95 d e l a wa r e n o r t h c o m p a n i e s r e t r o s p e c t i v e 2010 In 1968, the Buffalo Evening News published a piece that chronicles the beginning years of Delaware North. Charley, the middle Jacobs brother, was fast losing patience with the family’s poverty. “I’m down at the corner candy store watching the other kids spend a penny for one of these and a penny for one of those. We don’t have any pennies for anything. So I went home and said to Marvin, ‘Come on, get out those shoe-shining boxes, we’re goin’ into business!’” From the onset, the boys had a strategy. “We started building up a regular clientele. The other kids used to water down the liquid polish. Marvin and I didn’t. We gave better shines; we got more business. Simple.” Delaware North Companies Retrospective at a Glance The Delaware North Family of Companies…………………..…..2 Family Leadership………....……………………………………..…4 Profile: Jeremy Jacobs.………………………....…………..……...5 Profile: Jerry Jacobs Jr.........……………………………….……..8 Profile: Lou Jacobs........……..…………………………………..10 Profile: Charlie Jacobs.......………………………….…………...12 Financial Overview...……....……………………………………...14 Vision/Mission…..……......……………………………………….15 Operating Company Reviews: Fast-forward to 2010. With 200 locations worldwide and more than $2 billion in annual revenue, it’s safe to say Delaware North leaders no longer count their earnings in pennies. But the principle of giving better shines, as it were, is alive and well. Delaware North Companies Sportservice……………….…..16 In fact, it could be the secret to how and why this company has survived – and thrived – since its founding in 1915. Delaware North Companies Parks & Resorts..……………..47 Join us now as we look back. We celebrate the people, places and things that have made us a global leader in hospitality and food service. And something much more: the fulfillment of the dream of three young boys. Delaware North Companies Gaming & Entertainment……23 Delaware North Companies Travel Hospitality Services…..29 Delaware North Companies International.…...……...…..34 Delaware North Companies Boston.……..…………………40 10 Memorable Moments...........………………………………...52 Core Capabilities: GuestPath®……....…………………..……………………….54 Culinary……....…...………………………………………....56 Retail.……...........……………………………………….....58 Brands..…...........…………………………………………...60 Corporate Social Responsibility and GreenPath®………....……62 Awards and Recognition..…..…………………………………….66 Executive Team and Corporate Information…………………….70 1 The Delaware North Family of Companies Delaware North Companies Sportservice Delaware North Companies is a global leader in hospitality and food service with operating companies in the lodging, sporting, airport, gaming and entertainment industries. Among its many assets are several world-renowned resorts and Boston’s TD Garden, widely acclaimed as one of the top-three sports and entertainment venues in the United States. Delaware North began in 1915 in Buffalo, N.Y. The city is still home to the company’s awardwinning global headquarters. It is one of the largest privately held companies in the world, with annual revenues in excess of $2 billion. Each year, its 50,000 associates serve half a billion customers in the United States, Canada, the United Kingdom, Australia and New Zealand. The company began with Delaware North Companies Sportservice, the oldest name in sports hospitality. For nearly a century, the company has provided retail expertise and concessions, gourmet catering and fine dining services to sporting, entertainment and convention center venues in the United States and Canada. Today’s client portfolio includes 50 of the most recognizable names in the sports world. 2 Delaware North Companies Gaming & Entertainment Delaware North Companies International Delaware North Companies Gaming & Entertainment is one of the most innovative gaming and racing operators in the country, specializing in regional gaming venues with added amenities such as video gaming machines, poker rooms, full-service restaurants, retail shops and hotels. The company manages more than 5,000 video lottery terminals throughout the United States and operates at venues in New York, Arizona, Florida, West Virginia, Oklahoma and Arkansas. Delaware North Companies International manages the company’s award-winning operations in Australia, New Zealand and the United Kingdom. Its special brand of hospitality and food service can be found in hotels, resorts, airports, railway stations, sporting and entertainment venues and cultural centers. Contracts at Wembley Stadium and Emirates Stadium, as well as long-standing involvement with the Australian Open, have given Delaware North’s growing international division a welldeserved reputation for handling large-scale events at premier properties. Delaware North Companies Parks & Resorts Delaware North Companies Travel Hospitality Services Delaware North Companies Boston (TD Garden) Delaware North Companies Parks & Resorts was founded in 1992 following the company’s winning bid for the largest contract in the U.S. National Park Service: Yosemite National Park. With Stewardship and Hospitality in Special PlacesSM as its credo, Delaware North Companies Parks & Resorts has emerged as a leader in the hospitality sector. In addition to operating at some of the crown jewels among national parks, Delaware North has a portfolio that includes world-renowned hotels and attractions. It has been in the national spotlight on many occasions for its lodging, culinary, retail, environmental, marketing, recreation and management expertise. Delaware North Companies Travel Hospitality Services is one of the world’s leading airport food service and retail companies. Through contracts at major U.S. airports and toll plazas, Travel Hospitality Services manages 300 restaurants and retail stores, and serves more than 350 million customers each year. At nearly 70 years old, the company is one of the oldest in the Delaware North family and a respected member of the travel industry. Its Gateway ConceptSM that revolutionized U.S. airports by transforming them into harbingers of the sights, sounds and tastes of the host cities continues to set the standard. The Boston Bruins (Owned by Jeremy Jacobs, Chairman & CEO, Delaware North Companies) Delaware North Companies Boston is one of the nation’s premier providers of world-class entertainment and hospitality experiences. As the owner/operator of TD Garden, the company serves more than 2.5 million visitors each year, more than 200 days a year. Home to the NHL’s Boston Bruins, NBA’s Boston Celtics and NLL’s Boston Blazers, the arena is one of the few multitenant facilities in the United States and arguably among the best venues of its kind in the world. The Boston Bruins organization is one of the original six teams of the National Hockey League, known equally well for an unrelenting style of play that has led it to five Stanley Cup championships. Over the 30-plus years that Delaware North Companies Chairman and Chief Executive Officer Jeremy Jacobs has owned the legendary team, it has showcased some of the best talent the sport of hockey has ever seen. Almost 50 Bruins have been inducted into the Hockey Hall of Fame. 3 Family Leadership In 1915, brothers Marvin, Charles and Louis Jacobs took the first step toward realizing the American dream of their immigrant parents by establishing a modest popcorn and peanut vending business in Buffalo, N.Y. Through hard work, dedication and innovative thinking, that small business has grown into one of the most admired food service and hospitality companies in the world. Yet, it is still a family business and Delaware North places great value on being a private, family-owned and -operated company. Current Delaware North Companies Chairman and Chief Executive Officer Jeremy Jacobs, the son 4 of founder Louis Jacobs, represents the second generation of the Jacobs family to own and lead the company. His three sons, Jerry Jr., Lou and Charlie, are principals of Delaware North and are key leaders in the company’s long-term business strategy. From the beginning, the company embraced its clients, customers and dedicated associates who continually achieve new levels of success in delivering hospitality across the globe. It is that commitment to service that has given rise to one of the world’s most enduring and successful private enterprises. Jeremy M. Jacobs Chairman and Chief Executive Officer Jeremy Jacobs is chairman and chief executive officer of Delaware North Companies, a position he has held more than 40 years. Son of company founder Louis M. Jacobs, he oversees a $2 billion business that includes global sports stadia and arenas, airports, destination resorts, national and state parks, and gaming and entertainment venues. The Buffalo-based company is one of the largest private, family-owned business enterprises in the world. Jacobs notes that his position at Delaware North hasn’t always been so grand or gratifying. One of his earliest memories of working for the company dates back to age 14. He crawled out of bed a few minutes too late to catch the bus on Main Street to his dishwashing job at Batavia Downs racetrack. “I had no choice except to hitchhike,” he recalls. “It took me hours to get there.” As Jacobs scrambled to reach his destination, he was already dreading what he knew would await him at home that evening: a stern lecture from Louis Jacobs in his dual roles of disappointed father and demanding boss. The anticipated disapproval was duly delivered. “Let’s just say I never missed that bus again!” says Jacobs. The lesson in promptness sank in permanently. Today, more than a half century later, the chairman’s car is still often the first one in the parking lot at Delaware North’s corporate headquarters. “And that’s after Dad’s been to the gym,” says middle son, Lou Jacobs, grinning. Jacobs took over from his father as Delaware North’s chief in August 1968. That’s when the elder Jacobs – nicknamed “LM” – died from a heart attack at his desk. The young Jacobs was thrust into a role for which he felt little prepared. “Fortunately my dad left me with a generally solid, healthy company,” says Jacobs. “We had a number of contracts, a very loyal customer base and an equally loyal employee base.” LM Jacobs left behind another useful legacy. Jacobs had driven his father to work every day for more than a decade, time during which the duo reviewed customer accounts, operations and inevitable problems. In those days, the company’s principal business was running concessions at racetracks, ballparks, arenas and airports. The daily tutorials in the nuts and bolts of the business stood the younger Jacobs in good stead during the next four decades as he worked hard to grow into his role as chairman, diversify his father’s company and professionalize its management. 5 “I would be lying if I said we didn’t have some very tough times and dark days,” says Jacobs. “The trick was to keep the best aspects of my father’s approach to business, while figuring out how to change with the times.” Delaware North’s original food service business is now more than 90 years old. Some of the company’s customer relationships stretch back in time to its founding, including an eight-decadelong affiliation with baseball’s Detroit Tigers. Jacobs’ youngest son, Charlie Jacobs, credits his father with passing along the core values that defined the company under LM Jacobs. Following Delaware North’s expansion into travel hospitality, Jacobs was appointed to the U.S. Travel and Tourism Advisory Board by the U.S. Department of Commerce. He is now serving his third term. Colleagues on the 15-member board have included the chairmen of Disney, Marriott, American Express and other global companies. “Thanks to my dad, my grandfather’s practices and management style are still carried through today at Delaware North. Knowing your business. Being the best operator you can be. Values that work in every era and every situation.” The eldest son, Jeremy Jacobs Jr., believes his father’s success in building the company from a few thousand employees in 1968 to 50,000 today is partly grounded in a knack for picking great people. “I think his insight into the human nature of the people who work for him is uncanny,” says Jacobs Jr. “He has an ability to get people to work passionately for him and for the business. I think that’s his greatest strength.” Having good people on board, often for decades, has allowed Jacobs to take the company well beyond anything his father imagined. During his 41-year tenure as chairman, Delaware North has diversified into travel, hotels and parks, and partnerships with major sports teams, as well as ownership and operation of an array of gaming, sports, and resort and entertainment facilities. The company has served fans and athletes at major sporting events such as the Olympics, the Commonwealth Games, Australian Open, World Series, all-star games, World Cup and Super Bowl. 6 On a more personal basis, Jacobs has continued a family tradition by investing directly in sports teams. In the 1940s, his father owned minor league teams in baseball and hockey. In 1975, Jacobs purchased one of the most valuable franchises in professional sports: the Boston Bruins. He remains the owner to this day. Ownership of the Bruins and Boston’s celebrated indoor arena for more than three decades has taken Jacobs deeply into the world of professional hockey and made him one of the most prominent sports industry figures in the world today. Besides leadership roles on the National Hockey League’s Board of Governors – including chairman of the board – he has been instrumental in evolving the sport and expanding its reach around the world. Jacobs also pioneered the private-arena finance model that has been used by major cities to build sports arenas and stadiums without municipal financing. He built Boston’s FleetCenter (now known as TD Garden) for $168 million with no public funds. Philanthropy and education rank high on Jacobs’ personal and company priorities. Delaware North and the Jacobs family together have donated millions of dollars back to the communities where the company operates. In the realm of education, Jeremy and Margaret Jacobs have donated more than $18 million to the University at Buffalo, part of the State University of New York. Their gifts have been used for scholarships and special needs, as well as the creation of the Jacobs Institute, a collaborative partnership between UB and Kaleida Health in the study of heart and vascular care, research and teaching. More than $1 million of the family’s gifts have helped fund two academic chairs and the School of Management’s MBA program in China. Jacobs has served as chairman, trustee and director of the UB Foundation, chairman of the President’s Board of Visitors and advisor to the School of Management. In 1998, he was appointed chairman of the University at Buffalo Council by New York Gov. George Pataki. An alumnus of UB’s School of Management and the Harvard School of Business Advanced Management Program, Jacobs has received honorary doctorates from UB, Canisius College and Johnson & Wales University. We’re easy to distinguish from our competitors. We’re family-owned. The next generation is in place. We have proven experience, which I consider a real plus. We are predictable and we are dependable. “I think I’ve been a good link between the first and third generations,” says Jacobs. “I’ve tried to bring in sophisticated management and technology and grow the business, while preserving our original values. I’ve been with the company more than 50 years, so my memory of the early days is something I can pass along to the next generation, including my children.” “By the way, I’ve enjoyed the hell out of myself,” continues Jacobs, with a broad grin. “Frankly, I haven’t really ‘worked’ for years because this business is such a joy to be in.” He and his wife, Margaret, have six children, 18 grandchildren and one great-grandchild. The couple’s three sons – Jerry Jr., Lou and Charlie – are principals and active in the business. 7 Jerry Jacobs Jr. Principal Jerry Jacobs Jr. is a principal of Delaware North Companies, a vantage point he shares with his two brothers, Lou and Charlie. Together the trio represents the next generation of Jacobses to play hands-on roles in the management and guidance of one of the largest family-owned businesses in the world. In his current executive role, Jacobs and his two brothers bear primary responsibility for the long-term strategic direction of Delaware North and its six operating companies. He pinpoints attractive mergers and acquisition candidates, works with financial institutions to develop and implement overall business strategy and positions the company in emerging markets. While Jacobs’ focus is Delaware North’s future, he believes in mining the company’s rich past for the lessons it offers. He credits his grandfather, Louis “LM” Jacobs, with laying a foundation that has stood the test of time. “LM was a great operator and knew his business inside out,” he says. “He also grasped the value of cultivating relationships for the long term. I think he was the first to recognize that baseball was really a brotherhood. That the team owners were a tightly knit group of people. How you treated one affected your relationship with all the others.” The focus on strong relationships, says Jacobs, distinguishes Delaware North from many of its public-company competitors. 