!J1 /+ `r1J '!1 .`I (,If71.Y'!; hu,n ,
\\,,, l i,! it I, I,I .-paAa_id fl,t,,+rin;;•
and h.t,i nll\t, (0I uf'tin-used Items
11kc ,.In::, .1nd ,,,u1„ 11) iel'I:tln 'IC
:,suns,. unn nlan.)_er, h.r\C been IV
_ rirnniniul,� auh ,elhnc Iltr ,rur
b.l,i ml\e, It,ne fill cream ,slur and
t,lle 101 :leat I It, cu%lomer,,
Th1ta1,`h,ull It, tlperrtlt,n,. Can-
teen u,t•, .I fi\ c-\\eck standard nlcnu
\\ III, 1t \ ill le, \\Ilh I111: Scastul.
I I:\Ihtlll\ it, Incorporate local f:f-
\ortle, t,t It% tall ne\\ Idc.t, I, hulll
lilt,` thi %\,Iem. manaccn)ent
:h,`,`,i, .Int,+n_ chi ,u__e,led Ilem,
10 Teed. anti 1, Ilee fit ,uh-
,lllttte t11, (t, fi\i Item, per:atq!or\
I,1, f1) di„iris or entree,) rt•1 i\:le,
,Uhl:, 1 I,- I II: ,111111,+\.11 ,`l 1 h: dl,t l'I:l
I11,til,t_;f I t,1 111,1.111;:..11 111,- I ider-
tl Ii.ink In S,u! I
rornLltl,rrl In-
:lu,fi, \\ill .t,
1 ii, .,,: ul; lud,,t ill Ih, nt,,rnnl�
t,tk; ills, .
ti;h111,111:,.l1„'
11:11` kccp ,.`,l, III Im, 1 01' IIY,t.11l:e,
a n;\\ rn`_t.11n ;.tll:d Ihi
: u,t,'tn:r, h+
I .. • - ..,,•: , , .,.. \\ In, h .l I,• ills„t
, `,!•t•iTi,!I\i I,,,ir\C tin r,t;h:\:Ir
I1:1111 ,tti II1,11:.tted
L. t ,r.tf,`.`d rl.ltterl
I li,,, ttint,.ui I,r,,nl,'li,l h\ nlC.ln,
poster nit,unlid
the
,;r, 1112 IIn,' ! h, "olllp,111\ .tl,tl
It„ill ,it\I,i nitldulC, h\
ills p0IIII ,,fillip\ In Ih;en)
.nisi l,'', tl.unnl hiadyu.trtin nt
nl,l,ul:C. lo'.11111 it
:II•,; I \: ,,Ills!\\ Ich ,I.tllt,n ncar the
I:d1l,:d ,.Ile, of 1110r:
,ri.tlll Ltl,l; Ilelll, It, 24 It, .+11I,it:t'tll
,f Iofol ,.,i,,, rmlla f11.11) IIIC pre\I-
,`11, 51, r;l,atl „f ,.tie, and IIIC re-
,ull,uu nu1•1,,\inl:ul ul I,Itn1u;II\u�
,tllr::ll I,' :t,I1111111: Io rill)
• i L, psis I I.' , ,t, ,t ,; if •,11,1.11i1111t
,..::1.,+,nlh.�u_lilhith:nthadre-
tl. IiJu,,,l11i, .ull.,un1 0111„uh-
,. ! "11 ,. \\gut!, J I,' d,•�:nlrh.t,vi
r\-
�.dl-
Canteen has used
its network of
franchisees as a
means to enter
markets where
the company itself
does not have a
pooi of manpower
and resources.
recit,r. ' ti i're operating tht, fa:lltr\
Ow ;Illw \\:r\ \\e \\,alld :l profil and
lt,,, a:ct+unl " Despite Ilse f'm 111.11
fill, ACCOunl I, 10C.11CtI III a bu,tlin_-
Ill'b,ltl arv.I. parlliir,lll,,ll I, "�
per: et) t
I3%-1he-ounce ,erU:t' 1, also used
«heni\er the %Irtct111M rerinif, Thi
it,n)r.tll\', hr,l ft,r;l\ rills+ the :oll-
cert of h\-the-dunce ser\Ice \\;1, ill
the area of ,alad bar,. but thi, for-
mat has grt,\\n It, include ,and\\ r:h
har, (,time a::t,unf, e\en ha\e hnth
\er\e-\ourself-b,I-the-oun:e ,and-
%\ich setup, and cane -to -order ,ta-
tion,). ethnic har, ,uch a, :1 cm:an
and Italian. and build-%our-t,\t It
COWepf, like baled polattle, and
last„
Gullner', 1, Cantcen'„elf-,er\ Ice
bell re,t;tur.nit colicept De,l2nid
primarll% f0I multi-tenatit tali.:
building, \\ here no nldi\ idual It'nanl
ha, ftltldwnice. Gullr\er', is ul the
IrLIC ,Cn,C of the \\,,rd a publ!, %e
taurint The :on:ept I, al,o an Inl-
portant e\rarl,loll \ehl:le lisp Cot -
feel), in IIlaI it ;II,t+ ha, be;❑
,u::e•,full\ adapted I,, :,,II:_t. ;,.-
creation. and health :tire,emu_,,
There are about mo do,,en c,;:!!;•
\er', In operation currenfl%. and a:
cording to Krpan, the crnlpam
I-rf;• ,,.ire fa;thtli, fi,r thi ekk•r!t :Ire a srt n1 th area G+r Ont,v n
N
'!',;IlI'll\ s:Ill, II .IIIII.IiClI. [tills a
sltln_ ,'1 pllhll: Iest,I11I,1111s called
)fullI\CI"%. Mid ,,per,llt.'s Is ht`Iels
\\11!! II1t`I.: I11.1it 3,2011ItwnIs
s,IIII u11•1nCotINI\. CalleelI ha.
\\,`! k,:,l it, nuke .Ill t,l 11s 1'licrations
Ill"I'L. Cosf•effe:tl\e A plt,ileet Ill file
h\-Ihe-oti 1Ce method tit self-ser\ICe.
I he :,'nip:ill\ :owinties it, rcl\ hea\ I-
1\ on this ctm:epl Labor s,l\nl_s
h• \ e hCell sl_niti:,uu. hilt In addl-
!I. s,l\s Krp.m. part icipatIt'll Is
file 111efht'd .Iddresses
.,ills'[ iced. hetter than set
.!I•'•.:s ,Illd set pt'rtlt'lls. Ill .IJd1-
!w:I. the:olllpall\ has Illadc,t I11,11,`1'
--Ill 1111CIll I,' :oorer.ilI\e sCr\Ices
file :)it'll) girt'\ItiCs
t s:l\l.11l_ t'1 IC:IseJ CtIIIIpIllCill \\hilt'
l ,ell IT,,\Ides the pr,'dll:t Ac-
t
_ I,' H Kenneth lbiter. tit-
f-r,`Ju:t \ market plan -
I:;, .on:cpi \\as created
!I \cars .1_r !t' Address file
pt,p-
Lit! ns. \\here the :t'nlh,ln\ COillll
,•' '. � \\lth tr,ldltl,'n,ll tull•Itne
C Rsi hu'ltless 11,1s _rl'\\ Il %%I
:!•.•. n. Ill I,1:1. 111.11 .1 sep.t!.IIC Jt\ 1-
'll 11.11 hCCI1 :rC.IICJ \\ itliltl I ,kod ",
;1!JIiI_ it' .IJnunlster It
\•.tC. Ko/l,`\\si.l."Oilrsll:CessIll
! he t ):lure is pre.h:,)tell h� t'ur
Ill, a`mimi cm it, prt'\Idnlg the
!
'l ,hell te\:I 11' quahi\ tit product
and I11.In.t,CiT1CI11..tI1J to lit, tills till
Ill,: most
1'e''Il.Ips the %e\ :,'1111",Ilellt tit
!1;:• sirat;_\ Is the C,►1lreen Qu,tlit\
I ,"•J Sentce Prt' r.lm (CQI S11)..I
up ,'f h.ick-„I*-tlie - III Ill se and
1
11' III - It - IIIC-h,,use 111.II1I.I,Ils \\lll:ll
set torch file Calllcen standards (i,r
e\er\ ctnlcet\ahleoperational prtlee-
durc. ran,nl_ 1'rom production tcch-
nitlues It, plalc presentation mill
fuer:h.ulJlsln:.
"The heave\ u( this oroeram IN
that if enahlcs relall\el\ tm%{ illled la-
hurIll su:cealull\ produceand mer-
J
ch.II1JIse the C.lilleell prOgrain.'
J,%m ►i,'huls,m. dirccio of tit-
CIC11:s .Ind file chief irclmeo of
CIA Silk "C'ie,tlnr people call et1
t:111h;1 h\ implcinom l_ their o\\n
IJC,Is \\Ilhill the I'r.tate\\urk tit op-
11,'ll.11 pl",,_mill♦ "
C(►lil' \\.is mitoduced fit 14'b
6
(;I1/11t:r'. s:h-.:fle,A,/I1,l,,'.Il1,It 1:J1;'r rtt„It! -le).11,1,-Ili.,''•,ill,!:r
and is ethictI\a\ Ill pla:e Ill .111 Can-
teell ,1:coullls :t'IIIp,IIIi,'ll
_rmii ties unit maim_cnienl's Incen-
Ines it, him :It`sel\ file COI 11'
s1:111d,lyds :Ire tt,llt,\\Cd III addition.
standard-heanm11 acetnuus Ilia\ he
dCsl_ll.1tCd ,Is Irainin_ :emers too
Will m:ula_ers.
C Q1 ski' (mictions as a I`atlern it,r
\Itlll,lll\ C\er\ I\pe Ut ack.o nt:,,il-
rnl_en:� For Iwomice. nlanu,IFs on
I fol Ft,t,tls and G,Id Foods are ar-
r:ul_eJ h\ module —such a.St,upsIll
Such. Earl\ lilt LI (hreakLisi ). Farm-
er's \1ancct (salad hard. and Marl
F\em (traditional ht,t entrees) —sit
Ihal m.ulaulcnlenl call adapt the pro-
grams II, the requirements of a p:lr-
nllu'hl h.l\e t)Ill\ 11nc Ill till i-purpose
.elf-ser\ ice area. \\ title hleh \ oluille
ZI C1,11111s 1111,h1 Ulld it 161.11711C It, ha\C
separate scr\Inz areas Gir file salad
har. a ti"uit har, dessert.. el: 1110
manualsallm% tOrall such \arl,ltion.
I all-etlhlr phtnt,_r.iphs 1111.1s1rme
slop h�-slep apprt,a:hes fur plo:e-
dures like pannm_ hill Coolls of I.i\-
Ill, t'Ill Ilie salad h.lr. Fell IIICrdia11-
dlsul_ lechnlque, such a, the
,II'pl,l',s ah,'\i s:1 ill_ 1111:s .It:
spell:.) kill h\ 111e
1,`url\ t',':',iser\l:: \\,`[Isaes I ' pct
-
Colin the I.I.I. In ,I,I,}ut,`n rile Ir.rl"
11.1!,.I1: tlse,l 1!I \\!II' I! IT
Ind :,'IJ tt.ul,
lt,_ ,1•IILJ I,hhl 1(:Ill ll s.l_e .1_.W 1
ti,retasled us,l,e. .Ind I't`f nT\::;l, I\
,Illd ,'!!ICI pill p''ses
It' Illsllrt• :,'llslslt'Ill ,IL1.1111\ Ill
prOdLI, 1..1111',1\\ I,a'J Is I'll[': 11.1"'d I,
Calllc'm's spC:lll:.11ltlns and .Ill i-:.I-
I\es .tic Niand.lydlled Recipe II'..m-
ll,lls 111,111dC I111,'I lilailt,ll ,'ll tlll.11lll-
IICs I'CtlllllCIA It,t' \.Irl,'ll% %.Iles ]e\t•I'-
For I,tr_e \t,lume a:counis. Canteen
Is pilot Icsun:.1 : t,nlput:rl/'-d ..%%-
lcm at Ilse V I11\t•rsll\ t'1 %\ Is:,,ilslll.
Os11 ht,sll. \\ lll:ll cAll Ile Used Ill
shrink ore\paid recipes
nunlherot'people. Sa\s Fred Nichol-
%t,ll. \ Ice president-Ilatioll.11 sales \II-
reclor. " f llese pi okill:t 1,111 s\ sl Cllls
Are unitlue It, file nldusln..lnd _ne
It, e\ aluale \\ 11.11 \\ C'rc dt,-
rlls. .are \\e pt,rtltnlln_
�t't' \\C tl,le:.lslnl_ .I::111,I1C1\ mid
thIIIL Ultl' :\:IC 111CIllls tit IhC ht•sl
,Ili\.1111,1_e'"
!n .IJdutt,n. the coillp,ul% 11.1s
86-1021
%isuai can be classified as manufac-
turing And, in 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%, %%hich did humne. as Automatic
Canteen Corp until its name was
Changed in lQt h to reflect its mo%c-
ment into nianual food%erwe. con-
tinucs it) operate more than 2W
%cndmc distribution centers and
own-. ncarl% 2M.O(0 machuies In
1Q"? . %enduic accounted fol-40per-
Ceiii ofsales
-%%c1c restructured so 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%iness. The business mix is
Changing "
Canteen has aggressi%el% pur-
sued "%%hits collar" accounts. In
fact. %%iihin its Fond d: Fending di%i-
%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 sacral 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-
clude eer%1hing from Yellkmstonc
National Park and Yankee Stadium
to The Presbyterian Home and De
Kalb Count\ Jail in Georgia. In ad-
dition it) handlins more than U00
traditional manual foodsemce ac-
counts and 100 execuii%e dinutg
rooms. Canteen operates a dog
track. o%►ns a company \%hick pro-
ides pre -portioned lunches to ele-
tit. M.ur.r_crrrcnt st.111 (I fit r / D, or Sch.0 1: r. I Ld Racluc. Lee G(r.c•. Due Finger. kin M.-Garr". Bd.
Jolt': \,rJv,r. Govev l:)nnrrson. Bob h,vhm,ki. And Du1Ii. Larn 14} kt, . Gwr' c Tom, *%. Karl Sedlarz 11.'
beer D.rtrd•.vr. Rrl/ Carl%on. F.1/tot KnonoR: 7-Cd Arcs. D.rn KT.m. Hj1 Br,;�d,ur. and Darrell ) L•.rl,r._t
� . •} � � �w�� �v. f .�+:, Rom+.-�... �:,:c�� M.:.�-.t.��. _ ...
— ,� - '�Ei. �- __ ��r� Y.M.. •-1:�c:�'
!a,;;
t f
Canteen: Profit0
ing from a
diversified portfolio
Born I \ending compam tit 111_U.
Canteen Corp. has sur\ned challe-
1112 Ck tintimll, tide, and it %I c;e,sltill
of different parent organv;ations b%
rcmai n . .idaptahle .Ind f'in\ard-
th!nl.;n;_ \ol just a \cndnle :t�rtlp.l-
n\ .111%More. Canteen ha,, dr\er.lfied
Cull, Iliad the contract foodser\icc
arena ,eckine ac-
;. tints In the business S indu,tr\.
! Ic,rc.wtln. correctional. health care.
Mid edu;.ltlttn Segments. in lQ81.
Canteen .achle\ed record pre- ta\
profit. of mullion on re\enI
I mullion. nialsin_ it the third
LIl est food,er\ lee m.anazernem
;onipan\ in the countr% tit term, of
re\enue,. behind onl\ ARA and
\L mott
E\pl.aln, Robert A Koilo\\ski.
\\ho capped a 15-%ear career \\till.
Canteen h\ heln_ named Its presi-
delll and chlel e\Ccutl\e tifllcer earli-
er this %ear "One of our biggest
challenge, today is heing able to an-
ticipate and react it) the chancing
1 nature of the marketplace For e\-
I ample. through ,killed management
n•
.and the .ihlllt\ to he fle\ihlr. Can-
teen \\as able to react quickl% during
the recent recession. \\hen \\e con-
' tinued to maintain and grt,\\ himom
line prolit.andii% despite \olume de-
cline, in se\eral of our major
marketplaces."
Korltmski refers of course to the
fundamental chanee. \\hick h:a\e
x
been occurring in the American
econoni% mer the past se\eral %e:ars.
:JLIIIIii a,,lllfl front a %mokea ack-
hased ;e0110111lc ,\stelll to title of ill-
forni.atmtin. coninitillic:antin. and ,er-
j \ice nldusirie, iThrou,huul the
In!J- .and Lltt "I1,. Mille C:allteen',
i rc\enues _re%% its income
l dipped .111d "\\a\ed. 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.
imprmenient follimed b% one of de-
cline Mosil%. the declines \\ere the
effect of \\ork-lOrce reductions and
plant closings among Its traditional
large industrial clients It \%.I, clear-
I� nine to di\crsit•\ the husinc,s ha,c.
Canteen's stralci* of \\eathering
sofiness in hea\% rlidu,lr\ b% en-
trenching stlhdl� in less c\clical
I) PCs of accounts —like hulking and
high technology —and h\ de\onng a
great deal of its energles to such
high-gro\\th area,;I% 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 S785.8 tit lyrl. income
rose SIA million. to :'_.b million. to
that period. All Increase tit net ►n-
comeol'22 percent Ili 1083 I, ,tit a%e11
more posit\ e harbinger of KoAl" %-
ki's plan to su.l.lin a compounded
annual net Income,rowh rate of 1'
to 15 percent o\er the ne\i li\e %ears.
Mean\\ hile. the past 15 \ ear, ha\ e
posed other challenges. The C'hica-
zu-based cultlp3M., 0t %Ilersh!r has
chllleed four Ittlles sII1;C ltlhtl. Nhell
it \\.I, acquired h\ ITT Corp In
Its"=. ITT sold _0 percent tat C.ni-
teen's ,trick till the opera inal-ken is
p.lrt ttt'.l JLII li, e Dep.trtilicni decree.
.Ind Canteen became an inderendent
ruhllcl\- held conlpan\ The friar\\ -
nr_ \ear. C.1111ccn \\as snapped tip h)
Trans \%orld Airlines. In.. Are.ld\
parent of ililton liucin,atlon.al
In JailU ar\. Itl'tl..I tie\\ holding
conlp.an\ c.illed Trans lit orld Corp.
\\,Is firmed. \\till the mrlmie%. C.ut-
teen. and Hilton heconunc \\hull\
O"Iled subsidiaries. In the rnsunlg
\ears. Trains World also cnicred the
real estate business \\till Its Icqul%l-
non of Centur\ 21. alld .added Aldl-
non al tt,od,Cr\ Ice cap.lbiht\ N till It,
acquisition tit Spartan Ftlod S\s-
leniN. the imner-operator tit the
Qulnc%'s F.amll% Steal, House charm
and the country's Lar,est Ilardee's
fr.ani:lll,ee, [)tit de,plic the comribal-
lion, of its hire non -.Beanie hu,ln-
e,e,. Trans World'% results \\ere he-
1111! hurt h\ TWA*% sus+e.. and tit
Fchru:ar% 1084. tile airline-. \\as spun
till'. Canteen's parent \\as sub,e-
quenil\ rechristened Trans\\orld
Corporation. and tit t he t \\ o quarters
since the split otf has Oltmll protit
lmpro%ements of o\er I(X) percent.
Canteen's longstanding auttino-
tit% \\ithin its parent organi/atiom
has enabled the companyto pursue
its tmn goal of dr\ersificatltin \\athnl
the foodser\tce IildLl,lr\. Yet Ktv-
lo\\ski .and other members of the
Canteen e\ecuti\e leans .are quick to
Point out that the conipan\ is h% mi
means ah.uldonrlia ins mdu.trial
contract and \endnl, businesses.
More than a third of the accounts in
the company's Fotid S Vending, Di-
i
--A
A BILL PUBLICATION FAST FOOD'
77
November 20, 1984
4
- 6
a
SPECIAL
REPORT.•
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 1003 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
3-
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 J'uh't: Evc,raci'Iides. T':_ c„arce f,•or' a
�cca. cunceLsii:r t(• s iat'_na'. fD- 4 arc! beve-.—E ccrr.ary has o`Oven
:o :, a very pcsit �e a:varta,E .n u::` 1:.= Len ; ce a. _i. Volume carefully
Panned the tj-ars.ticr, arc' curried it w-*t:. no i.•terrupt'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-prover%nt: to both the
facilities ar,4 equipment within„
As a res!jlt c` -.re;;* effort anc.1
we are generating sore of
the highest. per cao;ta it the cojntrv.
C:► uwt manage-'pnt works cl:sely
with r^y staff t; provide wnjEek,e r set-;:c
`s ne:zssary to best sere the
event. In Cu- `:._:lity we ran c-.:t,,-
e..r•t :ass ?a_t yccr, and trey range
fr.- I;i!,c'e50 cornur'af.c ecu:
._i tc F.rinc rocs, and roll
.
sa-,. In all cgs=;. So, -vices h,;_
c?;-. -ed to thN reeds of the event
s rr:ainta ,-,e: ;Ire q„o' r i.j standard
c c,;.,r:ors mate core tc expect.
1 ` yc:. are consi ._ ira a Tout' af'd N-VZ"'
- �.�nt,-a; t for y-�ur faci i i ,ies :
woulW" encourage j�u tO loot. at ,hat VO4."e
;er, ices Inr:. ha:, to o`f er your
operation and ycue customer;. They are
t., J), a rrole5sional full service '
food and beverage company that have made
cur customers iirra my staff proud
to have the,;. in,/sIv:„ in ou- operation.
FEsaect`ully,
Rcn k'cod
"irector
R;J: rvb
0
i
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 'nit manager:�ent
-
works very closely with my staff to provide whatever is necessary
to best serve the customer during events. Volume Services has always
1' X=
made every effort to maintain the highest standards and quality our
guess have come to expect.
R ert A. Schoettler
Director
:�:.
1• fY
RAS /wan
sr8, .A
fY
700 "W' STREET. FI UNO. CALIFORUTA 93721 TELEPJ10:;F. (209) 48b• 1511
86-1021
I
I
! Pompano Park
November 8, 1984
1 io h'h:m It Fay Ccncerr.:
As executive rice president and general r.•ianager of Pompano Park
Race Track, it has been my pleasure for the past year to ti:crk
with Volur.= F:rr:ces Ccrperation, our facility'
s foot and
i L; er ace catc:i:rs.
it
a� Vc:lu': Ser•: ices has s: rved Fcmrano fcr the last 12 ycar s, and
�K
tit rE: E' t ? }� E n _: E a :'.e:: LE7 -}'Ear ccr,t r� CL M to the:- i1: : E?
i• Tr)c'.' r.-ave Eh_.w:. a E:il:cc'r C tc CJ the_r Fart in kc-te .^.0
!� Por.ranc as r-.=cern and bc-e.:_iful as it is, having mid•_ r..ajc: ea_ital
impr cvener.ts in several arEas of the <<ci lity including rer.:,vaticns
to t!:e dining room, liquor t:.rs a:,:: private clubs.
3n regard to the quality of zrocuct end service, I am well
satisfied, with the way th:y prcvice fcr cur patrons a^d the•
ur concessic:,M_y the., service cr.,
I- Fc.._tic-., V_?;:r.c S_r�•_ces r.anagemen_ at F_r; -nc is c;:itc•
r:5t_..:. •'C tc Cur nEEcs a:,: the nee--.s Of cur Fatrc;n5 as w-11
�= i s-• - : cnszt..'e to the :cr•7 ar.c Pa:-k c7c:: ati.,n in c_: era1 .
-E serriCES a' C :.:L':G rECC": E'.� L}::
fc_ fete. etn' beve.ace services at ycur fac.L
Y. i:ra vc ry truly,
F..:3:c1d S. Duris
` Ex__stivc Vicc P:c-z4;dC .t
and Gene:a: K.1�nagc:-
NSD:kim
t
e The Winter Capital of Harness Racing
,r'.. IM' 5%'11 T"Fr�T THM, STREET PO%IF'&%O IBEACH FL 33%
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 Henclulu
- 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
L4.,^. 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.
Roberts Leinau
General Manager
RL/tdn
- �sy
Pack CIMCO 59.854 Kamehaneha Hwr . Halema. Hi 967712 Ph 638.8511
Wa-kiki Sales Oc'ic�. Swip 1309 22?? Kaiakaua Ave. Honolulu Hi 9F.G15 Fr. 9?3.844q
96-1021
r
WEA' PALM BEACH EXPJS
i
P.O. Box 206
i
West Palm Beach, Fbrida 334M
6B6.0030
September 8, 1986
Mr. John Nalloy
Volume Servies
P.O. Box 3087
West Palm Beach, F1.
j
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,
..
Ann Sowers
p'
f
t
y
3:
tµ .
1
i�
r
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
management are available for consultatim at all tames and special
Events at the Stadium draw n �Zde
��. y participation.
I have stated previously, and continue to state, that this relation-
ship has been excellent.
ely(9vc7Fjz
e r
S AUTHORITY RIY
dv
k
8E-1021
c
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 for 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 C) Pax 140, Cos-)cf, Wyoming 84'.1e , P►)onc 007: 577-096'
Wlntr- ?f InlenIM,Md, A. 'i 9' :Y O} A.�O•tti n 4W.3 r•S
86-1021
Fo,6j Services Canteen Corporation
AqjQjj
f�
_ - -
Serving Our Cvi#Ww i in
_ w
1 NTF IR L
It
r
C
I
4
e
1
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 (:or'1►oralion. Thi-double-di-it profit
grm%III will steadinll►ro\enleul ill ln'e-la\ margin- is
laurel\ the result of it 1111'ev-llatrt "Oralen
.d hrllanred diversification /Irt►gnir 1. Using its
e\1►rrli-e• ill nlanahinh contract err\ iet••. Canteen has
gl.oa II in ne\% nlarl.el segillerlt, stich a- -rhool lunch.
delicate-.em in office huilditlg and food .er\ ic•e in
rorrerliolt� 1,11•iiitie•.. In 1983 Canteen lnu-rha-ed
Preh•rred Meal \stems. Inc•., the largest pro\ ider of
l►re-l►ortiolled lonrhe% to %c•hetol children. (:on%i-lenl
\� ith managenu'rIt'- plan. Canteen secured -l:) ne\\
de•lit'.Itt•--en ,u•c minis (fill-in" 1985. Although profit-
Ilaw not met oririoal e\1lertalion- due Ili an Mel
•uppl\ of.offlrt. spare and I'mer orelllpill lr\ r'ale-.
Canteen ro11111111t'% to -t't• r1111,01'1111111\ Ill the TI'o\eltlr
office matrl,el. In addition. the roml►an\ ha•-urrt•---
full\ (nnr�ued at in grim inr; -ernu•nl- of its
tiodiliollall ,ugh it- IliPh deli•rl.e.
I,.I kMI . and pt,\erlunenl.
-s*
:A ttt .,I 111
I 1 turlullii7rfelfll„/,fofitll►1� 1h,•hfrhe.cl yurrlih
/cusp wrlI,t' Il div 111„ l a//I(Yt'l11 111(mrler. I .S. t•t►11-11111-
et'- .Ile e.11111" Illt,le .11111 More Ilit'.d- al1\.1\ 11'r1111 ho111t•
I
allld r\l,e,'I High 4111.1111%. \allel\. alld allrarll\t• 11l.e-
ae111.111t,11 ill 1111111. I tllllllr I11 Illy \\ol.%ldare fop' Inapt\
baps e\ell luv'oltle dw 111'111t'lll.d llleal ill the dal\.
1{erornlinlr Ihi l:a� een ha- de\elol►t d u au vial
rapabilll\ (o nu•e1 the dellland- of its ehanrin;: and
' di-t c•rnillr ru�lt,nlel. h.t-e.
11ond l gmu Ill Ihr,mwh ilfrretl..ed marl.o .\bane
alflll,rnelfwism ill grow l/l Inarl.rt... (:anieen ha- 11111\ed
to rl.u\\ ill loud -vlA Ire -erlllt I11- 1\ her(• 1►olellllal
a
Quality People .. .
L
I.
I:Prl
ww4ast f%m
0
Quality Products .. .
clients still operate their oHn facilities. such as local
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 successful]% 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 improw-
ment coming from food ser% ice, 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 ,en ice revenue, and profits increased
27.1 and 7.9 percent respecti%el% as a result of
higher volume. and a net increase of 629 account- to
a ne% total of 1.585 accounts. This growth includes
new business. Interstate United accounts and other
acquisition-.
i� %*ending revenue- and profit: rose 11.6 and
22.8 percent re:pecti%el%. ►%ith margins in thi- area
increasing from 5.8 to 6.3 percent.
Recreation sen ic" reported increases- of 39.4
and 45.1 percept in re%enues and profit-, respecti%el%.
The imprownient Nas due to increased sales at The
penned% Space Center and Yankee 5ta J441.1i�; 1
impact of Interstate United*.- recreationam
Food Services I Canteen Corporation
I
Expansion .. .
Preferred Aleal Systems. In(-. revenues and
profit, increased 14.0 and 17.4 percent respectkelN.
In lyKS Preferred Nllea1 Systems pro%ided 42 rnilliorl
schoul lunches to students and initiated pilot food
sen ice progra►n, 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 ser%ic•e management industn and offers penetra-
tion in geographical market• that othemise maN not
ha%e been de%eloped h% the corporation. This suc-
cessful partnership of 56 years pro%ides 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 product, 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 "private label" market.
Rmw Corporalion. Hhich operate, ci�arrtlr•
amleoin-operated nlu•ic and anal-enlent dr% ice•• in
pill1114 111,'.111�H1-, i11,11!-114m •d l►1'1►fll illipl-merllr•Ill il,
the rt-,olt of a partial %ear impact of Interstate l'nitetl',
1►ul1lic \ern ill., ,ale•- and profit,.
r.
Interstate l nited Oil Uctobt-r 1, 1985.
Inter,tatt- l sited I►ecann• part of Canteen and tilt-
rnr•rgill;; (if, the tNu companies Ila, proceeded sluuothl%
and on schedule. Tile acquisition of Interstate Ha,
eonsi,tent Nith the of sreking companies
%hich l,arallrl Canteeli s oprratiolls and share
its business mission of greater growth. lmerstatrs t%o
majur business segments augment Canteen operating
di% isions. expand market penetration and offer oppor-
tunities for .%nergistic growth and efficienc%.
biterstale L'nited's tNu major di%ision. include:
Basl'nNs% and Irrctitutioms Grc►ui). Ir•n ing clients
in: corporale litadlluimt-rs. fimmc cal srniur,. co111-
merc•iel office- buildings, manufacturing. gmernmem
facilities, sc hool., and colleges, health care. and
conununit% nutri(101Aprogranis.
Itilume a iCes Group. Pro%ides sen ices ill-
cluding: food. souvenirs and related --.en ices at stadi-
ums. arenas. c•omention (-enters and recreational
facilities.
Food Services I Spartan Food Systems, Inc.
Serving Our Cus
rs..
Quality Pell) e .. .
Sparlaii o ►erates 54tiI
unit• in Ihe;uutheast L.S.—the natiori4 fastesl-
UrMI iug region —about double the number at the end
ol' 1979. its fiat %ear H llh 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 life critical stages prior
to the ripening of a restaurant for business. Careful _
scheduling permits management to set precise open-
ing dmvt .- and plan suc•I► pre -opening ae•ti%hies as
training and assigning unit management. cash flo%%
and marketing prugrams. In 1985. l►a units Herr --
added. an increase (if la perc•em.
lmprowd unit l►rolitanditi. Spartali s oper-
ating profit margin in 198.-) Has 13.5 percent. its
fourth highest in 25 gars in business. While tilt -
Harder• di%ision achie%ed a record %var. %%ith ini-
pro%ed unit %olumv - and traffic. Quinc•%'s nlilr•gins
%ere It► er as it result of ad%et-v industr% condition-s
and gro%lb-related problems di,utissed (►rlu��.
Operating Earninlvs ni mmi,m.i
j
Im
11 2 -
Ii 1 H2 Y S lit Fi i S
Ttrl►t ,perating management. Indi%idual
nunlager= valuable field experience is eontinualk
supplemented Nith ongoing training program%. often
dt-Igrled N lilt specific curricula for each Ivwl of
Illallagt Illt I11. lit 1985. apprommalel% 5W Hardens
and Q111114.6. Ilia nagenwill personnel atlrnded thrm. '
roulsr,. thu, hell►ing to ryand Spartan s base of
staw1►Ill11 It,l.11llallt IlrUft•„ioIIiII%.
I{r�< nue, irony parlali s restaurants in Ill r'
Southeast stales ruse to Sto1.H million in 1985. 9.4 Q
prrc ent above 1981. l Ipvraling profits increased 6.9 = "
prlcenl (u fit►'?. ; nlilliun.
