2009 Delaware North Annual Report
Transcription
2009 Delaware North Annual Report
Delaware North Companies Retrospective September 2008 – December 2009 Delaware North Companies Retrospective at a Glance The Delaware North Family of Companies …………………………………..2 Family Leadership.……………………………………………………...……...4 Financial Overview……………………………………………………...……...6 Vision and Mission……………………………………………………...………7 Operating Company Reviews: Delaware North Companies Boston ……..……………………...………8 Delaware North Companies Gaming & Entertainment.……...………14 Delaware North Companies International .…...……...……...………20 Delaware North Companies Parks & Resorts..………………...……...26 Delaware North Companies Sportservice.……………………...……..32 Delaware North Companies Travel Hospitality Services……....……..38 Core Capabilities: GuestPath®……....………………………………………………...…….44 Culinary……....…...……………………………………………...…….46 Retail……...........………………………………………………...…….48 Corporate Social Responsibility and GreenPath®………....………...……. 50 Awards and Recognition……..………………………………………...……..54 The Faces and Places of Delaware North...…………………………...…….58 Executive Team and Corporate Information………………………...……..60 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. Today, the city is still home to the company’s award-winning 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 cornerstone of Delaware North is 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 and entertainment venues, and convention centers in the United States and Canada. Today’s client portfolio includes 50 of the most recognizable names in the sports 2 Delaware North Companies Gaming & Entertainment world, including the St. Louis Cardinals, Boston Bruins, San Diego Padres, Chicago Bears, Minnesota Twins, and New York Jets and Giants. Delaware North Companies Gaming & Entertainment is one of the most innovative gaming and racing operators in the country, specializing in racing venues with added amenities such as video gaming machines, poker rooms, full-service restaurants, retail shops and hotels. The company manages more than 6,000 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. Its contract at Wembley Stadium and Emirates Stadium, as well as its 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 International 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 quickly 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 environmental, marketing, culinary, 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 Concept that revolutionized U.S. airports by transforming them into harbingers of the sights and sounds 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 and NBA’s Boston Celtics, the arena is one of the few multi-tenant 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 grew into one of the most admired food service and hospitality companies in the world. But while the company may be global, it is still a family business. 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 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. 4 5 Financial Overview Financial stability has always been a priority for Delaware North. Despite a weak global economy, Delaware North met its financial objectives and finished the year with more than $2 billion in revenue. With approximately 200 locations in seven market sectors served by 50,000 associates around the world, Delaware North is one of the largest privately held companies. As well, it is one of the most respected culinary and hospitality companies. set to open in 2010, and to submit a competitive bid to develop and operate a casino at Aqueduct Racetrack in Queens, N.Y. With signs of economic improvement on the horizon, Delaware North is well-positioned financially to pursue growth and take advantage of market changes. A decision several years ago to manage its investments prudently has paid off. In the past year, Delaware North purchased two hotels in North America and five prestigious 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 2.2 Billion $ Annual revenue Revenue by Operating Company 207 50,000 200 300 Forbes rank Locations 6 Associates Retail locations 500 Million Guests served Sportservice 23% Travel Hospitality Services 12% Gaming & Entertainment 30% TD Garden 3% Parks & Resorts 17% International 11% Boston Bruins 3% Other <1% A global leader in hospitality and food service. Vision 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.® 7 Delaware North Companies Boston Championship-caliber teams. Passionate players. Superior fan entertainment. These are just some of the reasons that for the fourth time in seven years, Boston took the top spot in The Sporting News’ annual rankings of the best sports cities in America. 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 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. 8 Stellar season The Boston Bruins, owned by Delaware North Companies Chairman and Chief Executive Officer Jeremy Jacobs, 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. 9 The team’s tremendous regular-season showing was also worthy of several prestigious individual honors. Claude Julien became the third coach in team history (Pat Burns (1998), Don Cherry (1976)) 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.” Off the ice, the Bruins were equally committed to giving back to the Greater Boston community. Under the leadership of Bruins Principal Charlie Jacobs, the foundation distributed more than $222,500 in grants to 30 different children’s charities throughout New England, and was involved in a myriad of other outreach initiatives. 10 Another banner year For the Boston Celtics and their fans, it was a year 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. On Oct. 28, 2008, Banner 17 joined one of the greatest collections of championship banners in an arena, and was ceremoniously hoisted to the Garden’s hallowed rafters in a dramatic celebration that included many of the Celtics legends from years past. Despite an injury-riddled 2008-09 season, the Celtics have reloaded with the recent additions of stars Rasheed Wallace and Marquis Daniels. Their veteran-laden roster now has the Celtics once again poised as title contenders for the next few years at least. 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 team that played in Worcester in the early ‘90s 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 has 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 NCAA Men’s Eastern Regional Finals, in addition to Bruins and Celtics sporting events. 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 two-tier space overlooking the arena. This allinclusive experience comes complete with a small, plated five-course menu, game tickets and parking. Other new premium spaces include a lounge and raw bar (Club Lounge), corporate event suite (The Executive View), reinvented and relocated Banners restaurant (Banners Harbor View) and an enhanced function room (The Partners Room). 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. “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.” 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 premium-seating membership. In addition, the 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. 11 Corporate synergies Continued collaboration with Delaware North subsidiary Sportservice has also resulted in further integration of a new point-of-sale operation, touch-screen ordering, faster credit card processing and Concessions Express kiosks for self-orders. 