8 “I can’t tell you how powerful it is to be able to tell a customer, ‘Call me anytime – evenings, weekends – if you have a problem,’” says Jacobs. “Most companies can’t offer that level of access. My customers know that I’m a principal in this business. I’m not going anywhere. That has special meaning in the sports community where private owners want to meet you and know you’re going to be there when they need you.” Jacobs began his career with Delaware North while he was still in high school, rotating through jobs that gave him a taste of each of the company’s areas of operation. One summer stint involved the Melody Top Theatre in Milwaukee during his sophomore year in college. Privately held companies like ours are held for reasons beyond just pure economics. They’re also held for longer periods of time than public ones, and with more commitment to disciplined practices. Private companies tend to focus more on the long term. “The theater was only set up in the summertime,” says Jacobs. “A big tent for the performance, one central concession stand and two bars. The first step was get everything out of storage and assemble the temporary buildings. I’ll never forget the look of horror on my supervisor’s face when he saw me perched on top of the concession stand, painting the roof. He figured that if I fell off, he would have to answer to my dad. So he made me come down!” Jacobs was graduated by Georgetown University in 1985 and returned to Delaware North as director of development for the company’s airport business in Dallas. “[It was] the best experience I ever had,” he says. After receiving an MBA from the Wharton School at the University of Pennsylvania, Jacobs returned to Delaware North in 1989 as vice president of development. He was named executive vice president of the company in 1991. Four years later, he took the rein of Sportservice, the company’s flagship subsidiary and its oldest business division, founded in 1915 by his grandfather and two great-uncles: Louis, Charles and Marvin Jacobs. Under his leadership, Sportservice successfully pursued new clients, venues and events. The growth continues. Sportservice’s revenue was $179 million in 1995. It has nearly tripled since then. Jacobs also cultivated Delaware North’s premium dining expertise and its retail prowess. In 2001, Jacobs was named one of the most influential in sports by Street & Smith’s SportsBusiness Journal’s Forty Under 40. He serves as alternate governor for the Boston Bruins, the hockey franchise his father has owned since 1975. Jacobs served on the Georgetown College of Arts & Sciences advisory board from 1995 to 2000. He remains an active alumnus interviewer. He also makes time for an array of civic and philanthropic activities, including fundraising and other leadership roles in the United Way. But his first loyalty is to Delaware North, “My father’s seventh child,” he says, laughing. “This company is part of the family. My dad had to fight hard to keep the business when his own father died suddenly. Delaware North means the world to him and to our family. We’ll be around for many more generations to come. Because this is so much more than just a business to us. It’s part of who we are. A pile of cash just has no appeal. We love what we do. So why would we do anything different?” 9 Lou Jacobs Principal Lou Jacobs is a principal of Delaware North Companies and a member of the company’s senior management team. “My focus is on looking at acquisitions, key investment opportunities and hopefully representing the family as a responsible and good owner,” says Jacobs. “In a nutshell, I spend my time looking at the big picture.” Only 4 years old when his grandfather – company founder Louis M. Jacobs – passed away, Jacobs’ earliest memories of Delaware North are of tagging along with his father, Jeremy Jacobs Sr., to the office on Saturdays. “My brothers, Jerry and Charlie, and I would latch on to the vending machine folks and help them refill the machines or do other little odd jobs around the building. How helpful we actually were is anybody’s guess.” Jacobs’ first summer job with the company was staffing the pari-mutuel window at the Buffalo Raceway when he was in high school. “I’ll never forget my first night,” he says. “My boss reminded me straight off that I was there to learn the business, not have fun. He was a pretty intimidating guy. Anyway, I stood behind this machine, figuring out as fast as I could what the various gaming terms meant as old hands placed rapid-fire bets. I was nervous, because if you made a mistake, you owned the ticket. I could have lost a week’s wages if I blew it. It was such an adrenaline rush! I loved that job. The summer flew by.” 10 After being graduated by Harvard in 1986, Jacobs joined the company’s gaming division. He was named vice president two years later and given responsibility for expanding Delaware North’s pari-mutuel operations. After taking a break to earn his MBA from Harvard’s business school, Jacobs returned to the family business and relocated to Sydney, Australia, in 1993 to become chairman of Delaware North (Australia) Pty Ltd, a division of the company’s international operations. The following year, he was appointed president of Delaware North Companies International. He returned to the company’s global headquarters in Buffalo in 1995, at which time he was appointed executive vice president. “In the 25 years I’ve been with the company, one of the things I’ve come to appreciate most is the self-effacing culture we have,” says Jacobs. “We’re nothing if not an organization that can laugh at itself, laugh at our mistakes and have fun with what we’re doing. I love how tenacious we are, how open we are and the way we attack problems.” An accomplished equestrian, Jacobs has competed in horse sports for more than 34 years, including two World Cup Finals as a representative of the United States Equestrian Team. He is chairman of the finance committee of the National Horse Show’s Board of Directors and a member of the organization’s board. He also is vice chairman of the Lake Placid Horse Show Board of Directors, and a member of the amateur and audit committees of the United States Hunter Jumper Association. Jacobs was named one of the young leaders in the sports industry by SportsBusiness Journal’s Forty Under 40. In keeping with family tradition, he is active in philanthropic causes as a director of The Martin House Restoration Corporation and the Roswell Park Alliance Board of Directors. He is also an alternate governor for the Boston Bruins National Hockey League franchise, the team his father has owned since 1975. Asked about the company’s future, Jacobs emphasizes his family’s commitment to the future. I don’t want to be the smartest guy in the room. I want to surround myself with incredible people who take this company forward. I want to recruit the people who will boldly say: ‘Here’s where we’re going to take this company. Climb aboard!’ “Our country is coming out of an age when great fortunes were made in flipping businesses by people who were short-term thinkers. It never occurred to us to sell Delaware North, to cash out. Why would we? This company means far more to my family than transactions or money. “My family sees its role as defining the culture, preserving the values and committing resources – including human resources – to help us grow well into the future. Our goal is to bring in the most incredibly talented people to grow this company beyond anything we thought it could be and in the process, help them have fabulous careers in which they can do extraordinary things.” 11 Charlie Jacobs Principal Charlie Jacobs is a principal of Delaware North Companies and a member of the senior leadership team that guides the company’s global operations. He oversees the Jacobs family’s business and philanthropic activities in Boston, including the Boston Bruins hockey franchise and the charitable Boston Bruins Foundation, of which he is president. He is also responsible for the TD Garden, Boston’s premier entertainment and sports arena. Home to the Boston Bruins, the arena was privately financed, a path-breaking model that many other major sports teams have since adopted. During summer breaks while attending Boston College, Jacobs worked for Delaware North in various positions, including a stint in Wisconsin lobbying for gaming legislation. After graduation, Jacobs accepted a position with the Los Angeles Kings hockey team, holding positions in the finance, marketing and sales divisions. He later joined the product and services division of TRW Systems Integration Group before becoming president and CEO of Total Media Group in San Francisco. He had responsibility for the management and operations of the company and all of its operating units and led the company through dramatic growth, including the development of three new business segments: Web development (Total Net), interactive media (Total Interactive) and broadcast design. The San Francisco-based venture gave him deep appreciation for what it takes to make a business successful. He still serves on the company’s board. 12 “I can tell you about the weekends spent at the office and the late-night phone calls about problems that needed to be fixed,” says Jacobs. “I see Delaware North through a lens that I wouldn’t have if I hadn’t worked outside and then returned.” When he returned to the family business, the opportunity to focus on the Boston Bruins franchise was tailor-made for Jacobs. An avid sports fan and enthusiast, he plays hockey in his spare time and is also an accomplished equestrian. In fact, it is Jacobs’ involvement in the sports world that earned him the title of one of the most influential leaders in sports awarded to those bright stars in the industry under 40 years of age. He received the same honor from the business community in his home city of Boston when he was named one of Boston’s 40 under 40 leaders to be watched in their fields. We are stewards of the amazing Boston Bruins legacy. Moments and experiences transcend time, passing from one generation of fans to the next. The same holds true for Delaware North. When a company has been around for 95 years, has been built from the ground up and has touched so many people, you feel an immense amount of pride, but also a monumental responsibility to ensure its success for generations to come. “When my grandfather started the business more than 90 years ago, we were by and large a concession business,” says Jacobs. “But as opportunities presented themselves, he broadened the scope of the company. Watching his sports-team customers run their businesses, he started purchasing sports franchises as well, including the Buffalo Bisons hockey team and later, the Cincinnati Royals. I am proud to be playing a role in carrying on the family tradition. The sports industry is so dynamic and exciting. I wouldn’t trade it for anything.” Although Jacobs never had a chance to meet his grandfather, Louis M. Jacobs, a well-known sports leader of his time, he says he is touched anytime he meets someone who knew the company founder. Jacobs’ philanthropic interests are immense and include the Boston Bruins Foundation, an organization he helped create. The foundation supports charitable organizations that enhance the quality of life of children in the community. Since its inception in July 2003, it has raised millions of dollars and benefitted thousands of youth and area organizations. In 2010, the foundation sponsored its first team in the famous Boston Marathon. “The fact that people still remember and speak fondly of my grandfather reinforces in my mind the value of being a family-run business, where heritage and continuity between generations mean something.” Jacobs also appreciates the blend of enthusiasm and opportunism that drove much of Delaware North’s growth during his grandfather’s and father’s time at the helm. In addition to his roles at Delaware North, Jacobs serves the Boston Bruins as an alternate governor on the National Hockey League’s Board of Governors, a position he has held since 2000. He is also a member of the board of directors of the New England Sports Network (NESN) and New England Sports Museum. Jacobs and his wife, Kim, also support numerous other charitable endeavors throughout New England, including the Dana-Farber Cancer Institute, Boston’s Children’s Hospital, March of Dimes, Bridge Over Troubled Waters and the Cardinal Cushing School. 13 Financial Overview Among the qualities for which Delaware North is most respected is its financial stability. Despite a weak global economy, the company again met its financial objectives and finished 2009 with more than $2 billion in revenue. With 200 locations in seven market sectors that are served by 50,000 associates around the world, Delaware North is one of the largest privately held companies in existence. Delaware North was able to take advantage of a buyer’s market and its own financial standing to acquire four hotels in North America and five prestigious, one-of-a-kind resorts in Australia, giving the company a lodging foothold there. In addition, it was able to make the necessary financial commitments to win important new business at the New Meadowlands Stadium and to rebid and win the contract for the operation of Kennedy Space Center Visitor Complex for NASA. With signs of economic improvement dawning, Delaware North has its objectives clearly in focus: Concentrate on steady growth while maintaining shareholder-return thresholds; Manage the balance sheet to investmentgrade standards; Expand owned assets in core businesses; and Continue to be opportunistic. 2.1 Billion $ Annual revenue 207 Forbes rank 200 Locations 14 Revenue by Operating Company 50,000 Associates 300 Retail locations 500 Million Guests served Gaming & Entertainment 31% Sportservice 23% Parks & Resorts 16% Travel Hospitality Services 11% International 11% Boston Bruins 4% TD Garden 3% Other <1% Vision A global leader in hospitality and food service. To become the preferred provider of products and services that foresee and satisfy the needs of customers, balancing the highest level of satisfaction consistent with maximizing returns to stakeholders. Mission Creating special experiences one guest at a time.® 15 Delaware North Companies Sportservice 1915 As the dark clouds of economic recession continued into 2009, Delaware North Companies Sportservice was well-prepared and positioned to face the challenges. Under the leadership of President Rick Abramson, Sportservice was undeterred in continuing to expand its client base, adding some major new accounts and increasing the scope of several others. Sportservice was also ahead of the game in anticipating customers would be looking to stretch their dollars in 2009. Working with its Major League Baseball clients, the company introduced bundled value meals at all of its ballparks and $1 concession items at select locations. Fans responded by gobbling up the special deals, helping Sportservice clients provide another reason for families to make the ballpark their destination of choice for entertainment. “The Jacobs family invented the concessions business and guided the company through the Great Depression and other challenging economic times,” Abramson said. “Sportservice will continue to innovate and always find ways to succeed.” Although 2009 was not a banner year for Sportservice’s Major League Baseball clients – only two made the playoffs – it was certainly a memorable season for the St. Louis Cardinals, one of the company’s oldest clients. The team hosted the 2009 All-Star Game in July. It was also a huge and successful undertaking for Sportservice, which not only handled its normal food, beverage and retail services at Busch Stadium, but also at many locations outside the 16 stadium. Sportservice realized more than $5.1 million in sales for the three days, its largest-ever single event in terms of revenue. Add to that the fact that for the first time in the history of the game, the stadium food service provider (i.e., Sportservice) was awarded the right to cater the galas leading up to the big night. Earlier in the year, the Columbus Blue Jackets made their first-ever NHL playoff appearance, and Sportservice was there to provide Nationwide Arena fans with great food and merchandise to mark the occasion. But the brightest spot for Sportservice once again was at Delaware North’s own TD Garden in Boston. On the heels of the Celtics’ 2008 world championship campaign and playoff appearance by the Bruins, each team posted an impressive regular season in 2008-09 – the Bruins led the Eastern Conference – and followed with two exciting playoff series. The story was exciting in 2010 as well. The Bruins came from behind to defeat the Buffalo Sabres in the Eastern Region quarterfinals, while the Celtics again met the Los Angeles Lakers in the championship round. The year also saw Sportservice gear up to begin major food, beverage and retail operations at three new venues – two in New York/New Jersey and one in Minnesota – and the company also landed another major client and venue in early 2010. And as the new year dawned, Sportservice was working with Food Network on new premium menu concepts for its Major League ballparks and other venues. 