=•t � t
s
6
�' � • .. .i•�rt,.,� �.tY�*J ; �z"y 'if�•�!3'�i"'yt�M1t �.� �'rx � +� . _
Y
Icy...,.,.,......,......, r ...-.....,.-»-..�......e..a....w...._..•.�
t�
Quality Products ...
Spartan's Hardee"s 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 Quinc%'s division dealt %%ith: 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-
mands of absorbing rapid expansion (Quinc%"s units
tripled between 1980 and 1985): and significant
consumer preferences. change, in
1985 Location.
- G _ Q9 Qll-
H 33
Q 43
■ Il.u.l.. - ■ ;41111. C.
In both its Quinc%'s and Hardees divisions.
Spartans primar% concerns in menu expansion are
qualiiN control and operational feasibility. Spartan has
mined cautiou,l%. but steadily. to broaden the appeal
of both of it, restaurant concept.. During the %ear
Quin(-%"s added soup and hot %egetable bars. and a
children s menu. Harder, added a neH cinnamon
and rai,in biscuit and Hash Rounds potato pufi� to it,
breakfast program.
In 1986 Spartan management Hill continue lu
strive for impro%ed unit economies in it, Quin(.%
di%i,ion, that compam"s high -potential IF 1
cle. and to maintain the strung competitiov position 3
�G
Hotel Seri -ices I Ilion International Co.
_ AR"
-ML ..
-A J!i
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t
1
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•- -
1- not" '
-AW••' r -t
s
Serving Our Customers Through
T.
j-V
17
a r
J
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Hillon International has
achIv%ed profit growth averaging more than 15 percent
per year for the past 30 %ears 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 ill 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 hulrls ha%e made
substantial income contributions but the majurit\ of
HI•s contracts are of the management t%lu•.
Operating
top
H1 II_ ki kI F."
electirrE.tpunsion. HI mana"vilivilt has
al"a\s been srlvc•tI%v in its de%vlopment of hotel
projects. prucredingonl\ Kith those Nllicil. in its
judrnu•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�
important in lbr re('eml past. Nhich has'Aitrlessrd
.ul,slanlial occ-r-building in the hotel Ituluarl in thv
t sited ;tales as Arll as in .unit• otersvas arras.
These hack ha%v nut. ll(Me rr, pre%rnled substantial
ryan�ion k Ill alld bouts li'm Under cunstructiou
till invivii— its rooms h% user 211 percent.
.4c cent iin Pro%r.ytormli.vm. HI•s (Il) hotel, al -,-
operated b\ Inatlager's front numerous countries Aho
share one thing in conunou—thv\ ha%r de%vloped
thclr carvers % 1111111Hl (ner the %cars and ha%r been
carefullc monitored at each stage in their carrrr
advancement. TIIr% hoer also had the benefit of
Quality People .. -
L
r t •-
r,�
y4��YG7`.
�rW e.wyrY.srarr�` - -_-..�ct6n'• rlMfiii�bM,nwA
Hotel Services I Hilton International Co.
Quality Products .. .
I
specialized training in Hl's Career Dewlt{1111wol I,,
stitute at various stages in their career� iuclu,lii,�
advanced training in their managerial cap irltit•-.
Hi's revenues increased to $694.2 million i
1985. 2.8 percent above 1984. Operating prol,t7.
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{mi,
declined from 67 to 66 percent.
Western Hemisphere hotels ac•hie%cd a a. I
percent profit increase in 1985. including imluno�{•{i
results in Canada. South America and nw,t l .'�.
hotels. The Drake hotel in Chicago reported sul,st:u
tially improved results.
Asian and Australian hotels had slightlN liigh{
profits in 1985. The newl,.-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 proper N
restrained overall profit growth in this region.
Hotels Opened 1981.85
Will L
MEN
■
. ■■is
..
IL_
' 11r,,M
■
European and African hotels had
tiall% higher profits in 1985. primaril% from 11ir tl{,
London hotels. including the renovated London I I,!
ton on Park Lane. Munich and Paris al.o hall
lent results.
During 1985. new properties. both urnl{•,
management contract. opened in Kannal. Cit% and
Oklahoma (..it\ in the U.S.. representing a i,ct i,,-
crease of about 8(K) room..
In 1986. HI plans to open three ne%% h{{t{
representing 1.448 rooms in: Pittsburgh:
Japan: and Brisbane. Australia.
�� A - : .
�.
� i..
.. ....:4, �..
:al ]rrul►rrt% and equipment, net 607,280
486.720
429.448
413.660
430.200
1.41 aasrta 1,329,347
1.146.411
1.461,988
1.448.155
1.555.973
atl'-temi debt Ir.- current maturitir• 152,830
136,909
158.728
245,349
355,990
""jicurrent obligation.- undercapital 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 Operation-:
wrating income tcs rr%enues 7.8%
7.47c
6.7%
6.6%
6.7r1
wrn un awrage ryuit% 14.8
16.3
11.4
14.0
23.1
-lit a� a l►rrcew of total capital 21.0
23.9
30.3
48.8
61.6
l96-1021
t� Y
Oks
Management's Discussion
and Analvsis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
At December 31, 1985 and 1984, Transaorld'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 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 (1UC1: and the addition of almost
S160.0 million of pruperty, plant and equipment with internal]
generated funds. Funds generated by continuing operations
Iinc•ome from continuing operations plus depreciation less
diyidendsl amounted to 9158.3 million in 1985 and $135.0
million in 1981.
Tran-o orld ham a re%olying credit agreement pro% iding financit
capacity of up to S200.0 million. all of %hic•h was available at
Decerniter 31. 1985.
Results of Operations
1985 Compared Ire 1984--Consolidated operating re%enue in-
creased S213. ; million 111.(1 i ► Irom 1981. Thr• of
..
Spartan F„od S%Avni%, Inc. ISpa rtanl inc•ree�r-d �;aU.0 million
�c
I1t.4 ii I primarily duel(, 18 additional ►nine �'-and 45 addi-
'}
bona! Harder- unil- in operation. For 198.7) the Irrr More
rru•nu" of Spartans ]~lain( %'• unit- dt-uhned to S887,(X
principullc it► rr.ponM, to all indu,trc Hide dre•linr in the dinnc
4r'
hout-r• segment traffic. The rc•\enur, of Canters Corporation
ICantrrnl increa�rd �I.i'?.8 million 118.1fi I, principall% from
the acquisition of WC —which contributed S1(11.0 million for
the fourth quarter of 1985. In addition, re%enur.- front the food
and tending di%isiun increased by $33.8 million due to higher
3 volume:. Thr re%enurs of Hilton International Cu. IH11 in-
creased $19.2 million (2.8%1 mainl% due to increases in the
average room rate,, as stated in U.S. dollar-. off. r•t h% a slight
decline in occupancy from 6, % in 1984 to 00'7r ir► 1985.
t=:
£'
Consolidated operating expenses increased S189.1 million (10.51,
'
from 1984. Spartans increase in operating expen,vs of SM.9
million (9.8%1 was primarily attributable to increase: in payrol
and fringe and product costs due to additional units in oltera-
`
lion. Canteen's increase of S141.3 million 117.61/rI was primer
ily due to the RIC acquisition ISt10(1.9 million) and ala) to
r
increa.r. in the cost of food and tended products sold. Thr
t
operating expense, of HI increased SBA million 11.4c/c 1 mainl%
due to increases in payroll and related expense..
t,
8671021
►
Consolidated operating income increased $24.6 million -from
F 7.4% of revenue in 1984 to 7.8% of revenue in 1985. HI's
"�1 - margin improved from 9.3% in 1984 to 10.6% in 1985.
sacs_ (►thee charges (credits) increased by $8.6 million 154.47c 1 due
un• primarily to two factor-.. First, a 1984 credit of S3.2 million (lot -
of, '. to an o%errstimale of losses from Transworld's ownership of Trans
,p Qlorld Airlines. Inc. (TWAT for the month of January 1984 and
,ties second a decline of $3.3 million in interest income for the full
ter- ►ear. despite an increase in lemporan cash investments, pri-
marily due to the proceeds received from the sale of Centun 21
nalk ' nrl of funds used as discussed al► ne under "Liquidity and
Capital Resource,.- which occurred in the fourth quarter of
1985.
The provision for corporate income tax tit) income from c•ontinu-
me operations increased $9.3 million 13 1.6ii I mainly as a
ncing rr-tilt of net operating loss l►enrfits generated by TW A and
at : utilized by Transwurld in 1984 and increased foreign taxes.
Lamings per common share from continuing operations de-
credsed it, $2.56 in 1985 from $2.62 in 1981. The decline in
rarnings per common share reflects the increase in the weighted
in- average shares outstanding partially offset by a reduction in the
rf preferred stock dividend requirements. The weighted average
Oil •hares in 1985 increased b% 4.1 million tit 30.4 million shares
i. dur to lit(- comersiun of grits C Preferred Stuck in 1981.
!981 Compun'd t►,1983-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 1�tuncy's and 14 additional Hardens unit. in operation and
rom increases in menu price., and per store volumr. The rrv'enurs of
r for t_antern increased $6:3.9 million 18.37c 1, principally resulting
ffront higher volume in Ihr food and vending division. The
;hhee r rr%rnurs of HI declined $34.6 million (4.97c I. mainly due
he "a declurr to food and belrragr rev'enur as well as unfavor-
g1it ►h\c foreign r%change dur to the continued strength of the
.... dollar.
'51%) .onsolidated operating rotprnses increased 884.0 million (4.9% )
9 n-m 1983. Spartan had the largest increase in operating cods.
*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 (7.9dc 1 was primarily due to an increase in the
►dr ,st of food and vended products and increases in payroll and
•rrrFr dusts. The ul►rrating rxl►rn%es of HI declined $39. 7
inly mlliun 16.1%I, mainly clue Ito decreases in payroll and fringe
►sls as well as decreases in cost of sales.
.c►nsolidalyd operating income increased $19.8 million -from
A% of rrvrnur in 198:3 at 7.4ch of revenue in 1981.
►thrr charges Icreditsl (-hanged favorably by $7.8 million
i3.97c I. principally due to a $3.2) million overestimate ire 1983
t losses from Transwurld's awnerahip of TUA for the month of
anuan 1981E and it $0.8 million decline in interest exprnsr,
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 decrease
is partially offset hvincreased state, local and foreign tax
provisions due to increased profits and try 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. 198.1 and 1983, the strung U.S.
dollar versus most foreign currencies had an adverse 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. Iessenrd the advrrst
impact of foreign exchange on the results of H I.
Revenues and eyensrs of uverst•as hotel operation decreased
to the extent that they were generated in foreign currencies
w'luch 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 the decrease in revenues was not offset by the decrease in
expenses. In 1985. HI reported an exchange loss of $4.8 million
compared tt► exchange losses of g 1.2 million in 1981 and S3.6
million in 1983.
Discontinued Operations
In the acc•ompam ing 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 tin the impact of inflation and changing priers on
Transworld's rr►enues and incomr. see lute 15 it) the Consoli-
dated Financial Statemrnls.
86-021
P. 00
Statements of Consolidated Income and Retained Earninr,s
IAmuunts in Thuubands Ei rpt Per Share Amount-4
1985
Operating revenues
$2,151,556
Operating expense,
1,983.390
Operating income
168.166
Other charges (credits):
Interest expense
22.700
Interest income
(1246901
Other - net
14.403
24,479
Income from continuing operations I►efore income taxes
143.687
Pro%ision for income taxes 2
38.901
Income from continuing operations
104.786
Discontinued operations:
Income from operation- t►f Centun 21
Il.r.• applicalllr mv-onir Id\ 11f: 1985—$3.397.
1/J81—:_t.11tl�dnd 1104".3—S10.1811
9.441
(.dill toll -alt• oil Cot- tor\ 21 1It•., dlllllll•dlllt•
Ill, ,III,, Id\ of a52.11121
50
1412.750
141„ In-itI tolit-rat ltolI- of T W IIt•„ dllltllt-dllll• IIII rtollIt,
tit\ tied I III 198311f 121
—
1.1ss ton disl►osaI of TWA (Irss allpIII-al,Ir income td\
credit in 1983 of 91.99111
—
Net income Iloss)
217.530
Retained earnings at beginning of year
82,888
Di%idrnds, etc.: "1
Di\ idrnds ton common stock
(16.234)
Dr\idends ton preferred stuck
("166)
(hht•r
-_—
(4,770)
Retained earnings at end of year ---�-
$ 2'2,248
Earnings (tubs) per common share: It
On income fn►m continuing operations:
Oil a\erage outstanding and equi\aleni shares
i 2.56
Assuming full dilution
2.56
Oil llel in1•o111t•:
On awra):r oulstan lint; and equilalenl shares
5.66
Assuming full dilution
5.60
I-* !totes to Consolidated Financial Slatrments.
19811
19f
$1,937,823
81.834.0(
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
47. 7 5
52.40.
16.81►1 1
7.80.
1
t
—
112.JJI
—
(55.32t
115.029
(7 ,662-
-
284.805
18.65Oh
—
(19,2871
119.795
(4,2M 1
1257.35l
- —
82.888
S —
o
S 2.62
$ 0.9ft
2.54
1.0(1
3.14
(1.3.
3.00
11.26
867021
Statements of Changes in Consolidated Financial Position
Amount- in Thuu-,incl�t
For the lrar� Ended nrc-rml►rr 31.
a -
j Fund- Pro%ided b,.
Incomr from continuing operation.
Add (drductI nunca.h item.:
Depreciation and amortization of propert)• im-ludinF capital leas.
Amortization of intangible a.,et.
Deferred income ta\ pro% i.ion (c'rrdit 1
\rl In►tu continuing ol►rratiun- -� -'---
Ih•continued operation.:
Cain on disposal of Centun 21 Iles applicable
ittconte la\ of 152.4021
Net change in imr.tment in Crntun 21
l.►.-e. front TVl \
Drcrra-r in Imr.tment in T11.1
l)i\ tdrnd declared -equity holding in TIVA
L-uancr of cummor►.tot-I,
(.on►mutt ac►t•h i..urcl to debt re.lructurinp
Lang -term dri►t i..urd
\rl INK& %dtur of prol►rrt% dt-po-itiun-
\et unrrahu d (mvi ;n r%4'IId1IF1- (gout, to uu fl\rd
a--rt- and lung -term debt, includmg capital Ire�r-
t �1lhrr
�Inctra.r (drt•rra.rl itt:
i'
lccuunt- pa%ahlc and accrurd lidl,ilitir-
Other noncurrent hidoilitiN. and deferred credit!.
und• 1. trd for:
itmclend pa%ab)r-equity holding in TR \
I'rc,l►rm.k dddttic►n-
I,mg-term drhl l►a) mew.- and capital leas obligaticnt. di.c'hargrd
Cj
reigri currenvi, adjusth s► ent
. (lit ids-nd. on capita) -mock
n%ersion and redemption of preferrrd .loch
I'urc ha-r of lrea.un .loc•Ic
+Jnerre.rldrefra.rlin:
1985
S 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
31,836
(9,945)
23.400
W.168
43.587
Re-ct•Mal►le., nrt
97.051
ht�Nt11►Irre-
i4,605
Other current a-.rt-
S.b911
Other a..rt- • - ---- -- ----- --
80,831
454.12
i_
Increaw (decreasel in Cash and Trrnl►orar) Cash lmestment.:.
611,044
:ash and temporan cash imestmentr at:
136,840 -
19111
8 98.135
57.154
7,652
(7,204
13,1561
152.581 1
12.879
4(x).379
15-1. 7 71
63.817
7.042
9.615
14.4t►91
42,587
8:31. 753
4()0.37y
137.•2:31
101.295
6.559
27.937
124.530
5,227
324
861)
_ 47,534
851.883
120.12%
156.969
198:3
$ 52.408
54.263
6.367
2.505
2.360
I I7'WO
(6.519)
167.87tt 1
84.157
(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 7
1,268
(2.0781
14.651
(121.9781
55.521
Consolidated Balance Sheets
Unniunip- in Thnu%ando
r►.._.._1...- 91
Assets
Current Assets:
C Ca•h
Temporary cash investments, at cost (approximates market)
Receivables. less allowance fur doubtful accounts uf:
1985—S5,6y0; 1981-85.310
Merchandise and supph inventories
Investment in Century 21
Other
Propert- :
Prol►ertN owned tat cost I:
Merchandising: equipment
Land. buildings end improvements
Other propert% and equipment
Total prupert% owned
Less accumulated_ depreciation
Pml►ert% owned —net - ---------- ---- - - - - --- ---
Projwrl� held under capital leases tat cal►italized valuel:
Mer, hand►smg: equipment
Land. buildings and improi,ernents
Other propem and equipment
Total proper(} held under capital lease-- - - - - --
Less accumulated ainortization
r Prul►erl% held undercapital leases —net -- - -- - --
Other Assets:
Goodwill
Other lung -term invesunents
Other
% doles to Consolidated Financial Statements.
•
i
198.3 1981
i 18,145
178,739
129,071
80.589
.i —
16,163
- - - 422.707
200.015
394.395
273,050
867,400
- --,-_ 290,391 -
577,069
7.246
57.284
124
04.654
_3.1,44
30.211
-- -- - — ------607,2811
1.19,879
88,601
60,880
— - — ----------299,36(I-
-------�-------$1,329,347
S 34,817
101.993
102.020
65.984
110.655
10.473
425.972
162.855
31 1.722
216.552
694.129
243.338
45f 1.791
1o.757
57.730
131
74,618
38.689
_35.929
480.720
82.397
93,516
_ 57.806
233.719
SI.146.411-
."I
86-10 21
1 ..
Liabilities
Current Liabilities:
Current maturities of long-term debt and capital leases
Accounts paNahle
4c en►ed salaries- and vacations earned
Accrued taxes
4c•c•rurd rents
Other ------ —
l.c►ng-Term Liabilities:
1xing-term debt. less current maturities
Noncurrent obligations under capital leases
Urferred incuncr taxes
I Idler noncurrent liabilities and deferred credits
Commitment% and Contingent Liabilities
Shareholder, Equit,.:
Preferred stc►c•h, without par %clue:
Aulhorize-d-hdrrs. issuable in series
Uutstandin�:
lrries A-82.00cumulative comertible,
11111iled %u1in11:
tiharr- dt stalyd %alur, $2.50 per share
Liquidating pre•ferencr, S511 per share•
Series ti-81.911 cumuldtke nu►►comertible,
limitrd %oting. no slated %slur:
Shares at redemption Iialue. 820 per share
Exc rss c►f redeniptic►n %slue o%rr earn ing
valor
Liquidating l►refere m e. S20 per share
1.411111114111 stoat. 85 par %slue:
Aulhornzed sharr-
Issued shares at par %slue
Capital surplus
Furrign current-% adjustment
Retained rarnings
1'trasun slc►cl tat cost I
0
N. o. -
.c.cc.,
198.i 1981
IAmuu►►t in Thuu-ernl-i
20,000 20.(XK)
1.0-15
1.04o
S52.271
8.52.27.5
—
2.512
S —
$50,159
75.0011
75,(KKI
35,728
35.598
1.140 —
1985 198•
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
177,99()
386.864
381.804
(33,596)
(43.5411
272.248
82.888
_ (43,587)
_ —_
--
763,182
650.162
S1.329.347
$1.146.411
8E-1021
L.� x,, �;`9. i o-"�-�!'+' —ref• ... � .. .. :....
L.
Notes to Consolidated uncial Statements
File the lrars F:rtded f lert-Mi".r 31, MI.,). 1981 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 amortize
significantly affect the determination of financial position. and funded over periods front ten to 40 years. See Note I I f,
d 1 f further description of the plans.
changes to financ•ral position an resu is o operations are as
fullo%s:
(a) Consolidation. The consolidated financial statements in-
clude all significant majority owned subsidiaries. All significant
intervompany transartions havr been eliminated. Trans%orld',
ime,tnient in Century 21 it accounted for hx life equity method.
See ;'lute 3 fur a dercription of the 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% tilt- lease 1►rriod.
The fullu►+ingestimated useful senile li+rs were in effect during:
198.5. 1984. and 1983:
Mercliandiring rquipntent-1'rinc ipallx eight to left .ears
Building:--1Aenrx to furl% xrars
Other equipment —Two to fiftt-en %ears
Leasrhold inlpnnrmrnts—Estimated useful life limited In life
lease period.
(c) Ini,enturies. blen•handr,e and supply imenlories are %alurd
primarily at tilt- hmer of a.erap- cent or marht-t.
(d) Goodwill. The unamortized em-ess of cost uxer tilt- fair
%alit- of net tan€ihir assrls of c•ompanit-s acquire-d is hying•
amortized oxet a -1(I-year period on tilt- straight-line mlethod.
During I W.I. 1981 and 1483. S3.077AM. $2.,%1.(K)O. and
S2.470.0M. rv-,p►t-ctitely, herrcharged (to income. Gucd]All]
arsociatrd Kith the acquisilion of Centun 21 is included ill
the rrsulis of discontinued operations. Amounts ,u Charged are
W. follo►.s: 1985—g1.7O1,(1Ou: 1984—$2.012.(KK)aild
l983—g2.039.(KK►.
(e) Erunchise Rivhts. Tilt, cost of restaurant franchise rights is
anoortized ratablx oxer lift- lilt, of file franchise ag:reerrlent, (2(►
years) from tilt- date retail restaurant operations comrlivilce.
Agrrementr c•otering p►rt-sent uperating locations expire on
%arious dales from 1986 le► 2005. Certain of these agreements do
not contain I'Me►,al op ►lions.
(f) Pre -Opening Expenses. Expenses incurred in conjunction
with lift- u1►rning of hotels are deferred and amortized, getterallh
o%er five sear. ]q charge., against tilt operations of life rebpec-
tixr hotels.
(gal Income Tuxes. Trans►.orld and its qualified subsidiaries file
a eonsulidaled Frdrral incurnr Id% return and account fur
imr,lmrnl lax c•redtt, oil life 114m-through method. See Nutt- 2
fur a further descriplit►rt (if Traitsaorld', accounting: for
incurnr tags.
•
Note 2. Income Taae-.:
Transworld and its qualified sul,sidiarit-s file a consolidaled
Federal income tax return.
A summan of the pro%isiurt for income taxes is as fullu..s:
(Amount, m Thou,and-1 1985 148I l4
Current - F33.1211-`-i
D_eferted 5.781 1, ►u; I 2,
Pnn Lwn for income
taxrs on continunli:
uprtat flaws
Tax pru.I,lon dieneful
from ulwratlon- of
drsroni mue•d .vgmvw.:
TU A
Crnlun 21
Tar irro.rsunl on pin on
bait, of Cenlun 21
Tidal pro.Isunl fug - - �-
Illr'unle to\e•+
38.901 2r:►..i; 1
3.39-, 2.0210
1 47.7:,
133.i9:
10. 18;
S41.76n F.31.r1(k) $21.441
Fur 1985. 1981 and 1983. foreign income Ahic•h g kes rise to
furrig it income lags repro-ents approximatt-IN
$5(►, 7OOAKK), all(] $13.:3WAKKI. respt-vtixel\. nl the total in-
c•ome l►efure incolnr tags.
The current pro% isiun for Federal and stale and local inconte
taxes includes taxes payable hx suhridlarx corporaliums ►.hich
are not includable in the TransMorld con.d Federal
income tax return. The current pro% isiurt for fore-ig:n tags rt-latrs
primarily to Hl.
An anaiNsis of the current incurnr tax 1►rot i'mil i, es folluNs:
tAniounls iii Thuu,andsl 198; 1481 14113
Frdrral:
(,toss
>? 19,IMN
het ulwrallnp loss
—
Forri►.'rl fax rrrrllts
11S.Jlll I
_ 1mrstmeni lax eredfr•
_�— -- -__
(j91
_^ _ - —
Net current Fe•drral
381
Stale and IrK al
4,894
Current uu•urne• tax
pnr.I,lutl on ru11111111111F
ulrrraoun,
CUrtelll tax pro. Jbllgl 11wllefilI
- dw untnlur+f srKnu•nt- - -
Tolal current im unit, tax
pnl\ isum
i145.8:31
c 34.624
16r1.3811
—
I12.o211
113.c1131
63,3c,11
13.;441
1 l t.3(lts
22.222
..tilt
4.fi61
18.4(k) I )8.167
33.120 1 36.".i 1 4-,.2in
3.0.456 J --,i.34Y� 12U._i"81
g 6t.117b 1 t 4oX.3 I f 2�.672
86-1021
4
_.
Thr deferred ineomr tax lmwision rrsults from timing differ-
At Dec•eml►er 31. 1985. available foreign tag credit camfunvards
ences in the recognition of rel,enut• 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 tau returns, will expire
and the tax effect of each are as fulloAs:
as fulluNs: S1.5(XMK)0 in 1986. S2.100.000 in 1987 and
14mount.innillmall&1 198•1
Ic►H3 19R:i
SM(MAKM)in198ti.
I.n• deferred Iilx dn•Inr franc
` e
Note 3. Sale of Century 1 Neal Estate Corporation:
At, tdrldlyd drlllr, laoon = :.581
F 4.159
is 4,665
(.dllital Ird.r it t'l llllll111 ' (8n 1
�
IM121
1:11
()n Uctuhvr 30. 1985. Transvtorld's aocdthuldrrs approi,rd the
I irt•i i ftnant lit;: It•a-r- 23,1129
(87.3 01
-
) S2;
sale (if �l for �1.2(N1.(MMLThraccompamin�
In'tilllnrlllnull Illlrl,•.1 1.6"9
(Ilher UmutFdif(rrrmtr 4.351
(t. tit
15.5131
-
11.3%1
Transwurld financial statements present the financial position
drie"md Frdt•rJl lay -_ -- - - 39..Wl
14.i.8.i111
3.42A
and mulls of upyratiolts N ith the impact of Cenlur\ 21 st-giv-
t.n,-,
Tax tw•nefit fmm Tu 4, 19.3281
1H.12"M1
-
gated and condensed. The revenues of Centun 21 (%%hich are nut
F ,r• l}n IJx irrdll- (2.1911
12.W11
-
included in consolidated re►enUesl Nere as fulluH!-: For the tell
Ime.tnlrnl lax t rt•do- _ -- (23.39(11
53.44'1_
_ --
months ended l Ictober 31. 1985: S00.(MKI.(N10: for ill( -sears
llrlrrred Irdrrdl mcunlr
ended I)ec•embrr 31. 1981. So1.132.0(K): and 1983.
laxlints, i.l,.nisrr•du1 4.652
(4.,AWl
3.423
S55.230.000.
144111`141 .IJIr dlld 1,..11
1 21N1
1 197
3571
it,, w P t.lx lirM 1•1..11
.
lh4,-rrr41 harign lilt,lntr Ids
Omit-it.nun•dlll
- (iil
1.1(l:
t1_2731
lrlrrTrd lilt unit• IJx Ill, it m--is un
ronllnulnF tll,erau,m-
5.781
17.2011
2.atl.i
Ib•fr•rrr,1 Ids Ilw•nrlltl-
dN, utll lllllyd a'1 rl lr'lll-
21.411:1
11.A0111
12. ..3•�)
1.1al tl,•It•rrt•,l Ill, I'm, lax
linlxl.nallrr,•dll
1 30.681
c IH..i-.i1
i (2281
Deferred incunty tees arr inuludeld in the balant e sheet- a-
b,ll,lh.:
kmmioi. lit Tfiwi, uud-1
198.-1 1481
111111.1 t urrrnl d••,•1-
f (2.3911
! 9
llrlerrrll ntrnmr IdU••
(42.14(11
114.2121
1'he differt•rive beltnrrn tilt- statuturx Federal income tax rate and
TransNordd':- efdretiisr tax rate is as full(,,A-:
198i
148 3 148.3
`lallltun rdlt•
Illflrrr•ner rr.ulonF fntnl
t waintong ulw•rdllun-:
Intr-UnrW tdx 1 rrtlll-
sldll• dtnl Ila ill ld\t•>. llt•t
of federal lneunu• tax
11rnt•fit
Elfret of ftlrr•1Fn .curt r
In, onir drltl lulr1gli IJx
i rrdlt-
lax II••I11.1it frulll l�
\In1.nvJloat,if K,11.1%111
and Ilther lbennant•nt dil-
frrrnrr• Iw•Ittren Ili,- IJx
velum Jnd Ili•• %W11,1llr•nl
tit run.nllildlyd lilt lime
t Ilrt Iltr 1.1x rdlr I'll
, nI1111mille •0er•rJll..11-
W4 46r4 40ri
(161 - 141
2 ; 3
(31 11 2
Ibl 14li -
•
:i I
Si 23r�i 48ri
Dote 4. Acyuisitiun:
On (Iciolivr 1. 1985. 7ransiscorld acquired and transferred to
Caniven all of tilt- outstanding stud. of IUC for S93.5(N).(NNI
in call. Tilt- resultant c•us1 in ewes of net assets acquired
of apprut,inlatvli, S03.301.000 is living amortized o%t•r 40 gars
on tilt- straight -lint• method. hir fiscal gars ended Drcv11111el
31. 1985. 1981 and 1983. Trun-Horld's profurnui rv%enut-s. in-
cluding IL C. would hate 11ren: S2.1(12.150.(KKI. S2.339.123.(NK)
a I I dS•2.'213.8Y3.(NN1.
Note 5. Separation b% Transworhl of Trap, \Xorld
Airlines, Inc.:
Oil Februan 1. 1981.Transc.orld distributed all it- equit\
huldima in T11.A ill Trans%orld's common stocltholders. The
ae•cumpan%ing financial statements present TA A as a discun-
tinued operation in 1983.
Transhorld's inisestinew in TA A at [December 31. 1983 «a-
recorded as a diis idend pa\ably b\ a charge against retained
earnings in the full amount of S256.210.(MMI rxistin; at that
date and tilt- remaining balance of S141.139.(XM) was charred
to capital surEdus.
8E-1021
tt
Mlle• ttllaln•ulnl,ttcll I nt;Ini ial �t;ttrmcnt• li tlnhnucrll
Note 6. Foreign Currency Translation:
Folio%ing is an analysis of the changes in equity during 1985
and 1981 fur cumulative translation adjustments:
IAnNlunt tit T)Ntunanils► 1985 1984
Relative at Jarmdn 1. i143.3111 Simj,9821
Aggwpatr edlu•tnirw for the 12 month•
rridtd 144-rmlM•r 31. resulioig from Ilw
tran•latmrn of foreign currrnr% sldlenlrnl. 9.945 (6.5591
Hal.+m r• tit I►t-unitise 31. M33.5961 St43.1111
Note 7. Capital Stuck:
Cornrrton sloi-k Issued during the year and reserved fur cuntin-
gent issuance at December 31. 1985 and 1984 are as follows:
(lundoer c►f .share-
Issurd Heseme•d1a1
I Amount- mt Thun•attd-t 198:1 It)8; 1985 1981
�.nlplutrr• .ai 111E- Jilin-110 - - &10 8211
L%rrct-t• tit 1 wliet-tun of.
Prrlr•rrwl -I,% k'
!r•nr- k
1t•rir. t. 1 t t
Mist l mitt bast warranl
19til1ttlt
)48'tri
k.niplu.rr -Ittt !, uptaal-
Ini ruhtr cmniJN•usatmn (elan
-
I
738
738
-
4.'W)
-
-
-
3.0:3
-
-
-
2
1.798
1._19H
1341
5V)
2,6,)4
2.82:t
-
263
_ 2c 13
7. W"
130
6.278
6.444
I It I A• of the close of husiness on December 28. 1983. the
record date (tor the- distribution of Transworld•, rquity holding in
TU A. thr contusion ratio of Transworld', Series A Preferred
Stt►c•k was adjusted (run) unr half 10 one to 0.706 to unr.
(b)1. nder the plans the Truster, purc•hasr lint iouslt unissued
common stock lrom Transworld at market talus or, wilh thr
consent of Tren-world. purchase common sltwk in the ul►rn
market.
(c 1 On Oclobrr 29.1981• .Transwurld called for the redemption of
all Its uutslanchng Series C Preferred Slcwk. Each share of Srrirs
C Preferred : tot k was cumertible I» the holder into 1.412
shares of Tran.world's rummon sttK•k until No►embrr 26. 1984.
As of Decernin-r 31. 1991 appruximately 3. M4.0(l0 shares of
Srrirs C 1'rrfrrrrd SIcK•k were converted into approximately
4.389,(XXJ shares of common stix•k and appruximately 100,(M)
shares of '-whirs C Prefe•rrrd ;luc•k were redeemed, retiring the
entire is.ur.
(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, 1986 to December 3, 1984.
As of December 31, 1984 approximately 3.037,000 warrants
were exercised and approximately 3.031 000 shares of com-
mon slot I, were issued. The remaining balance of approximate
32,0(KI warrants have expired.
(e) The holder of a 1987 warrant is entitled to purchase one
share of common slack at a prier of c 18.06 per share, subject I
adjustment under certain condilions, until Januan 15. 1987.
