Exclusive
West Ham’s Olympic Stadium catering ‘partner’ has failed to make any profit on it’s two primary catering contracts in the UK with Wembley and Arsenal’s Emirates Stadium.
Last week’s publication of the Olympic Stadium agreement confirmed West Ham will earn a 30% share of catering profits after the first £500,000 of profit is paid to stadium owners E20 Stadium LLP.
But American sub contractor Delaware North (Wembley) posted pre tax losses of £3.9m for it’s Wembley Stadium contract in 2015.
Turnover at the contract was down £3.9m year-on-year to £23.8m, while pre-tax loss increased to £2.3m from £279,885 in 2013, according to documents filed at Companies House.
A statement within the accounts say “We therefore continue to look for appropriate additional new business opportunities and we were delighted to be awarded a long term contract to operate the former Olympic Stadium [renamed South Park Stadium] from June 2015, which includes UK Athletics and West Ham United as key tenants,”
It’s other UK division called Delaware North Hospitality Services, which operates at Arsenal’s home ground the Emirates, and IPro Stadium, 
home to Derby County Football Club, saw its pre-tax loss rise from £736,182 in 2013 to £1.2m despite turnover growing to £19.1m.
The news must raise serious doubts how much profit if any can be made at the former Olympic Stadium and whether West Ham will ever see any of it in the profit share agreement.
Catering company Elior currently runs the existing contract for the Boleyn ground catering and hotel which ends in June. The company says that contract is worth almost £5m per year at present which means West Ham will be giving up significant catering income when they move to the former Olympic Stadium in August.
What I’d like to know is. Do they sell hotdogs? And is there the choice of both ketchup and mustard?
Lol,I got lost as well Mooro66.I’m sure it makes sense to a lawyer or High Court judge though.
Fuck me sparrow you’ve made me giddy. What the fu#k are you n about
Will the catering for the corporate boxes be included in this? or is it just the fast food sales?
Delaware seems to have the hallmarks of transfer pricing and tax losses. Definitely something amiss when you run several loss making stadium concessions and take the strategic decision to go get some more. On the other hand, if they have to hand over a share of the profits, there is a strong incentive to ensure there are none and that profitability is passed to another owned company in the supply chain.
From a stadium owner/operator point of view it must surely be better to simply tender the catering spaces out on a rental basis. Your income might seem less but it is guaranteed, you simply collect the rent for the space and there would be more variety for the punters. You can protect against predatory pricing by only renting to operators that run other external outlets and mandate that they charge the same prices as outside or a fixed percentage top up.
Never eaten a pie with apostrophes as the filling.Would you recommend them? Lol.Mind you being a C&H reader I guess I shouldn’t know what they are,we are illiterate after all,lol
Yeah the Pants have such a high opinion of us don’t they.Rabid Dogs,Ignorant Pigs,Morons & Illiterate.Don’t think I have forgotten anything have i lol 😉
It’s alway’s worrying when a firm put’s an apostrophe in pie’s
And the Delaware North group for the UK https://beta.companieshouse.gov.uk/company/05166573
Just set up a sister company in the USA , or any off shore haven ,simple really , its been going on for years , don’t forget they are yanks !! There’s a loophole there somewhere !! Nievety will tell you otherwise if let’s say you had a corner shop and you were making no money and operating at a loss , you fold ? How come this mob are still going ? Accountants and know how ! Big corp,s = bigger fraud ,
Its because their profits or lack of them are in an off shore account !! Maybe .
Not being funny, but there is something I am missing here: why, or how, is Dellaware North, able to trade continually at a loss, at these venues? The statement about looking for “appropriate additional new business opportunities and we were delighted to be awarded a long term contract to operate the former Olympic Stadium” raises the question again, why would you be happy to trade in any areas that are lolss making (ie Arsenal, Wembley, Derby). Are they suggesting that the Olympic Stadium will subsidise these other activities? And if they are, why would they be able to make money in Stratford and not elsewhere? I am somewhat confused… but something doesn’t seem right here.
I agree, it doesn’t make sense. You can view the full company accounts for free at
https://beta.companieshouse.gov.uk/company/04421857
and
https://beta.companieshouse.gov.uk/company/05165828
profit or no profit, i would just be nice to be able to go the toilet AND get a drink in the half-time interval without having to do one or the other!!!
You are right Jack,they are no better than useless at The Boleyn.This mob can’t be any worse for sure,glad to here they are faster.As for the profit,ain’t my problem I just want faster service.
Well the staff at Upton Park are beyond bad. Some can only take money they just stand there whilst one person gets the food and drinks and they don’t have any idea who’s next. Clearly this new company are not the greatest with their money however when I went to the Olympic stadium for the rugby the speed you are served was 1000 times faster than West Ham.
Elior: £5m profit or £5m turnover?
Turnover. Elior announced in a press release they had a two year deal worth £10m
Profit margin is around 25% in that sector but not for Delaware North it seems