17 New York, New York Sportservice has a larger presence in the NFL – and in the Big Apple – now that it operates food and beverage concessions, premium dining, catering and retail services for the New York Giants and Jets. Sportservice was selected through a competitive bidding process conducted by the New Meadowlands Stadium Co., the joint venture formed to develop the one-of-a-kind, world-class venue. Located next to the old stadium in New Jersey, the $1.7 billion New Meadowlands Stadium seats 82,000 fans, including 17,000 indoor seats in clubs and 218 suites. It features more than 800 points of sale, and a catered tailgating area outside the stadium serves fans arriving via commuter rail. Sportservice’s executive and sous chefs at New Meadowlands Stadium are being assisted by Great Performances, the acclaimed New York caterer with which Delaware North partners to operate the historic Grand Ballroom of The Plaza in Manhattan. In addition, celebrity guest chefs are being featured in the exclusive Commissioner’s Club, which offers luxury dining in either a private or communal setting. Meanwhile, the flagship retail store, at more than 9,000 square feet, is setting a new standard in the NFL. 18 Fans of the New York Giants and New York Jets, as well as attendees of concerts and year-round special events, are experiencing contemporary takes on traditional favorites and the region’s unique twists on specialties from across the globe. Sportservice developed the “Home Food Advantage” concessions theme for New Meadowlands Stadium that features the best New York and northern New Jersey fare. Sportservice culinary officials and chefs spent a year visiting restaurants and tasting the fare of the most popular street vendors to create the menus. Bullish on New Jersey…and Arizona… and North Carolina Although a contract for the New Meadowlands Stadium would appear to be enough for one year, there’s much more going on for the oldest name in sports hospitality. Sportservice’s presence in the New York-New Jersey area grew even larger in 2010 with a contract to operate food, beverage and retail services at the new Red Bull Arena. The soccer-specific venue has been built to serve as the home of Red Bull New York, the Major League Soccer (MLS) team formerly known as the MetroStars before being purchased by Austrian energy drink producer Red Bull. The new arena in Harrison, N.J., seats 25,000 fans under a European-style roof that leaves the field open. Sportservice has been spreading out in other regions as well. In early 2009, the company opened Camelback Ranch, the impressive new Glendale, Ariz., spring training home of the Los Angeles Dodgers and Chicago White Sox. These are just a few of the regional favorites that Sportservice has worked with the Minnesota Twins to feature at the new ballpark. Making the food and beverage experience there something fans can savor is job one. Sportservice is providing all concessions, premium dining, catering and retail services at the 10,000-seat ballpark, which includes 12 private suites and an all-inclusive premium seating area behind home plate. The ballpark set a Cactus League attendance record in spring 2009. “The menu roster that Sportservice has put together for Target Field will grant Twins fans a locally diverse sampling of some of the best food the Twin Cities has to offer,” said Dave St. Peter, Twins president. In February 2010, the Carolina Panthers chose Sportservice to take over food, beverage and retail operations at Bank of America Stadium in Charlotte. The team had been handling the services on its own. The Panthers represent Sportservice’s seventh National Football League client. Taste of Twins Territory Walleye fingers. Pork chops on a stick. A signature steak sandwich inspired by one from Murray’s, a legendary Minneapolis steak house. Traditional bratwurst, Polish and Hungarian sausage made fresh daily by Kramarczuk’s, a family-owned operation only a mile from Target Field. Sportservice spent 2009 ramping up its new operation in Minneapolis-St. Paul in preparation for the 2010 inaugural season at Target Field. The company is handling all concessions, catering, premium dining and retail for the 40,000-seat ballpark. Widening the retail trail With new retail contracts in place for the New York Giants and New York Jets, the Carolina Panthers and the New York Red Bulls, it’s safe to say Sportservice’s retail business is growing at a rapid pace. In addition, the Minnesota Twins, Buffalo Bills and Columbus Blue Jackets came on board two years ago. 19 It was the first time MLB selected the All-Star Game venue concessionaire to cater its gala and pregame party. Meanwhile, Sportservice’s new stores and Ballpark Village kiosks helped achieve second-highest retail sales ever for the Midsummer Classic. To top it off, Sportservice hosted a pregame reception that drew many clients and MLB team executives, as well as Baseball Hall of Fame members Harmon Killebrew and Ferguson Jenkins. Sportservice is continuing to remake existing retail stores and open new ones for its clients. Perhaps there’s no better example than its effort in St. Louis in 2009. Sportservice unveiled a new TOUCH by Alyssa Milano boutique store at Busch Stadium and Cardinals Team Store presented by Nike at nearby Ballpark Village in time for the 2009 MLB All-Star Game. An all-star performance in St. Louis The 2009 MLB All-Star Game was the largestever Sportservice operation. The company fed 150,000 people and sold merchandise to likely just as many fans over the four-day event in St. Louis. By all accounts, it was also one of Sportservice’s shining moments. Sportservice received praise from many quarters for its ability to offer St. Louis favorites such as pulled pork in sweet St. Louis-style barbeque sauce, and toasted ravioli in both concessions and premium areas. Chefs and culinary managers from across the company pitched in at Busch Stadium and at the temporary operation Sportservice erected in Ballpark Village to cater MLB’s two big parties, each of which drew more than 4,000 guests. 20 The place to party The Delaware North-restored Grand Ballroom of the historic Plaza hotel in New York City is fast regaining its decades-old reputation as the place for important social events. The singular Grand Ballroom, operated through a partnership between Sportservice and New York caterer Great Performances, was selected by NBC to host the reception for “Today Throws a Wedding.” Seen by millions, the live show in July 2009 afforded one lucky couple a fantasy wedding and reception within the gilded splendor of the landmark ballroom that was restored by the partnership. Also on the show, CPS Events unveiled a new signature drink, the Pomona. Then in October, the Grand Ballroom further demonstrated it is a world-renowned venue for premier weddings as the magazine Martha Stewart Weddings celebrated its 15th anniversary. More than 900 guests attended, and CPS Events brought in celebrity chef Masaharu Morimoto of “Iron Chef America” fame to add to the culinary splendor. In November, multifaceted celebrity Sean John Combs, better known as Diddy, celebrated his 40th birthday with a lavish gathering. U2’s Bono, and Jimmy Fallon and Martha Stewart helped the record producer, rapper, actor, fashion designer and dancer get the party rockin’. Family values Sportservice and its Major League Baseball clients received plenty of positive press for bringing family-friendly pricing to ballparks for the 2009 season. In addition to regional media such as the Milwaukee Journal Sentinel and Cincinnati Business Courier, ESPN the Magazine credited Sportservice’s efforts and quoted Abramson: “A family can come to the ballpark and enjoy the experience on a fixed budget.” Another family-friendly effort of Sportservice was expanding menu choices at several Major League ballparks hosting home openers on Good Friday, on which Roman Catholics are to abstain from eating meat. For example, in San Diego, Padres fans enjoyed whole roasted fish, shrimp burritos, fruit cups, salads, clam chowder and fish ‘n chips. Highlights Sportservice adds another marquee account with the New Meadowlands Stadium in New Jersey, which opened in 2010 as the home of the NFL New York Giants and New York Jets. Sportservice operates all food service, catering and retail at the state-of-the-art venue, which also hosts top college football games, concerts and many other events. Sportservice and the Minnesota Twins open Target Field, the team’s new ballpark. Sportservice handles all concessions, premium dining, catering and retail, and features a number of Minnesota favorites on its menus. Not far from the New Meadowlands Stadium, Sportservice begins operating at the new Red Bull Arena in Harrison, N.J., in 2010. The 25,000-seat, soccer-specific venue is home to Major League Soccer’s Red Bull New York team. Sportservice adds a seventh National Football League client in early 2010 when the Carolina Panthers organization foregoes a competitive bidding process and asks Sportservice to take over the food, beverage and retail operations that the team has been operating at Bank of America Stadium. Tapping its deep culinary and operational talent from across the country, Sportservice handles all food, beverage and retail services inside and around Busch Stadium in St. Louis for the 2009 MLB All-Star Game, including catering two parties that draw 4,000 guests each. 21 22 Delaware North Companies Gaming & Entertainment 1939 Delaware North Companies Gaming & Entertainment enjoyed a year of growth in 2009 as its popular regional gaming and entertainment destinations outperformed many gaming venues in the hard-hit international gaming industry. Delaware North’s gaming properties were well positioned for success, thanks to several years of major renovations and expansions. These included the new $30 million Daytona Beach Kennel Club & Poker Room, which opened in mid-2008, and Wheeling Island Hotel•Casino•Racetrack, which two years ago added table games to become a full casino resort destination. Southland Park Gaming & Racing continued to grow its Arkansas and Memphis-area audience for gaming, adding a new steakhouse and simulcast center, the finishing touches on its two-yearold, $40 million expansion. Southland Park also bolstered its offerings of electronic poker and blackjack, while adding 300 new gaming machines with popular themes. Delaware North’s video lottery terminal (VLT) operations in New York state posted revenue gains in 2009 as well, further solidifying themselves as regional gaming and entertainment destinations. Finger Lakes Gaming & Racetrack completed the first phase of a multiyear renovation and expansion project, and Hamburg Casino at the Fairgrounds broke ground late in the year on a new gaming and hospitality building. Similarly, Wheeling Island and Daytona Beach gained recognition as popular, top-flight regional casino and poker venues, respectively. Wheeling Island did so in the midst of increased competition in nearby Pennsylvania, differentiating itself with entertainment and outstanding restaurants to complement its hotel, gaming and racing offerings. The Delaware North Companies Gaming Hospitality Group added a major contract in 2009 with the $300 million Choctaw Casino Resort, which opened in February 2010 in Durant, Okla. Delaware North is operating a wide variety of restaurants as the casino’s food and beverage partner. Wheeling’s Moon a poker star They’ve only been playing poker at Wheeling Island since December 2007, yet already one of its patrons has made it to the top of the poker world. Darvin Moon, who qualified at a Wheeling Island tournament, finished second and picked up a cool $5.2 million at the 2009 World Series of Poker in Las Vegas. Moon wore a Wheeling Island shirt during the tournament “out of respect,” he said, turning down lucrative endorsement deals with poker websites. Moon, who owns and operates a small logging company in Maryland, began playing poker only a few years ago and honed his skills at Wheeling Island. 23 An exciting first year In just a year, the new Daytona Beach property landed on the international poker map. Since moving to the new facility and opening a 50-table poker room with a Las Vegas feel, it has furthered its reputation as a gaming leader in central Florida. For example, the room’s $181,500 in revenue for a single week in January 2009 broke a venue record, thanks largely to World Series of Poker events, other qualifying tournaments and hefty jackpots. Daytona Beach was also designated as a World Series of Poker satellite location, drawing professional poker star and actress Tiffany Michelle, known as Hot Chips to poker insiders, for one of the tournaments in April 2009. Nothing but the best Casino Player named Wheeling Island best casino as part of its 2009 Best of Gaming awards. The Delaware North-owned and -operated gaming destination received seven other first-place gaming awards from the publication, including best hometown slots, best reel slots, best video poker, best cash back, best promotions, best service and luckiest casino. Casino Player is one of the most well-known and respected gaming trade publications. 24 Let us entertain you Part of Wheeling Island’s successful positioning has been as a complete entertainment destination, with regular big-name concerts leading the way. For example, the Temptations appeared in April 2009, while Styx & REO Speedwagon headlined a concert on Independence Day weekend. The summer also saw concerts featuring country star Dwight Yoakam and 1970s rock legend Peter Frampton. A fine vintage in New York wine country Finger Lakes Gaming & Racetrack celebrated its fifth year of video gaming operations in February 2009, offering guests a weekend of special promotions and entertainment, plus a dinner with VIP players. Like the vineyards in the Finger Lakes region, the venue continues to grow in popularity as a destination for Rochester-area residents and tourists alike. Delaware North has responded with exterior aesthetic and venue-access enhancements and interior hospitality-area renovations. And even the racetrack portion of Finger Lakes, already busy three seasons of the year with the only thoroughbred racing in the state west of Saratoga, has become a year-round venue. The International Series of Champions (ISOC) AMSOIL Championship Snocross Series began an annual tour stop at Finger Lakes, drawing large crowds to the inaugural event in February 2009 and again in February 2010 to see the fast-paced action. We showed the way In early 2009, Delaware North completed its five-year management engagement and facilitated a smooth transition for Saratoga Harness Racing, the parent company of Saratoga Gaming and Raceway, to assume operational management of its own facility. Delaware North guided Saratoga through major expansion projects in 2004, when Saratoga became the first racetrack video gaming facility in the state of New York, and again in 2007, when it added more gaming, hospitality and entertainment amenities. “We are very proud of what we have accomplished by working closely with Saratoga Harness Racing every step of the way,” said William Bissett, president of Delaware North Companies Gaming & Entertainment. “We demonstrated how to collaborate with the ownership and operator of the racing side to run an effective entertainment destination.” “Southland’s transformation from a sleepy greyhound racing venue into a multipurpose entertainment facility has helped it thrive at a time when other gaming-based operations are struggling,” the Memphis Commercial Appeal wrote in January 2009. Getting the word out that Southland Park now offers gaming and great entertainment in addition to racing was a key part of that success. It continued to reach the Memphis audience with its creative – and some might say provocative – advertising campaign. The “Be Lucky That Way” billboard campaign was a finalist for Best Outdoor Advertising Campaign in 2008 at the Voice Awards in Las Vegas. Southland Park worked with Memphis-based advertising firm CS2 on the campaign. The campaign used humor and 1950s-era characters to promote the venue’s gaming offerings, including electronic poker and blackjack. The two companies are still working together on potential new gaming venues and to build Gideon Putnam Resort’s reputation as the premier historic hotel and spa in New York’s capital region. Southland Park gets busy…and lucky By all accounts, competitors’ casinos in Tunica, Miss., were losing patrons amid 2009’s challenging economy. But only an hour away in West Memphis, Ark., Delaware North’s Southland Park Gaming & Racing was bucking the trend to the point of seeing its business increase. Southland Park successfully expanded its customer base in Arkansas and the Memphis area by continuing to enhance itself as a nightout destination, adding a new steakhouse and simulcast center that are the crowning touches on a multiyear, multimillion-dollar expansion. 25 Breaking ground at the fair Delaware North began work in late 2009 on a new home for Hamburg Casino at the Fairgrounds at the Erie County Fairgrounds in Hamburg, N.Y., just outside of Buffalo, N.Y. The $25 million casino building replaces the current gaming area below the Buffalo Raceway grandstand. The new building connects to the International Agri-Center building, which regularly hosts trade shows. In addition, the venue is more accessible and visible to the public, especially during the two-week Erie County Fair that draws nearly 1 million visitors each August. While the project did not add to the current 950 gaming machines, the 66,000-squarefoot casino provides a more comfortable and efficient gaming floor and larger and more diverse hospitality amenities, including a 260-seat buffet and 135-seat bar and lounge that hosts local entertainment acts. 26 Big Oklahoma debut for the Gaming Hospitality Group After months of planning, developing an impressive lineup of restaurants and putting together a 270-person food and beverage staff, the Delaware North Companies Gaming Hospitality Group got its moment in the spotlight as the Choctaw Casino Resort kicked off a six-day opening celebration in early February 2010. The brand-new $300 million casino opened its doors to large crowds that quickly discovered the tremendous culinary experience that Delaware North is providing as the casino’s food and beverage partner. Delaware North is managing and operating the casino’s wide variety of restaurant concepts, including the sophisticated 1832 Steakhouse; Tomatillo’s and its Mexican fare; the Blue Moon Café; and the Las Vegas-style Butterfield’s Buffet. Highlights Delaware North gaming and racing venues continue to increase their appeal as regional entertainment destinations in part by leveraging the company’s significant investments in recent years to expand gaming and hospitality amenities. Additional projects at Finger Lakes Gaming & Racetrack and Hamburg Casino at the Fairgrounds are in the works to continue to position the venues in the Western New York gaming and entertainment markets. A 150-seat food court offers four specialty concepts: Americo’s, Dixon’s Grill, the Durant Station Deli and the famous, award-winning Salt Lick Bar-B-Que of Austin, Texas, with which Delaware North has partnered in airport locations. Delaware North is also managing onsite catering and banquet operations for the casino’s conference and meeting areas. Two Delaware North gaming venues put the company on the poker map. Both the new Daytona Beach Kennel Club & Poker Room and Wheeling Island Hotel•Casino•Racetrack regularly host World Series of Poker qualifiers, with Wheeling Island producing the secondplace finisher in the 2009 championship in Las Vegas. Delaware North’s Gaming Hospitality Group develops and begins managing and operating restaurants at the new Choctaw Casino Resort in Durant, Okla. The ongoing Choctaw partnership represents a major account for the Gaming Hospitality Group. The new casino includes a 330-room, four-star hotel, spa and fitness center, 38 table games, a 30-table poker room and 3,000 slot machines. Located just 90 minutes north of Dallas, it is owned by the Choctaw Nation of Oklahoma. 