(f) On December 23, 1985, Transworld called for the redemp-
tion of all its outstanding Series B Preferred Stock for cash.
As of December 31. 1985, substantially all the 2.512.(r4()
shares of Series B Preferred Stock have been redeemed for the
$20.(K) stated redemption price plus accrued dividends for an
aggregate redemption cost of $50.554.(KX) retiring the entire
issue. On October 25. 1984. Transworld announced an offer to
exchange its new 111/sfic sulwrdinated debentures due June 1,
2007 for each share of Series B Preferred Slock. Approximately
2,0(X),((K) shares were exchanged for the debentures.
Changes in consolidated capital surl►lus are as folhms:
f hmounts In Thousand-1
Bill.irn•r at Januan I.
t)n idrntt o('1'N 4
NI -I pri.trrd- frum the sal- of conunon
%Iot.k Ito e1 v't of 11,Ir lalut•
Comer,m n- of 5% and 12`.r
sullurdmtatrtl delwnture- tit rwvr
of par %aloe of cunirnun salt%.
Issued
Comemion of 4•rirr C Preferred
Ntwk and exercise of 19M
warranty to ritues, of par talur•
of cutlumou slLk,k issued
Other _
Balantw at 11rcrmlit•r 31.
1985 1981 1983
fFa81.8111 �_^".i..itMl 9292 722
- - 1144.1391
65.352
11 .o42
2,(I60 _ 18.3381
1386.Wo l 8 381.8" 1
58.526 1
3.039
!t2 � 5•ifN1
Narioua loan agreements place certain restric•tite cotenants on
Transwurld and its consolidated subsidiaries, including certain
requirements as to pay meat of dividends on common stuck.
Payments, including the payment of di%idends. to Transworld bt
its subsidiaries are also restricted by various loan agreements.
Under the most restrictive of these agreements at December 31,
1985, Canteen, Spartan, and HI would have butt permitted to
male S13.60"i AM. $80.644.0W. and $11.594.000. respec-
tively, of additional payments to Transworld.
Note 8. Earnings (Loss) Per Common Share:
Earnings per common share are computed as follo%s:
19R., 19R3 1983
Adlu-tmrnt of Net Ir► -o ne:
Net Incomr as rrlK,ned S217,534)
81 15.029
c 17.6031
Redo, thin In Inlrrr•I rr,l,rn.r Glr the ah.,unled rurn•rr rntn common sl l of the ly8e, warrant- —
5.45-1
`
Ik4lucl dnidend requlrrn►ente on prrfrrrrd elcx•L and thr amortization of the excess of rede•ntplion
%slur met cam mg talur of 4•nr- B Preferred SI,K L (11.5081
1 N.2221
01.8971
Inrrra*r In dit Mend "turrments for the ac•umrd earn Isr Inlu tirnr. 1) Preferred plot 1,
of the 198 7 warrant, —
—
16.41181
131,4trttl
_
Ad1u+Iml net incurne appht ahlr lu avenge uutetarahng and equnalent common sham 20h.022
101.261
Adlu•iment- a-sunong full dilution:
Re,thn-64in in inlrrea ei liens fur the a„urne•d cumrnlon into c•ummun mix L of:
5% drlwulure. iaa,urd IWO —
—
332
12rk del,rnturr• wsurd ItOl —
—
I.5-15
Keduction of Iwrlerml dr►Idrod requlrrment. for assumed conver*nm of comenlhlr preferrrd sto, L
Inlo, unimun .I,K L:
A 2.091
2.Ml
hnr-l. —
--- -
i.821
•
8111.173
Adnr-trd ne•t earning- a. umntg full dllulmn 12118.113
133.0611
kdlu-tmrnl of cornown and rgen►Jlrot OtJre s:
Awragr common shirr, oUlAdridnlg 35.628
28,8(1)
27.209
Avrragr lrra.un shirr- 13151
—
—
As.umrd comrrsum of summon stK•L alto '%enr.� 1► Preferred !%I,K L —
—
11.8fmll
A-unlyd e%er, v e of -I,K L warrant- and aprlull- 1.076
3.3.i1
31
7u1a1 J,rragc oat.tandnlg and rgumilent common .ham 36.389
32.253
25.503
4dlu-tnirnl- a--umnlg full ,Illation:
A.�umed rLrrc Ise of •ttK L wartants and option. 61
'
25
AJJItiunJl .o er Jg, common .harr- it•-ulting fmn, the- a--unird , .m trrlon nID, l unanun >1art1, ot:
51:i tle•IK•nture, U>uc,l 1900 —
—
I-Q
12q drhrnlurr,. s-urd lYW) —
—
581
Prr6•rred Sim L.
.ft Win- A 738
738
•
- -- — - - - - --
37044
idluwlyd JtrfJf,' , nrunion AlJrr- s•.umrng full ddutiuo 37.188
26.21"
•%,.'nim-lmrut I. nladr .Incr thr rffr, I Ii. anluhlulew.
Sec lute ; for a description of the right,- and privileges of
out-t.clnling colneriil,lr .rc critic,, %arrant% and options enter-
ing Intl, the coniputation of earnings per common share. The
trra•tm ae► k mt-dio l it u-.rd to c•alc•ulale the diluti%e effect of
the 198; %arrant-, and outaanding sock pun•hase ol►tion,. The
lay rate u.rd i!. U)Ih for incurne from continuing t►perations for
IWi. The la% rate. u.rd are f1.11"Ic for income from cuntitwing
o1►rralion.% and net income for 1984 and 6.9r/r for net income
for 1983.
u
a
Due to the redemption (if the 5erie:, B Preferred Slock 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 a%crage uut:;tanding and ryuivalent share.
1►% appro*imalel% $0.13 fur the %ear ended December 31. 1985.
8(;-1021.
i
kt:
�'
Doti'• to Consc,ltdated Finanr'tal Statement- wot nintroh
Dote 9. Long-term Debt:
Long-term debt outstanding is as follows:
(Amounts in Thuueando
1985 1984
Nuirs. 9�/,SE dur IQWi 4U.4
; -- - -- - --= 100 so g 1 17
stoles, 5v1%
due 191k,.144(1161(Ft
1M")
Notes. Ill'7r to 12%
due 1%k)-2010tbrtp
9.598
Ault.. 12.18 . rq dur 191k .M.i1 t
12.180
tiulxcrdenatrd de-lwiiturr•. l(Ki
due 1WN• 14W((l1
30.792
Sulourdindlyd dri,enturr•. 11 V& n
dur 14yK-2tMt yet
34.571
1tew1mig vr"ht agrrrnteimb
—
Nutrs. dur 1'081
_
Sundn utdrtdrdr,r••tgi
Taal
_51.192
161,,33
lxss rurrrw matunur-do
8.903
11.137
10,674
30.232
33.523
9AM )
49.a1.o
(a) The notes are denominaled and pa%abie in Swiss francs.
(b) The- note, are denominated and pa%ablr in Canadian dollars.
(c) The notes are denornindtrd and pa%ahlr in British 1munds.
(d I The 10,( sulK,rdinated debentures, which were issued in
19-Y with an effective rate ul appro\imatrl% 1 ar1i had unarnur-
lized urigindl Our discount of $5.383.(KK) and S:i.913.(KK) at
Urcentlwr 31. 1985 and I981. rrsprctl%vi\. The original issue
discount was calculated on the basis of the nlarkel value of the
commom stiK k purchase wdrrawl atldchrd at issuance.
(e) The 11 t/i r subordinated drl►rniures which %err issued in
1981 wilh an effrcti►r ralc• ofappncxtnlatrl% 13 r in exchange
fur appruaimate1% 2.1K1(I.(KK) shares of Series B Preferred Sit k
had unanlortizrd uriginal issue discount of S5.4350KI and
So. WOK) at December 31. 1985 and 1981. respecii%c•h. Thr
original issue discount was cdculdlc•d on the hasis of market
%dlurs at issuance.
0
(f) A resoling 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 t/• of lr, through September 30. 1989. and thereaf-
ter to maturih at either the prirne rate plus all additional t/o-t of
1% or the certificate of deposit rate plus an additional '3, r% 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 l/2 of lrk. Fees are paid based on the acai►ability
and utilization of the total commitment.
The agreement contains certain restricti%e financial Cownants
applicable to Transworld. including several financial ratios and
sales of substantial subsidiaries.
(p) The notes and sundr% indebtedness include certain notes
secured In mortgages on carious operating properties of Canteen,
HI and Spartan. The net book value of lhrsr properties Has
8 i 1.2 i 0.(K)O at December 31. 1985.
(h) Aggregate annual maturities of lung -term debt are as follows:
t Arn wi in Thouwndst
lydr:
140, c 8.903
141„ 21.193
1988 0.,,7:
1411,11 9.184
lcrltt 9.010
;ulOwyurot 103.461
(i) Various loan agreements place certain restrictilr covenants
ton Tran�wurld and its subsidiaries including certdiu require-
ments as to maintenance of minimum level, of working capital
and limitations ton additional borrowings.
Note 10. Leases and Related Guarantees:
Transworld's subsidiaries utilize proper1%. 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 hotels 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 rrwnuv.s
and, in some instances, (61 a Gard basic rent. Initial terms of
hotel. land and restaurant building lease; generall% arr nut less
an than 2O.ve, esc•lusi%e of options to renew. Leases of other
equipment primaril% consist of merchandising equilm►rni. com-
puter systems. ell..
86-1021
I
r
nits
Test
ian
•eaf-
.of
of
of
at
t� •
its
and
R
c
y�rn.
lows:
V
s
v
t
As lessor. leasing operations consist principall% of merchandis- Note 11. Employee Benefit Plans:
ing equipment under noncanc•ellable leases for a term of eight Transworld and its subsidiaries have several pension plans
yean to franchised distributors of Canteen. Certain hotels also covering manyemployees. Amounts charged to income (includ-
lease retail store space to tenants. Numerous miscellaneous ing amortization of prior service costs) were 8 7.656.19M.
suhlrasr agreements also exist. 89.17LOW and 88,613,000 for 1985. 1984 and 1983.
assets subleased to others under direct financing leases and respeeti%rl�.
included in other assets at Devember 31. 1985 and 1984
aggregated S1.691.(KKl and $I 1.338.(KK). respecti%el%.
Informalion regarding Transwurld's leasing activities at Decem-
l►er31. 1985 is as fulluws:
Callital b-a-r- 01wratull:lxasr>
Arta mlt- in Tbr,u-.unl—
Minimurl
Lea-r.
I' %nlrnt-
aril
1101
1487
14ta;
5.211
I vt: I
4.8r, ;
14'Nl
4.827
?uh-rvlurul
62.0 . 4
Lr 10iptilyd Illlrlr-1
48.1 73
Vrr-rnl %Jlur u1 I J1lit d
41...i 1
I,• ( unrnl o-IdlF.dnm-
i. 118
\.m� urn•nt �.Idi1:Ju.ni- uml, I
rapll.11 Ira-r-
M1trnrmurn Lease
Pa%mvrct- \rt of
Aiulmmin
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 ('ulluws:
tYl l amour)- m Then,-Jnd-1 1985 1491 1983
. kJ-11 reel)- $33.25l, $:il.:illi $:4.8:►.i
l.fmUngrut 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(Kl.(KK). and tl
plans net assets available for benefits were approxinately
875JO)AM. 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 Irliels of
income as defined by such plans. The amounts charged
to income under the abo\e plans were S5.957.(XK). $7.3560KI
and 85.205AXK) for the years ended December 31. 1985. 1984
and 1983. respectively. In addition to these inc entl\v c•ompensi
tiun plans, certain subsidiaries ha\e incentive plans in place
under which regional. dl%isional and lWal managenlenl llaliicipatc
The inc mike stuck option plan permits the Board of f)irec•tors t
grant to certain ke\ officers of Transworld and its sul Isidiaries
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 acti%It\ is
as fulluws:
198i 1481
Outntarldlrlg.t lanuan 1.
667.9041
79.1118
Granted
373.875
053.015
Canceled
84.873
5.1 G
Ellrrri.rd
129.582
54.440
Oulstanding at llecemlier 31.
827 .320
66; .4tK►
Ellemi,ahlr at Decerldwr 31.
209.382
20.278
Price rallgr of opliuns:
OulalandolK
$11.95442.25
$11.9543o.13
Ewrrl.rll
$13.28-130.13
$11.8r,-8°.i,411
66-1021
no
anti'• III I iilr-iil It l.11i'il hlnil llVr.rl �t ill -owl1I• ri Ill it II it it -I
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"rid< First Sm-ond Third Fourth
Eitcrnl Per Shaer Anwiunisi Quartrr Quarter Quarter (Quarter
fear tided DrurnAwr 31. 1985
01wraling wlt-rlur- SVP4.(Wi
SUN.09.i
E522.341
S654.68I
Ulwraling incumr 27.04i
7202
47.7111
52, Itiii
Inriimc frum cuniin-
uinR nlwrali..n•
twfurr incumr
lat,r• 21.48.i
35.8(1.1
41.1(i i
4.i.17(i
Nel incumr 10.2l1
30.811
30.81NI
133.5811,
Eaming- per common
shirr:
011 aiwr w,- oui-
slandinF awl
equndlew -parr- i 0. all
i 0.74
i 0.9(i
S 3. i1
A--unung full
dduuon 0.4c1
0.74
0.91i
3.49
tear tndrd tlrl'rmlirr 31. 1981
(het -riling rewinit • is A1.0i
$48(i,4-7
t?tila, 1,117
$507.231
Olirraimp listonn• 26.144
35.275
411.930
41.157
Incomr (rum cmum-
u1rIF ulwrdUun-
twfure Ilii i nlr
IdXt.- 24.(so,
30.423
38.110
34AI7
Net nuomr 19.3(Mi
21).851
36.319
29AVI
F.dmrng. Iwr comnu.11
,.hare-:
lhr airrdpr uul.
rtanduip dnd
equoideni shirr- 1 0.47
>F (1.82
>< 1.114
f 0.74
A%suminp full
diluiiun 0.47
(1.78
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.
8E-1021
rN ,.,I1
�olr- ter ( nll•edltlalt'tl I' Illatlt'I:11 �1:Itt'Illt'Ilt- 1, .,Illllnu ,II
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 good, 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 intenlon at %var-end using costs in existence at December
31. 198i. Since these c•urrrnt cults are higher than the older
historical costs fur equipment and properly c•urrenll% in use. the
related depreciation exi,ense incrrases c•urrespondulgly. Infla-
tion also affects rnonetan asset. and liabilities such as cash.
rrcei%ables and pa%ablrs. Companies with net monetary liabili-
ties experience gains because the amount required to satisf% the
i net liability. expressed in purchasing power. drerrases w ilb
inflation. In a defldtionar% pertucl. the effect would be re%ersed.
Management's Analysis (if The `upplententan 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. Adiusling 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, understandabl%. to be more dramatic. Depre-
ciation expense, based on the restated value of assets for 198.5.
is substantialh 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 partialIN offset b% this
purchasing power gain. Due to the current nature of Trans%+orld's
inventories, the adjustments for changes in specific prices do
not have a significant effect on cost of set 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 c•onlinuing operations adjusted 1i,r
changing priers (unaudited. dollar amounts in average 1985
dol tars l:
liar Ended
December 31. 1985
A, Mated----Adjuslyd
In Ilse for Changv
(Animmi- In Thou,aod- Fnldnt 1.11 in Spet ifi,
Em ew Per Sltdtt• AnntU111.1 Ndlerrtrnl- Prn r-
Ulwrdling rr%rnue,
82.1i1.3:u,
$2.151.356
(:o.l of srnuw- dnd prerlu,•t, sold
wm lu,nr of drl,rt•rlduuu dnd
amorttzallon of pn peri% and lean•(
1.182.1(Ic,
1.182.40;
)Depreciation and anwrti wilun
06. 87 1
88.238
tllwratin€r%lwosrs.olhet
T,34.413
Ulhrrcharge.tcredlt,t
24.474
24.4C)
Income la%r,
38.y(I1_
38.901
2.046. 10
.2_(K)8.138
In, umr (runt continuing o era on-
F 104,78p
F 83.118
Edming. lver share
F 2.5o
F P4
Purchasing pupa%•% gdin tin net munrtan
habilitlrt• held during the %rat
0.3310
Incn•a,r in current co,l of Imenton and
equipment held during the %ear
F 2.1(►()
Eflet 1 of un.r I he in r (r%el _
31.Ita,
Eccrt,>, lbhurtfalh of Incrrasr,. in t.l,rt lfic pros
o%rr increase,. in the enrrdl ,n, t• level
F OJAkil
lmrnlunrs and Prolwo al
trrcrmlrt•r 31, 1985:
Imrnlonrs
F 0.317
Pro pent. tirl of Irr pret wlion
i 81 t.WXI
8E-1021
C
j
..N
N4111- It-, t .fill I Illallr'I111 1, rl i 111.11--di
Five-vrar comparison of selected supplementary financial data
adjusted for effects of changing prices (unaudited, dollar amounts
in average 1985 dollars):
Years Ended December 31.
I Arnmint- in 71rnn.and, Elcrpl tier Share .Amninh.
hle,nlr'nd• and Indek Dell'O
1985
1984
198.3
1982
1981
UIR•ralulp rewflue•.
S2.151,5i6
32AM.90-4
11.979,017
11.954,241
62.032.111
Glrrenl rn,t tnfernrlBUun:
Incomr form runtllnurrF uperatlun-
83.118
78,160
32.071
18.943
35.(X1.1
Iucumr fhwl fnrm continuing olwraturn�
per e•onlnxNe .harr
1.97
1.98
0.09
10.431
0.5
E%ve.ss (Atirtfall1 ed Incrraw in specific
price- over incn•a.r in list- general prove
Ir%r l
129 AK161
1,110
117.5871
41. W5
.11.094
�rla• t'l-al
1.fM12.335
91o.6f►(r
831.W1)
1.2W.2(14
1,265.382
thher rnfomullon•
Pun hd•InF lren,r•r gnln on net mnnrWn
tlablllflr- held dunnF the %ear
6,339
0.405
8.526
17 .5 10
46.035
Ca-h dle Idend- drrlarml lwt common shirr
0.46
0.31
—
—
_
%I.tri.rt parr l"-1 common .hare tit %rdr-e•nd
39.(l
31.7
41.5
30.9
17.2
Average can-ume•r enre• 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 originalIN occurred and were recorded.
The supplementan financial information discloses certain ef-
fect► of challges in Price!- of pnrper1% and equipment owned or
held under capital Irasrs that have occurred since the prupem
was originalh a('qutrrd In Transworld. Property acquired b%
merger of )►soling of interest) is considered to have
been acquired by Transworld at the date of the merger rather
than the- date of original acquisition (if the item.
(bl ln%enton and lost of Sen ice, and Products Sold. Merchan-
dise imentun has been adjusted for changes in.specific• prices.
Such rmrnton generall% has a rapid turnover and c•onsequen11%
imrnton values approximate their current cost.
a
(c) Current Cost of Property and Equipment, and Related
Depreciation.
Hotels, Building: and Improvements. Merchandising and Other
Equipment and Properi�. The estimated current cost of this
proper)} and equipment generall% was computed b% app1%ing
prier indices published b% governmental and private organiza-
lions to the historical cost of the assets. Selected indices were
Used filr various 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 cost-, determined under the current c ust
computations.
86-1021
Directors and Corporate Officers
Transworld Corporation
Board of Director.-
L. Edwin Smart
Chairman of the Board
and Chief Executive Officer
Transworld Corporation
Charles J. Bradshaw
President and Chief Operating Officer
Tri+nsw(irld Curitorattun
Lester Crown
Chairman cif the Board
and Chief E xeculi%r Officer
Material Service Corporation
(pnKlucer and distributur of building matrrial )
R.L. Hadle% Griffin
Chairman of the E%ecuti%r Committer
FlruiAn Group. lnc•.
la consumer products compam dealing with
operations in fitctlwrar. recreational prviducts
and slteciallj relailtup)
Jewel S. Lefonlani
Partner
Ve dder. frier. Kaufman & Kammholz
(law firmI
Howard M. Lo%e
Chairman of the Pittard
and Chief E.%rculke ( tffo rt
National Intergroup, lit( .
Imulti-utdustr% compam in distribution and
.en It'r busntr.se. with imesiment, in mrlal-
indu-Inr-)
John P..INascotty
Chelmian of the Huard
and (.due( E:%rc•utive Officer
The Continental CorlKtration
)holding curnpan% in Il►r inuurancr• and
insurance sin icr. firld>i
Rupert S. )[McNamara
Retired President
Thr %Norld )lank
conyan% dirrcl(ir. unttrr.it% tru%tee
C. Edwin Nle%er. Jr.
President
and I:hirf E:%rcutl%r Of if er
Hlhttrl Intrrnational Co.
Arja,, Miller
Drrn Fmrntus
Slanfunl 1'ni%ersil► Gradualr• Sc•1►cad of Business
c•umpan*%% dirt-ctnr
Andrall E. Pearson
Profs %oi
Hanard Businrss Sclwol
Jerome J. Richardson
Prrsidcnl
and Chief Execulii t• Officer
Spartaii FtNNI'+%.1r•111>. hit .
}rank L. Salizzoni
Vice Chairman
Transworld CorTioration
Morton 1. Sosland
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 (:o.
Jack Valenti
President
Motion Picture .Asmm•ialion of America
Itrade a"twiationI
Transworld Corporation
Officers
L. Edwin Smart
Chairman of the Board and Chief Fxeceiti%e
Offit e•rt
Charles J. Bradshaw
President and Chief Operating O(fiver'
Frank L. Salizzoni
Vice Chairman
John J. O'Keeffr. Jr.
Vice Presidenl-Administration. General
Coun.rl and CorlNtralr lrcretan
James R. Painter
Vice ['resident and Controller
;Nicholas C. Morin
Treasurer'
t • At-, Chairman. Canirrn Curltttrawm. and Lhatrnwu ttf
thr E►rruti%r Cummurr. Spanan Fttad !%%.trm hN . and
Hdtun Inirmauunal (.tt.
Z. Alai Chairman. SIwrian Fad S%sirnu. It),
3. Alm. Trra.urri. Canirrn Curltttranun and wiPanan F-ml
S%nlrm>. Int
Transworld Corporation
Board Committees
Executive Committee
L. Edwin Smart
Chairman
Charles J. Bradshaw
Jewel S. Lafonlant
John I'. 1lascotle
Frank L. Salizzoni
Moron 1. Sosland
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' klasc•olle
Robert 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
Charlr. J. Bradshaw
John P. Nlasc•otty
Robert S. McNamara
C. Edwin Mever. Jr.
Cum R. Strand
Jack Valenti
Retirement Plan Committer
Frank L. Salizzoni
Chairman
).ester Crow it
Howard A1. I.ct%e
Jerume,J. Richardson
Monoii I. Susland
Patricia Cam 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
x 3500 Pan American Drive, 1st Floor
Q
i Miami, Florida 33133
7
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
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
Bid '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 , Th,II %se. ___ _ Volume Ser.,ices, Inc.
as Proici al, heteltlafter called I!lc Principal.
and the SAFECO INSUPANCI COMI)ANY OF AMERICA, of Seattle. W-isl'i•igton, a coipnration duly organized under
ti.e la%ks of the State of 11'as! ir,:;un. i, Sarct\ , hercii,.: ter :.illed the Surety , are he!d and funlly bound unto_.__ _
- — Cit'. o=;iamd - —_ ---- a� 0! :gc . Lc:.,na';cr called ;he Ohligce.
--^,ent,—Fi-:e Tl:ousand and No, 100------------------_--------- Dollars
t� 2�,OLv.00_ ►, for the p.nnl;n; . f «high -Auln s%cll .Ind truh be made, the .lid PtiticlpJl and the said Surety. hind
Ilelr�>. exec ;ltor....idin;:.UlraI�,rs. SUiiC,"Ol`.1lid jso"lls.)mI-,IIy arid se%er.1Ik' tUlllly by Ihese prewllls.
It'Il1 f�l.t.�, the Ptlaclpal hassuhnuttcd a hid Food and Be%,erage Concessions at Miand --__
a%ned football and baseball facilit%• from 1,'1/0-1 to 2/l/91.
\01%'. 7111:R1'I'ORL', rf the Obligee ,hall accept the hid of the Principal and the Principal .hall enter Into a Contract %vith
the Obhyee in accordance with the terms of such bid. and give such bond or bonds a: may be specified in the bidd:ng or
Contr.ct Document% with good and sufficient surety for the fartlitul performance of such Contract and for the prompt
payment of labor and material furni>hed in the pmsectinon thereof, or in the event of the failt:re of the Principal to enter
,:I;h Contract and give such bond or bonds, if [lie Principal shall pay to the Obligee the difference not to exceed the
pc:,a!i\ h.rc. f bet\%ecn the aniow-t Npecitied in said bid and such larger amount for which the Obligee relay in good filth
contract with M(1111 t par[y 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
Slimed and sealed this 26th
--- _ -- day' of
11'itnes�
et
11IInO.'s
Noverber - --- I 86
Volume Services s - nC . _ t Sea! I
-- - - -- 1 " — principal
K. H. Sedlarz-Vice President Title
SAFLCO INSURANCE COMPANY OF WFRICA
c f n
:lttonu� w-Fact
86-1021
t✓. -. --._. _
POWER VSAFECO INSURANCE COMPANY OF AMERICA
OF ATTORNEY GENERAL INSURANCE COMPANY OF AMERIC
0 HOME OFFICE SAFECO PLAZA
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 end day of Nnvt-,nhpT . 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 fioehiv and surety bonds and other documents of similar character issued by the compary in the course of :ts
buslnPss Or any instrument making or evidencing such appointment. the signatures may be affixed by facsimile Or anti
irstrume^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•, to the
va .'I I, ci 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
(to A cop,, 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
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
5914CI- 3 R
this day of 19
SF-1021
PRATED ih U S 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� �0
n thet $010 of,
tSeall County of uu
$ i30 04 E 78 PAINTED iN u 5 A
8E-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
I
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.
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
,r 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 %VIII 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.
{k.. -3- VER�-1021
i
'1
rp
F
G
During 1985, Volume Services Inc., became a part of Transworld
Corporation's family of service organizations via Transworld's purchase
fi
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.
s
i
Canteen Corporation
s
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,
r: In addition to Volume Services, Inc., Canteen Corporation is divided
into the following network of operating groups:
YtMq
w,
8f 1021
1n N -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 0
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-102t
-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-
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.
# 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-
t CLIENT LIST
f
H
+ 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,
j and telephone number, as well as the facilities, size, type of service
i and year service started.
t
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
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-1V 2t
-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
y-
FACILITIES Arena ( 9,200 seats )
t. Exhibit Hal] (25,000 sq. ft.)
TYPES OF SERVICES Concessions, programs, novelties and catering
START OF SERVICE 1984
SU-1321
-1s-
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-
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
86-1021
-23-
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 1
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
I
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
86-1021
-26-
;� �• � ..: as '.
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-
�. y
i"2ruyr.r
a
l�
CLIENT
Sacramento Community Center
1300 "K" Street
Sacramento, California
95814
CONTACT
Mr. Sam Burns
916/449-5291
FACILITIES
Exhibit Hall. with Stage
Exhibit Hall
( 7,200
(40,000
seats)
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
N
ar_
4�-
q
y
�yy
R".
-29-
F
is
2
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-
i
s
a
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 Sodrac Park/Jefferson Park Racetracks
Box 195
North Sioux City, South Dakota 57049
CONTACT Mr. Iry Epstein
605/232-4321
FACILITIES Thoroughbred Racing
Greyhound Racing
TYPES OF SERVICES Restaurant and concessions
START OF SERVICE 1978
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-
i
NNW-
CLIENT Tucson Community Center
260 South Church Street
Tucson, Arizona 85703
CONTACT Mr. Robert J. Sullivan
602/791-4101
S
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
86-1021
-35-
F
0
f
A 0
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
�`..� r r _
-36-
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.
8G -1QA3.
-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
d
a
..�.,_.. __.._.. 4�.
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? X
- Political Group?
- Private Industry?
m
8E-1021
-39- F`
w
I
0 0
Catering (Continued)
* Determining the size and make-up of the audience
- 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?
- Several course formal dinner?
- Cocktails?
- Large Barbeque?
- Special "Theme" menu, decor, etc.?
It's our sound planning that assures you of perfect execution, no matter
what the requirements.
8E-1021
-40-
a_
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
f
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
your patrons. Therefore, our focus here is on key members of our local
t
and on -site management staff.
General Manager Concept
ip
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
r
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.
i
I+
8E_1021
:4
-42-
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 ovn 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
E
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.
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
T description; such as, Waiters, Waitresses, Concession Stand Manager,
etc. One unique employee is the Condiment Stand Porter.
86-021
-44-
i
i
General Manager Concept (Continued)
i
Condiment Stand Porters - Specific stand attendants will be assigned
- t
{{
I
each event to maintain the condiment stands and other public areas in a
i;
sanitized and orderly fashion, fully stocked, as well as maintaining all
concourse areas free from dangerous spills. This unique service is
i
extremely important to the overall appearance and safety of your
•
1
facility.
1
i
All of our employees and staff are trained to provide the quickest, most
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
a
ti
proper training you will find the Volume Service emplovees a true asset
to the stadiums.
ygym.• •.�s:.
Volume Services is fully aware of the management requirements of the
facilities. The on -site management staff will have the necessary:
° Education
Skills
6j j
° Experience
° Training
ia
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yj Yyy�
86-,-1021
'8
I
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.
86-1021
-47-
44 a
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-tozi
Mr. Vince J. Pantuso - President of V. J. Pantuso Services, Inc. and
consultant to Volume Services, Inc. Mr. Pantuso was with Interstate
l
United Corporation for over ten years, most recently serving as
k
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
i
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
i
i
in Marquis Who's Who in America.
86-1021
-49-
. • dry - rf. ... _ ... "^".
t
ow
E. CAPITAL IMPROVEMENT PLAN
!i
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
E
leasehold improvements throughout the concession areas. A preliminary
f
i
i
outline of how these funds may be expended is below:
Orange Bowl
i
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 s 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
i
neon. $100,000
i
i
A
d
j
Total - $575,000
1
,
1
a
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.
1
.,a
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-51-
F. FINANCIAL CONTROLS AND ACCOUNTING
S
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 stand a
complete opening inventory is made by the Stand Manager, and the initial
bank counted and entered by the Assistant Manager.
8G-10021
-52-
9
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
!
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.
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-54-
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V
G. EMPLOYEELOYEE GROWTH AND DEVELOPMENT
Y.
i�
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
c
t
,
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
i
personnel philosophy that recognized individuals and their career growth
objectives.
Training and Development
i
zcr
This Canteen department supports our field organization's
efforts in
fi
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.
b, 8E-1021
-55-
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.
i
Hourly Employee Development
3
j
It is Volume Services' objective that our employees be efficient,
courteous and professional. They must possess the necessary skill level
7
training not only to perform tasks properly but to understand the
i
purpose for all procedures.
h
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
a•-.
individual job requirements.
y 8�-1021
nib� x
-56-
Rr} —
Training and Development Catalog
t rritEN 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
Skills Series:
FoundationSM''
Creative Profit Improvement
19
The Principles of Foodservice
I Coaching and Motivating Food"rvice
20
Management Field Seminar
Personnel
The Principles of Foodservice
2
Management (for Upper and Middle
Executive Developutient Series:
Management)
Management in Depth —Managerial
21
The Canteen Personnel Development
9 Manpower Planning
Seminar
Foodservice Presentations That Work
22
The Management and Administration
4 Conducting a Meeting Workshop
24
of the Canteen Personnel Process
(How to Hold Effective Meetings)
Seminar
} The Labor Relations Management
5 Foodservice Problem Solving
for Key Results
25
Systems Workshop
R
Specialized Personnel Series 6Dr Managers:
R'cruiting for Canteen 7
TM>
Canteen Selection Interviewing 8
How to Orient Employees to Canteen 9
and the Industry
Boomerang: Canteen Management 10
rt
Training in Equal Employment
Opportunity
Making Canteen Performance Reviews 11
Productive
Basic Management and Supervisor Skills:
Productive Leadership for 12
Canteen Managers
Plsmnins fn► Pnrfnrnnsnrn 13
Time Management 14
Performance Management: Preparing 15
Foodservice Supervisors and Managers
v.'
for Handling Critical Supervisory'
Situations
Pattern of the High Performing 17
'.
tcsodservice Manager (Coal Setting
with Subordinates)
Managing Part -Time Foodservice
'
Empoovee.. 18
k
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►►veniviii 'g'1
Teams Leader Training; Workshop
Canteen Quality Service Impmvrmc iit :t•1
Team Member Trai►iiiig
Tuition Reimbltrsemem ( For Full -Time '15
Salaried Peoplel
86-1021
t
4
1
Hourly Employee Development (Continued)
I
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
- 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 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.
