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Worrying signs on Irons OS catering income

OSc1

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.

 

OSc2But 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, OSc3home 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.

 

About Sean Whetstone

I am Season Ticket Holder in West stand lower at the London Stadium and before that, I used to stand in the Sir Trevor Brooking Lower Row R seat 159 in the Boleyn Ground and in the Eighties I stood on the terraces of the old South Bank. I am a presenter on the West Ham Podcast called MooreThanJustaPodcast.co.uk. A Blogger on WestHamTillIdie.com a member of the West Ham Supporters Advisory Board (SAB), Founder of a Youtube channel called Mr West Ham Football at http://www.youtube.com/MrWestHamFootball, I am also the associate editor here at Claret and Hugh. Life Long singer of bubbles! Come on you Irons! Follow me at @Westhamfootball on twitter

18 comments on “Worrying signs on Irons OS catering income

  1. Elior: £5m profit or £5m turnover?

  2. 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.

  3. 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.

  4. 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!!!

  5. 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.

  6. Its because their profits or lack of them are in an off shore account !! Maybe .

    • 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 ,

  7. It’s alway’s worrying when a firm put’s an apostrophe in pie’s

  8. 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 😉

  9. 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.

  10. Will the catering for the corporate boxes be included in this? or is it just the fast food sales?

  11. **** me sparrow you’ve made me giddy. What the fu#k are you n about

  12. Lol,I got lost as well Mooro66.I’m sure it makes sense to a lawyer or High Court judge though.

  13. What I’d like to know is. Do they sell hotdogs? And is there the choice of both ketchup and mustard?

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