27 28 Delaware North Companies Travel Hospitality Services 1941 Despite its more than 60 years in the business, Delaware North Companies Travel Hospitality Services reinvested in its brand in a major way in 2009. The results, quite frankly, have been astounding. Under the leadership of operating company President Matt King and a new business development team, Delaware North announced a wave of strategic alliances with high-profile national brands such as Food Network, Travel Channel, The Coffee Bean & Tea Leaf and Which Wich. It also began working with Iron Chef Masaharu Morimoto on a new airport dining concept. Some of these new partnerships are providing Delaware North with added appeal in seeking new and expanded airport contracts. Others have already resulted in completed or soonto-be-developed new locations, including Sports Illustrated, Heineken, The Coffee Bean & Tea Leaf, Moe’s Southwest Grill and Pink’s Hot Dogs. Pink’s, a second location of the well-known Hollywood gourmet hot dog restaurant, is just one of a number of new concepts Delaware North is adding or has added over the last year that fits the company’s innovative Gateway ConceptSM. Delaware North works to select appropriate local, regional and national brands that enable airports to reflect their communities and serve as economic engines for the region. With a strategy centered on meeting the demands of a new generation of travelers who seek fresh, fast and healthy dining options, Delaware North Companies Travel Hospitality Services is well-positioned to increase its market share as one of the nation’s leading airport food service and retail companies. With a little help from our friends Delaware North Companies Travel Hospitality Services announced in October 2009 that it is teaming up with celebrity chef Masaharu Morimoto to develop new fast-casual airport restaurants at several larger airports across the country. The new restaurant concept, Skewers, will feature yakitori-style meals – skewered meats with vegetables grilled or fried and served with rice bowls. Yakitori is popular as street and bar food in Japan, but is little known in the United States. Soups and salads will also be on the menu, which is intended to offer fare that is convenient, tasty and healthy. “The restaurant will provide travelers with a unique Asian dining experience and connect them with Morimoto’s fabulous interpretation of Japanese cuisine,” said Matt King, president of Delaware North Companies Travel Hospitality Services. In addition to working with Morimoto, one of Food Network’s most well-known iron chefs, Delaware North is collaborating with the popular cable television station on several new airport dining concepts. 29 Here comes more sun Delaware North has been making a splash in Florida. Since mid-2009, the company has added new national restaurant concepts to Fort Lauderdale-Hollywood International Airport, not to mention a handful of regional brands that are garnering attention as well. Delaware North recently opened an airport outlet of Sushi Maki, the acclaimed South Florida sushi and seafood restaurant that has three other locations in the region. Sushi Maki was voted one of the top 50 sushi restaurants in the United States by the Wall Street Journal and is a preferred sushi caterer for a number of South Florida luxury hotels. It joins a stellar lineup of other regional favorites like Pasha’s, a popular Mediterranean restaurant; Chef Allen’s 2 Go, kiosks that offer Chef Allen Susser’s signature Caribbean and Latin American-influenced dishes; and Casa de Fresco, known for healthy fare such as chicken mojito sandwiches, and its signature “floribbean” tuna, salads and wraps. Turning over a new leaf Delaware North struck an exclusive partnership deal with The Coffee Bean & Tea Leaf in 2009. In addition to opening new shops in Ontario International Airport in California and Phoenix Sky Harbor Airport, Delaware North unveiled two more shops in October 2009 at Detroit Metropolitan Wayne County Airport. 30 The Coffee Bean & Tea Leaf, a privately owned chain of specialty coffee and tea stores based in Southern California, is now Delaware North’s preferred coffee concept. The concept is known for its signature coffees, teas and Ice Blended® drinks. Channeling all travelers Few things are more important to travelers than great experiences…and great hospitality while enjoying those experiences. So, imagine combining Delaware North’s world-class hospitality with Travel Channel’s dedication to exploring extraordinary travel experiences. Delaware North did, and the result will be a unique retail experience for millions of travelers. In 2009, the company announced an exclusive partnership with Travel Channel to develop retail stores in airports throughout the United States. Travel Channel stores will entertain shoppers with the prominent display of Travel Channel’s extensive library of media content, travel-related products and merchandise for fans of the channel’s popular television shows. But when the airport’s music program was suddenly jeopardized by the pullout of a major sponsor, Delaware North stepped in to plug the funding gap. The airport’s main venues for live music are Delaware North-operated Ray Benson’s Roadhouse, Lefty’s Bar & Grille, Earl Campbell’s Sports Bar and Waterloo Records/ Austin City Limits. Give me Heineken In December 2008, Delaware North opened in Newark Liberty International Airport its first Heineken Lounge. The airport now boasts one of the best airport bars in the country, according to ForbesTraveler.com. Delaware North leveraged the international brand to create a premium, welcoming experience for the millions of travelers who stream through the airport each year. The moodily lit, nightclub-quality bar is outfitted with white-leather couches and features, naturally, the Netherlands’ favorite beer on tap. In addition, travelers can enjoy other libations, premium snacks and light tapas-style meals. Delaware North keeps the music alive in Austin Austin-Bergstrom International Airport has become well-known for the live music it has featured for more than a decade, with area bands of all genres entertaining travelers and celebrating the city’s rich musical heritage. Since it was introduced in 1999, the airport’s music program has grown from two to 11 shows per week. In addition, when the airport celebrated its 10th birthday in 2009, Delaware North provided free birthday cake, live music and discounted concessions for all ticketed guests. And the airport and Delaware North will continue making beautiful music together for some time to come. In December 2009, the airport gave the company contract extensions for both food and beverage, and retail operations, as well as four additional locations. We can handle it At Newark Liberty International Airport, Delaware North’s performance in transitioning one airport concept helped the company win the right to develop another in an unused airport space. The airport awarded Delaware North the opportunity to operate an A&W Root Beer stand after the company completed the successful turnover of a Seattle’s Best coffee concept to a Jake’s Coffeehouse. The company’s efforts impressed the airport and helped earn the additional opportunity. 31 Doing fine in Oklahoma Another airport. More great concepts from Delaware North. The company in 2009 added two new restaurants in Will Rogers World Airport in Oklahoma City: Moe’s Southwest Grill and The Salt Lick Bar-B-Que. The fun and engaging Moe’s Southwest Grill is a fast-casual concept serving a wide variety of fresh, made-to-order Southwest fare. The Oklahoma location is Delaware North’s first Moe’s, but promises not to be its last. The Salt Lick is a Southern barbecue restaurant that originated in Texas. Delaware North opened its first Salt Lick in 2007 in Austin-Bergstrom International Airport. Man, are these guys busy! Delaware North’s busy year of putting fresh new concepts in airports included Memphis and Richmond, Va. Memphis City Blues, a relaxing new wine bar featuring a large selection of wines, spirits and gourmet food, opened in Memphis International Airport. Delaware North also introduced the Samuel Adams Brewhouse in Richmond International Airport. Dropping anchor in Buffalo Travelers shuffling off to and from Buffalo are now enjoying a much-expanded array of restaurant choices in Buffalo Niagara International Airport, thanks to the completion in 2009 of most of Delaware North’s $7.5 million renovation and expansion project. The new offerings include the Labatt Blue Zone and a food court featuring such concepts as Villa Italian Kitchen, Freshens, Checkers and the Anchor Bar, a tourist destination that has bragging rights as the birthplace of Buffalo chicken wings. Delaware North also opened an Everything ASAP travel convenience store and the new Lake Erie Pub, a presecurity lounge featuring a variety of light fare. 32 Through an exclusive partnership, Delaware North brought one additional new concept, the innovative new sandwich chain Which Wich, to the airport in spring 2010. Checkmate In yet another example of how Delaware North Companies Travel Hospitality Services has forged exciting new partnerships, the company opened its first Checkers restaurants in Western New York. Two locations of the casual-dining restaurant, known for its outstanding burgers, fries and milkshakes, were opened on the New York State Thruway and another in Buffalo Niagara International Airport. Take a bow, Delaware North Airports Council International (ACI) announced the top-performing airports in the Airport Service Quality (ASQ) survey in early 2009. Airports at which Delaware North operates that were honored are: AustinBergstrom International Airport, Detroit Metropolitan Wayne County Airport, Dallas/ Fort Worth International Airport and Denver International Airport. Airport Revenue News (ARN) tapped a number of airports in which Delaware North operates as winners of 2009 Best Airport Concessions Awards: Newark Liberty International Airport, Phoenix Sky Harbor International Airport, Dallas/Fort Worth International Airport, Nashville International Airport and Minneapolis-St. Paul International Airport. For the first time ever, ARN polled frequent travelers about their favorite airports. The Minneapolis airport was recognized for having the best retail offerings. Delaware North operates a number of retail stores in the airport, including proprietary concepts Everything ASAP and Gadgets 2 Go. Los Angeles International Airport’s Encounter Restaurant, operated by Delaware North, was recognized as one of the best airport restaurants in the country, according to popular culinary magazine Food & Wine. Encounter Restaurant is well-known for its space-age décor and 360-degree views. Meanwhile, Travel + Leisure put two Delaware North restaurants – Encounter and The Salt Lick Bar-B-Que – on its list of the nine best airport eateries in the world. Highlights Delaware North strikes up strategic partnerships with a number of exciting national and international brands such as Food Network, Travel Channel, The Coffee Bean & Tea Leaf, and Which Wich. Many of them position the company as the exclusive airport operator. Delaware North announces in October 2009 that it is teaming up with celebrity chef Masaharu Morimoto to develop new fast-casual airport restaurants at several larger airports across the country. The new restaurant concept, Skewers, will feature yakitori-style meals – skewered meats with vegetables grilled or fried and served with rice bowls. The company completes the development of more than 25 new restaurants and shops in airports around the country, including many first-ever concepts such as the Heineken Lounge in Newark and the Sports Illustrated Store in Detroit. Along with the great national brands, Delaware North expands its pioneering Gateway ConceptSM with new restaurants and stores reflecting regional culture and heritage. Examples include Pink’s Hot Dogs in LAX and the Anchor Bar in Buffalo Niagara International Airport. 33 Delaware North Companies International 1960 Delaware North Companies International ended a decade of incredible growth with a big splash in August 2009 when it announced the acquisition of five prestigious luxury resorts in Australia, the company’s first foray into lodging outside of North America. The resorts, acquired from the GPT Group, are located in some of Australia’s most beautiful locations. In particular is Lizard Island, which is on Travel + Leisure magazine’s list of the world’s best hotels and on Conde Nast’s list of the 100 best places to stay in the world. “Delaware North has an amazing history of operating in special places,” said Jonathan Tribe, managing director of Delaware North Companies International. “Visitors to our resorts will find themselves in special places that only Australia can offer – from the Kimberley to the Red Centre and the Great Barrier Reef.” Delaware North’s expansion continued in late 2009 when it entered the United Kingdom’s travel hospitality sector with contracts at three major airports – Heathrow, Gatwick and Edinburgh – and one railway station. 34 That came on the heels of an expansion of its U.K. sports venue portfolio, adding Derby County Football Club’s Pride Park Stadium in 2008 to Wembley Stadium and Emirates Stadium. Wembley Stadium, meanwhile, upheld its reputation as one of the premier sports and entertainment venues in the world with a series of high-profile concerts. Back in Australia, the company and its associates at Melbourne Park set a new standard for performing under extraordinary circumstances by handling near-record attendance for a tennis Grand Slam event on several days while dealing with extreme heat at the 2009 Australian Open. Delaware North’s excellence for the annual concert series was also acknowledged in late 2009 when it was named by the National Restaurant Caterers Association as National Venue Caterer of the Year for its delivery of hospitality and catering at a record 17 Pink concerts. Delaware North also expanded its interests in the education sector in Australia with a new contract at Curtin University, Western Australia. In addition, the company in 2008 and 2009 completed a round of new openings at many of its travel hospitality services locations, including the new food court in Melbourne International Airport. 35 Looking ahead, Delaware North Companies International is exploring additional opportunities in the travel hospitality, sports venue and other key company sectors in countries in which it currently operates, as well as in new markets in Europe and Asia. Delaware North was able to penetrate the highly competitive market by developing concepts that meet the branding needs of clients, especially tailoring concepts to promote the character of specific travel sites and the changing tastes of consumers. Planes, trains and hospitality Delaware North entered the U.K. travel hospitality sector in 2009 in a big way, debuting concepts in three major airports and a railway station. Bigger and bigger down under Even by Delaware North standards, the Australian Open Grand Slam of the Asia Pacific has become a massive hospitality and catering undertaking. Caffé Cucina opened in June 2009 in London’s Euston Railway Station, while En Toast opened in July in Gatwick Airport. A third concept – The Dining Street Restaurant – opened in Heathrow Airport in October. Delaware North opened a restaurant, and an ice cream and crepe bar in Scotland’s Edinburgh Airport in early 2010. 36 Temperate weather and exceptional tennis and food helped the Australian Open set an attendance record in January 2010 when 653,860 people came through the gates. The previous record, set in 2008, was 50,000 less. The 2010 tournament twice posted the world’s highest-ever Grand Slam combined day/night attendance, with 77,043 fans attending Jan. 23, 11,000 more than the previous record. With 2009 attendance also topping 600,000, the event has drawn more than one-half million guests for 10 consecutive years. The 2010 challenge for Delaware North’s staff was the reconfigured grounds at both of the venues that host the tournament. The main public area was shifted to a massive oval area, allowing Delaware North to feature a new culinary offering: Flavours of the Grand Slams, with menu items inspired by Wimbledon, New York City, Paris and Melbourne. In 2009, the challenge was the extreme weather conditions, with temperatures regularly rising above 100˚F and reaching a high of 111˚F (44˚C). Yet, Delaware North managers and associates were able to “keep cool” and provide exceptional customer service in the company’s GuestPath® tradition. Developing communities through partnership All Australians and many international friends were deeply affected by the ferocity of the bushfires (wildfires) that swept across Victoria in February 2009. Delaware North associates quickly raised $70,000 (AUD) and hosted a bushfire benefit at Melbourne Park for the brave men and women who were on the front line. Together with its suppliers, the company donated $25,000 (AUD) in food, 150 volunteer hours and 175 staff hours to ensure the benefit was a fitting success. At Etihad Stadium, Delaware North worked with its client at the NAB Cup Bushfire Appeal, where close to $1 million (AUD) was raised. But have you played Wembley Stadium? The summer concert season at Wembley Stadium featured an amazing lineup of artists – including AC/DC, Take That and Oasis – with one-half million people attending eight concerts in three weeks in June and July. During this period, more than 2,000 Delaware North associates worked each event day. In August, U2 set a Wembley Stadium concert attendance record when 88,000 people attended one of the Irish rock legend’s two shows. Food for thought Delaware North in 2009 began operating four dining locations at Curtin University in Western Australia, expanding the company’s operations in the education sector. Located in the Perth suburb of Bentley, Curtin University was established in 1966 and is now the largest provider of higher education in Western Australia. In 2009, there were more than 30,000 enrolled students with approximately 1,500 students in residence and a staff of 2,500. 