-57-
86 --1021
rz.
II
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.
86"-1021
—58—
4^
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.
-59-
86--1021
y.f`
1 �,
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-
i
J�
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
-61-
86-1021
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.
8f -1021
-62-
r
Facilities Design
t
i
Canteen's Facilities Planning staff is lade 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:
Yy_
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.
86-1021
yk�
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%121
-65-
Y
a
1
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
fl>, variety of ways:
+� Executive chefs, working in a development
kitchen atmosphere, develop new recipe items.
-1021
�5 F
R� a' -66-
--
v
Viz
i
1
i
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,
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
Services. If the menu item is well received, it is then taste tested by
customers in our Training Centers.
Ali �
r..
4 4
�:�.,..,. -67-
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-
* 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.
- flow many were purchased.
- Over Production.
B-1021.
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-
i
�t
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.
r�
h
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
* 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
.w FY
' .h�ayk �q'At
-71—
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
�L':o-�.?:3�.L�
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
* Broiled and baked items
* Introduction of more roughage
* De -emphasis on salt
* Pasta salads
:h-
-72-
* Fewer high -cholesterol
Items
* More seafood, chicken, lamb
and veal
* Whole grain breads
* Low calorie dressings
86-1021
i
? By -The -Ounce
Canteen pioneered Sy -The -Ounce merchandising in the corporate dining
i
service sarket. 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
* Vegetables
* Ethnic specialties
* Desserts
* Finger foods
* Fruit and cheese bars
* Contemporary fun -food
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.
h?a:�
b
�
k< r
SL'-���9
:,.
—73—
YZ
lm%y
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.
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
-74-
e
I
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.
i 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.
}
SG 1�21
a
y -75-
• / 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
Y.;
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:
0
- 16 -
6f --t021
n
Declaration/Document No. 1 (continued)
1. Declaration of Proposal
2. Proposal Form
3. Proposer Qualification Questionnaire (and attachments)
4. Insurance Stipulations and Statement
S. Minority Classification and Participation Form
6. firit Source Hiring Compliance Clause
7. Financial Statement
8. Proposal Security
9. Attachements
Corporation/ artnership
GNATURE
Barry Freilicher
PRINT NAME
President
TITLE - IF CORPORATION
(President, if Corpora-
tion Authorized Genl.
if Partnership)
SC-1921
- 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
0
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 withthe 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)
Nami
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:
Date�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 Cpr91 arm
N. Dinelit
K. Sedlary
R. Skadow
Section 5/Document #3
SG-1021
-20-
QUESTIONNAIRE (Continued)
If a Partnership, answer this:
Date or 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
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
include stockholders owning over ten percent (10%) interest.
sY" (Strike out inappropiate words)
Explain any convictions:
None
12. lawsuits (any) pending or completed involving the
t corporation, partnership or other person submitting a
proposal:
A. List all pending lawsuits:
�. None
S. List all judgments from lawsuits in the last five (5)
years:
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
SY••"
A
SECTION 5 - DOCUMENT NO. A
INSURANCE STIPULATIONS AND STATEMENT
A. GENERAL:
1. CONCENSIONAIRE 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."
i`
4. Company Ratings
_s
All insurance policies required must be written by a
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
y«
XTION 5/DOCUMENT #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 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.
PROPOSER
SIGNATURE OF PROPOSER
SIGNATURE OF FLORIDA RESIDENT AGENT
NAME AND LOCATION OF AGENCY
- 27 -
*Please see attached sheet
INSURANCE AGENCY
SIGNATURE OF PROPOSER'S
AGENT
Agent's Error and
Omissions Policy:
Company
Policy Number
Amount of Coverage
Expiration Date
86-1021
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
q,.� t 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
-SIGNATUP41OF 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
+yg, 'lam 4i
fhcr.'
# -1 N
SECTION 5 - Document No. 5
MINORITY CLASSIFICATION AND PARTICIPATION
INFORMATION AND ACKNOWLEDGEMENT
1. Indicate CLASSIFICATION of Business Enterprise (PROPOSER):
E ] BLACK j ] HISPANIC j ] WOMAN [ ] OTHER
2. Detail MINORITY/FEMALE PARTICIPATION within your firm or as
It may apply to this proposal, if awarded: Please see Uhibit 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
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
D. AFFIRMATIVE ACTION PROGRAM
If existing, Date Implementegetail of program must be attached"
If planned, Date of Proposed Imp emen a on:
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.
PROPOSER:
SIGNATURE:
-28-
86 -1021
' `4'
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 - 86-1021
C)
ee ALTERNATIVE PROPOSAL e*
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
P
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
v
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
=a:
the food/beverage concession management contract
u;
attached to said proposal.
• 7
Pi J.
F
.%
Date: December 4, 1986
Kim S. Mitchell
86-1021
e`.
R'-
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;
-'
x:
and that Volume Services, Inc. has the ability to begin operations upon
_-
execution of the contract.
� L
Affiant
Sworn to and subscribed before me this 4th day of December ,1986
My Commission Expires C
86 -1021
I
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
.M. 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 V v
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►per 20, 98E
Cesar H. Odio Received by:
City Manager ,
.l 7
8G-1021
CITY OF MIAMI — REQUEST FOR PROPOSALS
1 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
NEW AND ADDITIONAL PAGES
94 b
148
150 through 197
n/a
missing
n/a
RECEIVED BY
PROPOSER
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
remains unchanged.
PROPOSER ACKNOWLEDGES THAT HE HAS RECEIVED THE COMPLETE ADDENDUM
N0. 2 AND HAS FOLLOWED THE DI CTIONS CONTAINED THEREIN.
SIGNATURE:
PROPOSER NAME: V. % ,i 4k./ T,,
DATE: / 2.1 f �,�;,(
Notice of Addendum 02
page 2
86-1021
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 /
�a NEW AND ADDITIONAL PAGES
94 b n/a
148 missing i
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
wet designate added or revised material. Deleted words and/or
y *; 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:
V PROPOSER NAME: V_ ,r ,�,�.-� Sc, rV / cs,J �n
p' DATE:
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
1:, ,
E2
11 1 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 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
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
I
e:�►�scN �rt�oR�►noN
All Employe"
?MR MERCiuw01lt MA,R0011.A60. MUNCIS O04s./M10 1f1•�soo
PW=mxy 3, 1986 •
ka
CA"n•k
Ca=tem z-at;,=, As a Part of its to equal eaploymmt
prc ibits ants of t on the part of its GMlcyees on the
begi of race, sex, Color, religion, age, national origin, or ccndit = of
handicap. Mce T y, the Equal Emplcynmt Oppostazitcny C=miss-Pub1-sh
ed
;Tde1i-bes relati.m Spe=fically to Scala' harassment whid% we else in
ksepi:n with Our lcnq stw ing wic.,t against any fC= Of —" n
the wczk ernri-ttmst.
'fie EEM ;-iieval nam Pie =''=t sexual advar=S, zec.Lests
seaal favors and at.'•.er vror phys:ral ccr' r= of a se x�.:::.ZT.
acrstit.•te ha�SS+.7--t when:
sutaa,ssion to ouch c==5=t is Made ei.:.*� Lx;j c:."_y cr
impj .�tly a tern or c relit = of an indiv,:ival" s ee"plcyse.^t;
r=ssir*+ to or reject:cn of such ccrduct by an indi vidua 1
is used as the basis for eMloym'.t.
such individual; or
such corx uct'bas the FaXm or ef:ect of ant. -ally
intsrferiuq with an i nc'ivi dual' s wor}c pe :%=W= Cr
cea'ting an iatisnid'at:siq, hostile, or offers.:vre wozk:.nc
In kW=q wit* the spi.^.t of these guidon --:es, we reais�3: cur '' =Lot
e i y cuvmen avlayee Must be treated with dimity and respert re`izz"dless
sec, ram, color, religion, age, raticnal orgsa, o�rc�ccrditiicnofhhaardi=p.
Wt ask ♦x, he hp._i of all of you, to ball;
'�1�ii ObU all; s Vgaiims by acII w•
a�x•.r',.arre wi:-.,-h state ca�nnitrent and by brncLm-g ary v;.clatcrs of this
pclI to Our at-.es:ssc•�n0
Of
s-sozl
ZViaa PIFF
,�xs
or►WttN COJrP ►MOM n+s M9Rewwas4 MARY. ON ago, 1LAjpg 8 MW i *It Nt•7V7
rebbsvazy 3, 1966 GAJWMy `N
MURT A.KoL.4NAKI
AowMf ame MW amemop" OWAW
'm All mWiloyees:
mder t1W of Title V= of the Civil Rights Act of 1964, as
maended , the Age tian in Employment Act of 1967s, as amended,
Doeeutive Orders U141 and 11.246, as azoesded, Section 503 of the
Fahabi14tation Act of 1973, and Section 402 of the Vietnaaa Era Veterans
Aradjvstment Act of 1974, it is my legal duty to periodically remind you
of Canteen Corporation's position oonanrninyg equal employment
OFportutity and as azmntave Oction. In addition to it being my legal
dirty, I sincerely 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
ors equal opportunity Mployer. The =Mp ny shall ac_
aff4=atively to assure that it will:
1. •iAc uit, hire and pz=w a for all job classifications
vithout regard to rage, creed, color, national origin,
F #t
sex, age or coedition of handicap.
vp
2. Base decisions on employment solely upon indiv�:dual's
i'cations for the position being filled.
aA
x °
3. Insure tat all other perse nel ac-.ions such as
Ip�5A".a�mpersaton,
benefits, transfers , layoffs,
{
from layoff , social and rec=eaticnal progz ems
will be ministered without regard to race, creed,
r'P
color, national origin, sex, age or con:dit an of handicap.
4. Take app=prlate steps to correct any urdeation
�a
of women, minorities, Vie=am era vete_rars and hardica=.. ed
i rxL% ViAials in tie many' s wvrJsforce .
'
Marf A.i :een 0'C�,�� has been appointed as Di.-ec�.: r of Leval
2*1=. r-vm � t'i reporting direr-.._y to rAWrence F. W+Ekes Vice
President, Dix -actor of M=n Rssouirces. All operations win , ,=
y Y
es Lance reports (applicant flow, hire, prucet.On, and te.--�u,.�at_cn
rak....
lo?s-ice yearly on JLme 30th and Decaber 31st to the Direr- r of
E90, 1430 Mermhandise Mart, Chicago, Illinois 60654, in order t'7at
their =mp--- a with our policy can be monitored.
I expect t!mt each one of you will do yoyr utaost to cMFly wits you-
operation' s Af-94 rta AL—tion Plan and insure tMt our corporate ,ride
polioel c=cv.—.uzq ecal. employment and aft!- =at ve ac"z on IS t'..e
very highest pr:•or t f.
.� 7 ,MW
ss-la21
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
u,
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.
.Kits ➢
A:
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
j
tG •
q
� r
0
UNIFORMS
0
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 used
at the center.
Selection of the appropriate color schemes, identification tags and
other details will be developed in concert with the overall plan for
the Orange Bowl improvements, if desired.
E3
I
im
VOLUME SERVICES
U
/NTERSTi37-E
UNITED
96-M1
r:
X•.
A) Service Person
Uniseit Go:' Sh.lt—Tan
Employee s Own Pants'Sacks
i
Of Vendor/Concession Worker
Unisex Vendor/Concession Snirt
Female Jockey Style Cap
Employee's Own Pants/Slacks
,0,
C) Vendor/Concession Worker
Unisex Vendor/Concession Snirt
Male Mesh Baseban Cap
3 Pocket Change Apron—B,o,,,,,
Employee's O%a,n Pants/Stacks
9C_I�, 7 V I ..-
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.
:y
pl Restaurant/Catering Lounge
_
-
Cai.avtay Apron —Black & White Pinstripe
{t
Formal Bowtie—Red or Black
„
Employee's Own White Sheri/Siouse
Employee's Own Back PantsrShirt
I
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
SV-1V 21.
VOLUME SERVICES ORDER 00RM
REM
SIZES b OUANTITIES
TOT AL
OTC
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,
One•SttefUs•Ab
CATER VGt0LN'GE
CALLAWAY APR0%
1
FQRMAL BOA,TIE
One•SITrFits•Au
RED
FORMA, BOA TIE
One Sze F.rs A,•
&ACK
NUMBERED
One S irTirs Ar
MVSIGN AS
I25:traW'.
!
•A' ^ ^',Jm O,Je 12 P.P.el
NOTE: Vendor/Concession Worker Shirts will come complete with Aged D Insignias applied on
ar Initia; 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 wIr 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 Votarne 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
Add,ess
CIt►•
DELIVERI NEEDEDB)i
864
TOtal Ai. kAerCh rid 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
I
SSE7
VDI i
PPI C-kICER TW CE RTOWATE 19106M AS A MATTER OF wwwrw 1aON ONLY AND CONFERS
MO IrGWTS UPON THE CERTIFICATE MOLDER THIS CERTIFICATE DOES NOT AMEND,
fXTM 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
MANY A TRANSPORTATION INSURANCE CO. (CNA)
Y E CONTINENTAL CASUALTY CO. (CNA)
ETTER
CANTEEN CORPORATION, COMPANY C VARIOUS CARRIERS
TI5 DIVISIONS & SUBSIDIARIES
MERCHANDISE MART PLAZA a Vrreb O
CiIICAGO, II. 60654
�RNY E
TM E TO CERTIFY THAT POLICES OF ROMANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED.
NOTWTTHSTANDftG ANY REOUIREMENT. TERM OR COWXTHON OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY
K ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES OESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS, AND CONDI•
TIONS OF SUCH POLICIES
TYPE Or INSURANCE
'A
POLICY NUMBER
POLO FRE".f
WE IMY%";
POLO
OAR NAJDYY,
LIABIL" LIMBS IN THOUSANDS
AG3RE3A'E
GENERAL LMBUJTY
90DilY
$
$
A X. D AEkERS'►K FORM
CCP001704517
W1
12-31-89
PROPEQTV
$
X PREArSES�JPE4A'1o4c
X Log o:R:R)U%:
EIP 059% 8 CkLWSE WLACC
OM/AGE
.$
X; PRWX7SWW'XM OPEiL► O.S
B X CohTw�cTua (Blanket)
BooMe ED
$ 1,Q()Q
$ 1.000
PI10mmxh" CDh'TwTort
XXX; 6,00 FM PMK;ITY Dw4u
X I PERSoh4 Kiu-
PERSONAL INJUPY
$ 1,000
X Licuor Liabaity
s.
L AUTOMOBILE LIABILITY
90(,
A AhY A:";
BUA00170I516
17.-31
12.31-89
IMF �
$
A- DAN-: Ar^3c MR'. PASS
(Except Texas)
DOD
P� C
IPF
Muir A.7
A 'X" ,ghAvhE: A.�a<
CCP001704517
PROPEF'f
DAMAGE
$
GARAuf .iAEt;_
(Texas)
: y
P
COM8tNE3
$ I,ppp
EXCESS LAABILrrY
C
VARIOUS
PO
e6,
LWL-A „
12.31
12 -31.89
a
$ 10,000
$10,000
0411 1 rAh ! vVSX `:I FORM
A
rIORI(ERS' COMP NSATHON
WODD1704519
WI-86
Wl-89
6TA TUTORY = ,--;:-.
AM
5 (EACm
SMPLOYEW LIABarn
WC001704518 (Calif.)
i5 (DISEtSE•PJ,iC, UM'.
,.. S (DISEAS=_ EA.- EM
0T1ER With respect to
Named Insured's aon0vessi
operati
n at the
' ty of Miami, s
Orange Bowl Stadium
Miami Baseball Stadium,
oertifi
to Hold
rhmnad below is an '•
DESCRIPTION OF OPEgATIpNyLOCAT1pN5/NEHICLE$/$PECyU fl'EIAS
30 DAYS ADVANCE NOTICE WILL BE GIVEN
CERTIFICATE HOLDER IN EVENT OF
CANCELLATION OR CHANGE IN COVERAGE r�21
City of Miami v
Finance Dept. /Risk Managemnt Div.
t,
65 S+W. 1st street LL
PAN(TS�ES pq U L�T LIABILITY
s'
LL
Miami, FL 33130 4JTHORIZED REPRESENTATIVE •
�- E8# etters of Recommendation
■ We■=
gji;
'M0 LIVESTOCK SHOW
i
June 28, 1984
t
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 inceme 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
2600 HOWARD • P. 0. BOX 907 • LITTLE ROCK, ARCANSAS 72203 0 1501) 372-8341
V
Drange County, Convention /Civic Center
Thomas R. Sev.1ell• 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 % ith the fo! d service c•ontrCrtrw in
co:.trollrne service level. price and food qutility. This t\pc• of brranoemnnt d�manr.-
extensive catering. concession bnd manbuement experience fr•orn the food -�er%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 modify its operation to meet the clrr;npino
needs of the Civic Cer.ter rind our Z•lic:nts.
Tire Orange County Convent ion/Crvir Center is plvu••c•c to hove tilt
Scr%"ce• Divi:,ion of Interstitc lnitr.t Corroratinn us :,n inteors; part of u-..—
bu;lding staff. he believe they ha\c hoped u� n.ac thi- r11. cx(•cptior,::) facit,ty.
�in�ercl
Tnamas H. Se%%ell
TRS!1-:»
86-1021
9600 International Drive. Orlando, Florida 32809 • )305) 345-9E^0
0
SL Paul Civic Center
1 I A O'Snaugnessy Piaza • St Paul, Minnesota 55102 • (612) 224A-7361
Marlene 1 Anderson
Managm- 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
conLan- has prc%•en tc Le a very positive advantage in v;r food
se -•:ice area. Vcl•r.e Se:-Jices carefully planned the transition, and
ca:r:ed 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..a!e rz:-_ tc t=th the facilities ane e=uip-ne-t
Vc1-:-.e ==:-:ice: w:rks closely with our staff to p:c,t:de
Wr._:c :cr set-L- iE r.e=esiar• to be:t serve the event. T a Civic Cc-.tc:,
fa=_lit: w7:9 be^;.cc cvF: 350 event days with attendance ever 1.5 million
i-. Events versed fro-i czntinental 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..a4ntained the caalit} standard osr
c.:rtc-=:s have ccne tc ex=,ort.
�._ iticr.___y Vcl•.: e .:vices is activcly participating ir. e::r sl^'
r._:.: rc-.n•:a:__.. F:c:,c:t r.-. in p:--:e=s. Their ex=er.:sr }car been
a-. the :: —c• cence_sicn service areas, en:. a
e
f 2:-s!-F•.•cr ir. iac::se k.::s,c- facility.
.. 1•c. arc conzidcr_r..- a fcod ar._ be•:crage contract for ycu.
ties, I w:...= en:c:::a:a ,•a_ tc look to V;'_ur..c Serv_=zer,
�It
w?.at they can cfte: yusr epe:atior. and your e::stor..ers. is
t:ul; a rrcfes._ona: fu.1-service food and beverage co -par., ttaa:
has Fat:sfaed o:r eustcmcrs and madc my staff prose to have then
Involved ir, the Civic Cente: operation.
Fours very truly,
Marlene Andersor.
Managinr Director
} MA /r
$is
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,ape"
L�
James M. Walczak
Director
Casper Events Center
8G-1021
Nurnt�er One Events Dwe. P O Bok 140. Ce,,ne,, Vxlyomine 8:tti'►;, Pr)c�n� t30' 577-090'
u w nttt• :} intrrt'.Cvv / i .1' Y p! �b•a"� n W4YaYjC'�
`%p.�,
CO)
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 Corcessioraire for the Tampa
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.
t
They have always been sensitive to the image of "Tampa Stadium", and
Y=
work in partnership with us to maintain that image. All levels of
management are available for consultation at all times, and special
.era.
{{-
Events at the Stadium draw campany-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 faod 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's 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.
h- The greatest part about all of the increased business is that all of the un-
s` 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
i, due to the professional managerial attitude which we have experienced right
through the Volume Service hierarchy.
•
Roberts Leinau
General Manager
Y
RL/tdn
x,= 86-t021
Park Once 59 8�a Kamena�eha Hwy, • Haie�wa. H 9c%t2 Ph 638 6511
Wa.i,.ki Sees Or,ce SwiP 1309 M2 Kaiawaua Atop. Honoijiu Hi gfzt5 Pn SM-8443
„z.,
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-
y' 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 150-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
Park Ot',Co 59 B54 Kamehaneha Hwy . H3ierwa. H 9671-1 Ph 638 BSt1
Vva-kski Sates Omc._ Sullp QC9 2222 Kajakaua Aye Hanoljiu H, 9rn)15 prn 9?.1.844R
- y
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: fete 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 Racing 116
IK'' S'�t'7F(uF�T TH.RI, 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:
eo,mpany, 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:-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
700 "M" STRLr7. FicrSt-m, CALIFORNIA 93721
86-102,
TELEP110:T (209) 48b-1511
0
4
',a-ch 21, 1993
TC "NC" IT MAY EC':EERY::
City of Austin
Publ,c Event
Facilities
Lester E. Pakmr
Auditorium
City Coliseum
In Oc.eber of lK-1. Volume Services Inc. was ay.arded ti c- fcod and beverage
sorvice cn try _ . in Pustirs PW,ic Ever- sac i ! it es . T..e c,/arse f+•or. a
!ecal cunce;i-1iir t(l : '1311--nal an(! beve-,:ne c m.pary feel orc'ven
to t a very pcsit ve aivar.tagrr n u,.r` s:_- ;er. ce Volume carefully
Planned the t►-arS`ticr►, ar`d carried it t-.,c:i h Wt^ no i';terrupt'on in ser-
vice to our eust;::-ers.
Once
on board, V-ey began renovation of o�,'•
c^!;cessior areas and hare Io-
date
Trade ma jr- i-prover.c.nt: to both the
facilities any eq��iarrent riithir,,
As a
result o` re;;, of fo!•t aric'.
we are rn:.►: generating sorre of
tht
highest per :aoita in the cu°�►1:rv. C;►
t;11;t nanane:rprlt works cl:sely
wi:h
ray staff tc provide wnitever set-uc
s nc:essary to best serve the
=
event.
In ou- `�..! ity/ ► e rar, ct:e '-n e.^`
: la_t .recr, and tney pence
fr:^
1;jrc�ec .s :50 corpuratt e...cut :cs
to F o ;; ti_.;/arl�ire rock and roll
fe-..
I.. all cas=�. Nvl��r:.` S��►vic�)s h,:_
cic,red�tc thN rzes of the event,
af.�
43S r}alnt'_'•/E_ :he qua! I � f standard :."'
CJ'a`.vT•?r f13 ` �
s :e corr.e to expect.
If yc:, are consi::,rirg a foul
and U`1t,-3'.t for ynur
faci titres,
wu;:ld encourage j�u to loot; at
What Vol Ur-e Ser•. ices Inc.
to offer your
operation and ytu.• customer;.
They are truly a professional
full. service '
food and beverage company that
have made cur custorrers and my
staff proud
to have them. in ou- operation.
x`
Fesaectfully,
Ron Wood
Director
RW:rvb
i��4n2
.. 4 V6-1021
•
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-
I
J
4
Canteen: Profiting from a
diversified portfolio
Born ,l A elldlllg COnll`,111% Ill I,l_u
Canteen Corp h.l, sunned clang-
111' e:,`tli`t11I: tide, and
A ditictent parent org.nuiations h\
r:;r,ulur= ,Idaplable and fA'r%%ard-
II1III i.;11 \01 Ili,t .1 %CiIdltli :kVtlp.l-
n\ .nl\ ❑r,'re. Canteen ha, dr%er,i ied
tali\ Into the :ollt(d:t (A'OdNer%Ice
III file hLmnc„ & indu,tr%.
hcaIt h :are.
,ulki :du:,ltlon ,egnletit,. In lU.,�?.
C.lilt:cn .nhic\Cd re:�•rd pre-t.l\
r.'ti;, of million on re\ gnu:,
f,'r- I mullion. making it the third
tars k,I food,crk i:e management
In11 ,Ili tit the vuntr\ tit term,
hehmld ,nl\ ARA sin,!
Marriott
F-\pl,uns Robert A. Ko/Io%%,Ikl.
:.weed a career \%fill
C .uueen h� helm named m, presi-
dent .Ind : hlef e\e: unk e officer carp-
er this \car "C)ne of our biggest
:hallell es todai, I, being able to .ut-
u:lpate and react to the chancing
nature of the marketplace For e\-
antpl:. through sl.11led management
and the .IhIII1\ it, he flevble. Can-
teen %k a, able it, react qui: kl% during
file recent re:e„Ion, %%heft NC con-
tinued Io maintain and gro%% bottom
line protitahihlt despite %olume de-
:lines it) se%cral of our major
nrlrkeiplace,.-
Kozlok%ski refers of course to the
fundamental changes %%high hake
been occurring tit the American
econont\ o%er the past se\cral \ears.
:awona a -shift from a smoke,la:k-
h.1,cd ::OTIOIIll: ,\,ICIII to olle of ill-
formation.communication. and ser-
\Icc industries Throughout the
nlld• .111d late "Il,, %%title Calltecn's
rc\enue, _re%% steadil%. it, nlconic
dipped mid I \ear or I\%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\ement ti,llowed h\ one of dc-
chne Mo,ll\. the decline, "ere the
etle:l o1 %%ork-li,rce Iedtl:lloll, and
plant closings among Its Iraditional
large tndustrial clients. It %%,Is clear -
I\ tittle it, tit\ erslf\ the hu,m,:%N hale.
Canteen's strateg% of "Catherine
sotiness in hea%\ ilidustr\ h% cn-
irenching solidly in less oclical
I\ pes of accounts—hke h.utking and
high technology —and h\ dc\tit Ing a
great deal of its energies to such
high-,_ro%%th areas as recreation and
health :are• has been re%%arded at
the hottom line. Despite the fart that
re%enues dipped in 11482 to 57501
million from 5785.8 fit 1481. income
rose �A1.3 mullion. to _'.b mullion. in
that period. An increase In net in-
come of _"_ percent ill laS : is .tit c%en
more po%am e harhinger of Kotlo%%s-
kt's plan to sustain a compounded
AMILIal net Income artmill rate of 1'
fo 15 percent o\er the nest fi\c \cars.
Memm hale, the past 15 Vicars ha\e
po,cd other clwIIcnges the Chica-
pl.h•I,Cd :oIllpan\', owicr,hll' 11,1,
Oianged ftntr tnnc„in:e I`Itrl, MienIt %%a, .I:qutred h% ITT Corp to
IW72. I I F --old _'tl percent (it' Cati-
IeCil', ,loch on the opctl in.iri.el as
part 01'•1 Ju,tl:e Deparnticni dc:ree.
,Ind CantcLln he:,inie.tit independent
puh11:1\ held contp•nn\ -I he follo\%-
Ill,• %Car. C.ullecn %%.I„napped Ill- h\
Iran, %`Aorld Airinlc,. In:. Arcad\
parent of Hilton Intonational
In Januar\. I`I'kl. a lie\% holding
:onnpan� :tilled Trans \kotld Corp
%%•I, lortned. %%uh the .iirlinc%. Can-
teen. and Hilton hCO)IIIln:
o%%ned ,uh,idtarie, In file Cn,ut11_
\Car,. the
real estate hu,nles, will it, ,t:y1n,1-
tion of Cenlur\ 21..I11d added adds-
11 'll.11 t h d,el'\I:e:.11'-lhlht\ \%Ilh It,
.I:gtll,llI0Il O �p.11IJII 100d \\,-
tclll,, the Al%%ner-oper.tiA,r .,t IIIC
QLIIIl:%', F.urlll\ StCA Hou,c :hale
.Ind the .,firm-\'s Llr_e,t Italdee',
fr.111cll,ee fiut despite the:onlrihu-
tloll, of It, t,`tlr non -airline bti%m-
ese,. Trail, \\ orld%. resting \%ere he-
titg hurt h% 1 %% A', losses, and tit
Fehruan IL)S4. the airline% \%a% spun
oil'. C.Inlecn's parent \%,I, ,uhsc-
yucntl% rechristened Tr.uls\%orld
Corpora ion. and In file moquarters
since the spin off has sho%%n pn,tit
mnprmements of oker 100 percent.
Canteen's longstanding autono-
m\ \\ithin It% parent oreanization
has enabled the company to pursue
It%o%%n goal tit' di%er,ification %kithml
the food,er%tce Illdtlstr\. Yet K,v-
lo\%ski and other nienthers of the
Canteen executi%c team are quick to
Point out that file conlpall\ is h% mo
means abandoning its Industrial
contract and %ending husincsscs.
More than a third of & a:counls in
the conlpan\'s Food S Fending Di-
BG--1021
F._
F
%Isom can he 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-
eraiions. 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 in 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� � .,entlui� a.ct,unted fttr a0
Ceni of sales
• %\e'%e restructured sip as not to
walk aua\ from industry," 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 aggressi%cl\ pur-
sued "white collar" accounts. In
fact. wtthi n its Food & Vending do i-
sion. 90 percent of the new accounts
hooked in the last four )cars ha\e
been non -blue collar, according to
Krpan. In addition, the eompan\
\ie\%%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 Preshx terian 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 -
\ides pre -portioned lunches to ele-
If.-nrh•r• ,tt'( :rntvvn'• tn. iuemwnt %ta tl to r.l Dim 5.•hueti-r. Hal Ruchic. Ltv Cyt^e. Dom Frneer. Jim .t9.•Guire. Bill Adam,.
\7.A Dun.l;;. John N.rlvwt. Gov - Einmersom. Boh AtrlLm %ki. And Dint;.. Lam tl}IL.rs. Gntrec Tenet. Karl Sedlrrr. Vel
Gtll.•h.r,. lkrn Att Own. AN (arl%on. Elhot Krwwff Ted Ar7.. Dan tirpw). H.d Brordon. and D.rrrell )'eviler
,W—w Q tssrr4► .
4
2
��
t
L1
Ili.'11i,11\ tillslttl :Ill1t{fill, I'llil, ,1
ruhIIc li,laur,lilt , c,llled
lllllh\ir,. ,llld ttrelales 1.� hoICI,
\\Ith more illall ?,21111111tti11,
N;III ultallitlll,l\, Canteen II,I,
\\,,1 tied It` make all tit Il% op ralit111,
Ilt�tre it"l -Cti Cill\C. A pioneer Ill IIIC
!,\-tll:-ttlill:C Il1CIIl,hi tit ,rlf-,c'r\ tic'.
Illi :ttilli�,lll\ C0111111LIC, It1 re[\ lica%1-
!\ !I fill, ion:ihl Labor ,,I\III_,
h.t\: hiin ,I_llitic.11ll. hill Ill addl-
❑. ,,I\, Kr(,mi. rarticirantln I,
hC,'AL11C file 111c'thttd Aidre„C,
,:,l,tllCr n:Cd, het let, Ihan ,it
,Illd set rt'rllttll, Ill :Iddl-
!!+':1.
,:I \ I,!!:. ttl IC.I,id C,IIIIrI11Ci11 \\ h11;
thi rr,tdu:t A:-
.JII_ .. if hi;111c'lh fl.11ler. dl-
�t ;�I,�,lu,l \ nlarl.it clan•
Icd
r,tr-
....
_:1 C:.`Il�`Illl,.t111 ,if\C Cill-
:, \\it if fr.tcililonal full-Ime
.,.,.. _ C KS h!1,111:, Im, _,r,t\\ I1 ,t1
1-
!! w1hill I ood &
� t'!`_ I.` .Ic1111111I,Ic't' II ,.i �:Illi:lll tit i1r,,\I,II11_ the
of qualm fit rntducl
,t l','. !tl.lil,l_ellii lll. ,Illd to do this till
is the C,111ICC11 OLI,1111\
f,',',1 St:r\I:e Prt1_ram (CQFS11i. a
_1,`ur of ha,,k-,tl-IhC-httu,C Alld
fr. nt•. f Tile h,tu,C manuals
,CI forth IhC Canteen %imidard, tOr
cer\ c,tll,el\ahleoperational rrox-
Ir,1111 rl',1dll:littll tC:II
nl,(ui, I„ rImc presentation and
nlil,lL,n,ll,ut_.
"TIf,: hc.11ll\ of till, rrttirain I,
fh.lt It cu.lhle, rcl,ul\il\ un,l.11lyd la-
h,'r 1, ,u:.i„lull) produce And mer-
,11.111,11,C lilt: latticed rrtt_r.111C,
,,t'„ �:.In IZ h111,1t11. dilet.101 tit d1-
el:li,, .111d the :IIIC) ,irchitC:i tit'
nnrl:rllCnlul, Ihilr tt\\ll
Itli.t, \\1111111 IIIC tl.Illlc'%,11f, Of Op.
( QI •1' \\a, Intrlldu,it! nl Itl,h
n
i ll///Ii/', ,://•,:Cit't/,/11, 110,1111N:t1 /,'I' I1111111-1'11.all offi," bad,11114..,
.uld I, eflecn\ cl� Ill place lu .111 C,ul-
Ieell ,I::ttlllll, A it\Illr,lill, Ill rrt\-
_rmn lie, unit management', nlcen-
ll\e, to hit\\ cl,t,cl\ the CQ1-SI'
,taild,lyd, ,Ire 1,lllimed III ,Iddifloll.
,I.ill,l,lyd-hCal'lll .16:6111ill, I11,1\ he
de,l_ILlted as training collet, lttr
llilll rll:lll:l_Cr,.
C OFS11`funtalttll, is :I pattern Ittr
\Irmall\ e\er\ t\l*leo aciount:till-
nn_cnc�. For In,taniC. manual till
littf Food% mid Cold Food% are ar-
ran_ed h\ nitldulC—,ueh .1, St1ur,'It
Such, Earl\ Bird (hre.ikfasl I. Farm-
er's Market (salad har,), and Main
F: cnt (traditional hot enirCC,)—,st
Ih.11 nl.ulagrnwnt caul .Marl the rr,t-
,gram% It\ fife requirement, of a par-
Ilt:tll,ll ,l::OLlill. Sm,Ilicr .I::ttlllll,
nl1_111 h,nc tiny one nlulll rnrrtt,i
%elt-,Cr\Ice area, \Mille Ill_ll \tlllinle
accuulll, nughl find it \i,lhle to ha\e
,Cpai.ilc ,Cr\ulg area, fOr the saLui
har. a Trull h.u..!C„irt,. CIi l he
m:lnual,,lilt)\% ftlrall ,tich \ar mion
I Lill-cttlttr Jill, 11,t_r.11111, 1111.1,lrate
,ICr-tt\-,ICI\ apprt41: he% 1411' rl,tcC-
dllrc, like r,uuun_ 1101 ftlt,d, 111' 1.1\-
nl_,Irll file ,aladhar I \Cn nlerch,ul-
dl,ul_ tcchnlyue, such a, IhC
dt,rla„ ahtt\C ,ir'\Ill_ Ifni. are
,rellcd 0111 h\ II1C r1'0r1.1I11. ill,lhl;ll_
liotirl\ 111thi,c'r\lii l\t,l'I,er, It1
fOrnl file task In .iddition. file tn.ul-
Ll,l{,,Ire Used Ill :,11111111:11,tn \\ lilt h•'1
,111d cold ,1.111\ 1110dll:ihtll
1t\_ .It.Ill,ll ttlttd IICI11 ll,.l_C ,I_,ti1+.,!
l0l_eLJ--11ed ll,,l_i. ,md It`r 111\e11I,'Il
•Illd other rllfrtt,C,.
To Inure con,t,tcm yu.ihf\ In
product. all ra%% food I, It,
,1111: i II', ,rC: In:,lllt ill, and .111 1 C, I-
re, .lie ,Iandardl/Cd ReopC II1,U1-
(1.11, III:IIIdc 1111•t11111.111oll ,tit t.i11.11111-
Ile, Ic"ItIlled for \arl,tll,,.l1c', lock
For large \ttltime acc,unll,. C.uucen
is 1111,11 IC,11112, .I :ttll)I'll lirl/:d ,\,-
ICIII ,It Ills.' L Ill\c'1',II\ of
O%Il I:,1,h. \\ltl:h c.11l hC used lit
,Ilrm k or C\r•Illci
numherot reople Sad, I red \I:101-
,ttll, \ lie rroodim-national
lcoor. " I hC,C rroduclit'll
arC unl,lui It, IhC nldu,lr�. ,alit _I\C
its .1 \\.1\ 10 0 JILI.IIC \%11.11 \\C rC'cfo-
In u, Arc \\c portioning ct,rlicil�'
Sri \\C "'lle ,I,Illl_ •I:iLIIJICI\ .Illd
tl,lll_ s\Llr i\:IC 111011,11- lit the he,I
.ILI%anl.l_c."
III ,Iddlllttll. ihi i,1111i',III\ h.l♦
86--1021
i
1 0
moikcd up pre•p,l:ka_cd fl,l\onn;+�
and 1111\is Till olit•II-llsed Items
llk: s,lll:es ,Intl soups iIi certain ac-
:ounts. unit managers ha\c been e\-
permiclllnlg ailh selling the soup
bast' till\c., Ittile fill- creal n soup and
otic Intl :le,irl it, cu%lomers.
Thiouzhoul Its operalions- Can-
lien us:.,l ti\e•\\eek Standard menu
c\:le, \\hl:h \uric. \\ith the season.
I Ic\ihihf\ to in:orpor.ilc local fa-
\ottle% of it'\ oul tie\\ Ideas Is built
mto Ili: cm: manaccnient
01001.c% ,Illlow-, Ills' sllg,+esled 11011%
a:cordll1_ 10 need. and I. Ilee It' %tth-
stnuic uh I,, Ike items per catecor\
tas tit dessctis or entree.l pet e\cle.
sllhli:l lit Ihi applo\.11 of Ill: dlslrl:l
n1,u1,1_ir Ft+r n1sl,ul:e, al Iht• f edrr-
al Itisir\c Hulk ill S,.m I tmicrsco-
1\I+:I,' lh, :ll.l.`Ill:r popul,tllt'll II1-
:lll,lt'� ill.im, 4,1•Iil, as \\ell ,1% %1`
1�111s1,..I,;,i I)::Itlillt,lls. �t.l:t ll.t,lsl
p',!l, h 1,111d ,tth;r ()rlcnl,ll past-
Il;� ,u,• ul:lud:,1 tit the mornnlg
tttli71t1;s
1t1__:sll\i s;IIIIL 1::111111{lle�.11s++
hill' ki:1` :,•sls ill hn,- For install"..
a Ile\\ pr,t_I:nll :allcd the
�iI\ sllhll\ :Il:0lli,l_Cs:11s10111eI's Ill
pl:t,ii,Isi IOod 11011s Much :tic Illo%l
i,`sl-etii:U\t•It+scr\t' ()it ea:h:\:le
nl;rlu. yti;lal ticnls ,tie nidl:ated
,+t,l. It : Ill,l:,lttt111 Alld : Neese) or
in.ir II1♦ it a seat" t.t,l pl.itler).
-I leis; ileills ,Ile prttlll,tl:d h\ 111C,1111
of ,1 lai_: tllll-:Aor poster IlLtlltlted
s1r,tli I:,III\ at thi heelmlin ot• the
silt nl_ Ilnn e -1 he :nlp.ln\ also
pit.11:�' Its srll-sir\ I:: I11thltilc% h\
them. \\h:nc\er possthle.
nc,lli,I Ili, 11111111 of emr\ In tlie eni-
hl,t\ir:at;I:rla ofConlhnled Insur-
ul:e Cit's tr,unin_ hcadyu.iner% Ill
('hl:a_o. for nlst,lnie. lo:aung a
st'll•st'1'\t' %.111dtt1:11'ItAIIIIIl hear the
door rctImcd ..ties tit morc cosll\
s1:.1111 1,1111i 11011s tit _5' It, 311 hericill
of tidal %.it:,. rather than the pre\I-
till% 411 pcicciii ill side, Alld lilt• re-
�llll.11ll Illlhi,,\elll:lll III plt,dll:tl\II\
e1l.11tli,l (.Inlrin I,t i,,I1I1111IC it, roll
Ili, }.1.'III!\ ,Is .1 sill-sllsLlI1111L
,.null. , \;u Ihltu_h 1hct11:n1 11,111 fe-
,;Iltl\ trtltt.,,1 ill; .uutnnit it) ll.suh-
sl,l\\: \\alltitl I+t 11;•e1lhh.1svr
It I I•t.nl Will"Ill rinnnl.11n1_ n." i\
I`1.0111 DI,k S.,tll. r:_"l.vl.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,� this Gtiihl\
file %:title \\a\ \\e \\ould it prolil and
hiss ,i:Collin " Despll: lilt.' Ida 111,11
1111� ,1;:,t11111 Is lo:,lle11 Ill .1 hllslllil_
urhan are,l. part):lh.ln,ln is ".
percent
B\-the-o1 nix --cmcc I, ills,, llsed
ahenc,ler the situation hermit.. The
conlpan\'s first form into the crn-
cepi of h\-the-dunce ser\ice \\,ts ill
the area of salad hars. but this for.
mat has gr(m n to include sand\\ Ich
bars (same accounts e\en h:t\e both
sere-\t,urself-b.\-the-Oun:c sand-
\iich setups and care -to -order sta-
tions). ethnic hams such as Mem::ul
and Italian. and build-\our-o\\c
concepts like baked polaloes and
luiu..
GUM\er's Is Canteen's self -sir\ n:e
deli 'restaurant concept Desi nest
prinianl\ for multi -tenant o111;:
buIIdinas \\here no iIIdI\Idual Icnanl
has food.cr\n:e. Gulh\cr's I% ill the
true sense of tit,: \\ord a pubh: ra-
taurani. The concept I% also an nr-
poriant e\pansioii \chicle fill Can-
teen. in that it ills" has h:;l:
�ll:i:�slllll\ Jddl"led 10
:realloll. and lie.iltli:are ci mz,
There are ahow mil diven Cjt:!!:-
ter's tit operation currentl\..nid i:-
cordnl, it, KI-pan. tilt' conipant
Ni .•.Ili 1a,111tl; s h tr !fir rllfrrll are *i ant rh are.l f a' C :Inlr:n
10
Could add as man, a. SO or n0 in the
upcontink! %ear. The concept is all
.elf-.er,c. emphasrzine soup%. sal•
ads. sands, IChes, and similar light
fare. Breakfa%t is list, a,ailahle. B,
the ounce ser,Ice is often used. De-
cor Can he adapted to almost an% set-
th . and t\pical size ranee. an\ -
„here from about 4;0 seats to mere
than 00 A\eragecheck for the Gul-
h, er's concept o, erall Is about �,I.00.
_;ncratlne a,eracc Witt ,olume, of
`I`I�.I,tpll It,'5Ib0.000. Food casts are
about ?b percent. „hile labor cost.
„cI_h nt at ibout percent.
hit:hcn mid storage spare re-
qulrcd h, the Guli, er'. Concept are
ntiiiiniA e,en though the soups.
Chill. and optional hot specials are
:o,k:d on premise. The absence of
equipment requtrnlg HVAC makes
!'1011t-end In,01111 nt qultc lo".
Xtwilier Is Gunner's catcnn2 ca-
MPPW
i
I
�r
pability At the Adler Manctanuni,
in Chicago. catenne corpo-ratc.
school, and associ;rtton flutcliotts IN a
tremendous hart of manager Lam
Posen's husniew Despite the fart
that the kitchen is less than MO sq
ft.. Posen can and has catered eight
course formal dinners for w\ertl
hundred people. The onl% requlrc-
ment to honk 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.ultccn's manual f oodser, ice
acounts a. „ell At a major I BAI
instalIll it'll In San Jose. Cal.. "here
Cxitcell oper.itcs 10A'dcr% i x III fik e
hutldln,_s. as much .1, `U perxiii of
the hushes. I% front catering funC-
tlilili The Llrgest 1,,I% III opcit li ou'e
for "0.000_ hold %e%er.d wo to
hke NOtt ) .4k );InAC.L. 11,0111I/? /l,rlt "Onwrhe.f porrit sit ofCanteen', hiI,llw%%
It,i�at, r 4
r..d • %i.
_rr
MOM tfi11111ir !W'+
I
MOM tfi11111ir !W'+
I
a
celc•ht.11c' it, -slh allimets.lt\ of Ihc•
pl.nu
oil the Nest Coast %\here the\
Oricnlatcd, build-win-mi ii hors are
PJIrIl:ularl\ popular, although their
popularm I% rapndl\ spreading
across the cUllnm to I11Ore tradl-
trOn-hound markets 7 hese bars
ha\e also prO\en as adaptable it,
Itm-hudeet accounts as the\ are ill
the flagship accounts \\here Can-
teen's m•housc archntecis ha\c dc-
sivned the facilities from scratch At
Ihc S.mia Clara Count\ Gmern-
mcnt Center In S.mn .lose. Cal , for fit -
stan,c. alihoue.h Canteen has had
tilt- .1cc,Rlt11 for the past right \ears.
thi fo,+,ls;ni:r facilttics "ere dc-
sl-"rl;d h% the pr,,Ie:1 archllCl l and
ht_}l lahot c,,.t. due to desnpn mefli-
cICIi:Irs\\ere'.1:011"1.1111 problem IIf
'I,!. Ic" ►ban a \ c.It a00. the 100-sem
rc'sIJII1.1111 p,,riI,itI k I IIle lllcIIII% \%as
:l,+sr,l. .11ld ,,ill\ .1 �IIILseai :.ltcIcrl.l
rerll.11ll•,',I Ill operation 1, nif I1wn.I2-
rr Rt,_ir A\som sol\cd the problerll
h\ ulsiall!n: a %mipli self=srn Ice bar
Ill tlt: snl.11lrl dinlllg arca. and Ofl'cr-
Ill_ All Inunrnsrl\ su:ccssilll h)•Ihi
Oun,i etluu: 1o„d bar Ilim ch.ul�cs
\,,\% 111, t.l,ilit%. .1 P-oht and
I,." .1„owll \\filch 11 Open i1, the
h,•,.t. %0111; of the I,,\\C%I
Ill lllc comp.lil\ s B.l\
"Nc rr tall.!!1_ .ihoul \111,t1 (.nl•
Ie.rI ,.111 dI' unticl Ies Ih.In Pt-rfe,t
c,vl,fiti, ij, " s.1\s DarrcII I ) c.tL-
li%. NL"I C t I I A IC.1 \I:t-Ill esld: II urn
d;! \1h,�11; •�\si,ill's .1,:,+llill I.111s
" I L. ! . 1• .I sprci.11 , h.11lrn_; I ` Pro-
. n: f,,r ,bent ltrrds,uld s.11lsl\nl_
Ihc cu.t,vncr %%hen 111, f.l,lilt % is 11"I
On lilt, priont\ list for repairs mid
In1Pr0\enlcnls ..
Sit, 11.111.111111idi 1%d,+llhl\ II11POt-
1,1I11 Ill 10d.1%'11 r:,,I111111t. %%hc711 elll-
plo\ers are t.lhm an r\tra-hard
11+,,1..11 the %,hut- OI' Ihr ht-nt-tils 111.11
ttit, \ pro\Ide and Ihr .Ilinudt- JIsO
lllldt-l%c++rC%.I:OlPOl.11e pllll„sopll\
ti.I\• Ko/lo\k%ki "It is Our respOnsi-
ill\ I1, he successful under :Ondl-
Holl, .Is \%c Illid them. 1101 .1% %%t-'d
IlkC Ihcnl I„ h, In ,11hrr \%orris. PI.1�
\\ Il h I h,' h.11ld 111.11's been d,•.111 %ou "
( .1111ielt h.is de%eloprd .I nunlhrt
1 ill ,, I.1111s .111d p,,ll:lc's 111.11 c•I).11\Ii
it I,- I111 sl Ill„Iil.thl\ use 11s ILUId. 11,11
0
At I t'Ib m %Mlle. Clwec•11 operates re%t.jurant%. lodging. gift %hop% all, tovr%.
the IeJ%t Of %%hick Is a general pro.
grant tO renegotiate man\ Of it, p&I
accounts Into less speculall\c man-
agement fee bases In addition. se\ -
end \cais igo Ihc conlpan\ %%.Is dt--
c•entlalvcd. creating a lie\% Lt\er of
gcucral man.igers \%lilt ultim,itc rc-
sponsiblltl\ 1111 the perforniall;e tit'
all accounts \%iihnl their hran,h. or
district 'lhers are SO comp.m%-
O"llcd hranchcs \\tthm the Cantrell
s\shill, reporimi! I0U11,' of 101.11 arr.i
\Ice presidents
.. I fill s\ sit-nl II.Is .1110%\ rd Us I,+ br
%cn Ilillcl\ In Our response to
char e% tit lilt- marketplacc." e\.
pi -lilts Haller. " hc:aust- file People
%%ho kiw\% the local market hest are
the ones mal,illg the drelsltms Mid
Ihc Ones \%Ito are accouniahtc...
Ili addition 11, Its cOnIP.nI\-O%%ned
hrmiches. Canicen Is the only food.
senicc• compall\ tit Its 1,llld It\ h.l\e
franchised locations III fart. Iran-
c'hi%mp \%as :1 major factt,Itit Ill%'
Collip.m\'s pattern of r\pansion
There are more than 130 n1d1\ ldu.il
franchlsrd locaiitm%. oper.111t1_
IIlaII11\ Ill smaller cities Accordnl_
It, Koil„%%ski. franchising iernlor\
rather thin piling lilt,, 11 oll a cO1111%.1-
n%-operated h.isls \%.Is Ihr 1110s1 t-f-
ircll\r \%.I% tit rllil'rlll_ all .Ir,'.1
\\here the compam had no exi,lin
management base. As the compaii.,
e%alu.iles a ne\% area Of the countr\.
It decides cocwperatneI� \%hether if
%%Ould be more tudiclous tO frxi. his:
the ierntor\ or company Operale It
11imc\cr. according it, Kozh,\\s1,t
the franchisee net\%or1, Is :,I this
Polio rclatncl\ mature
sales. Mll:lt are not nl:ludrt! II, C.0
Iren'. results. anlOunt to.Ih-ql : 1f
nulhtvl annu.11l�.
As fit Most stlC:rssflli h.In;Iltsi
�\sl,'Ills. �:Illlrell'� tr.tll:tllsri� ll�,
tile sank programs and s\ strut- uscJ
Ill C.11ltccn's comp:nr\-oprr.nc,f J,-
counis late\ ha\e first ri_,ht if Ir-
fusal till Ile\\ piece" tit huslllrss
slgrlt-d In their terntor\. and are free
it) take all% t%PC of a::t,lllll--13,\1.
hcall11 care.rc:reation. Hoki,c•\rr.
most large recreation accounts ;,I*,
handled h% the cOnipan\'s scp.lrml :
Recreation Seniccs dm,,1 11. %%ht:h
has the resources to pl.i:r awono-
mous manapenncni teams In Ihc ul,f!-
%Idllal .1ccOunts
Laf,e re:re.lnon a:COU1111 ILI%i
protcd %cn successful for Carltet-n.
%\fit:h Is a:inch Pur.unl_ nr\% hu.t
Iles. Ill.lads and national P.Ith%.:011-
%cimon centers. Ill.irm.is. entert.mi.
Iilc'llt Mid sports :,, III Ill e\r". and ill:
I
11
IIki it) Doll KI'P,III, re-
:t:,IIboll :Iccounts Po.e certaill Chal-
lin_C. the\ tend to he long -terns
:oiltracts and the\ tend to require
suhstallllal rlt\estmenis. ili addition.
the field I,, :rt,\\ded \\1ih ComPeli-
tot, looking, for a Piece of 111e ICI%Ure
I1•.trk,t it, Protect theinsel\es front
`!!, \!,L.itude. tit* file traditional
i1,\ I .,:Illelli.
i ,:,:Ic 111to11 ac:ollill• also lend io
sca"011.11 In n.lture. ;nid a -
,.`1,1;1!_ It` Gc or_e ]'title\. \ ice Presl-
u ;.'•r::Ic;Ilit111 sel'\I:es, o11.C11111C
Iht• .i.l.t'nalit\ Is one ol, file dl\l-
hl_,,.t :hill:tt_,.. In 1 ell,`,.
\,itional Park for IIi.t'lltce.
\\ ili l e C'ItlleelOt 1-W Ser\ l:es oil\ I-
,1011 Operate% oer\Ihinu, from totod-
s,r\1., Mid I,nl_in_ rooms nl
•:P,Irale 1,1:I11tiol Ito lour bit
1:,J liorsehack rides. ill, it+utl Per-
f re\enues ,ir, `_encimcd In 'I
' ,.^it`nth Pirlod In .nlJltlon. ent-
!' 't::t:f11 s\\,I1. irt`ttl ,1 iltll-illlli
f P,'y,le to .1 sc,ts,111,11 In_h
nt.ikin_ tramin_ ,ind I'c-
1;I:+Illt'lll ,t \erg Illt I,'I-I,1111
VIII,•ti_11 aided h\ the 1aa 111'11
a(; rt'\nn,Itil� hall'of the mana_ers
Iti,l ::P Ito ;u Perxiii of the hourl\
\\,'rids return each \car. the tirsl-
t1,,\ .`rl;nt.ltton .11 1'elltt\\.tonr Is
:enis,tl S,i\•H L Ru:hle.e\ecuu\i
\ i,i Pie.ident and _euer.il 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 isle l elimtslolic P.I k 1)r\isloll t`I
11\' Senl:e.. '-I'\ir\ %car. toe ha%c
iti _el .1 \\ll,'lt• Ili\\ .ii\\ t'il ht'ard
.old r:'id% I" \\.`rk 111 ,1 m,lllel of
d.l\s \\Ilh I11,+.1 ,il_,,111/,Ilitill. II
I'Ikes \e.us It+,1e\el,`P,1 . lilt lll-C \\C
it.l\e IfO da\s it, tit' It .IIIJ than \\i
11'1\e It, tit, a .III mcl-,1_.un Ihi ne\I
%car Pride ul tit, It`h'uld 111,`r.sic ale
.rticl'II. I,C:,IU.0 ihti•i IiillLcs 1111i-
In.11el\ affect IIIL— alit\ of the \rst-
tt,rs, C\Pertcli , ill the P.IIk .,
\\ h,ll I \\ \er\l:e. i, ilk t'\Cr ih:
,I:collnl Ill 10'14. the lodt'nl_ (A:IiIIIe.
1 \r,ltni, Jrnrn_ r. tvre t.r.rt t't (.rn;,,r,'. rlt, ie rut" uhrt.•.t`ll.rt .r,•,.'Imi.
E
\\iII Ill ,1 SIM: ,+l t11,1i11.I1t' .II1t1 1, Id
utd he\ira_e \\a•.uh.I;ui,l,Irl. re -
:all, Rll:hle. Ili .tit tityre::tidemcd
nlo\e. IhC:ontr'a:t that I \\
nCzofialed \tlfh the N,ulon'll VJI.k
Ser\ Ice :;pled foie (11C tiPCr'Ih+I' It' 111
\esi:1:cllis toil e\er\ dollar t`i s,llcs
In t he 1'.I:IIII ICs, N hl:h ;Ue t'\\ ili,1 Ir ll l
Per:eni h\ the !',Irk Ser\t:i In atith-
Ii
It'll. (+`II II't �� lu% ,ipptopriatc
flints. tt+_t' It'\\t1 r,l. f.c\It'll I/.It l''II ,`I.
) CII'mst"11c. its lar_est r.irk \s ,1
I esult. I \\ Sen i,c% ha,s spent a sllh-
sl'ulti'II ,unt+unl Of nit'ne\ till All 011-
01110 liP_rtl,lc Of iltlsPIL1111\ 1'i1.lti.i
Park t;l,lh,lis. nl,lu,hn - ` n111-
it'M Ili .,Ml Iru,; (ir.1111 \ tiLL'e. a
Ile\1 :tilllPli\ .'1 (th1_II1_ ,Intl I, �� `tl.i I-
11::tin 1 ,Ike 1 illti\\.it'nr
III t'rtlil i.' I11,1 \Iltll;, Its Ilil,st-
Illelll. the tollil"Ill\ 11.1, i.itr !'-d ,1
th O c l,• Ill, ol1-.e,l,,`11 1'li'llit!"
\i11,11 .'I* III!. IIIIII.I 1.
t\,I1,1. III, ri.1.111✓ hu'llic" dill III-, hi
\\ Intel si.i.,`n. \\ h,:l Lill It'
milt`\\ \\t,
nt'\t rinl,un ,'Pell tlurul_ thi WHICl
nlollihs„nld the: IIIp.III\ nt'unt'un.
.I llect of tt\er-Ille•siw\t \:hl, lis It'
11,111.11of I 'llPPlles and \ isittil s Aikc
I11 .td,ltllt`11. :11t+wlolic Is hill,_
PIt`Iltoled .Is AIlnslllis.:l'nt:l,tlsi
,inter burin_ non-pc.ik nitimli,
%ilil.11l :ontinntin. .Intl hush:•.
In:e►lII,_ I, ,.11st`thili`:lls,+l.l.II111-
(.Ir markeittl_ thrust at i1\c (lhl,i
Stale Palk•. \there the Reo,cairon
Set'\ Ices t11\ 1,1011 t`(,el';Ill's sllllllar I.t-
►11111es. And at I lie dl\ I.It+it's lie" .1:-
couni iit the F%cr_l.ido. a Prchim-
tiar\ llP_r.ltllll,'- ttf fa:llltles there lids
en.ihled Il1C in.irketin,` %iat1 It, Pro.
111o1e the tits Illtonths tit SePteinher'
Ociober and Nmelnber till a lo:al
ha.1..
Some tit L.11leteeWs, tither MAJOI,
Recreation Ser\Ices ;IcColllll♦ Ill-
:lude file North Rim it the Grand
Canon in Ari/ona. NASA henne-
d\ Space Center's Spaceport USA. a
number of state bcat:he. and P.trk% fit
CalilOrnia. mid HC Place. a nett sta-
dium:omple\ In Vancoll\er, (Irulsh
Colunlhia. Area. of poteiIIwI
irtmth iliClllde Ct,ll\ellilt\Il :eiIICr..
/this, alld .tote and ii.littollal parks
While Calliccil'. I':crcalltill,ll a:-
counl%lll i6e It 111 oer\Thin: from
rlllllllili' •�.l♦ s1.111toIN 111 Ill.11'lll.ls Ito
86-1021
i
S
�: yyy9
•i',
& /F,
a
1
\J
(,,..:: 1.1" 1% ,t,. Ip:.,"" •,' Imm.t l.',.,tn v., n,, hidw.- (Yu;.i_, `'% IJl.v I itwt.vum:
.11 )ill.`\%IIt 111 C. 114 h1„'I-
,I„ III, `I11111.`II 1111ial] till-
.. _ .1!i •,' iL, ,'j,:!,I!I�`r� In
I.1.1.3_ I',,1,i111 ,`t III, -,II, I'I, II* .IIc,
lh1 ,!1 '1I�
i., if I:,.II;!, „II �.. •IJIII, It,
. .,,,! .I,L'!, .1!•,! I!,.III ,.IIi
I ::,' 1. Ili �1, .III.! nl•:I. ••I4'illll_
ti, ui.u-
Ii1.111\i I,• I111111)1:I C I I I Cnl
'.!...!;II,• I..111„f I)LI_II,`.I1, Relal-
DR( K111.111
I• .,,!I,III. .I'I,1 li,l\III_ I,'.'.I,,r,l.i
If,. 111,, I,•I, If, 1, .1
'•t! '..lit I,'1 I! I �
•
.Ili �I. �1. .,• I,,. 'll'�'- I11.1, II
I11111L it$11-1.OfIl;lt'ill .I, the It'll
Iiillli11c,1,t'I DR(I,ttll,i Ihi,i\CI'-
,I_,•�1.1\ Jo\\n 1If,-
Iil1_; 10 Ihi Ith,l],;I\I;,• 0111.1.11t'1' 11
1„hlt�\Il], .I l]ll:l,tl\ I,it'�r,llll \1111;I1
1. h.'11f .1;�1*,•.lint. I.' fhi 11.111in1 ,fill]
,. �I-,'tl„II'•, It'I III: ,Neill III ad,il-
0
tion. Mille apprt +maul\ `II I Io '15
percent of he;Ilih :.tie ao.01LI 11, art:
In ,t fie ha,1,. there I, it trend It,.
\\ard, a euaraniecd iu,l per haueni
l]a\ ha,],. \\hick fun;ti,,n. it lut
More like a p&I account. ,a}, Jnnnl\
Ilhchari. dititriit manager-urera-
uun, for Canteen', 11calih Call.
Di\ irfun.
Camccn', health care a,:,-ii t,
Wild it, he cu,it'mvetl III Ihi i".tllif:•
IaIi,uLltllln. \\Illli ,IIIi u1llinn OIL
;tti111 ,111\', h,s,l, t'hir;s1m
,111d %\,teal, 1't1r ni,i,uILL'. Ihi nic,l,
life Ili',-hi,i LLI\\,irl] H,"lit!.,! If, \,I-
i'it \ llli. III ..Ire ,uh,l,ulu.l,i., ,11t1, t
:fit from thou of the
PIc,h\icrl,tn Hollie In f
III tlili ttl J i'r11U111: Illliilhii i1 ��
l]ehenl]inl ,k111il]-.',Ire If\In ,,':'.-
I'Ii\e, 1t'f ihi ill]irl\
AI 1.d\\xJ. \\heiL: ihi
•lint \I.n I, Ie„ Ih.u! t\\• \,.:'.�.
Iiil; aii �r\in •he;i.l! i•.1 ... ,
niifilt, I,u;h a, h1.111d. I1,: !1,!
ill,.- like. ill a,.Il]111t'11 it' ; till, Iii-,li-
,I�Ilil] illilill'i Yet :IIi i-.Ilt,Ilt, `.!.:
Ir,'lll ,1 Ili\\i\ Iil.11l_ll!,Il,',!
ralll ,i\IC" Illillll .111,1 ,lei it`.',: 11
itl,tki,.l. Ill hulk. 1,' .'r,l;, A Ili\\ ,I.,
100111 .11 Ihi ill,1 t,i th,.
tillif"I.i" till ICI1.1111-,tit:
Ai Ihi Pfi,h\tirl,lfi II
�.,,.,,',,.,• .,r,.n,fir•1'.v:,nut+,ur,�l.C:uN,•ir,'.eft;/`l,.I,•i!i`r.hrt_ 1•:,:_....,
86-102A
resident. Be 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
I. alwa%% sersed at table, with resi-
dents ordering from a menu which
Mature. at least two hot entrees.
Although onl% about IS percent of
the health care market ha. opened to
contract feeders. the segment is a rel-
alk eIN recession -proof one. saes Da -
%id %%:itten. national director -Health
Care Di%Lion. The marketing thrust
for the di%ision will be one of "con-
trolled expansion." adds Witten.
concentrating in Canteen's estab-
lished .tmngholds in the mldwest.
•outhea•t. and northeast Currentl%.
Canteen has about Its health care
account,. about S0 percent of w hich
are conlpan%-operated and 20 per-
cent of w hich are franchised.
Education is another growth area
for Canteen. Ha%ing recentl% ac-
quired ['referred Meal S%stcnls. a
pro% ider of plated. pre -portioned
lunches to school children in grade.
K-6. Canteen can now pro% ide full-
ser%ice lunches to schools w hlch
hale no prep facilities. Another ad-
santage is that PMS guarantee% the
cost of product for up to :t %car
PMS's market has been expanded
nationwide, and according to
Krpan. Canteen expects the demand
tier pre -portioned meals to grow.
This additional demand would atl<_-
ment Canteen's more traditional
business of pi-mlding hood.ernlce
management to school districts.
Krpan adds that one of Canteen's
prrman roles in pros Iding foodser-
%lee (o elenlentar% .Jl oils 1. It-,
tiph'-.erle hap% hke the E.rrh Bird hreakfiAt module are one ewtuple ol-CvnteeW,- ofort% to.•ur cusp..
tm __ IM Z_
v
_ _ -fir ��►�
• — - -- •�
Ua
in
�Tllff[�
e - —
� P
J
e 1
rj
!L•L!: , ,u,h .11 1/rv,.t:• ,:J1 . , , ; ;.,, . :'`n
nl,ul.lgrnl:nt ,1f conimt+dlt\ uttll/a-
r1oll Pn1 null,
Ct111ege, .Ind mmersltle, till the
oilier h,uld. hec,lu,e tile\ tend it) he
se!i-,•peratcd. remain a less promis-
In_ market for C,uteen. Ho%%oer.
the ,omp.nlI h,l, recentl\ pl,ked up
,e\:ral „111tf,1,1, In addition. Ihere
I, p,•mmal tk+r the Gullr\er's con-
cept ul,ttue es and um%er,;Imcs. par-
llcuL.uI\ III IhC grtmr11g area of conl-
munln \\hose populations
,Ir: largely made up Of c,Inunuting
student,. :%I the College of I al,e
Coullt\. In Illinois. the 2'5-,eat Gul-
h%er's there does more than
nl hu,IIIC„ 111 .1 t%plcal da%
Correctional Institutions repre-
sent anot tier area of gro" Ili for Call-
Ic•ell Ihal rt,(,uta11,1n ul 11111,
c,teg„r% I, mI:rcasing at the rate ,,I'
,Ihout 21t percent a %car. Krpan
po1111s ,an rh,lt prison adnunl,tra-
tt,l,. slit IhClrcounterparts ul hr,llih
,,Ire. .Ire lurium! to olllside proles-
'1011a1, It, r.l,: IL burden uf,.lu,i\-
Ing hmh the demand, of the correc-
In+nal ,\steal and Illose tit' rliniate
right, gr,+urs Alid ,1, III the ,,t,e ,1l
elellient Ir\ ,chook ,oirection% t+t11-
clals nitlst .11,++ deal \\Itll ct1I11r1L1d-
tne, utlll/atl,+n programs. The nta•
jt,r11\ of the compam', correctional
,Ic,t11 ms generate \oltlille tit >l 11111-
llon or more. I orton Detention Cen-
ter tit Vir nua gcncralcN j2 ? Ind -
lion Canteen has eight correctional
,1„t+llllh 111d1c.111\e tit' the ummth
1110dC, nitl,t tit* IIIC,C ,Icc,nult, "ere
,I_ned \\Ithnl the past \Car.