37 We “wok” on less water Australia is the driest continent in the world. It has suffered from extended drought conditions, with many regions having been in the midst of a drought for five years. Responsible use of water is therefore considered to be one of the highest priorities, with water restrictions in place in many parts of the country. So, Delaware North recently introduced waterless woks at its Billie Chu outlets in Melbourne and Adelaide airports. Each wok reduces water use by 70 percent, resulting in savings of more than 1,300 gallons (5,000 liters) a day. Each wok installed will save 370,000 gallons (1.4 million liters) of water every year. Spreading healthier foods Delaware North’s Culinary Wellbeing™ program is spreading out so its patrons’ waistlines might not. In Australia, the program has been introduced at Etihad Stadium, Melbourne Park, The Terrace in the Royal Botanic Gardens, Albert by the Lake function center and Curtin University. In the United Kingdom, it is now featured at Wembley Stadium and Emirates Stadium in London. Introduced in 2008, Culinary Wellbeing™ is a Delaware North corporate program that focuses on lighter and healthier food options that offer reduced levels of fat, salt and sugar, while improving fiber and whole-grain content. Delaware North strives to use fresh, local ingredients and organic products for these dishes. 38 Branching out in Sydney In late 2008, Delaware North opened its first outlets in Sydney International Airport, which is undergoing a major expansion and renovation. The company already has an existing operation in the Sydney Domestic Airport. Among the new outlets Delaware North brought to the airport are Hungry Jack’s (the Australian Burger King franchise) and an Oporto’s franchise. Delaware North has relationships with both brands. Oporto’s chicken and chicken burgers have a unique, Portuguese-influenced flavor. Its restaurants offer a fun, irreverent and highquality fresh-cooked dining experience. Oporto’s uses fresh ingredients, as emphasized by its key marketing statement: “Fresh–Not Frozen, Grilled–Not Fried.” Delaware North also has an agreement to assist with the entry of Oporto’s into the U.K. market. We take pride in our catering Delaware North began providing hospitality and food services at its third stadium in the United Kingdom when it took over operations at Pride Park Stadium, home of the Derby County Football Club, in July 2008. As part of the agreement, Delaware North manages the sales and marketing for nonevent-day conferencing and banqueting at the venue. A zeal for big parties Thanks to Delaware North, in just two years since its opening, Vector Arena in Auckland has become the go-to venue for New Zealand’s biggest banquets. Delaware North hosted the New Zealand Property Council Awards, a formal, sit-down dinner for 970 guests. Despite the awards dinner having been staged at many high-profile venues over the years, the dinner at Vector Arena was proclaimed the best ever by the council’s leadership. But that record didn’t last long. The venue then hosted the Halberg Awards, a dinner and awards ceremony honoring the nation’s best athletes. More than 1,000 people attended the prestigious event, held in February 2009. Highlights The company takes its lodging and hospitality expertise beyond the shores of North America with the purchase of five Australian resorts. Delaware North enters the United Kingdom travel hospitality sector with contracts for three airports and one railway station. A record 653,860 people attend the 2010 Australian Open at Melbourne Park in January, with Delaware North rising to the challenge and rolling out new food and beverage offerings. A year earlier, Delaware North associates successfully overcome extreme heat to serve patrons of the Grand Slam event. Delaware North expands its interests in the education sector in Australia with a new contract at Curtin University, Western Australia. Derby County Football Club’s Pride Park Stadium now features the food service, hospitality, and sales and marketing expertise of Delaware North. 39 Delaware North Companies Boston 1975 Championship-caliber teams. Passionate players. Superior fan entertainment. These are just some of the reasons why Boston continually ranks in The Sporting News’ top spots for best sports cities in America and was chosen by the National Hockey League to host its third annual Bridgestone NHL Winter Classic. Arguably no other city can compare to Boston’s sporting prowess in recent years, and at the epicenter of New England’s success has been TD Garden, the region’s premier sports and entertainment arena. Owned and operated by Delaware North Companies Boston, TD Garden is home to the legendary Boston Bruins and Boston Celtics franchises and the new Boston Blazers National Lacrosse League team. It has a diverse sports schedule that includes top collegiate hockey conferences, nationally recognized events such as NCAA tournaments and hundreds of annual concerts, family shows and special events. Through an unparalleled commitment to delivering memorable live events, Delaware North’s management team in Boston has built its own championship squad off the ice and court, stocked with all-star players and a focus on the fan experience. This strong reputation, coupled with the organization’s dedication and the commitment of the Jacobs family, paid off richly when the announcement came that the 2010 Bridgestone NHL Winter Classic would be coming to Boston’s legendary Fenway Park. 40 For more than a year, Delaware North Chairman and Chief Executive Officer Jeremy M. Jacobs and his son Charlie, a Delaware North principal, worked to have the Boston Bruins host the outdoor game, which has become one of North America’s favorite sporting events. Their persistence paid off when 40,000 fans bundled up on New Year’s Day and packed the historic baseball stadium to cheer the Bruins to a victory against the Philadelphia Flyers. Taking a classic to new heights On July 15, 2009, a warm summer day at Fenway Park, NHL Commissioner Gary Bettman announced that Boston had been selected to host the 2010 Bridgestone NHL Winter Classic on New Year’s Day. Fenway Park would serve as the outdoor venue for the battle between longtime rivals the Boston Bruins and Philadelphia Flyers. The dream became reality several months later when the Bruins faced off against the Flyers in what was only the third regular-season outdoor NHL game ever to be played in the United States. The stands were packed. Indeed, the Bridgestone NHL Winter Classic ticket has become one of the most sought-after in sports. During ceremonies prior to the thrilling contest that was won by the Bruins 2-1 in overtime, the Jacobs family was honored for its dedication in bringing the banner event to Boston. 41 Perhaps the biggest of the three Winter Classics, the weekend included not only the New Year’s Day game, but also free skating sessions, team practices, Winter Classic parties and the Bruins Legends Classic game that pitted Bruins and NHL greats against each other for a friendly competition Jan. 2. The game raised more than $500,000 for charity. Stellar season The Boston Bruins, owned by Jeremy Jacobs since 1975, excited the team’s faithful fan base all year, posting one of the best regular seasons in team history during the 2008-09 campaign. With an Eastern Conference-leading 53-19-10 record, the Black and Gold were dominant on both ends of the ice. The team ranked first in the National Hockey League in defense with a stingy 196 goals allowed, and ranked as the league’s second-best offense (274 goals), a dramatic turnaround from the number-25 ranking the previous season. Since his hiring in May 2006, General Manager Peter Chiarelli has brought a combination of youth and experience to the Boston locker room through shrewd free-agent signings, trades and player development within the Bruins system. In recognition of his re-engineering the Bruins into one of the league’s most competitive teams, Chiarelli was honored by The Sporting News as the 2008-09 NHL executive of the year by a poll of his peers, and earned a contract extension that will keep him at the team’s helm for several years to come. 42 The Bruins’ tremendous regular-season showing was also worthy of several prestigious individual honors. Claude Julien became the third coach in team history (Don Cherry, 1976; Pat Burns, 1998) to be selected as the winner of the NHL’s Jack Adams Award, which is awarded “to the head coach who has contributed the most to his team’s success.” Bruins goaltender Tim Thomas was named the winner of the Vezina Trophy, which is awarded “to the goalkeeper adjudged to be the best at his position.” Additionally, All-Star Zdeno Chara joined Ray Bourque (five-time winner) and Bobby Orr (eight-time winner) as only the third Bruins defenseman to be awarded the Norris Trophy, which is given “to the defense player who demonstrates throughout the season the greatest all-round ability in the position.” And 2009 Jennings Trophy recipients Tim Thomas and Manny Fernandez were recognized for letting fewer than the average number of goals in their net. Off the ice, the Bruins were equally committed to giving back to the greater Boston community. Under the leadership of Charlie Jacobs, the foundation distributed more than $320,000 in grants to 30 different children’s charities throughout New England, and was involved in a myriad of other outreach initiatives. Another banner year For the Boston Celtics and their fans, 20082009 was a season to celebrate and bask in the glow of championship glory. In just two short years, General Manager Danny Ainge and Head Coach Doc Rivers have led one of the most dramatic franchise turnarounds in NBA history. Following a series of stunning trades that added all-stars Kevin Garnett and Ray Allen to a team that already included star Paul Pierce, the Celtics promptly lived up to their promise by winning the NBA Championship. Even more, the Celtics have demonstrated their staying power. On Oct. 28, 2008, one of the greatest collections of championship banners in an arena gained a 17th as the 2008 banner was ceremoniously hoisted to the Garden’s hallowed rafters in a dramatic celebration that included many Celtics legends from years past. Despite an injury-riddled 2008-09 season, the Celtics reloaded with the additions of stars Rasheed Wallace and Marquis Daniels. Their veteran-laden roster helped take the team to the 2010 NBA Finals and has the Celtics once again poised as title contenders for the next few years. Garden party The Garden was nominated as a finalist for SportsBusiness Journal’s coveted Arena of the Year award, and not just because of the improved play of its two primary tenants. For starters, the Garden added a third sports tenant with the launch of the Boston Blazers franchise. The newest entry to the National Lacrosse League has been no stranger to New England lacrosse fans. The Blazers previously served as the moniker of the Major Indoor Lacrosse League team that played in Worcester in the early 1990s and the old Garden and FleetCenter until 1997. But it was Delaware North’s ability to attract the highest-quality entertainment and its commitment to the fan experience that have garnered the lion’s share of the praise in the venue industry. Despite the sluggish national economy, the Garden posted double-digit increases in both concerts and family show bookings, generating more than 20-percent revenue growth. Night after night, the arena has been cast in the spotlight as it hosted nationally televised events, including the NCAA Men’s Basketball Eastern Regional Finals, in addition to Bruins and Celtics sporting events. The arena’s concert schedule was buoyed by visits from some of the music industry’s top acts. Featured artists included veteran performers such as Madonna, The Who, Metallica, AC/DC, Tina Turner, Bruce Springsteen and the Eagles. Premium fan experience Based on feedback from focus groups and in-depth client surveys, the Delaware North team has succeeded in continually launching new products based on clients’ hospitality and entertainment needs. In response to the evolving needs of business clientele, the Garden’s Premium Club was the first to integrate a model with amenities beyond the four walls of the arena into its premiumseating membership. In addition, TD Garden is now leading the way in the types of products made available to premium clientele, including capturing trends such as all-inclusive food, smaller ticketing packages and flexible seating. The final phase of the venue’s three-year strategic plan for recreating the Premium Club portfolio included a $4 million renovation project. Among the new Premium Club additions generated this past year was The Lofts. As the name suggests, the concept includes a loft-inspired design that features a trendy lounge décor in a twotier space overlooking the arena. This all-inclusive experience comes complete with a small, plated five-course menu, game tickets and parking. Other new premium spaces include a lounge and raw bar (Insight Club Lounge), corporate event suite (The Executive View), reinvented and relocated Banners restaurant (Banners Harbor View) and an enhanced function room (The Partners Room). 43 “Over the past three years, our multimillion-dollar investments and improvements in the building have been a balanced approach to addressing business, technical and service improvements for all of our equally deserving constituents,” said John Wentzell, president of TD Garden and Delaware North Companies Boston. “Hospitality and entertainment needs are consistently evolving, and we are looking to provide a wide variety of corporate-focused products and amenities to meet them.” Corporate synergies Continued collaboration with Delaware North subsidiary Sportservice has also resulted in further integration of a new point-of-sale operation, faster credit card processing and Concessions Express kiosks for self-orders. 44 In addition, Garden executives have embraced Delaware North’s leadership in the sustainability and environmental areas of the company’s business. The green agenda has been broad and ambitious for the Garden’s entire operation in recent years as the venue began a feasibility study for energy conservation. A subsequently signed contract with an expert consultant has reduced the arena’s electricity usage by nearly 20 percent. Delaware North Companies Boston was also responsible for carrying these green efforts into the North Station, the major mass transit terminal that underlies the arena. Other programs implemented at the Garden include the collection of food waste for composting, a “green” concession stand and the use of sustainable local food products at restaurants in the arena. Lighting it up While the venue continues to lead the way in many respects for the industry, it also has been lighting the way for Boston fans. An exterior lighting project with a specialty energy-saving LED platform was installed to illuminate the Garden at night. The new design provides a 60-percent decrease in kilowatt consumption over the previous equipment. The project brings an exciting new live lighting element to the venue’s exterior with an assortment of lighting capabilities to signify the events that are happening within the building. When the Boston Bruins are playing at home, the building now basks in a gold glow; for the Boston Celtics, a leprechaun green; the Boston Blazers, a fiery red; concerts shimmer in a rainbow of tie-dye; and special events radiate a blue hue. To celebrate a home-team win, the building has the ability to do the “wave” through a special lighting effect, signifying the victory within the city skyline. With a name change to TD Garden, new vibrant entertaining spaces, the Bruins and Celtics returning to the form of their glory days and more big-name musical acts lining up to take the Garden stage, Delaware North Companies Boston is uniquely poised to generate even more celebratory waves and memorable live experiences for New England sports and entertainment fans for many years to come. Highlights After Boston is selected in July 2009 to host the 2010 Bridgestone/NHL Winter Classic on New Year’s Day, the outdoor game more than lives up to the hype as the Boston Bruins defeat the Philadelphia Flyers 2-1 in overtime. The Jacobs family is credited with bringing the highly popular sporting event to Boston and with expanding it into a weeklong series of public events. Proving a bear market is a good thing, the Boston Bruins post one of the best seasons in team history during the 2008-09 campaign. The team sees its share of postseason play in 2010 as well. Boston Celtics General Manager Danny Ainge and Head Coach Doc Rivers lead one of the most dramatic turnarounds in NBA history. On the heels of a championship in 2008, the Celtics advance easily to postseason play in 2009 and 2010. The Garden is a finalist for SportsBusiness Journal’s coveted Arena of the Year award. Adding a new tenant (the Boston Blazers), double-digit increases in concerts and family shows, and a 20-percent increase in revenue are just some of the reasons it is the center of the sports world’s attention. 