!ie\olld IhesC tlppofll111111Cs. Ko/-
It+\\ski tee, a great deal of potential
hu,nlC„ In related area, *Ake hasi-
call\ \\III cylore ill\ opp,Irttill lties
that ,:ome our \\a\." he assert,. -We
feel that \\e lia%e de\eloped .1 mill-
her of design concepts that can he
nultuall� hencticlal to the compam
and III the client In socral area,
.Illst ,Is c•iamples. Ko/lt,\\s(\I c11es
,41Lu111*\ cluh,. and lucahtiunlcll,,ll
gall ,ollrses. -offcc ships and ,n.lck
half, III ho,plt.d♦ hill I11LICI •Ild:lll tit*
P,IIICIII feCdiniz. rc%ort,. and selected
nitluar\ 1CCdntg
III ,IJJIlwn. ,,I\s Koik�%%,I,I. Ih:
,t+lllt'.111\ I, I11\call ,Illllg .1\ C lisp', t.'r
rc•lmeJ nlanagcnlellt ,cr\ 1cC,. ,tail
,Is h,al,ekeetml_ and hulldul 2 nlatn-
tellance. \\ filch \%,Iuld he ctvrlp,tlhic
\\tth C.micen', cm,tnlg client h,l,e
Such ne\% hu,me„ might he ac-
yulrrd or docloped Internally
-Our MIMI e tm%ard acyul,lrl,ln
1, I,,,,III\C. pro%Ided \\e can find the
right tit Prlmarik. \\e'd he lookln_
at food,er\Ice. htlt p,,,,lbl\ III rc1,11•
ed 111,111.1=c'Illent ,\stellls." Ko/-
lo\\,(.I loresee♦ lit) Its percent of
the ctlnlp:u»', ,u,t,uned -,rL'\%th ,lc-
,urrnlg thr,,u_h acquisition. Milli In
terns, of market fill and mm pro-
duct ter\ Ice capabllln .
One tlulru, Cantrell \\III not do.
caution, the chlCf C\C,ull\C, I„tr,r\
m and ,uh,t.ultl\ C \\ a\ from l"u+d,er-
\Ice -Ae'\e made ,1 plaice for our -
III the fot+d,:r\1ce matko-
place." Cnlph,l,vC,
that's N here \\C ll ,,11111111IC 10 ,Illg It
out "
A'.
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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
L
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' J
VOLUME SERVICES 4
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.-anale :en* !earns cf Volume Services are pro-
p qua:av ,`ccd be•;era,3e and
.=.:.:C•d sr:..�e�
Volume Services his earned a rep;.i!a* . as
.` :er. _.... ;.;::fens::::a: food services
...:n the rec:e !:cn ma-ke!
--fess;cna: rnnn = ;err*
_ `ac:::!:e_ se:r.! Volume
Services ,,cnc---ss.;...,.,e'
Management
Market Orientation
ccme first `: r' servo --
all
Maximum Income
Our .. a-.... tern~.s are =c e%% e -7nd .:e
X. —es
Teamwork
!c de•:e::p and malnta :n a
Ser .:ce prc ra:;. -- meet
nee-s
a'.f.:.a1-, .%-:,h the 1 A A M (; ..1�a
•1 A r.. .. 'TFr ` HTA ACTJA I A F E N A C ar.zi The C7�y —ne".
Pr:'ess::r.a! Baseta!: Leag-aes
I
le
t•. �� n
tit
t.
/ Akio
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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
bar:�:ers. bartenders, accouraants superc.sors
and a.. _.:.`.e iC 10C:_ c.�.p1C;:ees cf Volume SeI-
vices and Interstate United Corporation :': ill
.. irk ...' ,,.e lob best
Our Experience
1�� C .._ _ G l.. r�. •. Ci r��..:d �� ......•i FC:r�r'
Our Training
%%e cr,V.de C1r .ndus• 'ea_J,ng tra..... _ pr_-
7'arnS _. a.. ,f z—ur iCCa.: 15 Th:s
..sua. pr _ „ams and ...an s
Our Systems
e Volume Services C_nc-.._._.. stem .ur
��.. _**. Sza:es Pr-�ra r and
`
... .__--J :`a a..��e m Cnt Inf,rmat:_n S• :r'_' :..
par,. cf the package of ser.:ces .:e
pr _ ; i d e
Our Financial Capability
ns , ar: of �.-.ers:f:ed
Ha: scn Trust PLC..: e have -he
resources and-exibility required to dC the lob
Our Pride
We enl: ,ur .. crk and take area, F r:de :n sa -
:ng that .: c 7D:t best May .: e s Ear•: e cu'l
tsil�!!e
games
4-Unit Concession Stand
86-1021
r.
jo
Banquets for 25
to 253000...
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
4
Referral Booking
I
tia-:_::3i Or73i:i°.atiens ba:ked into the
Volume Services convent:cn center net.-.ork
i
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
It
86 -iQ21
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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 :en of facilities equipment and
Personnel
and tra:ned staffs are
exper:enced pr,:fers:cna: resident
and _ :r reg:.,na: a:... area
...NC:
Menus and Merchandising
_._ ..:e men:. de,e:^p,reen. anJ me
_nniques ;rz .14 G. .. es -
and beverages _ !eaS...ncie
CJ
Operational Control
paten mnana_-men' s;.J-t C:..S ' :n-
s::r= _:e•; ...ng frcm proper san,tat:cn and
facilries to accurate acceu:,t
procedures.
Staff Support Services
ack .;p each of our cpera%ons .. ith a
`_.: c=p:...rt
n* of staff suppo:nciuding
P:an^::ng and Design. Research and
S:an a:. s Labor Reiat:ens. Personnel and
T— .n' Insurance and Tax Consultants, to
pecialty
B6-1021
.1
V
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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
9
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-- �-r.•.A�.�. ..
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 FelloH- Shareholder:
In a year in which the U.`
economy grew only 2.:3 percent. Transworld'- Fgwratin,
earnings increased 17 percent in 1985. Dorn,: 19815.
management also implemented several imporl,in! -trait
gic• and financial programs to enhance the %aluc of %uu;
investment.
Net income, including an after-tax ,,sir; FFri the
sale of Century 21 of $102.8 million, was S 21-.:
million, compared with $1 15.0 million in 191. i iri Fml
from continuing operations. excluding thc : ;o l- •n-
tur% 21. was $101.8 million. compared with
million in 1984. Earnings from continuing .q.•
were $2.56 per share, full% diluted, up from I„-r
share reported for 1984. Earnings per shah• fr-o
net income ruse to $5.60, full% diluted, from the
pre%ious %ear. Earnings per share. both on net III, roc
and (in income from continuing operation- inclwi• - ,1
one time charge equivalent to SO.1:3 per share rc•1.,;-•Fl to
the redemption of the Series B Preferred Stock.
During the %ear. we sold Centur% 21 Nc,i' I -t,lte
Corporation, a mule that will gi%e i►nproyed fi u-
our cunipan%'. management talent• and enahlc u-
present a clearer. more compelling in%estanenl u-
nih to the financial nlarket�. In cunc•entratillg
lodging and related businesses. In Uc•tuller. wc• . rued
lnlerstate l nited Corporation w hose foot! .er% i, i
Ic•isurv-lirlle busirlesses will augrlle►11 file all'e.IF, -
ce.sfu) profit growth program at Cameen. In Jur:
began a common share repurchase program. an, 1. ,
December, we redeemed the remaining share- -Fi
B Preferred Stock.
Operationall%. Transworld's three major -
idi-
arie. had all excellent year. Canteen continued
successful program to impruye margin: and c mi,
rate
on its less capital -oriented operation;. 5partali - t
rcler s
division had another outstanding year. while the
sin-
e%'. di%isiun dealt with lower traffic count in il-
-
ment of the restaurant industr%. In the hotel bu-
-..
Hilton International's strungeruperating perfuru
We
bec•arlle e%ident in our financial stalernenls it11
as
Al
currencies gained strength against the L.ti, doll.
1985 Highlights oil October 31, Trau- ,rid
completed the sale of Centur\ 21 to Metropolitan I
Insurance Compam for $251.2 million in cash. M. ,au
e-
ment concluded that the growth potential of Centu, 21
was in the financial ser%ice., area, where we felt it
indppro riatel,cri.l
x
11
• (:;Intern ill -(Ill ]red Inll'rslall' t nile(I (:411.1 ill ll►I1 fltr
;93.5 million in cash oil 0clober 1. \\ ilh annual sale-
ol•Inot•e than 11111 million Inter-lale %%ill inc'rea-e
(:mitred- market -hart•, parlicularl\ in kc\ segntt'nl-
such a- Recreation Set•%ices.
• Hillc►n hlternatioual openell nee hotels ill bun-a�
Gilt. Mo.. anti Oklahoma CiI\. Ok. Both are ul►erated
under nl;ulagcntent c unlract�.
• Spar•lan opened it- .i(I(Ilh re-lattr;ult-in Slark\ illy.
11i--is-il►I►i-find ended 19815 will 518 unit. if Ia
l,elct•nl im'rca-c.
• 'li;u1-%%urld'- Board ;mlhori/ed nlitImp'lln'ul to l►Ilr-
cha-c, in lilt- tyen markcl or lit ncg(fIialed U;lu�acliun�.
till to lode Illllholl ill III,, mer
I%to \e;lr-ending ill \I.n 1987At I'i•Itru.u•\ 28. 1980.
I%c had bought 2.(1 million -hart-.
• .A�. it 1ur111cl wit• of col►tidcrlce. the Board. in April
198,.). Illcl't'.1-t'd lilt' 1•(f111111oll (h\ Idt•Ild lrolll 1I. lilt Ito
III. 18 Itrr-h.ut'..ul incre.l-r of-20 ltr'rt cnl.
• ()11 Dro- •Inb1.12.1 II.III-\%nl'It1 redevint•d lllr otlt-I. idill_
-11.11(•- (of lllt' :-;41.9111 St•l Iv- 11 (.11111111.111\ t• Ili t'It I'1't•ll -�14 Ick
till ! '2II,IN)111.1-hmvI►lll-.l lll\I(lend allltl-llln'lll o) III. 12.
\\ fill 1111-'1( Boll mld the c.111 01 the %�rl If- 1 : I'Ie11.11-cll
blot k Ill 114•1v'Illln'1 letiil. %%t• I1.1\(' I'e(llll'ell 0111 Ill t'lr1It'd
oll\lolrlltl It'tlIIllrlllr111-b\ �IA..t fill Ih--11lu•I will.
(;u.tI itIitl l )tit 14ofok I I.111-%\fillol 111.II1.IL'rlllt'111
IL1- -,•1-fitllr, Il.dlrll_111_ tlll.11lcl.11 !_o.11- fill Ill 111 Ihr
hol(Ilnr rollllo,ltl\ .Illd ('Jell of the -Ill(-Itllal'Ir-. \\t• N.tlll
Ifi.It'111r\r-Ir.l(l\ allllll.d 11111111 glfi\%lll ill 1.1 l►t'li'ent ill.
brllel..11141 If, e.lrll .I toll-1-1e111 It•1111'll fill-11.Irt Ilfildrl'�
t•t111111 01 20 111•1ct'111. \lurefi\t I. tit• %\all] ((f :1('rulllltllsll
Ir-v t•:II•Illllg- fiblet'II1e- %%hill. Inailllalllin., our.-Irtlllr
flu.ull fill 11fi-111fi11. I{\ will -fill our dt•hl If, cal►11.11 r.lti .
hold 101•4•11 Ieduct•d to 2 1 l►crct•nl. Thi*. together %%fill our
c.t-11 11fi-ilifin t►I 1911.9 million at tear c•nll. afford?. IIs
c(fu-idclable tic\illilil\ I(fr fill:nu•ing inlcrna) gro%%Ih.
t•Ill•('llllg ►%tol'IIINlllle ;lift](]]-Illon,. makmg 1,Ilicr ime-l-
Int'lll-. Ill .lct•cler:lting the 1'c1111r('Ilit-(, of cullllll(►n sI art.-.
141•1 the Ira -I -cwlal \rile 'li',ur-%%orld hil-
at I11('%cd ►test(]\ 1111111(f%rlllelll Ill tt1,t 1'.Illllg val-IIIIIg-. a-
Intl %%III volt• Irfiul Ilw ch.ul fill IWgt' 2. This %%:t- accolm-
1111-he(I e►ell Ihfillgll Illh(f11 iltcrn.11iollal'- cat'lllllg-
Nel'c Irtlll('ed 11111IIIg (111- (u'fl(fd I►1 tfirrlgll clll'r('llclt'-
►%c,lkcnillg .tg.lin-I the t .*. dollar. like bellf-w each of
(fill c(f11111.1111c- 1- calla] ill• (fl -111111 u111-1';lllllg IIIcolllt
0
Vie do lime a noel -operating factor that \%ill sic t
our reporled earnings gromh in 1986. Trans%%orld's
effec•ti%e ta\ rate is ruing as the coml,am c•ontlllete- i!
transition from the highl\ capital-inten-ile airline bit..-
ness to the more stable. and profitable. see\ ice suct(f1
Our effec•ti\e ta\ rate. which was 23 percent in 1981.
ruse to 27 percent in 1985 and is like]\ it) react] 4(1
percent or more in 1986. Despite this transilioual el: ct
%\e remain confident that Trans\%orld ran achie\r it -
profit objecti\es in the future,.
On all operatim, ba-i 'Irans\%orld -h(fuld bt
I'll this \ear from the positi\c impact on Hillon Inl,-n -
tifiuul'- rwuh- fif a strenglhening of liueign t urren(
and anticipated economic grtimli abroad: the full-\,
contributitm of the Inter -late l nited ac(lui-Ilion Ito I n-
tt•cn: anti Ihr' lu'ofil turnaround w. are -11-1\ in_' fur if.
l�tuiuc�'-. along %%ith continued success in Hardt•c'.
.A- 1%e lime into 1987 %%ills it Imirc-taltic t.l
rille. I\t' t'\Itt'l'1 (till' olwratlllt eal•Illl)g- gl'o\tlll 10 11„ of
the I►ottorn lice. enabling Tian-%%vrld to rrl►ort 1111111 .
nu•nl- ill earning- per shart• to nl:llch the Itnderl\ Ill
-treu_lh of our tlll'el• cwnpall ir-.
()1'gillllliltlt111i1I (.Il;lllrt'- t' \\(hilt] Ilk,, lot \to I-
rfilllt' lilt' 111.111\ t•11111Ifi\rt•- ul llllt'I'-1Jlr � IIIIrt1 %tll,�
Ifilllrtl II- I11 I(1ii.l.
AI Hillon International. Ed \Ic\cr. folrnu'l I. I-
denl fit T\\ \ and ;t long-time director fit li.ln-t\orld ,I
H1. h.l--ucceeded CIIrl Strand a>`l►re-IdvIIl allul ch
e\t'1•1111%4. fitficer. (;urt trill continue to -c•r\c Hl ,I -
chairman of its board lull(f\%ing his rc•tirrnlcnl trttnl t rf
N\t'l'tllllt• 1'N�I►t►Ils111111I1t•-.
Al,ia\ Miller. it director of Trans%%orld since
1978. %till refire from lilt- Board gal lilt, occit-ion ot'o
.Amnl:ll 1lrrtiug in April. \\v thank him Ii►r hi- \c•.Ir- ('
construct1w cunlrihtllion- to the Board" delil►cratiol
and %%r• %%Wl hint ►Ie11 in tic Irar.,i to come.
FIII dl\. ae th:nik all of those oldw contrilrtliet it
'Iran-aorld�- lll•ogrr.,- in 19r;.i-slun'rhuldrr-. Y.i.11l
11111uplo.cr•- around the %%orld. client-. custo►uel-ant]
gnc-t-. \\e look loraard to all cell befit 1' lc)t;l►.
e, 4204..� ���
glfil%111 Itl It�iil►Jlld Ile\fiml• I.. I'.tl%%111 Small nn
CII.lirn►all and Chief 1' wcuti%e Officer86"1021
Mitn1 I. 1986
li
All
/
0
11
I'n•-nl,•nl .uull:Ln I Ear, ulnr I Iffi, I•r.
1 ..uu,•,•n 1 .,u luq.ltu�n
OF
L •
1'II,=II,' J,'I„IIu• �. 1{1, 11.11,1-„11.
1 I'I r-ld.-1=1 .111,11 AlivI Fw, Illm- III I, =•I.
'all.11W III,
Motel See ice.,. Ililt(on hitNntat111 ud Cto.
Ago IL
1 11.111u.ul „l Ilu• 11".n=1. IIllt,ai IuII rlt.ui„Il,tl (m.
ul,I t. hkv111 %1,'„ 1. I'1,'-I,Ir•nl .ul,l I.ht,'I Ev•, till„'( lilt, riOZI .
_77_- �+<- —
F. S 4.[�
m
fit•,
=Am
tl�
Canlrt,ll (:urftttratiull, uric of lltc n.ltiuli, larr- Components of Revenue
r.l It,utl ,t'tA Ice• cullllatnlc,, M1,41itlill, It,l• al,lll'u\1-
nl., t I\ 1(, lu'tt c►►1 c,f Tlan,\wrid*.s rr\rntu•. 24 percent
titirtculrtc. ,lull all lu•rcr111 n1' it, a„els.
The cuml,,ttl\ :errs till' curl,t,►•atc \\nrlcl through
cal •ring Will culling, c'umpaln cafi•tevia,
ant \cntlillg rrlrr,ltlurnt center,. Canteen srrrs
,L1 I111W.. alY11a,. W111I nthrl• rl urvaliull f icililir,:
Ilu• 111.I1,. nur,in; lt„Illc,; I-clitc•Itlt•111 l't11111111111111t ,:
11t11 cullrrr,: slid t•ulTectiun;tl f:u ilttit,,. It till,,
t1}t. .ttt,, rr,t.u►r.ult- ,alit (u,lging fa,•ilitit,, in natiurnll
till, Malt' park,.and 1, lilt, calt•rer al cumrrlliun and
1� t rult•r-.
�lt.ul.ul }aril Inc.. it •I,tur.nll t tnu- Component- (of Revenue
11,1 ilia 1.11111� I11 Iltc,tllllllca,l I .�.. a1lilt
,11 �tivnlatcl\ 22 llcnrnl of 7i'an�\\url,1'� rr\ruur�.
3.1 it'll clll Ill III t111c1'.Illtl_ Illt'ulllc..11111 •fit) llt•tccllt
tit
�-lt.ltlall- Hal,it•c. 111111- t,fft•I 111'llll.11ll\ a \.II'I-
1•It 11 h,unlnll_1.1-,alit 111caitLl-I Ili-t'uil,, a� \\1.11 a-
1dl I �.Ill,l\\11,ltt'� aI111 r1llllltlllllt'111.11'\ lttlnlllt Imo.
•I Ili• 1111'llll at ('111111t'\•-, �%14a'l.ul•- UIlt1'1 11•-t.lu-
I,11 t 1tt14 1 11.1. Ills 111dr, .1 \,11'Irl\ (of 1111.1111\ �lt•al.
11,1: ❑•1 110,41 ltt t'l ill--. , lit, kcil mid a1N1 .ttllt,lll-
III;-.Ilad. lt111 \t _rl.11tlt .tlltl �ttlll, lt.11,.
m
Illlttul ltltl rll.11ltnl,ll. ,t Ir,lllillr iulentali4111,11 Compouentl: of Revenue
11111 I t ltulll.ul\..0 l tunit- lilt .111llrtt0tialt•I\ a'_► l,t•I,•t,nl
11l I ,111�\\ltlitl fc\c1111t' 11 114-14 t'lll of 11�u1n'1.11111g
HP fill' .lull 32 licit'cni ill Ill at -I-.
Ill t,llcl,llt,. till 114111•I, aruttnll Ow
ltln I \\lilt a 1. 7.7 1 nisim-. !%vr\ mg primm il\ hti,int•,•
tl.l\ It 1 Ill .Iltlat I- gum-1- f1,1111 nl,ul\ it'll H-it.. It,
In1, •11 -,Ili -t- iu, Ill, 1, - it.t\c1t,r- II, lilt: Iht• I IIIN l
�L1 2Ii../1 : (..ill.lt1.1. 11.21!: J.111.11I. ,.3 (: \
Iht Illit•11hlnr11,1tn.7 1';:I;t,lnl.uIt, tI.T(i:an,I
11.1 t t (I. It r kk 1\
86 -1021
a
Food Services Canteen Corporation = =
SALa
cold sandw'
��ultiv�ers
-
1. [ Ve j . t,
`.i
r
L
- �erving Our Est; ers
Adba
..._.
I
f' y.
�'S
m
;F
A'
'A
7..
0
CaII1vvII*S operating
come rrc�� iii-
11). 22 an+138 percent ill 1983. 1981 and
1983 resl►rcti%el%. The 108.5) increase auuld haw
liven 27. 1►crcenl t-wept firr the acclllisilion of Irller-
st:lte I, nilyd Corporation. This double-di;zil profit
growth and stead\ illiprowillent ill 11re-tag nrargilrs is
l:n•rek the result of it IFlree-/nett s1rillei,:
.4 hala►Iced diversification pnogmin. Using its
e\l►e►•li•e in managing eonlract sen ices. Canteen has
groan in Ilea nlill,kel segnlenls such a- school lunch.
delicatessens in office buildings. and food senice in
corrections Lu Ililics. In fell;, Canteen purchased
I►refi-r•red Mcal S\stenls. Inc.. the largest pro\ider(11
pre -pi illioned Ilrrlches to school children. Consistent
mill management's plan. Canleen secured 45 lira
delicatessen :recounts drlring 1983. .plough profits
hire not nlet ori"inal e\liectalions due to all offer'
%IIpp1\ of"office space and loam occupancy rates.
Canteen corltitnlc. lip see oplDort till it% in the rroa ill',
office marko. hl addition. the compam has success-
fulk pursued accounts in 1111aint; sr"meats of its
Ir.+dition.11 husiurss such :►s 111gh tr•chIlolop. defi•nsr•.
b.u11,iIl_. and rowrlunew.
��111'1':Ittll� l;•.:11'lllllr•
1.
1 11ali lilnlenl h►lirmiclirlr the 1u'?he.%I yualili
hour/ writ, r• m Ihr• I w%/ elhlr lr•IU 1111111110,1. volismil-
1•rs .Ile c.11lll" Illolc .11111 111o1'r• IlIcals imil\ 1ro111 horlle
Will 1A1111cl high ►IIIA11%. %ari►•I\. and attraclke 1►re-
svio.111011 of 1►wil. 1111111Ir Ili Ilse ac►r•Ll►lace for IIIUII%
has 1►cconu• the prirlcil►al IlIcal of the dad.
liecornvinr Ihi-. (:anlec•II h.ls de�rlol►rd a sl►rcia)
cal►ahihl% to mcc-1 the demani s if its chaiwing aml
disecrninr cusloln►•I base.
/'fold J1r mlh Ihn►ugh increase/nulrkel ../cure
and Pp•nr•lralir►11 it/ prr,lllh alarl;el.k. Canteen has moved
to wow III food s+ n1ce -t-gilIVIIIN where 1141terltlal
0
Quality People .. .
1
1
I
h
Im
a
77erj:.:ow7
0
ZIE
n
Quality Products ...
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 retenues 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 re%enue► and profits resspecti%rl%.
The improvement was due to increased sale: at The
Kennedy 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'S\stenis 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
impro\ements in both revenues and profits. This
franchised distributor system is unique in the contract
fund ser\ ice management industi-\ and offers penetra-
tion in geographical markets that othemise ma\ not
ha\e been de\eloped bN the corporation. This suc•-
eessful parinership of 56 Nears pro\ ides local oNner-
ship supported b% tilt- purc'hasi)ig. operating and
management evl►ertist- of it large national organization.
The 1111not Compam. a producer of canned
milk products as Nell as a line of chili and beef slt-\\
products. enjo\ed increased profits its it result Ada
ne% packaging process for its products. and increased
penetration (if lilt- "pri\att- labt-l" market.
KIINt III I'atlult. Nlllt'II opt'ralt c'Igart ttt
and III11-11' dill alltll-eille•rll del, Itvt III
plll�ll� I��e .Itl��ll�. al�u sh��Nt'el f►r��fll Illlpr��\t•Illt•111 .It-
ills Ic-ult of it partial Near impact of Interstate C nilt•d's
I'ubht" �e ndinr ,tilt-. and prolit�. _ j
rr. AS
lntrrstatt- l Wiled Oil Octobt-r 1. 198.5.
hilt-rstatc l tilted lit-caiue part of cantt-t-n and the
nlerginr; of Iht- 1NU i'Ulllf►.rtllt has procredt-d snwutlll\
and un scht-dule. The acquisition of Interstale Nas
consistent Nilh tilt- philosoph\ of seeking companies
Nhich clt►sel\ parallel Canteens operations and share
its business mission of greater growli. Interstatrs tNo
major business seglllellts augluent Canteen operating
di\ ision.%. expand market penetration and offer oppor-
twlities for s►nergistic• groNih and efficienc\,
Interstate l nited's t\\u major di\ isiuns include:
Buai► e,%.\ and !nstitutiuns Group. lien ing clients
in: corpordle headquarters, financial ser\ ices, com-
mercial office buildings- nianufactur'ing. gu\enrnenl
facilities. schools and colleges. health care. and
c•u►nlminil\ nutrition programs.
lulume Sert ices Group. Pro\ ides -,.en ices in-
cluding: food. 'ouitt-nir., and related set'\ ices at sladi-
unrs. arenas, coti\ennon centers and recreational
facililit-s.
I
Food SerVices (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%:,,.,,
0
�Spartan
People .. .
vI►rralrs:�Quality
Units in the Southeast V.S.—the rlatio►is faslesl-
9111„ ill" rrgioll—about double the nunll►er at the end
of 1979. Its first %eat' W nth Irdns"or'ld. Tills grmAlh
has bern achieved through:
Controlled unit expansion. W ith its off n
real estalle and c•onstniction departments, Spartan can
control yualit% and costs during the critical 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 ac1i%ities as
�.
training and assigning unit manap-me . cash floe%
and nlarl.eting programs. In 198.5). 03 units Herr
_
added. an increase of 13 percent.
Improwd unit Spartan*!- oper-
aling profit margin in 1983 %%&. 13.5 percent. its
fourth highest in 25 gars in business.'A Mile the
Harders di%ision achiewd it record %ear. %%Ith inl-
prmv(I unit %(tomes and IraffIv. 4luinc%Is nIII t't,
%ere Itmer a- it result of a(kerst• industr% conditions
and gr'o%%di-related problems discussed brlm%.
Operating Earnings u. nnlli.ni
TT"
_� 11
HI H: Y4 H1 H;.
Tight oprruting rnurlu,e-ment. Indi%idual
mmn.lger� %aluable field experience is continuall%
%tipplenlertled %ilh ongoing training programs. often
designed %%Ith-q,rcific curricula fur each le%t•I of
nwnugenu nt. In 1985. apprommairl\ 5M Harder's
and trluulc �'s Inanagnlent personnel attended Chest.
coul.es. Ihus helping to expand Spartans I►ase of
!Vjsit111.11 It•slallllallt lll'l►fl'ssll►Ilills.
He%1•nrles front ;partati s restaurants in 10
Southeast states rose to StO1.8 million in 1985. 9.4
perl•ent ill mt• 1981. 01 Iit•nftI I increased 6.9
pt•It•rnl to S62.7 million. .
86-1021 �'
hm
W.
R
,Ojaf9Z L ShaAW
49
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-
i tinued to gain strength during the year. Units in-
creased 16 percent marking a return to more aggr"sive
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 profits
` declined 29.8 percent to $11.0 million. A 9 percent
increase in units Has offset bN 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-
mands of absorbing rapid expansion IQuinc%'s units
tripled between 1980 and 19851: and significant
X changes in consumer preferences.
NA
198.5 Locations
Ht
`1 H 33
1 I I 1.943
■ ILu�i.��'• ■ ;hung.'.
In both its Quinc %"s and Harder s di% ision..
5partati s primar% concerns in menu expansion are
qualit% control and operational leasibilit%. 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
childrens 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 Quinc%'s
dl%ision. that compam*s high -potential growth %ehi-
cle. and to maintain the strong competition position of
1
Hotel Services I Hl toll Intcrnatio na1 Co.
:•Y
"77
._. �_ �.+'y.+R�efl7eae'al'L'SCez•1.��e1--_-_._.-....
Serving Our Customers Through
I A lid:
i I II ii t I t i i
-2!
OL
loom,
- At.
- . - -- . -T T, - -
®r
73
Hillon
Quality People Inlernatiunal has
achie%ed profit growth averaging more than 15 percent
per year for the past 30 %ears through:
Emphasis on operatince agreements. HI pio-
neered in operating hotel properties around the world
rather than owning or entering into fixed obligations, s iJ.
thus minimizing its risks. This was originall% done
through operating agreements in lease form but based
upon a sharing of operating profits, and later through
management agreements. As the cumpam grew it
entered into some fixed or minimum guaranteed rent
agreements and acquired the ownership of holels
%here there was political and economic stabilit% and
the prospects %ere fa%orable. These hotel, have made
substantial income contributiunb but the majuril% of
Hl'- contract: are of the manarenlent t%Joe.
Operating Earning!_ u) nullnai
1E
HI H: H1 91 8-1
5ele lily,Exlalnsio►1. HI management has
always been srlrcti+r in its (IVIA)pnlent of hotel
projects, J,rocrc ding ODIN with those which. in its
judrnlent. %utdd rneel a nived in the particular
market and be consistent %ilh the standards of qualih
fur "Inc ► it i► known. This has been parlic•ularl%
inlpor•talil in the recent past. %hick has witnessed
substantial o%er-l►uildifill in the hotel industr% in lht-
l sited States as %ell as in some u%c•rsras areas.
Thr!-v fads ha%e rot. 1101Mt-Irr, prr�elllrcl substantial
r��,ansion b% Ill arlcl hc►Irls now uuclrr consUuction
will mcit-a-v its roonlr b� mer20 percent.
ac colt oil ion aIt's nl. Hl*s 90 hotels art -
operated b% managers from numerous countries %ho
shut- ant- Ming in conllnon—Iht-% ha%r de%eloped
theii carr•c•r:-s within HI ,�vr the Nears and hate been
cart -hill% n(mitored at rash slate• in their carver
all►allcrinr111. Tbrr• ha%v also hall the 1► ilefil of
ow
Quality Products ...
r..�,.....
specialized training in HI's Career De%clopim-i+, Ir
stitute at various stages in their career- inc'ludi++,•
advanced training in their managerial
Hi's revenues increased to $694.2 n+illion i
1985. 2.8 percent above 1984. Operating prulit-
increased 17.3 percent to $73.6 million. rent-ci in
improvement in operating profit margin from 9.3
percent in 1984 to 10.6 percent in 1985. ()t'c up.ni,
declined from 67 to GG percent.
Western Hemisphere hotel- ac'hit-wd .+ 7 A. 1
percent profit increase in 1985. including i► PI'"".0
results in Canada. South America and nw-t t.'�.
hotels. The Drake hotel in Chicago reported o-ub-1;u
tiall% impro%ed results.
Asian and Australian hotels had slightl% high,
profits in 1985. The newk-refurbished Hong Kong
hotel had an excellent Near. Recession, and mer-
building in Malaysia and Singapore. and fir-1 full -
year operating losses in the neu Tokyo pr+,lu•r-t.%
restrained o%erall profit gromb in this r•egi�nr.
Hotel,. Opened 1981.85
OIL. �..
ONE ■t
- MEMO ■t
MEMO MMM
European and African hotels had
tiall% higher profits in 1985. prinraril% from thy• 0;, .
London hotels. including the renovated Londm4 I L'-
ton on Park Lane. Munich and Paris also had •\, , ,-
lent results.
During 1985. neN properties. butte undo 1 f4
management contract. opened in Kansas City Lill. I O
Oklahoma Cit% in the U.S.. representing a net i+;- Vol
crease of about 8W rooms.