45 46 Delaware North Companies Parks & Resorts 1992 Leave it to Delaware North to be well-positioned and holding its own in the destination-travel sector even at a time when the economy is prompting many people to stay put. Independent lodging industry research firm Smith Travel Research reported that in 2009, revenue per available room (RevPAR) was down 17 percent nationally, with the average room rate dipping 8.8 percent. Meanwhile, Delaware North Companies Parks & Resorts’ rate for its lodging portfolio was up 3 percent in 2009 and RevPAR was flat. “I think it’s noteworthy to be able to hold rate and RevPAR in this tough economy,” said Jan Freitag, Smith Travel’s vice president of global development, during a recent joint conference call with leading travel and lodging trade media. “Not relying on group business is such a positive in this environment, as is having the types of locations that are singular and distinctive.” Indeed, the company’s management approach has put it in a better position to weather the recession. “We’re succeeding because of our strategy to focus on providing Stewardship and Hospitality in Special PlacesSM, and our ability to do it well,” said Kevin Kelly, president of Delaware North Companies Parks & Resorts. “We want to operate in places that people look to for extraordinary experiences – historic locations and places of incredible natural beauty. But being selective about the right locations is only the beginning. We have created and implemented integrated management systems that are crucial to our success, and we are also leveraging Delaware North’s overall strength and stability,” he said. Since late 2008, Delaware North has acquired four lodging properties near national parks and won a bid to operate The Queen Mary, the historic ocean liner permanently docked in Long Beach, Calif. Delaware North also continued to be recognized for its effectiveness in managing and operating Kennedy Space Center Visitor Complex in Florida and all lodging, food service and visitor recreational services in Yosemite National Park. Tapped to continue the mission Most recently, Delaware North’s commitment to stewardship in special places and its operational excellence were recognized when NASA awarded the company a new 10-year contract to operate Kennedy Space Center Visitor Complex in Florida. The new agreement, which began May 1, 2010, has a 10-year base period with one five-year option and five one-year options. Delaware North came out on top in a competitive bid process that began in 2009. “We’re elated and honored,” Kelly said. “Over the last several years, we have worked closely with NASA to tell the story of space exploration to millions of guests from around the world through new experiences. We look forward to building on our platform and continuing the journey with NASA to showcase space exploration’s past, present and future.” 47 Adding special places Delaware North continued to expand its portfolio of owned and managed properties in May 2009 with the purchase of the Holiday Inn West Yellowstone, a 123-room, full-service hotel located less than a mile from an entrance to Yellowstone National Park. It is the fourth hotel Delaware North has acquired since 2001, marking another “special place” where the company offers its distinctive brand of hospitality to travelers. 48 Delaware North has operated Kennedy Space Center Visitor Complex – the public component of the Kennedy Space Center launch facility – for NASA since 1995. During the past 15 years, the company has worked with NASA to implement extensive educational programs, including designing and building major new attractions such as the Apollo/Saturn V Center, a tribute to NASA’s lunar landing program; and Shuttle Launch Experience, which simulates what astronauts experience while launching into space aboard a space shuttle. The Holiday Inn West Yellowstone caught the company’s eye because of its position as the market leader in the area and its location at the gateway to the oldest and one of the most beloved of America’s national parks. Built in 1994, the inn offers guests a 175-seat restaurant; a 125-seat lounge; 10,000 square feet of function space; and an indoor pool, hot tub, dry sauna, fitness room and other amenities. A family favorite for 75 years Yosemite’s Badger Pass Ski Area celebrated its 75th anniversary during the 2009-2010 ski season. Appropriately so, during summer 2009, Delaware North Companies Parks & Resorts completed construction projects that have enhanced accessibility and enjoyment of the Sierra’s first ski resort. The new lift construction included all-new towers, drive terminal, return terminal machine house, operator house and chairs. The project added yet another dimension to Delaware North’s Stewardship and Hospitality in Special PlacesSM credo, as it worked with the U.S. National Park Service on another project to safeguard the national treasure that is Yosemite National Park. In late December 2008, the company expanded its lodging offerings for visitors to the fabled Yosemite National Park with the acquisition of the 53-unit Apple Tree Inn. The inn is adjacent to the Delaware North-owned and -operated Tenaya Lodge, just south of Yosemite in Fish Camp, Calif., and has been incorporated into that operation. In 2010, the company closed on two additional hotel properties in West Yellowstone: Gray Wolf Inn & Suites and The Yellowstone Park Hotel. Delaware North immediately launched a softgoods renovation of the inn and began welcoming guests in spring 2009. The acquisition came as Delaware North continued work to expand Tenaya Lodge’s conference and spa facilities for the 2010 season. The main ballroom is growing to 10,000 square feet and three new 700-squarefoot breakout spaces are being added. A new 8,000-square-foot spa with numerous treatment rooms is being built as well. Tenaya also opened a new restaurant, Embers, in 2009. Long live the queen In fall 2009, Delaware North began managing the storied Queen Mary, the grand ocean liner that is now permanently docked in Long Beach, Calif. A New York state of mind When Delaware North gets a hold of a special place, things start happening to make it as special as possible. It’s called stewardship, and that’s why New York state brought in Delaware North to operate the historic Gideon Putnam Resort, including the Roosevelt Baths & Spa, in Saratoga Spa State Park. In early 2009, Delaware North completed $1.8 million in renovations, part of a planned 20-year, $18 million investment program that includes improvements to the hotel’s guest accommodations, lobby, corridors and dining Launched Sept. 26, 1934, The Queen Mary enjoys a rich history that continues to grow with the addition of new management from Delaware North Companies Parks & Resorts. Over the next five years, The Queen Mary management team plans to continue restoring the Long Beach icon. It will also focus on enhancing The Queen Mary’s powerful draw as an attraction by hosting events such as the annual Halloween Terrorfest, SHIPWRECK!, honoring its elegant traditions such as fine dining at Sir Winston’s and building its reputation as a popular conference venue and hotel. Delaware North has already begun bringing back the ship’s luster by undertaking renovation of its primary restaurant, Sir Winston’s, and its meeting spaces. 49 room, as well as the famous mineral baths and spa. Constructed in the 1930s, Gideon Putnam is one of the Historic Hotels of America as designated by the National Trust for Historic Preservation. Kudos for Kennedy The accolades for the Delaware North-operated Kennedy Space Center Visitor Complex came in regularly. Here is a sampling: As part of the project, in spring 2009 the renovated Putnam’s restaurant opened with menus featuring locally grown foods and produce, and regional beers and wines. MSNBC.com: “Launch or not, they won’t be bored – not when they can see IMAX movies, including one narrated by Tom Hanks, or ‘blast off’ during the Shuttle Launch Experience to get a sense of what it feels like for shuttle astronauts as they are blasted into space at 17,500 miles per hour or get a view of Earth as the payload doors open.” Smooth operator Lodging Hospitality, a major trade publication of the lodging industry, named Delaware North one of the top management companies in regard to properties owned, managed and operated. The report noted Delaware North currently oversees more than 3,800 rooms at properties the company either owns or manages for others. ShermansTravel.com named The Ahwahnee in Yosemite National Park the best national park lodge. The Ahwahnee is one of numerous properties Delaware North operates in Yosemite National Park. USA Today travel correspondent and esteemed travel writer Peter Greenberg profiled Yosemite, giving readers a personalized tour and providing insider tips. In the column, Greenberg credited The Ahwahnee as one of the great places to stay in any national park and also praised the Wawona Hotel and its interesting menus. Helping visitors take it all in A significant part of Delaware North’s mission of stewardship of the special places at which the company operates is interpreting them so that visitors can enjoy the most memorable experiences possible. To add to the many ways in which Delaware North does this for the millions who visit Yosemite National Park each year, the company launched a new integrated campaign focused on helping people explore Yosemite. Through the “Take It All In” campaign, park visitors are urged to step outside their vehicles and use Global Positioning System (GPS) technology to actively engage in biking, hiking and sightseeing. 50 From a blog: “I spent the day at Kennedy Space Center Visitor Complex and enjoyed every minute of it. I took the NASA Up Close tour and was able to get close to launch pads. I even saw the pad where they are preparing for the next launch. Everything was explained well by the staff and the IMAX show was amazing.” Grapes, not gripes, at this lodge The Lodge at Geneva-on-the-Lake celebrated its fifth anniversary in early 2009, providing an opportunity to note the steadily increasing occupancy that Delaware North has fostered. In the face of a global travel slump that saw the Cleveland market down 11 percent in hotel occupancy through April 2008, the lodge posted a nearly 3-percent increase. Delaware North has done this by providing exceptional customer service, carving out a niche as a go-to spot for fine dining and Cleveland-area staycations, and employing innovative marketing approaches. An example is the lodge’s successful Grape Camp for families, which started in summer 2008. It proved so successful, it was expanded and rolled out again for summer 2009. Along with providing guests with tours of local wineries, the resort staff led grape-related activities for children, including a vineyard scavenger hunt and learning about the region’s grape industry around the campfire. Highlights Delaware North Companies Parks & Resorts weathers the storm of economic recession and outperforms the lodging industry as a whole, thanks to its strategy of operating in must-see special places and the integrated management systems that have equipped it to do so very well. After a competitive bidding process, NASA taps Delaware North Companies Park & Resorts for a new 10-year contract, with options for another 10 years, to continue operating Kennedy Space Center Visitor Complex. Delaware North has been credited with transforming the complex into a popular, exciting and educational destination. Delaware North acquires four lodging properties to add to its operations near Yosemite and Yellowstone national parks and also adds a new management contract to operate the historic Queen Mary in Long Beach, Calif. Continuing the company’s strong tradition of stewardship, Delaware North completes the first phase of a 20-year, multimillion-dollar rehabilitation and restoration of Gideon Putnam Resort, including the Roosevelt Baths & Spa, in Saratoga, N.Y. 51 10 Memorable Moments 1930 – Sportservice, the company that 1915 – America proves to today has contracts at dozens of professional sporting venues on three continents, inks its first deal with a major league team – the Detroit Tigers – in 1930. The relationship is the longest in Delaware North’s history. be the land of opportunity for three immigrant brothers named Marvin, Charles and Louis Jacobs. After several years of shining shoes, selling newspapers and providing programs and candy to theatergoers, they establish a food service company that will someday be Delaware North, one of the largest and longeststanding private enterprises in America. 1992 – Delaware North decides to venture into the hospitality arena in a big way by pursuing the granddaddy of all U.S. national park contracts: Yosemite. The winning bid is the impetus for the creation of Delaware North Companies Parks & Resorts, as well as GreenPath®, the company’s award-winning environmental management system. 1968 – What was started by young men is now in the hands of another. Upon the untimely death of his father, Louis M. Jacobs, Jeremy M. Jacobs assumes Delaware North’s top spot. Although only 28, he leads the company through unprecedented growth on a global scale. 52 1975 – Jeremy Jacobs’ interest in operating concessions for the Boston Garden is nothing if not serendipitous. He takes advantage of an opportunity to purchase the Boston Bruins and the legendary arena where the storied franchise hangs its skates. 1941 1939 – Delaware North begins operating concessions at racetracks, eventually moving into venue ownership. This diversification strategy effectively sows the seeds of today’s Delaware North Companies Gaming & Entertainment. – When U.S. President Franklin D. Roosevelt inaugurates Washington’s National Airport, Delaware North is there as a concessionaire. The event not only is a milestone for the novel mode of transportation known as air travel, it gives Delaware North a new line of business: the modernday Delaware North Companies Travel Hospitality Services. 1960 – Delaware North sets its sights on new territory by establishing its first operation outside North America. The burgeoning operating company is at home today in Australia, New Zealand, England and Scotland. Today – Delaware North approaches a century of operation with a clear idea of its mission: creating special experiences one guest at a time®. 2001 – Delaware North becomes a hotel owner for the first time with the purchase of Tenaya Lodge, a four-diamond resort at the gateway to Yosemite National Park. Based on a successful track record at Tenaya, the company purchases 10 more hotels during the next decade and earns a reputation as one of the largest and best hotel operators in the industry. 53 GuestPath ® When Delaware North developed GuestPath®, its data-driven continuous improvement process, it had one thing in mind: providing exceptional experiences to its 500 million customers around the world. Having just celebrated its fifth year as part of Delaware North’s core competencies, GuestPath® has been implemented companywide. More importantly, it has become part of the fabric of Delaware North’s being. To celebrate GuestPath®’s fifth anniversary, Delaware North declared 2009 the Year of the Guest and went on the road to tape GuestPath® in action. The result is a library of online videos that shows what it takes to create special experiences, not to mention how paying attention to guests can strengthen an operation. Even clients were happy to make cameo appearances on GuestPath® TV. Across the lines Delaware North’s internal motto is: One company. One brand. One vision. Perhaps nowhere is this played out more completely than in the area of customer service. Indeed, one of the strengths of the GuestPath® team is its ability to cross operating company lines. Because business partners are responsible for regions rather than subsidiaries, each business partner can easily cover for another. The structure works so well, Delaware North is beginning to apply it to other areas of the company. 54 If they’re happy, they will spend GuestPath®’s ability to improve guests’ experiences is undisputed. But it wasn’t until Delaware North decided to examine the relationship between satisfaction and spending that an additional advantage of GuestPath® came to light. Using the company-owned resort Tenaya Lodge and Yosemite National Park’s The Ahwahnee as case studies, Delaware North set out with a hunch: Happy guests spend more. To determine if the notion had validity, the GuestPath® team went to work. The first task was to comb through GuestPath® data revealing the satisfaction levels of former guests. Second, the guests’ folios were pulled so that discretionary spending (i.e., purchases other than the nightly room charge) could be charted. In the end, the data showed a positive relationship between good experiences and guests’ discretionary spending while at the resorts. Furthermore, the study revealed the amount of discretionary spending for things like food, spa treatments and retail items increased as a guest’s satisfaction increased, thus suggesting a correlation between the two. Just ask Can a service strategy drive business? Associates at Cleveland’s Progressive Field believe that it can, especially after testing the theory in May 2009. The Delaware North team first documented sales of combo meals. Then it added a simple greeting (“Welcome to Progressive Field. Would you like to try a combo meal?”) and counted up the sale of combo meals again. The results showed a 73-percent increase in daily sales after the new greeting was put in place. Nowhere to hide Since its founding five years ago, GuestPath® has been embraced by Delaware North associates at all levels of the organization. Recognition of the system, however, is now extending beyond Delaware North’s 50,000 employees. It has been instrumental in the company’s winning new business at places such as Target Field and the New Meadowlands Stadium, as well as the reason Delaware North officials have been invited to speak at industry conferences. GuestPath® even managed to help Delaware North Companies Travel Hospitality Services broaden its reach in Newark Liberty International Airport. When airport officials needed an operator to tend to an ailing coffee concept and later, to fill an empty spot, Delaware North got the nod. The reason? GuestPath® has made a measurable difference in the busy New Jersey air terminal. Walking the GuestPath® Senior managers responsible for leading Delaware North’s Australian and U.K. operations were enlightened, if not humbled, when they donned uniforms and spent the day as frontline associates. The exercise – called Walking the GuestPath® – is a worthwhile and lighthearted tradition at Delaware North. Executives learn firsthand what it takes to create special experiences for guests while taking orders, flipping burgers and stocking refrigerators. 