C�
In 1980. HI plans to open three ru•%% I1-.1, '- m
representing 1.448 ruunrs in: Pittsburgh: Ural..,.
Japan: and Brisbane. Australia.
"PIP
Summary of Selected Financial Data
lmuunts in Thuusandt. Em-ept R•r Shard AnMtonls awl Hatiusl
h-t tltt• learn Ended hrcemltrr 31. 1985 1981 1983 1982 1981
-elected Consalitlated Operating Data:
tp prating revenues:
Canteen Corporal itm S 983,796
S 830,966
8 767 ,057
S 750.160
8 78.5,784
Hiltun International Cu. 694.216
674.980
709.573
708,970
681,190
tipartan Fixed �vstems, Inc. 464,835
424.98.5
354.815
292,034
213.416
Transw•orld Coriwatiun 8,709
6,992
2.558
3.528
4.633
I,,tal consolidated operating revenue. 2,151,556
1.937.823
1.834.003
1,754.692
1.718.023
1'1wrating income:
Lantern Corporation 42.252
30,673
25.042
21.016
21,019
Hilton International Co. 73,582
62.744
57.593
61.458
67.972
Spartan Fixtd;%s(rms, Int . 62.661
58.625
49.109
39.952
30.489
Transworld Corporation (10,3291
18.4-861
(7.9601
(5.W) 1
(4.4421
115.038
.-I'd consolidated o1►rrating income 168.160
143.550
123.778
116.430
I,- ome from continuing operation• 104.786
98.135
52.408
45.190
52.900
,;-t ontinued uperatiuns 112.744
16,894
160.071 1
(15.2651
8,668
\.•I income (loss) 217.530
115.029
(7,6631
29,925
61.%8
trnings Iloss) applic•al,lr to common stock 206,022
101,261
134.9681
5,079
40.269
irnings I lossI per share:
(In itwome from continuing operations:
Un atrragr outstanding and ryui�alrnt shares I" 2.56
2.62
$ 0.98
S I .(X)
S 1.69
Assuming full dilution 2.56
2.51
1.00
L(K)
1.69
()II nel inc•onte:
On a�ergt- outstanding and equi%alew share, S 5.66
S 3.1-4
S 11.371
0.25
� 2.15
Assuming full dilution 5.60
3.0(1
(1.261
0.25
2.15
1• t tdrnds declared on common stock S 0.46
S 0.30
8 -
S -
S -
Iclected Consolidated Balance Sheet Items:
t runt assrt� S 422,707
S 425.972
8 729.414
S 206.457
S 309.233
t %orl,ing capital 134,299
163,738
101.998
33,442
51AB
t.cl prultrriy and equipment, net 607,280
486,1 2(1
429,448
413.660
430,2t)0
.1al assets 1,329,347
1,146.411
1.461.988
1,448.155
1,555,973
-.ug-term debt less current maturities 152,830
136,909
158.728
2.45.349
355,990
.-in-urrrnt obligaliuns under capital leases 38.613
43,818
52.381
63.166
76.666
^;arrholder: equip 763,182
650.162
556.688
843,292
809,868
`,•Iecled Consolidated Ratios from
(:ontinuitrg Operations:
•vrating incornr lu rrtrnurs ?.8rlt
7.4r1(
6."i4c
6.6%
6.T(7t
turn ou average ryuil% 14.8
16.3
11.4
14.0
23.1
t Itt as a percent of total capital 21.0
23.9
30.3
48.8
61.6
8E;-1021
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
$160.0 million of property, plant and equipment with internall
generated funds. Funds generated by continuing operations
(income from continuing operation 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
capacil% of up to $200.0 million. all of which was available at
Drcemlh•r 31, 198i.
Results of Operations
1985 Compares/ to datrd operating rr%rnue in-
-
crr,t�ed S213.7 million 11 I AG I It-mit 1984. Thc• rrcr►►ur: of
Spartan F;,od Inc. ISpartanl S10.) million
O.-Ifli I primaril% due Ito 18 additional Quinc%'!. and 15 addi-
tional liardrr, unit in operation. Feu 198.71 the prr.lore
re%enur, of Sparl,+ti Qtiinc�'� unit dreliurd 7. i�i L. Y,87 •(N
=:
principally in rr�pon.r to an induar� wide decline in the dinn.
R ,
huumr segment traffic. The rr%rttur, of Cantrrtt Corporation
#
e
IC.antc•4-111 increased Sl52.8 million 118.41-/'r I. princ•ipalh from
(fir acquisition of 1l C—which contributed S 104.0 million for
the fourth quarter of 1985. In addition, re%vnues front the food
and vending di% ision increased by $33.8 million due to higher
volume,. The re%enues of Hilton International Co. IHI) in-
'
creased $19.2 million 12.817O mainl% due to incrra-e. in the
a%erage room rate,, as stated in U.S. dollars. of&et In a slight
decline in occupancy from 6717 in 1984 to 66% in 1985.
'
Consolidated operating expenses increased $189.1 million (MY
from 1984. Sparta►; s increase in operating expenses of $35.9
million (9.89H was primaril% attributable to increases in payro
and fringe and product costs due to additional units in opera-
s .,
lion. Canteens increase of 8141.3 million 117.6%) was primar
ily due to the IUC acquisition (81M.9 million) and also to
z�,/_ .
increases in the cost of food and vended products sold. The
operating expenses of H1 increased $8.4 million 11.417c 1 mainl,
due to increase• in payroll and related exprnes.
�J ~ r
"I,
Management's Discussion
and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
At December 31. 1985 and 1984. Trans%orld'. working capita
was $134.3 million and $163.7 million. respectively. This
decline is the net effect of several significant group. of transac•.
tions: The sale of Centun 21 Real Estate Corloration (Century
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 (IUCI: and the addition of almost
$160.0 million of proper►%, plant and equipment with internall
generated fund.. Funds generated by continuing operations
(income from continuing operatiuns plus depreciation less
dividends) amounted to $158.3 million in 1985 and $135.0
million in 1981.
Tran.Norld has a re% ol%ing credit agreement pro%iding financit
c•apac•itN of up to 82M.0 million. all of %hich vcas available at
December 31. 1985.
Results of Operations
1983 Compared 10 1984-Consolidated operating revrnur in-
creast•d S213.7 million I 1 IA ri I front vwi. 'The rrtrnur. of
Spartan Food \-1rr11�. Inc. ISliartatll IIIc1 -,'-t l }O.t) Illllltoll
(9.4 r ► p6mar11% due to 18 additional Qtilnc%'- and 15 addi-
tional Hardrrs unit- in operation. F„r I' "., the l,rrstore
a revenues of SparLui - 4luinc,'s unit- declined 7.1 ri (o i 88 0
pritwipall% in rr-ponsr to an indu.tr% ride decline in the dinm
house segment traffic. The rrverlurs of Canlren Corpoaration
(Canternl increased S152.8 million t 18.4 ( I. principal)% from
vvhicl► contributed l O1.(1 million fur
the acquisition of II'C-
the fourilo quarter of 1985. In addition. revenues fruit) the food
and vending div ision increased by $33.8 million due to higher
volume.. The revenues of Hilton International Co. Mb in-
creased $19.2 million (2.8cic I mainly due it, inc•rea-rs in the
average room rates. as stated in U.S. dollars. off et by a slight
decline in ot-cupancy from 67ch in 1984 to 66 i'c in 1985.
Consolidated operating expenses increased $189.1 million (MY
from 1981. Spartans increase in operating expenses of $35.9
million (9.8%) %as primaril% attributable to increases in payro
and fringe and product cost-, due to additional units in opera-
tion. Canteens increase of $141.3 million 117.6% 1 was primar
il% due to the IIIC acquisition (SIM.9 million) and also to
increa:r. in the cost of food and vended products sold. The
operating expenses, of HI increased $8.4 million 11.47) mainl,
due to increase:; in payroll and related expense..
86-102'.
k.�
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
sac_ , Other charges (credits) increased bN $8.6 million (54.47c I due
i� rt' II M. t b I sl' 1 I• 1 d f
tun lirimarih to two fac•ton. First, a 1984 credit of $3.2 million due
of '• tit an o%eresliniate of losses from Transworld's ownership of Trans
t.0 %orld Airlines. Inc. (TA'Al for the month of Januan 1984 and
cries wcund a decline of $3.3 million in interest income for the full
iter- tear, despite an increase in temporan cash investments, pri-
marih due to the proceeds received from the sale of Centun 21
all% ' net of fund. used as discussed alx)%e under "Liquidity and
s Capital Resources.- which uc•c•urrvd in the fourth quarter of
1985.
1 The provision fur corporate income taw on income from con tinu-
u►g 0Iwratiuns increased 89.3 million 131.6%1 mainly a• a
ncing rr.ull of net operating It I►rnrfil� generated by TA A and
at utilized b% Transv%urld in 1984 and increased foreign taxes.
Earnings per common share from continuing operations de-
crrdsrd to $2..% in 1985 from $2.62 in 1981. The drelinr in
rarnings per common share reflects the incrrease in the weighted
in- average shares outstanding partiall% offset b% a reduction in the
of prrferrrd stud, di%idend requirements. The %%righted a%vrarr
ion •harrs in 198.i increased b% 4.1 million to 36.4 million shares
li- dur Ito thr comersion of.Series C Preferred Stock in 198).
7.000 !VH1 Coniparecl to 198 i-Consolidated operating rrvenur in-
rrdsrd 8103.8 million 15. 7 ii I from 1983. The rrvrnurs of
linnrr ,I,drtan inc•rrasrd $ 70.1 million 119.7rh I dur to 35 additional
'r► ;boner's and 1-1 additional Harder. units in operation and
roes nicredses in menu prices and per store %Mums. The re%enurs of
ffor I.anlrrri increased $63.9 million (8.3rhI. princ•ipalk resulting
fc►c►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. mainl% due
he •' a drelinr in food and I►e%rragr revenur as voell 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
room 1983. Spartan had file largest increase in operating costs.
" 5'9 441.6 million 119.8 ii 1, compared to 1983. mainl% dur to
a� roll „fume increase:. Cantern s increase in operating expenses of
ra- 'i8.3 million 17.9% I was primarily dur its an increase in the
imar- "I of food and tended products and increases in payroll and
•ing, costs. Thr operating expenses of HI declined $39. 7
it Iilbun (6.1rkI. mainI% dur to dec•rrasrs in payroll and fringe
�'. nainly .
as Nell as dec•rrasrs in cost of sales.
q
ernsolidatrd operating income incrra,rd $19.8 million -from
8"/i of rr%rnur in 1983 to 7.4% of revenue in 1981.
other charges 1e•redilsl changed fa%orai,l% In $ 7.8 million
12.9% I. principalh dur to a $3. 2 million oyerestiniate in 1983
;r
I Itosi,rs from Transwurld'• ownership of TWA for the month of
`-
inuan 1981 and a $6.8 million decline in interest expense.
artiali% uffsrt b% a $2.6 million drelinr in interest income.
. pa is % o se .1 mcrea. ec . d r, oca an )reign 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 tr
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. %%hick on a%rrage finally weakened
beloN the previous %ear le%el in;rpternber. lessened the adyrrst
impact of foreign exchange on the results of HI.
Revenues and ryprnsrs of overseas lintel tiperatimns decry-awd
to the extent that tile% Aery generated in foreign currencies
which during 198.5. 1984 and 1983 Men- worth less than in
previous years. Correspondingl%. net income and di%idends
remitted b% these overseas hotels also decreased to the extent
that the decrease in rrvrnurs %as not uffsrt by the decrease in
expenses. In 1985. HI reported an exchange loss of S4.8 million
compared Ic► exchange losses 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 priers on
Trans%.orld's re%enue, and Income. see Note 15 to the Cousoli-
dated Financial Statements.
1984
191
$1.937,823
$1,834,0(
1. 6 94, 26 7
1, 710,2
143.550
123.77,
22,242
(15.944)
_ 9,552_
15.850
29,01
(18.50
_ 13,11
23.61
1W.16
127.700
29.n71
47.75
98.135
52,40
16. 8' 11
7.80.
1
—
11'2,55(
—
155.32(
(7,66".
115.029
—
284.80L
(8.65(►i
—
(19,287(
119.795
_ (4,2M
(257,351
- —
g 82.888
—
8 2.62
2.51
& 0.9fc
1.00
3.14 11.37
3.(K) (1.2(.
Statements of Changes in Consolidated Financial Position
3trn.Iml. III Thm..mik I
r...1... \....._ F... I-..t 11........1.... 'tl
Funds ProN ided 1,N :
Income fnlm continuing operations
Add Ideductl noncash items:
Dellreciulion and amortization of prglrrt%, including (•al)i►al leases
Amurttzation of intangible assets
Deferred incumr tax pro%ision (creditI
011iel
I►Lcontinued operation-:
Cam on di!.I,()sal of Centun 21 Ile•• alllllil alllc
incumr tax of S52.4021
Nei change in imrMmt•mt lit Centun 21
btssr from TW 4
Decre.l-e in im"ttnemt in T\\
Di%ldend drelarrd-ryuit% holding in T\\ 1
1• Hance (if cttnlmttn Mock
Imnifutm Mocl, issurd in (it -lit rr,Irurturill"
LA-m -lerm (it -lit i.,surtl
\rt INNII, lalur of limpem (kptisllioms
\rt milvall/ed fu11.1g11 exclldllgr (gallll III- un f1wil
dssrt. and Itolg-trrnl delft. including I allital Ira -ram
I ltllcr
1985
E 104,786
66,8;1
10,030
5,i81
894
188,302
102.7.50
120.619
29,545
6.81.5
(9.;;41
.911
III, team- Idrerra�rl Ill:
At., (mm!. pa%alllc and iccrurd Ilalllllllt•- 38.081
(hhrr mint urreml Ilallilitir• and deferrrd crc•dil. 29.764
514.166
Funds I red for:
Ili%Idt•nd lla%illholding in T%\ A
Plollt•r1% addlluol-
IAIng-Irrm drbl lla%meml- and caltilal (Vast• obligations discharged
horrign currrnc% adju-Imeml
I.ash di%idrlld on (allital Much
Immer-ion and redrnipliom (if llrrfrrred sltick
Purchase of tred-tin stoci,
.m rrdw (drerra�rl 1t1:
lir(ri%d I I •. net
Imrnlloirs
(hhrt ( unt•nl a-cl-
"` lllllrr os.rt-
Increase Idrereasr) in Cash and Temlloran Cash 11mrstments:
yk .ash and teml►orari, cash iniirstments at: BEj-1021
186.899
31.836
(9,945)
23.400
50,168
43.58,
27.051
14.005
5.690
_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:i 1. 7.5:3
4(N 1.37X)
13;.231
101.29-i
6.559
27,937
124.530
.5.227,
324
860
- 4 7 . 5_i4--
851.882
12o.1291
1983
S 52.408
51.26a
6.36 7.
2.505
_ 2.306
11 -1. 9(y)
(6.5191
10 7 .8i61
84.15
14(N).3; 91
80.310
10.911
33. i(I(1
1.5.112
9.203
3.98 1
14.5111
16(t.4.i; l
14(NI.a;91
99.3.52
130.098
,.445
19.;95
l .2w
t2.0 8t
_- 14_651-
1121.9,81
55..521
-- 136,8411 156,969 101.448
4}
Consolidated Balance Sheets
s M"kounti. in Thnuaando
max'
Deceml►rr 31,
Assets
Current Assets:
Ca.h
Temporary cash investments, at cost (approximates market 1
Receivables, less allowance fur doubtful account, of:
1985—$5.690; 1984—$5,310
Merchandise and supply inventories
Investment in Centun 21
Other
Properh
Prol►rrt% 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:
Wrchandtsing equipment
Land, buildings and impro%ements
Other prul►erty and equipment
Total property held under capita) leases
Less accumulated amortization
Property held under capital lease. —net -- - - - -
Other Assets:
Goodwill
Other long -tern► in.estn►rnts
Other— - - - - - -- - - - -------- -
4er .'lutes to Consulidmed Financial Statements.
1985
1981
\,a,
18.145
8 34,847
178, 739
101.99.3
129,071
102.020
80,589
65.984
i —
110.655
2 16,163
------- -
10.473
422.7U 7
425.972
200.01
394,395
273,050
867.400
----- -- 290.391
577,069
, .246
57.284
124
64.654
34,443
36,211
607.280
149.879
88,601
299,360
- ---- -- - ---- i 1.329.347
162.855
314.722
216.552
094.129
243_338
450.791
1o.757
57.730
_______l31
74.618
38.689
--3..929
486.720
82.397
93.516
57.806
-—233.719
$1.146.111-
2,.
Liabilities
Current Liabilities:
Current maturities of long-term debt and capital leases
Accounts payable
Accrued salaries and vacations earned
Accrued taxes
Accrued rents
Other
Lang -Term Liabilities:
Ling -term delft. less current maturities
Noncurrent obligations under capital Irssrs
Deferred incomr taxes
Olher noncurrent liabilities and deferred c•redils
Commitments and Contingent Liabilities
Shareholders Equit.:
Liabilities
Current Liabilities:
Current maturities of long-term debt and capital leases
Accounts payable
Accrued salaries and vacations earned
Accrued taxes
Accrued rents
Other
Lang -Term Liabilities:
Ling -term delft. less current maturities
Noncurrent obligations under capital Irssrs
Deferred incomr taxes
Olher noncurrent liabilities and deferred c•redils
Commitments and Contingent Liabilities
Shareholders Equit.:
Preferred stoc•l. %ithout par %alur:
Authorized shares, issuable ill series
Uutslandinr:
tries A--92.(Nl cumulative c•omertible.
• ..
limited wt{tun
lhdrr► at stated %slur, 82.50 per share
Liquidating preference. 850 lcrr sltdre
Seri" K-81.911 cumuldli%r noncoti%emible.
limited voling, no stated value:
'
Share% at redemption %slue. $20 per share
Excess of redemption ►slur mer cam ins
valor
-'
Liquidating preference, $211 per share
t:onunon stool. 85 liar iialue:
Authorized %harts
Issued shares at liar valor
Laltital surplus
lureign current} adiumnirnl
hrlained ramie s
Trva%ur% stock tat cosh
1985 1981
tAmuunt� in Thou.dnd-t
20.000 20,0(NI
1.015 1.046
$52.2 11 852,2: 5
2.512
i — 850,159
75.000 75.(I(K)
35,728 35,598
1985 1984
8 12,021
8 23,931
91,394
90.820
48,654
37.738
47,159
27.462
19,069
20.985
i0,111
61,29_8
-- 262.234
288.408
') 152.830
ill 38,613
42,496
43,818
136,9(9
43,818
14,212
277,757
231.015
_'.Itt.1 I.13
2,6)4
2.61.1
—
50,159
—
(4.7521
178,639
177.990
386,864
384.801
(33,596)
(43.5411
272,248
82.888
(43,587)
—
650.162
S1.146.411
763.182
_—_
81,329,347
ss-lo21-
,I
'fir r=;a k•G F
:q,
i=
yr:
Notes to Consolidated P>tancial Statements
For the Iran F:cldetl Iterrmhrr :31. 198.1, 1981 and 191i.i
Note 1. Summary of Significant Accounting Policies: (h) Pension Plans. Accrued 1►rnsiun cost is funded lilt a
Accounting I►ulicies and methods of their application that current basis except that prior sere ice benefits are arnortize
significant!} affect the determination of financial I►usition. and funded over periods from ten to 40 Nears, Set- \ote 11 f,
change.% in financial position and results of operations are as further description of the plans.
follows: Note 2. Income Taxes:
(a) Consolidation. The consolidated financial statements in-
clude all significant majority owned subsidiaries. All significant
intrn•ompam transactions have been eliminated. Transworld's
int,eMment in Centun 21 i,- accounted for by the equit% method.
See ."lull 3 for a description of the disl►usition of Centun 21.
(b) Property and Depreciation. Prolwri\ and equipnnent
owned are depreciated princ'ipalh on the straight-line method
on an annual basis. Pn►lwri.\ held under capital I(-ases (at
capitalized %alurl is amortized over its estimated useful life.
limited b% the lease Iwriod.
The fulluwingestimated useful senice lies Herr in effect during
1985. 1984. and 198.3:
Merchandising vight to ten %cars
Suildinl:--Tv't-I % to fort% %cars
Other equipnit-nt—Two to fifteen %ears
Leasrhuld inlpnnrmrnts—F stirnalyd useful lift- limited b% the
lease 1)erlod.
(r) Inrventoriex. A1t•n•handi,r and sulyl\ in%eniur1rs are ►alued
prirnaril% at the Jolter of a%rrage cost or marl.(-(.
(d) Goodwill. The unatimoizetl excess (if cost oiler the fair
%ague of net IdIigiblr d,•ets of c'oI1)1)anies acquired is lining
amortized u%rr a 40-%ear Iwriocl on Ili(- straight-line method.
[luring 198.i. 1981 and 1483, ga.(1; ; .(NX). 82,5G1,(W. arld
S2,470.0Mt, rralrrc'll%rI%. %vre charged to income. Gowk III
associated with the acquisition of Centur% 21 is included ill
the results of dl.rontlnuell uprratiuns. Amounts ,o charged are
as follow.: I985—SI.-,01.(MX): 1981—$2.012.(M and
1983—R2.0:390MI.
(e) Erunchise Rights. The rust of restaurant franchise rights is
amortized rawl,1% oiler tilt- lilt- (if tilt- franchise agreements 01
%rdr-1 from the date retail restaurant operations commence.
Agreement. vo%eritng I►rrsrr►t uprrating locations exl►ir(- on
%arious date, from 1986 to 2OU.i. Certain of lhesr agreements du
not contain rriie %al upliurts.
(f) Pre -Opening Expenses. FxI►enses incurred in conjunction
with the ulwning of hotels are drfcrred and amurlized. genrrally
oiler five yrars. L)% charges against the olwrations of Il►e regwc-
(i►r hotels.
(R I Income Tuxes. Transwurld and its qualified sul►sidiarirs file
a c'unsulidatrd Federal income tax return and account fur
in%eslment tax credit., un the flow-thruugh method. Sire Now 2
fur a further drscnpllun of Transworld's accounting for
incumr tags.
'Jr.
Transworld and its qualified subsidiaries fill- a cunsohdaled
Federal income tax return.
A summan of the lwoe ision for income tars is as foll,ms:
(Amounts in Tlun►-and-t 1985 1984 19
Current
17efrrrrd _
Pro%isim for inuor n•
ta%r- un ronllnwrli
t►l►erarlons
Tail Irru%lswn llrrnefllI
from liberation- of
d1-rn11111med -r �Illt9tl•:
TN A
Centllrx 21
Tail pnl%lswu un Faut uu
halt• of l .enlu_n l
Tidal pnn tswn fin '--
Illt'unlr ta%r>
$33.1211 S:16.-.75 S1.1.2
5,781 t,.21W 2.54
38.901 2').. )71 47.75
— 133.49.
3.397 2.02t) it). 18i
59.1.-6(n .i1.1ttN) $24.114
For 1981.i. 1981 and 1983. foreign invollne which gi%r•s rise to
foreign income taxes represen(:- aI)I►roxlmalrl% �15. 700.0N1,
R50, 7(M).O(R). and Q4:3.:300.(XX). rvsprc(i%t-l%. of flit, hddl in-
cumr brforr income tags.
The current pro% isiun for Federal and state and local invunne
tags includes taxes pa\able b% suhsidiar% cor1wratiotis Which
are not includable in the Tran�wurld c'unsulidal(-d Federal
incumr tax return. The current prm ision for fort-ign tags relates
i►rinnaril\ it, NI.
An anal%sis of the current incumr lax prcl%ision is as follu%%s:
tArrlounls tit Thuusand-1 1985 141:1 1clri
Federal:
G ru—
flirt oberallnf loss
Forripi ta% vredal
_ In%r:•Imrttt la% c•rrdU-
Net current Frdrral - — -
S141'. and hn al
EUrrltin- -- - --
Current un umt• rail
pnn Inllnl lilt vu11nr1urllp
ubrra4l(ln�
ClAnt•►tl tail pnt%lawn 11rr•nrGl l
dirt unrtuueti wgnlrnt-
lswl curn•o) tit- urur la%
prn% tswu
S 19.1N) t I S 113.811 i� 39.624
—
164.381 t
—
(18.5n11
112.1)210
113.6131
- 691
153. let l l
t3.7411
381
1 u.:3c 18
22.222
4.891
7.SM
Mktl
2'.812
1H.%)(itr
IK167
33.120 1 silt. , 1 45.21AI
- 30.956) --_3.348 01,5784
k 61.07.6 1 r 40.173 1 ; 14.672
F
The deferred income lax provision results from timing differ- At December 31. 1985. available foreign ta\ credit carrfon\ards
ences in the revogniliun of revenue and expense for tax returns aggregated approximately $20.600.000. which if not utilized
and financial statements. The source of such timing differences in future consolidated Federal income tax returns, will expire
dnd the tax effect of each are as fulltms: as fullows: 81,5MAMIO in 1980. 32.100,000 in 1987 and
i %minnits in Th1ulcand•1 1983 1981 It19:4 314.0(XM IK) in 1988.
I.n • de•fern•d 1.1\ an•1ng fmnl:
At rrtrrdtrtl drlllr, ldtlun
C,11111dI lt'd.r do 11,11111111ja
(till)
I11n•1.1 ftnant II1F Ira.r•
23.029
Itlaallult•nl null, nllrrr•1
4.619
Ulhrr lrmmp dlflrrrnt r`
4.351
I,n,.. drlrrml Frdt•tal la\
3y.5M1
Ta\ Iwnrfit from TA 4
19.3281
Fjlrt•Ign td\ 1 n•du•
12.1911
Ime.IttirFll Id\ t rrdtt•
123.3861
Ih-lrrrml h•drrdt rnrrtm,
Id\ lln,\hl„tt 11 n•dll l
4.052
110- trd .Idl, dnd I.,t .d
I I11',1111,• w% form i.1„ tt
1,21K1
IMferrrd Ion•1}n i ntornt' la\
pn,\ I•um It rrdlt 1
_ (� i I
Ilorned 1111'4onM• la\ l/nnIM,,11 tit
1 ontnnnnF iop"ralt„n.
5.781
J Ir'frrrrYl la% I IM•Ill,l ll l-
Ill•, „III Illllyd ./'1;tllrlll•�
t.4lla
1"wI d. Irnl,,f Ill. all, 1.1\
1
F 4.159
I:if t21
(87.3701
(4. 411
IS,SIaI
ly:i,8.ilh
I H.2t111
12.6=1
53. •11f8
S 4.605
15t
11.3t1(11
3.423
3.423
35-)
11.273I
2.511:,
lltml-I,aii,n•d11i IF 30,681 S (8.1731 S 122111
Ifrlrrlrll Illt-urtlt• id\r, art. 1111 11It1,•11 I11 the biilU11,-v ►11re1• a•
t,11It1%.:
Amount• nlTh,.u`,nut•l 1985 1981
other 1 urtew d-wi- f 12.3911 9
Urle•rred mromr wtv. (42.1901 114.2121
b,l,ll - --- - - --- i I•}1.88" I Q 11 i.2n3 !
Tbr dif e-rrncr bt•lNren lite stalutun Federal income tax rate and
Tidiv.%orld's effrulke ta\ rate is as follows:
198.1 1981 1983
`i dulon rile• 46% 4(,4j gprr
U18rrrnvr rr:ulunK fnnn
t „nUnulnF nlrt•rauon•:
Inu••Inu•n1 ld\ rfrdll` (It►I - l4i
%Idt/• dnd too( df Id\rt•, nel
of fede-ral int-wnr td\
lwllrfil
2
Effrrl of G,rr►pn v)urt•t•
1111 41111r dell (orrl$li la\
rrrdll•
131
111, Iwiwftl from?*9 11
1bl
%111nr11/a111,11 III 1LY1111IN off
dlld 111111-F joemi.mo-w dll-
Irrrllt'r• lwlMrl•11 Illy Id\
rr1Un1 d1111 111,• ,.1dlt•1111•Itl
of cttn).ntnldlyd tut isms'
_ 4 _
-
I Ile, Im. 1.1\ rill, 4.11
,71111111111114 ola•rall„ 11•
2-r,
ly.:,1181
1.11)
4 3
11 2
1 •i l l --
Note 3. Sale of CenturN 21 Heal Estate Corporation:
Un Oulober 30. 1985. Transworld's stockholders appro\rd the
sale of Cenfun 21 for S251,21K1.(MM). The accompany ing
Transwurld financial statements present the financial position
and results of operations \\ith the impact of Centur\ 21 st gre-
gated and condensed. The revenues of Centun21 (which are nut
included in consolidated revenuesl were as fullu\\s: For the ten
months ended October 3l . 1985: Q66.0()6.0(X): for the %ears
ended December 31. 1981. S64.132.(KK): and 1983.
855.230.(M O.
Note 4. Acquisition:
Oil October 1. 1985. 1rans\\urld acquired and transferred to
Canteen all of the outstanding stock of IL C for S93.5(K).(KM)
in cash. The resultant co-4 in em-ess of net assets acquired
of appro,tinlafel\ $63.3(M).OW is being amortized tr\er 40 \ears
on fhe slraigbl-line method. Eiir fiscal \ears ended llt•t•rIllber
31. 1985. 1981 and N83. Trans%mrld's pruforma re%enues. in-
cludin", It C. \\dull ha\e been: S2.4,62.156A M). S2.339.123.1'MMI
and S2.213.883.(M111.
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 stuc hboldrrs, The
accompanying financial statentenls present TI A a� a discon-
tinued operation in 1983.
Trans%orld's investment in TWA at December 31. 1983 \\a•
recorded as a dividend payable In a charge against retained
earnings in the full arnounl of 8256.24O.(MM) existing at that
date and the remaining balance of S144.139.(MM) was charged
to capital surplul .
I
No ll•• Ill (.11n-t►hdall•d 1'•I11a rlt' lit l Matenlr'111- It , 111111111,-111
Note 6. Foreign Currenc,, Translation:
Fullowing is an analysis of the changes in equity during 1985
and 1984 fw cumulative translalion adjustments:
tAnxwnt oil Thuusand-I 1985 1984
Kalitnl•r at Januan 1. $03.3111 S136.y821
Aggn•Fate atlu-uncut for Ihr 12 munth-
rralt rt Ili t rmin r 31. rr.ullmg from III,-
Iran-idlurn u( lurrt�n rurrrnrt slalrmvnlr 9.945 16. i.i91
list itII. I' at I►ccrnlVl, r 31. >)133.59tt1 i143.511 I
Note 7 . Capital Stock:
Conlrtton %Io k issued during the tear and reserted fur contin-
gent issuance a1 December 3l . 1985 and 1984 are as fulluta s:
Numllrr of Sharer•
Issurd Re-enrdlal -_-
1km.lnnl- it, Ttnml-:ulll-I 198i 11o:t 1985 1981
f.n111low'. satut}• t,lan-1V,1 - - 820 8211
f.%rr, 1-r ur 4unterunl uL
flrelem•d -Ira i,:
1
738
7:38
11•nr•. l.l, 1 -
4.3K11
--
-
sl,■ i, In1n lid- %arrant-.
198c„III -
3.037,
-
-
1487,r, -
2
1.798
I.11►8
.I,w k ul,ln•n• 1:311
59
2.6:ty
2.8''a
fill t•olm.(will lt•11-d 11,111111all -
-- - - - - - -- ---
-
203
2r1.4
1311
-. W,1;
6.2 ". 8
6.441
I it I A. III the clu-r of ltusinc ss on I Ircrmber 28. 1983. thr
rrconl date for the distribution of 7ranswurld's equit% holding in
TU A. the curttrr*ion ralm of 7*rdnswurld'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 l►rrt iouslc unissued
conunun stuck Irurn 7ranswurld at market talur or, with thr
current of Tramtvorld, purchase common-tt►c•k in the open
market.
(r l flit Octol►rr 29.1981.Tramwurld called for the redemption of
all Us uutst.tnding -series C Preferred Sttx•k. Each share of -series
C Pre-fc•rred Ntlrk was c•umertible lH thr holder into 1.412
shares of Transwurld'.- common stcn•k until Nt►tember 26. 1984.
As of Dirt ember 31. 1991 dppruximatel% 3.108.0 )0 shares of
aerir, C Preferred Stot•k were converted into appruximatrl%
4.3890)(1 shares of common slcx•k and appruximairly 100.(1(K)
share, of 1t•rlrs 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 sloc•k 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(1
shares of Series H Preferred Stuck 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 1 11/4% subordinated debentures due June 1,
2(X) 7 for each share of Series B Preferred Stock. Approximately
2,00(I,M) shares were exchanged for the debentures.