55 Culinary Despite more than 90 years in the food business, Delaware North continues to find ways to keep its culinary expertise at the forefront of the industry. 2009 was noteworthy. It began as Delaware North was still basking in the success of its first journey to the International Culinary Olympics, and was soon followed by a showstopping operation at the MLB All-Star Game, award-winning performances from individual chefs and a renewed commitment to having the best chefs in the world. They came back with hardware Delaware North left the 2008 International Culinary Olympics with three medals and two diplomas, thanks to the efforts of the chefs who competed under the company’s banner. They are: Tab Daulton, executive chef at Hamburg Casino at the Fairgrounds in Hamburg, N.Y.; Kevin Doherty, a regional executive chef for Sportservice and executive chef at TD Garden in Boston; Scott Green, executive chef at HSBC Arena in Buffalo, N.Y.; and Ambarish Lulay, executive chef at PETCO Park in San Diego. The chefs were coached by Roland Henin, Delaware North’s corporate chef and chief culinary ambassador. Henin, one of only 60 or so American Culinary Federation-certified master chefs in the United States, is a highly regarded culinarian with significant coaching experience at the international level. He led the American national team to a gold medal in the 1992 Culinary World Cup, and was the coach of Team USA at the Bocuse d’Or event in Lyon, France, in January 2009. 56 The Olympics not only demonstrated Delaware North’s ability to hold its own with some of the best culinarians in the world, it has been the impetus for a number of the company’s chefs to pursue high-level competitions as a way of honing their skills. Through its Culinary and Hospitality Council, Delaware North supports these endeavors philosophically and with resources. More than medals The road to the Olympics is just one in a series of efforts Delaware North undertook several years ago to demonstrate its expertise in every manner of food service. The company established the sports concessions industry nearly a century ago, and is now making its mark on high-end cuisine. “The fact is, we have incredible culinary talent,” Jerry Jacobs Jr. said. “And we’re determined to tell that story to our clients and guests.” Delaware North operates The Ahwahnee, arguably the most luxurious and fabled hotel in the U.S. National Park Service. In addition, two of the company’s airport restaurants – The Salt Lick Bar-B-Que in Austin-Bergstrom International Airport and Encounter Restaurant at Los Angeles International Airport – were named two of the nine best airport eateries in the world by Travel + Leisure. All-stars off the field Delaware North handled all of the culinary needs of MLB’s annual All-Star Game in July 2009, including the pregame catering. Chefs were intent on using their skills not only to provide delectable cuisine, but to put host city St. Louis in the international spotlight. They took great pains to use local ingredients and present menu items that are favorites of the Gateway to the West. Championship chefs Delaware North encourages participation in culinary competitions and more than ever, chefs are taking advantage of the opportunities to test their mettle. From Yosemite to Boston to London and many places in between, Delaware North culinarians took home top prizes from regional and national contests. Staying close to home As further evidence of its commitment to organic and sustainable cuisine, CPS Events at The Plaza, a partnership between Delaware North and Manhattan-based Great Performances, hosted a 100-Mile Menu dinner for a select crowd of New York City insiders. Serving a menu composed solely of ingredients sourced from within a 100mile radius of the city, CPS Events indulged more than 250 invited guests with a “country chic” buffet dinner featuring locally grown or sourced food, wines and spirits. Not resting on its laurels International competitions, grand-scale events and awards notwithstanding, Delaware North keeps a watchful eye on a number of initiatives it began several years ago. They include: The Culinary and Hospitality Council that was formed in 2003. It is a group that meets every other month to examine issues such as recruitment, retention, training and standards. Mandatory American Culinary Federation certification of all Delaware North chefs within three years of joining the company. Delaware North pays for the training and the exam, and makes it possible for chefs to have time away from their jobs in order to prepare for and take the exam. The continuation of culinary scholarships in the name of Delaware North at the Culinary Institute of America and at Johnson & Wales University. The Delaware North Food & Beverage Summit, a weeklong developmental and team-building experience designed to give company chefs and front-of-the-house staff much-needed time away from their operations for the sake of meeting colleagues, learning about trends and discussing challenges. 57 Retail The secret of Delaware North’s retail expertise and experience is apparently out. At least that’s the conclusion to be drawn from the impressive list of brand names that have placed their trust in Delaware North to manage their most important retail locations or to introduce their retail brands to the marketplace. Both longtime sports journalism leader Sports Illustrated and the Travel Channel, the only television network devoted exclusively to travel entertainment, enlisted Delaware North Companies Travel Hospitality Services to help them take their well-known media brands to the retail sector. Shortly before 2009, Delaware North opened the first-ever Sports Illustrated store in Detroit Metropolitan Wayne County Airport. Shortly thereafter, it was announced that Delaware North won the exclusive right to develop and operate Travel Channel stores in airports nationwide. Then there is the growing list of major sports franchises that has turned to Delaware North Companies Sportservice to operate team-branded retail stores – both at sports venues and in additional locations such as shopping malls. Since summer 2008, Sportservice has taken over retail operations for the Buffalo Bills, Columbus Blue Jackets, Minnesota Twins and Carolina Panthers. Add to those new business at Red Bull Arena and at New Meadowlands Stadium for the NFL’s Giants and Jets, and it’s fair to say Delaware North’s retail program is on a roll. Sportservice already handles retail operations for the Boston Bruins, Chicago Bears, St. Louis Cardinals and a dozen other franchises. Taking up space A major company effort in 2009 involved preparing a proposal that would convince America’s space agency, NASA, that Delaware North should continue operating Kennedy Space Center Visitor Complex for the next 10-20 years. Included in the bid was a plan for the sales and marketing of the largest collection of space memorabilia in the world, a definite jewel in 58 Delaware North’s retail crown. As 2010 dawned, the company received word that NASA indeed wanted it to build on the success it has enjoyed at the property since it was awarded its first contract in 1995. The right stuff The ways people pack for trips and shop at airports have changed significantly since the terrorist attacks of Sept. 11, 2001, and they continue to evolve as travelers look for value and convenience. Recognizing this, Delaware North Companies Travel Hospitality Services developed an innovative proprietary brand of airport convenience stores called Everything ASAP. The stores have opened in the Detroit, Minneapolis and Buffalo airports. USA Today highlighted the stores and their focus on providing customers with value and convenience by offering full-size toiletries, cosmetics and overthe-counter medications in addition to snacks and souvenirs. The story noted that customers, many of whom want to skip an extra trip to a convenience store on the drive from the airport, are no longer willing to pay premium prices for small quantities of these items. Pushing Pepsi The thousands of retail coolers and shelves that Delaware North Companies oversees at its various operations now feature the broad spectrum of beloved brand-name beverages and foods of PepsiCo. That’s thanks to a seven-year, $95 million national agreement the companies signed in January 2009. It’s the first time in its nearly 100-year history that Delaware North Companies has joined forces with PepsiCo, coming in as one of the soft-drink giant’s top-five accounts. The decision, which came after a lengthy review process, was made in part because of PepsiCo’s outstanding social responsibility platform. Among PepsiCo’s brands are: Pepsi, Diet Pepsi, Mountain Dew and other carbonated drinks; Gatorade sports drink; Tropicana juices; Aquafina water; Frito-Lay snacks such as Lay’s and Doritos; and Quaker breakfast and snack products. A retail all-star If you were a fan attending the 2009 Major League Baseball All-Star Game and associated events in St. Louis in 2009, chances are you stopped by a Delaware North Companies Sportservice-operated retail location. That’s because Sportservice was all over the place. It opened new stores inside Busch Stadium, including a popular TOUCH by Alyssa Milano boutique store, as well as one outside in nearby Ballpark Village: The Cardinals Team Store presented by Nike. Sportservice also set up retail kiosks around the perimeter of the stadium and several Majestic brand tents. The result was sales of MLB, All-Star Game and Cardinals apparel and merchandise that are believed to have set a record for the event. It was also the latest example of Sportservice being adept at setting up a large retail operation for a special event. It handled a similarly successful retail operation at Ralph Wilson Stadium in Buffalo, N.Y., for the first National Hockey League Winter Classic in 2008. That’s our bag, man As those familiar with Delaware North’s successful GreenPath® environmental management system know, initiatives that help preserve the environment can be beneficial in many different ways. So, it should come as no surprise that the reusable shopping bags that first appeared in Delaware North Companies Parks & Resorts locations quickly became a popular item for guests to add on to their purchases, reducing paper-bag costs and enhancing direct branding efforts, in addition to helping the environment. At the company’s Grand Canyon retail stores, for example, one of every six customers was purchasing a bag last spring. The attractive bags, which feature the GreenPath® and other appropriate Delaware North or client logos, are being rolled out at Delaware North’s airport and sports venue retail locations. 59 Brands Delaware North has long understood that forming relationships with powerful brands is an effective way of earning consumers’ trust, not to mention strengthening its own reputation in the global marketplace. What the company is also discovering increasingly is that brands are seeking out Delaware North as well in an attempt to associate with a global leader in hospitality and food service and its many high-profile locations. At last count, there are more than 300 brands in Delaware North’s food and retail categories alone. PepsiCo, Nike, Applebee’s and Sports Illustrated are just a handful of the names Delaware North brings to the table. Pepsi is it For the first time in its history, Delaware North announced in January 2009 that it was joining forces with PepsiCo to quench the thirst of many of its one-half billion annual guests. Dennis Szefel, Delaware North’s former chief administrative officer, made the announcement, lauding the maker of Pepsi and a host of other beverages and packaged snacks for its corporate values and the quality of the bid it made to fill Delaware North’s sizeable soft-drink needs. The seven-year, $95 million deal with PepsiCo covers Delaware North’s U.S. operations. PepsiCo worked hard to beat out Coca-Cola, for which Delaware North was the second-oldest fountain-drink client. Delaware North’s business represents one of PepsiCo’s five largest accounts. 60 That’s what we call ironclad When it came time to develop a new idea for an airport restaurant, Delaware North Companies Travel Hospitality Services had an idea: Team up with Masaharu Morimoto, a celebrity restaurateur and iron chef known the world over. The new restaurant concept, Skewers, features yakitori-style meals of skewered meat with vegetables, grilled or fried, and served with rice. “Everyone knows I love a challenge,” Morimoto said. “As soon as my name appears in airports, I know I’ll be counted on to deliver the quality food that all of my operations serve. With Delaware North as my partner, I’m confident that I’ll rise to the occasion.” Channeling our creativity Why stop at one Food Network chef when you can have all of them? At least in a manner of speaking. As 2009 was drawing to a close, Delaware North was shaking hands with Food Network to bring the brand to airports, sporting venues and attractions. The company now has an exclusive arrangement with the only television channel devoted entirely to food and cooking. Food Network reaches nearly 100 million households throughout the world, and its website gets more hits than any other dealing with cooking. The news of Food Network joining Delaware North’s portfolio of brands came shortly after an alliance with the Travel Channel aimed at developing a line of airport stores. The Travel Channel stores will boast travel-related products and merchandise for fans of the popular network. Travel Channel footage will run in the stores. Top-flight brands Delaware North’s travel hospitality business is also the driving force behind the development of Newark Liberty International Airport’s Heineken Lounge, the first of its kind. The bar is located in the same terminal that captured 2009’s best concessions program award from Airport Revenue News. A few months later, ForbesTraveler.com named the Heineken Lounge one of the best airport bars in the United States. Sometimes we are our own brands In addition to strong alliances with local, regional and national brands, Delaware North has a cadre of stellar brands that are proprietary. Among them are Gadgets 2 Go and Everything ASAP, two concepts that led seasoned travelers to name the Minneapolis-St. Paul airport as the one with the best retail offerings. Sportservice just did it Delaware North used its longtime relationship with Nike to develop and debut a new team store at Busch Stadium in time for the 2009 Major League Baseball All-Star Game. The Cardinals Team Store by Nike features exclusive merchandise from the well-known sports apparel brand, as well as MLB-licensed products. The grand opening included meet-and-greet sessions with former Cardinals greats Willie McGee, Lou Brock, Bob Gibson and Ozzie Smith. In addition to the new Nike team store, Delaware North developed a new in-stadium store called TOUCH by Alyssa Milano that showcases the popular actress’s clothing line for women who love sports. 61 62 Corporate Social Responsibility and GreenPath ® From the earliest days of its incorporation, Delaware North has been bolstering its communities with gifts of time, talent and treasure. Nearly a century later, Delaware North is a major global company. And true to its roots, evidence of that deep sense of social responsibility instilled in it by its founders can be seen throughout the world. On inner-city streets in its hometown of Buffalo, N.Y., where organizations are working to give children a shot at the American dream. In Australia, where associates came together last year to help those whose lives were upset by bushfires. In Boston, where the staff believes no one should be cold or hungry. Especially on Thanksgiving. In Fort Lauderdale, where a man who once had no home now has a job and a place to call his own. In boardrooms, in hospitals, in food pantries. Everywhere people are working to make life a little easier for those who hurt. That’s where you’ll find Delaware North. Time to talk For the first time in its 95-year history, Delaware North made an attempt to put its arms around the multitude of contributions, undertakings and volunteer efforts that fall under the social responsibility banner with the publication of a social responsibility report. “We know it is incomplete, and that it most likely always will be. Still, we persevere. The time has come to share the dedication and commitment of our associates with the rest of the world, and to inspire others to give back,” said the Jacobs family in the opening letter to stakeholders. Home sweet home In the wake of the worst natural disaster ever to occur on U.S. soil, Delaware North stepped up in 2005 and announced plans to help its associates and other residents of New Orleans. Since then, the company has built a long-term partnership with New Orleans Habitat for Humanity, which included funding the building of two homes in neighborhoods ravaged by Hurricane Katrina. What could be better? Delaware North thought of one thing: a celebratory dinner prepared by Delaware North Corporate Chef and Chief Culinary Ambassador Roland Henin. A responsible employer Delaware North takes a broad view of social responsibility that extends inward to associates and outward to vendors, clients and guests. Where associates are concerned, the company believes its success has always depended on them. So, 2009 was the year of the unveiling of Delaware North Career Path, the name given to the employer brand. That is, the partnership the company has with its associates in the development of their careers. Included in Delaware North Career Path are total rewards practices, company culture, training and other initiatives aimed at helping associates develop their skills, further their careers and achieve their goals. Behind Delaware North Career Path is a belief in the importance of fostering diversity by hiring associates with different backgrounds, ethnicity, beliefs and challenges. Delaware North has been recognized on several occasions for its success in employing older or disabled workers and those who have disadvantaged backgrounds. Charitable giving Being a good corporate citizen means more than simply writing checks. Delaware North thinks it means making a difference in the lives of associates, customers and clients, not to mention strengthening the communities in which we live and work. The company gave more than $3.3 million in 2009 to charitable organizations, focusing on those that work to eradicate hunger, strengthen education and help disadvantaged children, especially through sports and culinary programs. The Boston Bruins Foundation at it again Long known for its determination to improve the quality of life for kids in New England, The Boston Bruins Foundation has funneled more than $2 million into the community since 2003 when the Jacobs family established the nonprofit foundation. 63 One recent example of the foundation’s work is NHL Street, a free athletic and educational program for kids. The foundation and the NHL provide street hockey equipment and conduct clinics for children ages 7-12, enabling schools and youth centers to expand their recreational programs and let kids play sports, a novelty for many. No small endeavor When Delaware North serves fans at the Little League Baseball® World Series in Williamsport, Pa., it also aids numerous area not-for-profit organizations. Through a unique vendor program, the company allows charitable organizations in the Williamsport area to vend different concession stands during the 10-day event. The organizations are then able to take home 10 percent of all profits from their stands. Sportservice has surpassed $250,000 in total donations at the Little League World Series since the company began operating at the event in 2001. The practice has been in place throughout Sportservice for many years, but it wasn’t until summer 2009 that Chef Jeramie Mitchell decided to put a different spin on it. Faced with the opportunity to put Sportservice in the international spotlight by handling the culinary operation for the Major League Baseball All-Star Game in St. Louis, Mitchell not only tapped fellow Delaware North chefs to help, he went to the local chapter of the American Culinary Federation and invited students to assist as well. The junior culinarians had the doubly sweet experience of receiving practical experience by working with nationally recognized chefs – a rare certified master chef among them – at a major American sporting event. Delaware North donated to the ACF what it would have paid in wages. April showers bring May flowers...and vegetables Delaware North celebrated Earth Day 2009 in a variety of ways, including planting a garden at the inner-city site of a Boys & Girls Club location in Buffalo, N.Y. Not only did the garden teach the children some principles of farming, they were able to enjoy the literal fruits of their labor. Families reaped what Delaware North helped sow. 64 ENVIRONMENTAL STEWARDSHIP GreenPath®, Delaware North’s formal and documented environmental management system (EMS), originated in 2000 in the Parks & Resorts division. Its roots go back much earlier, however. Of all the companies that bid on the Yosemite contract in the early ‘90s, only Delaware North was willing to pay an unlimited amount for the cleanup and removal of leaking underground storage tanks left by a previous park concessionaire. This sense of environmental stewardship eventually was articulated through a formal EMS. And thus, GreenPath® was born. Delaware North associates soon decided they wanted more. Not only did they take pains to make GreenPath® a permanent part of the Delaware North culture, they wanted to demonstrate the depth of the company’s commitment to the environment and inspire others to follow suit. In 2001, GreenPath® became the first EMS of a U.S. hospitality company to be registered to the EMS standards put forth by the International Organization for Standardization (ISO 14001). GreenPath® also has been recognized at least 50 times with regional, national and even international awards from organizations such as the U.S. Department of the Interior, the U.S. National Park Service, NASA, the U.S. Environmental Protection Agency, IMEX and the U.S. Travel Association. In 2008, Delaware North expanded GreenPath® into all of its operating companies: Sportservice, Travel Hospitality Services, Gaming & Entertainment, Boston and International. GreenPath® easily transcends department and operating-company walls, helping the company devise new and better ways to protect the environment. And the results speak for themselves. Delaware North has diverted thousands of tons from the solid waste stream, saved millions of gallons of water and reduced energy consumption while demonstrating its commitment to do the right thing. Taking a stand TD Garden in Boston launched a number of new recycling initiatives and has developed what may well be the greenest concession stand in sports. One of the Pile High deli locations uses Energy Star equipment for long-term energy savings, purchases produce from local vendors, recycles materials and uses environmentally friendly cleaning supplies. Testing such sustainable practices is a worthwhile challenge. The arena seats nearly 20,000 people and is one of the busiest indoor entertainment and sports venues in the world. One company’s trash is another’s treasure At PETCO Park, where as many as 42,500 San Diego Padres fans devour peanuts, Diego dogs and fish tacos during a game, they don’t just track the food that’s eaten. They count the food that’s not eaten. By the ton. It’s part of a comprehensive food waste diversion program in which associates collect the remains of hot dog buns, peanut shells, popcorn and other foods, compost them and turn them into fertilizer. More than 150 tons of food scraps – approximately 2 tons per game – are diverted each year from local landfills. A first for airports Delaware North Companies Travel Hospitality Services at Fort Lauderdale-Hollywood International Airport made history in 2009 when it became the first airport concessionaire in the United States to have its operation registered to the environmental management standards put forth by the International Organization for Standardization (ISO 14001). The announcement came just nine months after the location implemented GreenPath® and caught the ears of those organizing the Airports Council International – North America annual conference. Delaware North was invited to speak about its accomplishment to conference attendees. All that’s green is gold Delaware North missed the mark when it set out to build the new Daytona Beach Kennel Club & Poker Room to the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) silver standard. That is, it overshot it. In the end, the property reached the gold level, thanks to Delaware North’s extra efforts such as recycling 95 percent of all construction waste and the building of a property that is 40-percent more water-efficient and 25-percent more energy-efficient than the complex it replaced. Daytona appears to be the only gaming venue ever to meet LEED’s gold standard. Reduce, reuse, recycle Delaware North was lauded twice in as many years by the U.S. National Park Service. The recycling programs in place in Yosemite and Yellowstone national parks were cited in 2008. In 2009, GreenPath® was called out. Making the whole world greener Delaware North’s commitment to environmental stewardship extends to all of its worldwide operations. Four sites – Melbourne Zoo, Melbourne Park, The Terrace and Sovereign Hill – are well on their way down the GreenPath® and moving toward a carbon-neutral business model. Hundreds of tons of materials have already been recycled at these locations since 2008. In addition: Delaware North Companies Australia is currently moving to Rainforest Alliance-certified coffee. In this way, the company is helping to maintain rainforests and improve biodiversity for future generations. Delaware North Companies Australia has introduced waterless woks into Billie Chu sites in Melbourne and Adelaide airports, with others to follow. Each wok reduces water use by 70 percent. At 5,000-plus liters a day, each waterless wok saves more than 1.4 million liters of water every year. Green and healthy, Crisco Liquid Gold cooking oil is being used extensively in Delaware North’s operations in Australia. This unique oil is cholesterol-free, gluten-free and virtually transfat-free. It is approved by the Heart Foundation Tick and comes in large 15-liter bags that don’t produce as much packaging waste as smaller bags. As the food and beverage provider for the Australian Open, Delaware North is now using 100-percent recycled packaging for all food items. 65 Awards and Recognition Delaware North is again listed on Forbes’ roster of America’s largest privately held companies. It is 207th. The Jacobs family receives the 2009 Hero of the Heart award from the American Heart Association for its contributions to improving vascular health. Master Chef Roland Henin, Delaware North’s corporate chef and chief culinary ambassador, coaches Team USA in the 2009 international Bocuse d’Or cooking competition. Delaware North Companies Parks & Resorts is twice lauded by the U.S. National Park Service, receiving environmental achievement awards in 2008 and 2009 for its implementation of GreenPath®, the company’s environmental management system, at Grand Canyon, Yosemite, Sequoia and Yellowstone national parks. 66 Delaware North Companies benefits publications featuring the theme “The Right Direction” earn a second-place award for Excellence in Training and Advocacy/Initial Education at the 2009 Pension & Investments Eddy Awards. The benefits publications feature clever road map and roadside assistance sections that help associates make choices about their retirement packages. The same publication earns a second-place award earlier in the year for initial education. Casino Player names Wheeling Island Hotel•Casino•Racetrack best casino as part of its 2009 Best of Gaming awards. The Delaware North-owned and -operated gaming and entertainment destination receives seven other first-place awards from the highly regarded publication. Techniques for Effective Alcohol Management (TEAM) Coalition honors individual Delaware North trainers for their commitment to responsible alcohol management training of their operations and concessions associates. 67 Los Angeles International Airport’s Encounter Restaurant is among the best airport restaurants in the country, according to popular culinary magazine Food & Wine. Encounter Restaurant is again singled out when Travel + Leisure names it and The Salt Lick Bar-B-Que two of the nine best airport restaurants in the world. Both are Delaware North operations. Kennedy Space Center Visitor Complex is honored with two safety awards from the United Safety Council, a safety training organization that promotes safety in every aspect of American life. The property earns both the Vehicle Fleet Safety Award for driving approximately 1.5 million miles in company vehicles without an at-fault accident and the Safety Achievement Award for outstanding safety performance and making great strides in improving procedures and policies. Airport Revenue News (ARN) names numerous North American airports at which Delaware North operates winners of 2009 Best Airport Concessions Awards. Those airports are: Newark Liberty International Airport, Phoenix Sky Harbor International Airport, Dallas/Fort Worth International Airport, Nashville International Airport and Minneapolis-St. Paul International Airport. Airports Council International (ACI) announces the top-performing airports in the Airport Service Quality (ASQ) survey. Austin-Bergstrom International Airport, Detroit Metropolitan Wayne County Airport, Dallas/Fort Worth International Airport and Denver International Airport – four airports where Delaware North has a presence – make the grade. 68 Delaware North Companies Principal Charlie Jacobs is inducted into SportsBusiness Journal’s Forty Under 40 class of 2009. Daytona Beach Kennel Club & Poker Room achieves Leadership in Engineering and Environmental Design (LEED) gold certification from the U.S. Green Building Council. The gaming facility is now the first LEED-certified project in the city of Daytona Beach, Fla., and the first gold-certified project in Volusia County. Wembley Stadium in London is nominated as a venue of the year in the Association of Event Organizers (AEO) Excellence Awards and as a finalist in the sales and marketing category of the Official Football Hospitality Awards. Boston Bruins Head Coach Claude Julien is named NHL coach of the year by The Sporting News, one of the premier sports-news publications in the United States. Soon after, General Manager Peter Chiarelli is named NHL executive of the year. Two Delaware North locations – Southland Park Gaming & Racing and Fort LauderdaleHollywood International Airport – achieve firsts in their industries by capturing ISO 14001 registration for their environmental management systems. Kennedy Space Center Visitor Complex is named business of the year for its community efforts in Brevard County. The property, which Delaware North operates for NASA, receives the honor at the 18th annual FLORIDA TODAY Volunteer Recognition Awards. ForbesTraveler.com names Newark Liberty International Airport’s Heineken Lounge, a Delaware North concept, one of the best airport bars in America. Delaware North Companies chefs from Emirates Stadium in the United Kingdom compete in the British Open Cookery Championships. The team consists of Executive Chef Kieran Moore and Chefs Mark Reynolds and Oleg Ibragimov. Collectively, the group earns one best-in-category award, one gold award and two silver awards, along with a certificate of merit. TD Garden receives a prestigious regional Environmental Protection Agency (EPA) award. The Garden and its associates receive the award for the considerable strides they’ve made in reducing the building’s environmental impact and for providing newspaper and bottle recycling opportunities to more than 20,000 commuters who walk through North Station in Boston each day and 3.5 million people who attend concerts, shows and sporting events at the venue. Smart Meetings, a monthly travel trade publication, selects Tenaya Lodge as one of its Platinum Choice award winners. The award is given to properties that meet strict industry standards set by Smart Meetings for overall guest experience, meeting space, dining facilities, guest services and recreational activities. The Boston-area chapter of the March of Dimes honors Charlie and Kim Jacobs and the Boston Bruins Foundation at its 2009 Franklin Delano Roosevelt Humanitarian Award Gala. The award recognizes their role as philanthropists who were instrumental in the creation of the Boston Bruins Foundation, whose mission is to assist charitable organizations that demonstrate a strong commitment to enhancing the quality of life for children in the community. Delaware North Companies International is named the 2009 retailer of the year for operations in the QANTAS terminal of Melbourne Airport in Australia. Lodging Hospitality, a major trade publication of the lodging industry, names Delaware North one of the top management companies. The Delaware North-operated Gideon Putnam Resort is included in the New York Post’s list of top 100 U.S. destinations within a six-hour drive or one-hour flight of New York City. TripAdvisor.com, a leading online travel community, names Grand Canyon and Yosemite national parks to the list of the 10 best national parks in the United States. Delaware North operates in both. Delaware North Companies Australia at Melbourne & Olympic Parks earns recognition as the venue caterer of the year at the 2009 Restaurant & Catering Victoria Awards for Excellence. 69 Executive Team and Corporate Information LEADERSHIP Jeremy M. Jacobs Sr. Chairman and Chief Executive Officer Delaware North Companies Jeremy M. Jacobs Jr. Principal Delaware North Companies Louis M. Jacobs Principal Delaware North Companies Charles M. Jacobs Principal Delaware North Companies Boston Bruins/Delaware North Companies Boston (TD Garden) Charles E. Moran Jr. President and Chief Operating Officer Delaware North Companies Dennis J. Szefel Chairman Delaware North Companies International Christopher J. Feeney Chief Financial Officer Delaware North Companies CORPORATE EXECUTIVE STAFF Bruce W. Carlson Vice President, Controller and Treasurer Delaware North Companies Jeffrey Hess Vice President, Retail Delaware North Companies James Houser Vice President, Administration Delaware North Companies Bryan J. Keller Vice President, General Counsel and Secretary Delaware North Companies Eileen Morgan Vice President, Human Resources Delaware North Companies Jamel Perkins Vice President, Information Technology Delaware North Companies Michael Reinert Vice President, Supply Management Services Delaware North Companies Wendy A. Watkins Vice President, Corporate Communications Delaware North Companies Daniel J. Zimmer Vice President, Corporate Finance and Development Delaware North Companies OPERATING MANAGEMENT Boston Bruins Peter Chiarelli, General Manager Delaware North Companies Australia Gary Brown, Managing Director Delaware North Companies Boston (TD Garden) John Wentzell, President Delaware North Companies Gaming & Entertainment William J. Bissett, President Delaware North Companies Parks & Resorts Kevin Kelly, President Delaware North Companies Sportservice Rick Abramson, President Delaware North Companies Travel Hospitality Services Matthew R. King, President Delaware North Companies UK Simon Dobson, Managing Director ABOUT DELAWARE NORTH COMPANIES Global Headquarters 40 Fountain Plaza Buffalo, New York 14202 716.858.5000 Australia and New Zealand Delaware North Companies International, Ltd. Delaware North Companies Australia Pty. Ltd. Level 2, 630 Church Street Richmond, VIC 3121 Australia 61.(3)9413.6200 Main 61.(3)9429.3992 Fax United Kingdom Delaware North Companies (UK) Ltd. 11th Floor, York House Empire Way Wembley HA9 0PA United Kingdom 44.(0)20.8453.5060 Main 44.(0)20.8453.5064 Managing Director 44.(0)20.8453.5070 Fax Website www.DelawareNorth.com 70 www.DelawareNorth.com
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