Changes in consolidated capital surplus are as follows:
1 Arnuunt- to Thuusaml-1 1985 14Y 1 Mi
Raialn a at Januan I. :381.8111
2-i..ilhl
f2l 121,,22
Dmdrod tlf'I'%1 t -
-
1144.1391
NO IIrIa'rt•,1- frnlll Ihr sd1,' 11f 1'01111111It1
sill( I, 111 eU'e!- ul 11a1 talut' --
61.:352
Contrrlun-uf 5Ci dull 12'i
Mll,nrtimilled dr1wolun - lit r%cv-
of Isar tdlul• oft u111111u11 dill i.
issurd -
Cunterlun of %wrir- C Preferred
Stuck and exrrcl.e of 198r►
wsrranl- lit excess of liar talue
of t unuuun s11u'k Insurd -
117.642
-
01hrr 2.0441
- 18._3381
1;381.8111
3.09
- -
Ba1am a at 1lrcrnlhrr 31. i386.861
�21: 5, i0(I
Various lode dgreements place certain reslriclitr cotenants (in
Transwurld and it, consolidated subsidiaries- including certain
requirements as to pa%rnent of dividends on c•ummun stock.
Payments, including the pay meni of dit idends. to Transwurld ht
its subsidiaries; 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), 880.6440X►, and $l 1,5940M. respec-
tivel%. of additional pad nients to Transwurld.
1 .
Note 8. Earnings (Loss) Per Common Share:
Earning, per common share are computed as follow,:
I Amounts in Thousands) 1985 1984 198:3
yr
1;.
kf'
iI juslmrnt it \rt Irw o nt
Net mcnmras rrllllrtrd S217,530
S115.02(4
Redid thin m inlrtr.t rl,prnst. fill the lits-u lied r►erche• into minion slew k of thr 1480 warrant• —
5.454
+
Il out dnidrru3 re•rtulrenlrnte• on preferred -.%twk and the amortization of the ru•r�s of redemption
valor mer cammg %slur of 4•nrs H Ilrefr•nrrd Stlw'I, (11,5081
119.2221
1:o.8971
Incrrasr in dig Idrnd requirement- for the a%sunlrd "rn Isr into;e•nrs II Preferred, of k
of the 1987 warrants —
Ulu.trd rlt•t Income apphl Ale to d%euWe uuladlulnlg and equndlent common .hare. 206.022
101.261
131.1NI81
4dlustinent• a•.uming full dilution•
Heilul lion In intrrrsl r\Ilrll.t• for the a�Wtoed cumernlon Into c•ummun SILK k of.
,it, delw•nlurrs Islilrll 14t1'1 —
—
3:3'2
12 +• delienturr. It..ued ["I _
—
1..i75
Krduvi on of lwrlrrtr•d dnulrod requirements for a..umrd cun►enwn of cumrrtlhle preferred slot k
Into 1 umnloll .t.w I,:
S•t"" 4 2.1191
20,11
�r•nr• 1--- -- -- -- - - ---- - —
7.821
4dluslyd ne-t earnings assuming full dilution $208.113
c 13.1.0011
S111.173
idjiustrlrol of rornimso and rlllll%dlrlll .11dtl'n:
A%rrdpe summon shdrr. owmandlllg 35,628
28.81M1
27.201►
Awrdg•• tred.un .hare- 13151
—
—
Assumrd comrhum of common -toi h into h nt. II Preferred "Ilw k —
—
ILION11
A.,unied rwn I— of .I.w k wdrrailt• dill] opllnll� _ 11.076
.3.351
.34
li•Iel d%erdg.' out-tandmg and rqunalt.nt conunun .hart., 30.389
32.2.1i.i
25.5113
4diu-tno•nt- d••unlllig lull dlluhon.
A••Ilnled a\ere Pe of .New 1. %arrdllts and uldlnll• 61
41i
2i
Adl]lr...11al .11 erap, . nllmum •hart• rr•uhmp fnllll lhr a••unu•d i mi%rr-wo IIII..1 nIItowo sit,- . ot:
5ri dl•Iw•nturr- I••urd lf,401 —
—
132
12 K dellelllurrs I•.urd 140,
—587
—
Ilre•fertrd ?bw G
\I•nr•4 �38
7:38
fir- C
Adlu+trd dle•rdge a nnlmull .flare. d• Umlrlg ftdl dllullull 37.188
.3 .044
211.217
')•\.. ddlu•tloent I. madr.Inl r the rffrl I is dnttdllulnr.
St-e lute ; for a description of the right., and privileges of
oolslan ding, comertlhle .rcuriiir,, %arrdtlts dnd ulllions enter-
ing ono the computation of earnings per conunun share. Tilt-
lrra-un %lock nletholl is u.rd III calculdir the diluiicc• effect of
the 198" %irranls and oul.ldnding slol•k pun•ild.r option.. The
fix rule used is 'kt'/i fur incumr front continuing operations for
IYM. The tag rate, used are 0.0% for intone from continuing
operations and net income for 1984 and 6.9% for net income
for 1983.
Due it, the redrmlHiun of lbr Series B Preferred Stock net
ittconle d1lailaWr to common shareholder, has been reduced b%
the unamortized portion of the excess of redemption value wrr
earn ing %alur ul Srrir. B Preferred Slack, thereb% reducing
earnings per share on average outstanding and equivalent Aare,
b% appruximatel% $0.13 fur the �rar ended December 31. 19li5.
66-10� 1.
-------------
w
w ram;
\l(h'- III t:onstllillatcd Finant•ial �tatt-nit-nI- Icllilt itill"di
Note 9. Long-term Debt:
(f) A re%olv ing credit agreement with a group of hanks permits
Transworld to boom N amounts up to 8200,0(10.000 through
Long-term debt outstanding is as folloAs:
March 31. 1992, and reduced amounts thereafter until Septem-
111muunls inThuubwidst
1985 1984
her 30. 1993. Borrowings in domestic dollars Nill bear interest
Notes, 91/s% due IQttt►-94
S 10AM
S 11.550
at either the prime rate or the certificate of deposit rate plus an
Note". 5Vi% to cl!•lr,
additional 1/ of l %. through September :30. 1989. and thereaf-
due 19Wi,-1"he►1j:t
13.1K111
11.137
ter to maturil% at either the prime rate plus an additional l•/u of
!lout.. Hr m it, 12 ,i
due IQtic,-201uthltp
9.598
Io.t,,4
1% or the c•ertifwate of deposit rate 1►lus an additional ';"% of
NKr-. 12.1875% due I78c►-8t:11 t
12.180
—
1%. Eurodollar l►orroNings will bear interest at the Londlln
Su1k,rdlnd1ydde1wlrtllrr-. HK4
Interbank Eurodollar Market Offering Rate 1LIBORI plus'+/►t of
due I981t•IIAP4ttil
30.792
30.232
1% through 'September 30, 1989 and thereafter to maturit% a1
SutKlydlnalrtl drlwnture-. I I l I%
LIBOR plus l/I of I %. Fee, are paid based on the a%ailability
due 19Q8-2l let
34.571
33.523
and utilization of the total commilrnenl.
RrwhlilF credit agrrrntrnllft
—
—
SKr-, duc 1118.i
—
9.(KKl
The agreement contains certain restricti%e financial cullenants
Surtdn mdrldrdurs-igl
_ 51;19:
_49.(4o
applicable ioTransworld. including se%eral f inancidl ratios and
Tilled
161.733
155.7e12
gales of substantial suhsidiarres.
jes l Urrt•111 Illdlurlllr-lilt
-- ------ - - - — -----
U1413
- ---
18.8.1.i
—
( 1 The not" anti sonde. indrhtrdnr,- include certain notes
S152.8au F13o.Qtrr F.
src•ured h% mortgages un various operating properlit-s of Canteen.
(a) Tilt- note, are drnominated and payable in SN iss francs. HI and Spartan. The net look %alue of thrsr properties Has
S51.2 i 6.(N)ll at December 31. 1983.
(b) The notes art- droorttinaled and lrayable illCanadian dollars.
(c) The nott-s are denominated and payable in British 1K,unds. fh I Aggregate annual maturities of lung -turn debt are as fulluNs:
i IArrluunl- ul Thuu-ando
(d ) Tilt- I0 r suix,rdluated debentures. Ahlch %ere issued in
1979 Niih an efferikt- rate of approxirrlatrle 13ric had un,uutlr- � +dr: 8.t�11a
tizrd origindl i-sue discount of $$.:383,(NNI and �:i.9I3.(NKI at 1987 24.191
Decrml,er 31. 1985 and 1981, rrsprcli+c•ly. Thr original issue 1988 0.11. 1
discount %as calculated on the basis (If Ihr market value of tilt. 1989 (+. hill
cumnnto n11H k pllrt'hasr Narranl?- alldt'Ilyd at IcsUalll't•.
1990 y.u10
103. i61
"`.. (e) The l l l/ocic subordinated drl►rnlurrs %hich were issued ill
1981 %ith an effrcti%r rate of approximated% 131ic in exchajige iIt11.7a:1
= $: fur appruximatek 2.(KK).(KKl shares of Series B Preferred Stot-k
W Various loan agrrrmrnts place rrrlain rrstrictM, cou•nanls
;_.•: had unan+onizrd aril inal issue discount of S5.435.(NKI and on Transwurld and its subsidiaries including certain reyuirr-
fo.4830K)at Drcrnll►rr 31. 1985 and MI. respec•ti%0%. Tile mrnts as to maintrnanc•r of minimum levels of Nurkirt� capital
original issue discount Nas c•alculdird on tilt- basis of market and lin+itatium un additional borrowings.
%alurs at issuance.
Note 10. Leases and Related Guarantees:
47 ` Transwurlcfs subsidiaries utilize properly. facilities and equip-
'' ment leased from others. In addition. certain owned and leased
property, facilities and equipment are leased to others.
ed from others are primarily for Buildings and !ac ihties leas
' hotels, restaurants and support facilities. At Drcrrnhrr 31.
1985. 39 hotels and 127 restaurants Kerr operated under least-
�' arrangements N hit h generally prat idr for a contingent rental
based on a percentage of gross operating profit or gross ret rnurs
and. in some instance:, for a fixed basic rent. Initial terms of
hotel, land and rrttauram building leases generally are nut less
than 20 years exc•lusi%e of uptions to renrtn. Leases of other
+� 1 equipment primarily consist of ntrrc•handising equipment. cuul-
" 1 puter systems. rtc.
86
I��.
1
s
i\
1
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
►tens- learn to franchised distributors of Canteen. Certain hotels also covering many employees. Amounts charged to income (includ-
•rest lease retail store space to tenants. Numerous misc•ellaneou►
s an sublease agreements also exist. ing amortization of prior service costs) were $7.6:S60M.
$9.171.((1() and $8,613,0(XI for 1985. 198.1 and 1983.
reaf- „rts subleased to others under direct financing leases and respec•tivel%.
t of lilt lulled in other as.rls at December 31. 1985 and 198.1
of ell (K>O I aI 1 '3'38 (xKl r� ►rrti\el\ As of the latest benefit determination date. the actuarial prrsen
d Q1 t
H of
at
t\
nts
and
ore n.
4013
19:3
181+
010
401
;3a
ip-
sed
asr
I
,f
less
r1, .
aggregat
e , 1 I value of \eslyd accumulated plan benefit- %as approximatrl\
Infmrrnatiun rrganling Tran.\,urld's (rasing activities at Decem- $52,6(X_I.(1(K). the actuarial present value of nun\rsted ac-
ber 31. 1985 is as follo%?.: cumulated plan benefits was approximatel\ g9. 7O(l.(XK): and tl
CHIlllal beet Ulrrraun►; l.r•a"•-
41111nud• u1 Tlpmu , mdl
Mlmmurl
Ira-1•
Pat norm-
lr•.0
Ivtu.
f h,e,e1;
IyN-
5.023
14tIY
.i.211
1401
4. to / i
14Ith 1
4.827
02.4174
Lr.- uupum 1! n11.14 -1 -
48. 173
Prr•.ent ,aids -if, aortal 11 a1 .
-t 1. 31
Lr•-• c urrrnt Isld,y.dn.m.
a.1 IH
\�„�, urn•nI ..LIi�.Itnn1- will. t
1'a1m1.11 Ir•a-1•-
`
f .Slt.t/13
111unmurn Lea".
Pamt•nl, No of
Atunmtlnl
5ublrasr Rental-
S1111Ir.1-r
of Immaterial
1,14tn,cnl.
Am„unl-
12 2
S :31.56"
-
2'►.Wit I
-
28.257
-
2n.•2.i
-
21.218
-
333.11.
Thr total renlal rxpen-r for all operating
leanrs included in the
drtrrmination of operating results for the
\cars ended December
31. 198:►. 1984 and 1983 ads as ftlllovvs:
14noand•In Thou-and.i 1983
1481 198:3
ka•u rem• E3:3.2.ib
t3:31.:3115
F24.8:1n
I.nnlin�rm wiii- 51A.7
5:.:3$er
52.tt1�
S88.123
1}88.cI:3l
tt}2.el�r►
plan.s* net assets available for benefits were appro\inlately
$75.(Kl(1.(M. 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 .ear 1985. depending
Oil the plan.
liwenike cornpensation plans pro\ ide for a\\ard to managenle►
employees based on meeting or exceeding certain le\els of
income as defined h\ such plans. The amount- charged
to income under the above plans were S5,957.(KN). K.356.0(")
and $5.265.(NN) for the years ended December 31. 1985. 1981
and 1983. respectively. In addition to these incentive c•ompens,
tiun plan. certain subsidiaries ha\e incentive plan- in place
under ubich regional. di\isional and local nlana-rinrlll partic•Ipatc
The incenti\r stock option plan permits the hoard of Director. t
grant Iu c•e►lain ke\ officers of TransAorld and its �ubsidiarirs
purc•hasr opIlons for share!- of 7ians%orld conuuon stuck at a
stated option price not less than the market price at the time the
option is granted. The options become e\ercisable in %hole or it
part from time to time during a period of fi\r gars from the date
of grant commencing si\ months to one year subsequent to the
dale of grant.
Information regarding outstanding options and option ac•Ii\it\ is
as follu\As:
1985
1981
Uut-landulg at Januan I.
661.9011
;4.44Ph
Granted
37, 3.87.5
653.015
Canceled
81.87:3
5.077,
E%ercl.rd
129.582
54.446
OuraandnlgatDeceml1er31.
827.320
Earn Labor at Drc•ernlwr :31.
269.382
2O.278
Prire wtigr of tit ,Uins:
tlut.►andoltt
111.95-$12.25
811.45-$30.1:3
Eitertv+rvl
$13.28-1311.13
itIAI-S23.4t1
86- IO011
AWI
I
`Ill. • tell loll -III It I.11rII I•Ilia nt'lill *�IJIt'Illr•II I- II I$III 11111.•1I
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 neceasariI% indic•ali�r of other matters arising out of the ordivar% conduct of business anti
future financial results on either an interim or an annual basis. financing matters. Certain of these are or purport to be (•lass
tirlec led consolidated financial data for each quarter within actions. seeking damages in substantial amounts. The amounts
of liabilitN. if am, on these direct or indirect c'lainvr and actions
1985 and 1984 area, fullows: at December 31. 1985. over and aho%e an insurance coverage
(4ml,unt• in Thou -and- )lrsl %,ernnd Third Fourlll in respect to certain of them, are not specificall% determinable
Etevept Per Sham 4nwluntsl (fuartrl (fuarlrr Quarter Quartrr 1 this time It is the o ►inion of Management 6ncluding General
lrar Elulyd [lecrnelw•r 31. 1985
Olw•rdling n•lrllur- S*4.41I
SVI' (IM
S.122.111
Olw•rallnF Income 27.045
41.202
47.701
Im unnr fn.m conlin-
u1nF ulwratnal-
(wdurr Inl,mlr
lair. 21.W
35.ftll3
41.101
lrllilt event. l0.243
30.811
30000
LammR- per common
share:
Oil awrap. uu1-
standing and
rqultal.•nt Atari. 1 0. 11)
S II. ;4
1 0.9h
A --timing lull
dllutnnl U.4t1
0.',tl
0.941
leer Lndrd 11rrrnelw'I 31. 1981
(Ilw•ral►nFn•1rnu.•- IVA).rr1i
i4ttl..4"7
$14:1.1(.-.
01wrAling lilt tinie 2b.141
35.2 T. 5
411.9311
In( liner from runup•
ump Ulw•rdlll111.
brbrr uo unit -
la%• 24.611.
30.923
38.1111
Net lilt unit 19.3Ik.
29.851
3G.319
(•.anunx- Iw•r runeneun
A.m.:
Oil dwrdl'r oul•
t.tdudlllj2 appal
equnalrw Pharr- i 0.4
fF (1.82
� I.11►
A%-umrlp full
dllutwit 0.47
a F
Counsel I, however, after considering a nunlbt-r of factors, in-
V61.681 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 lilt- ultimate disposition of these matters
will not maleriall affect the consolidated financial position or
results of operations of TransMurld.
45.1 "r1
133.S8.1 Note 14. Business Segments and Foreigtt Operations:
The operations of Canteen. Hl. Spartan and Transworld are
included in the consolidated financial slate►nents. Canteen is
engaged primarily in the food sen ice business and conduct....
S 3.5i direcll and through its subsidiaries all(] independent fran-
chised distributors. trending and dine[ 6KI ser%ice operations
3.44 in tilt- United Stairs and Canada. HI. direc•tl and through its
subsidiaries, operates hotels in 43 Iilreign cuuntrit-s. the United
Stairs. Guam dlld 1►11rr111 Hicu. `pariah is engaged III tile -
operation of franchised fast hKid and proprietan Tamil-st%Ie
restaurants. principall% in lire southeastern United States.
Information concerning the major business segnlr•nts and the
extent of operations in each significant foreign geographic area
34.IN1; is presented in tilt- following schedules. 1'ureign Operations of
-'c+.5 V1 the vending and food sin ice: business segments art- conducted
primarily in Canada. Identifiable asset,, at December 31. 1985.
198.1 and 1983 include $297.111 AK). 8276.58:3AH1 and
$268.4100K). respeclivel%. of assets used in foreign opera-
1 0.-4 lions. A further disaggregation Of foreign upt-ralions w ithin
specific geographic area-, is not deemrd significant.
0.70
SG--1®"1
Nate- 1„ t t-II.1,hd. wd F111.l n1-i'll Slall•1111.111- ,, •,11111 1u 111
Note 15. Changing Prices (Unaudited):
The full(ming supplementan income computations adjust in-
come frunt continuing operations for the effects of changes in
specific prices (current costs) of the resources used in pray idling
services and products sold. The effect of inflation is particularly
ell ident in comparing the historical and adjusted cost of fixed
assets and the related deprecia(ion expense because fixed assets
are held for an extended period of time vet remain at acquisition
cost in the balance sheet. Depreciation exiiense allcic•ates. on a
ratable basis, a portion of the historical cost of assets slated in
dollars hay ing varying amounts of purchasing poyyer. Since this
purchasing pli%er has changed signific•antl\ from the time these
assets were acquired, the change must lie considered to be the
estimated effect of inflation on the financial statt-rnrnts. A much
less significant relationship exists with inventors held fur sale
since the gouts in Transworld's in%entories. principally fi►c+d and
be%eragt- items. ha%e been purchased just prior to their sale.
The supplementan financial statements prepared in accordance
with the current cost concept assume the %cluing of fixed assets
and in%entun at year-end using costs in existence at December
31. 1985. Since these current costs are higher than the older
historical costs for equipment and proper(} currently in use, the
related depreciation exlwnsv increases c•urrespondingl}. Infla-
lion also affi-cis n111nelan asset, and liabilities such as cash.
rec•ei%ables and Companies wish nel mimviar% liabili-
ties experience gains because lilt- amount required to satisfy the
net liability, expre- ed in purcha-ing pm%er, decrc-a-es with
Infldlurn. In a deflationan periud. tilt- effect would lie re%rnwd.
Management's Analysis of The Supplementan Infurrnaiiun:
Lnder historical accounting measurements. Transworld has
reported revenue grtmth (if S434 million from $1.i2 billion in
1981 to $2. 15 billion in 1985. Adju-zing for general inflation
using the Consumer Price Index for all L rban Consumers
ig
(CM-U I shows that this increase has been the result of erosion
of the purchasing lxlw•er of the dollar. The resultant effect on
earnings is shown, understandably. to he more dramatic. Depre-
ciation expense, based on the restated value of assets for 1985.
is substantiall% higher because the current cost of merchandis-
ing equipment and other property is higher. Holders of nwne-
tan liabilities benefit during inflationan periods l►ec•ause cheaper
dollars are used to satisfy liabilities in the future. The decline
in income from continuing operations is partially offset b% this
purchasing lotower gain. Due to the current nature of Transworld's
inventories. the adjustments for changes in specific prices du
not have a significant effect on cost of services and products
suld. For the current }•ear 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 I'll[
changing prices (Unaudited, dollar atnuunts in ayerdge 1985
dollars):
)ear i•:n11rd
Derr11011.1 31. 1 W.1
As Staled Adlu-ted
in the fur Change
IArnmint- In Thmt,aml- Flnan, I.11 it ape, Ifk
E%- #- ,I Vcr SlmrY •innnnu-I Nalcrnrlli- Pm vc -
011rratinl; rr%entiv>
$2.151.516
2.151.556
Cu-1 of sen our -and product- s„hl
I+•y, lu-r%c of d,qu. rl.uoal .old
amonization of prop,•rt% and Ira-r-I
1.182.10r,
1.182,4(1;
Deprec•lannn and amortization
66.871
88.2'58
tlprraong cxlK rises, uthcn
i 34.413
ia;.413
Ulhrr charges lcrrdltsl
24.479
24.479
-
-- I
��.0 P'. , ,()
.38�.r1
2,IRI .4. 1li
In1 emir from vonimijing o ,erariull-
$ J01.-86
—
S 8:i.1 18
Earning. Iler share
$ 2.-it1
S 1.9;
Purcha-ing I,uwrmm m
t rain u11 net ola
llahlhnes held (luring the• %rat
S 6.331)
Inrn•ase in currrnt coil of 1mentun and
equpmrnl held durum the %car
>:2.1(1(1
Effrc I of "wrease in general J,rn I. Ircel - - -
-- - ----`31.
IcK,
I:xcrnn Ishorlfnll I u(mcrra r. in n11rc1fic prices
--
u%rr increasrt m the eneral ,rice Ir%e)
S 129.0w)
1lryrnlonrs and 1'n,},vrt% at
December 31. IYH.-):
In%rntorlr-
S 9,31
Pro ,rrlII. No of Dr ,n-rtalwtl
SG
—i®21
w
Noll- the ( .etlt-e el Fell le'd I it lt'e It
Five-year comparison of selected supplementan. financial data
adjusted for effrcts of changing prices (unaudited. dollar arrwunts
in average 198S dollars1:
_
lear, Ended DrreniLwr 3).
1 Amount. in Thou. and- Ewept Npr Share .Arnr►1Ints.
_
lhttdvmld and lmlv% Deilal
198:►
19H1
19&3
1982
1981
OlwratulF rrue•nur•-
S21151.556
$2.((1(►.961
11.4 9.01 7
11.95,L24)
82.032.111
Current ro-1 In(urMattun:
Inrnmr (ntn1 r'utUnuunF ulterallun-
83.118
78.160
32,071
18,913
35.W.1
hlcomr (is--1 fnem c•onttnurnp ctlw►atitln-
lter tYtrttnttac -Here•
1.9 ".
1.08
OAY)
10. 43 1
0.57
Eu•ea, cshurttalll of Inrrrane in slwcifit
pro, e, liter tit( rs-r in the Rrnrral !purr
letrl
129.(Nkt t
1.111)
(17.5871
41 JN5
51.694
\el a --el- at wvar•etnd
1,(N12.335
916.666
831.Wd)
1.M2(l4
1.265.382
0111e'r Infurnl.ttltill'
Pun ha-tnp ltuaer Raln eon net munrtan
lualu1111r- 6rld during the rear
6.339
6.405
8.526
17.516
40.035
Ca-li (lit Mend- dr•r')nrrel lwt common .hare
0.46
0.31
—
—
—
4larlet purr lwt summon Shaw st tray -end
P.11
31.7
41.5
30.9
17.2
Mrral r run -miler rni r ►ttdr%
322.2
311.1
298.5
2AQ.3
272.1
(a) Basis of Presentation. Transworld'► historical financial
statements are prepared principall% (lit historical prices in effect
Mheo the transactiuns onginall% occurred and were rec•urded.
The :upplrrnrnlan financial information discloses certain ef-
frct• of changes in price. of propert% atld equipment ow ned or
held under capital leases that hate ex•c•urred since the prupert%
was original!} acquired bio Transpvorld. Property acquired bit
me,rl_e•r witch of 1N►oling of interest I is ron.idered to hate
1►rrn at qulred hot 7ransworld at the date of the merger rather
than the dale tit original acquisition of the item.
(h t Inventor% and (:list of ;en ic•r• and Products Sold. Merchan-
dise imentun ha- been adlusled for changes in specific 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
propertt, and equipment genrrallt Ha- computed Ili, appl\ ing
price indices published b% guprrnmental and private urgani•ra-
tions to 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-
pose- 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 on the same metht►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 exprnsr
for the increase in costs determined under the current co-t
computations.
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 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 necessary in the circumstances.
In our opinion, such consolidated financial statements present
fairy the financial position of Transworld Corloration and
subsidiaries at December 31. 1985 and 1984. and the results of
their operations and the changes in their financial p )sition fur
each of the three %ears in the period ended December 31. 1985.
in conforrnil% with generall% accep(ed accounting princilles
applied on a consistent 1►esis.
Deluitte Has.kim, K Sells
!tie% )Ork. !tie% York
March 3. 1480
.may.
is
n
Management's Rej)ort
To The Shareholders of Transworld Corporation:
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%strm of
internal accounting control pro% ide reasonable assurance, gk-
ing due regard to the cost of implementing and maintaining the
system. that transactions are executed in accordance w ith
management's intention and authorization, that accounting 1►oul,s
and records, are prepared and maintained so as tc► permit the
preparation of the financial statements in accordance with
generally accepted accounting principles and that accuunlabil-
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 financial statements. The Audit Committee
of the Board of Directors. compot-rd of non►nanagenu•nt Board
members. meets periudic•all% %ith both the internal and inde-
pendent auditors to rrcri%e their reports.
Further. we recognize our rrsponsibilit% (o conduct TramWufld'-
businrss in accordance with high mural and ethical standards.
Policies ha%r Bern rstablished and retie% prtigrarns arc mai►i-
lained to ensure that the policies are understuoel and that all
business activities are in compliance with them.
c
F. L salizzoni
Tice Chairman
J. R. Painter
\'ice President and Controller
86"1i}�
-`s
S
i+
Directors and Corporate Officers
Transworld Corporation
Board of Directors
L. Edwin Smart Frank L. Salizzoni
Chairman of the Boanl V•ive Chairman
and Chief F%rc•utive Officer Transwnrld Corporation
Transworld Corporation Morton 1. Sosland
Charles J. Bradshaw Director and President
President and Chief Operating Officef Susland Companies. Inc.
Tran•world Corl,orallon (diversified activities including publishing
Lester frown and venture investing)
Chatnnan of the Board Patricia Cam Stewart
atni Chief Executive Officer V•ive President
Matrrial Senice Corlroratiun The Edna McConnell Clark Foundation
(pnalucer and distributor of building matrrial ) (non-profit charitable foundation)
R.L. Hadle% Griffin Curt R. Strand
y:. Chairman of the Executive Committer Chairman of the Huard
Bruwn Group. Inc. Hilton International Co.
la consumer prtrducts cumpam dealing with jack Valenti
operations in footwear. recreational products President
and sltecialn retailing) Motion Picture .Association of America
Jewrl S. Lafontanl Itrade asstn•lation)
+ Pamner
iV•rdder. Price. Kaufman & kammholz
Ila% firml Transworld Corporation
Howard M. Love Officers
Chairman of the Board L. Edwin Smart
and thief Evrc•utnr Offivet Chairman of the Huard and Chief Exec•uti%e
National Intergnncp. Inc. Officer)
' Imultl•Industn c•ompam in distribution and Charles J. Bradshaw
` •en Ice businesses with nnemments in metals President and Chief Operating (iff crr'
` Indu�tnr•I
Frank L Salizzoni
%a .,:r•;:. John R Masrollr Vice r Chairman
Cheirnlan of tilt' Board
John J. O'Keeffr• Jr.
and Chief Evt4-u1i%r Officer
3 rV•ire President -Administration. General
The Continnlal Corl,oratiun
(huhhor cumpam In the insurancr aml Counsel and Corin,rate %werelan
insurancr srnu•rs folds► James R. Painter
Ruhrrl S. McNamara
V•n•e President and Controller
V. Retired President Nicholas C. Moren
The World Rank Treasurer)
com Iam director, unitrrsit% truster
{ I . Alm- Chairman. (warm l "r1wraL,uu. and Chairman of
C. Edwin Meer. Jr. the L%r,'Ulltr (.umnnllrr• SIuMao F-A S,r1rm, lu, . and
Hdlun Intrmauunal C.U.
p President
s utivOfirr 2. Abu Chaman. Slwrtan Firr1min, .
and Chief Evr
3. AW,Tn•a.urr,, Canlrrn l:ugn-Whin and Ntmrtan EK91
_ Hihon International Co. ��„am•. fin.
' Arja% Miller
Ilran Emeritus
Stanfonl I Graduatr St•h„ td (if Business
'' r ongrcm dire for
Andrall V. Prarson
Pfu(rssor
Henard Bu•ulrss Sch,w,l
Jerome J. Richardson
President
i s and Chlt•f L%euuu%r• ( lfflcrr
s Spartan Fo,nl ,'-vmenl his . n
Transworld Corporation
Board Committees
Executive Committee
L. Edwin Smart
Chairman
Charles J. Bradshaw
Jewel S. Lafontant
John P Mascotte
Frank I.. Salizzoni
Momon 1. 41sland
Patricia Cam Stewart
Audit Committee
Morton 1. Sosland
Chairman
Jewel S. Lafontanl
Howard M. Love
Andrall E. Pearson
Compensation Committee
R:L. Hadle% Griffin
Chairman
Lester Crown
Arja% Nlillt•r
Jack Valenti
Finaner Committee
Frank L. Salizzoni
Chairman
John 1' Mascuttr
Ruhrrt S. McNamara
L, Edwin Stuart
Patricia Cam Stewart
Nominating Committee
Andrall E. Pearson
Chairman
%. L. Hadley Griffin
Jewel S. Lafontant
Public Affairs Committer
Arja% Miller
Chairman
Charles J. Bradshaw
John P hlasc•olte
Robert S. Nit -Namara
C. Edwin Mrier. Jr.
Cum R. Strait(]
Jack Valenti
Retirement Plan Committer
Frank L. Salizzoni
Chairman
Lester Crown
Howard M. Lo%r
Jeruntt• J. Richardson
Murton 1. Sclsland �� ��
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 sideni-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 tee President -Human l'Irsourc es
Ur%elupmeut
Pierre R. Jaquillard
.wnn►r Vivo President-Uvistern Eunipr. Gulf
and Africa
kennedi S. �Itr•s
leriior 1 icr President -Asia aid Australia
Fred Ruoff
Senior \ ic•r Prrsidrnt-Marketirig
Jonathan Berger
%we Pre- ident-Cori KPrate I)ryrlopnirni
Alan Bridle
it Pi-r-itlent anti Compinillet
Anthony Carpenter
ice Prrsidrnt-1 oiled date.
Reginald h. Groome
1 or Pirsidrol-Canada
Richard Handl
Tice Prrsidrnt-japan. Guam. korea and the
Phihppitlrs
Jose A. Menendez
1 it r Pre.ideni-Cdrihltrdn and Latin 4nirncd
Mel%in Milligan
Vice Prrsidrnt. General Counsel.
and Assistant Secrrtan
Willem Sprokkrreff
Vice Prrsidrnt-Australia and %%outh Pacific
Oskar von Kretschmann
1 wr Prrsidrnt-Indonesia. Malaysia. Singaliore.
Sri Lanka and Thailand
Carob n S. Parlato
corporals Srcrrldn i
41...I.nitlufMlr `a rrlary ut t Yllierll (.u►tMrt111uU.
end Sparlan h.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
Vic•r 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, l;eneral Counsel and
Assistant Secretary
Kenneth R. Davidson
Vice President -Purchasing
Nicholas A. Dinielli
Vice President and Controller
Paul G. Duffy
Vice President and General Manager
FcKKI and Vending
Mel%in H. Grossberg
Vice President-11(me Operations
Daniel R. Krpan
\*ice President -Marketing
John E. Napier
Vice Prrsidrnt-I)istrihutor Operations
Karl Ii. Sedlarz
\ ice President -Corporate I)e%elopmen
Assistant Treasurer
Richard %I. Stein
\ ice 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
. 1g,