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. 12 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, in order to provide more energy-efficient heating and air conditioning. 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 in recent months. An exterior lighting project with a specialty energysaving 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 recent 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 For the fourth time in less than a decade, Boston owns the title of best sports city in America, according to The Sporting News. At the epicenter of New England’s sports prowess is TD Garden, the region’s premier sports and entertainment arena. 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. 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. 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. 13 14 Delaware North Companies Gaming & Entertainment Whew! It seems like a good time for Delaware North Companies Gaming & Entertainment to catch its collective breath. After several years of major renovations, expansions or opening of new facilities at most of the division’s locations, the focus shifted during the second half of 2008 and first half of 2009 to honing those operations. In fact, it could be said that Delaware North arrived in 2009 with a vastly different and much larger portfolio of gaming properties than it had only a few years earlier. Consider what 2008 alone yielded. A brand-new $30 million Daytona Beach Kennel Club & Poker Room opened in May; Wheeling Island HotelCasino-Racetrack completed its first year as a fullfledged casino with table games; and the finishing touches – a new steakhouse and simulcasting center – were the icing on the more than $40 million renovation of Southland Park Gaming & Racing. 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 great restaurants to complement its hotel, gaming and racing offerings. But not to rest too long, the division began a new phase of renovations this year at Finger Lakes and began work on a gaming and hospitality building at Fairgrounds. The Delaware North Companies Gaming Hospitality Group added a major contract in early 2009 with the addition of a new property in Oklahoma. And the company is awaiting a decision from New York state on its bid to develop and operate a world-class regional gaming and entertainment destination at Aqueduct Racetrack in Queens, N.Y. The new and added amenities, combined with Delaware North’s operational focus, resulted in increased revenue at several locations, most notably Southland Park and the company’s three video lottery terminal (VLT) operations in New York state. Earlier expansion and renovation projects helped position Finger Lakes Gaming & Racetrack, Fairground Gaming & Raceway, and Saratoga Gaming and Raceway as popular regional gaming and entertainment destinations. 15 Wheeling’s Moon a poker star They’ve only been playing poker at Wheeling Island Hotel-Casino-Racetrack since December 2007, yet already one of its patrons has made it to the top. Darvin Moon, who qualified at a Wheeling Island tournament, will be at the final table at the 2009 World Series of Poker. In July, Moon eliminated poker professional Jordan Smith to fill the field of nine who will play for the game’s ultimate title in November. All nine players in the world-championship event will earn at least $1.26 million. The winner will take home $8.55 million. Moon, who had never been to Las Vegas prior to July, owns and operates a small logging company in Maryland. 16 An exciting first year In just a year, the new Daytona Beach Kennel Club & Poker Room has 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 the week ending Jan. 18 broke a property 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. Nothing but the best Casino Player named Wheeling Island HotelCasino-Racetrack best casino as part of its 2009 Best of Gaming awards. Wheeling Island received eight 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 respected gaming trade publications. 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, 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, 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 become a more popular 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, is becoming a year-round venue. A new kind of horsepower was on display in February when the International Series of Champions (ISOC) AMSOIL Championship Snocross Series made its first-ever appearance. More than 13,500 fans turned out over the three days of fast-paced Snocross action, with the success prompting an agreement for the event to return in 2010 and 2011. 17 We showed the way Earlier this year, 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. Southland Park saw a general increase in revenue after the campaign, part of an effort to rebrand the venue in a market that largely believed it still only offered racing. The campaign used humor and 1950s-era characters to promote the venue’s gaming offerings, including electronic poker and blackjack. Delaware North guided Saratoga through major expansion projects in 2004, when Saratoga became the first video gaming facility in the state of New York, and again in 2007, when it added more gaming, hospitality and entertainment amenities. We know how to share our know-how At Saratoga, Finger Lakes and Fairgrounds, Delaware North has demonstrated it knows how to create and operate a successful regional gaming and racing entertainment destination. “We are very proud of what we have accomplished by working closely with Saratoga Harness Racing every step of the way,” said Bill 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.” 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 lucky Southland Park Gaming & Racing received recognition for its creative – and some might say provocative – 2008 advertising campaign at the Voice Awards in Las Vegas. The gaming destination’s “Be Lucky That Way” billboard campaign was a Voice Award finalist for Best Outdoor Advertising Campaign. Southland Park worked with Memphis-based advertising firm CS2 on the campaign. 18 So, Empire Resorts Inc. knew where to find help in improving the results at Monticello Casino & Raceway in downstate New York. Empire Resorts tapped Delaware North earlier this year for a three-year management agreement that includes marketing and strategic advisory services. “Delaware North is here to help Monticello Casino & Raceway realize its full potential,” said Empire Resorts’ Joseph E. Bernstein. “The company has hit the ground running and has already identified significant action items to help improve our business and expand customer appeal.” Gaming Hospitality Group grows with new contract The Delaware North Companies Gaming Hospitality Group took a major step forward earlier this year with an agreement to develop and manage restaurants at the new Durant Casino Resort Spa in Oklahoma. When it is completed in early 2010, the new casino will include a 330-room, four-star hotel, spa and fitness center, 40 table games, a 30-table poker room and more than 3,000 slot machines. Located just 90 minutes north of Dallas, the casino is owned by the Choctaw Nation of Oklahoma. Delaware North will handle food and beverage operations for the 150-seat casual dining Blue Moon Café, 100-seat 1830 Steakhouse, 450-seat Butterfield’s Buffet, 45-seat Mexicanstyle Tomatillo’s Grill, the 30-seat Jackpot Java Coffeehouse and the 100-seat food court. Delaware North will also oversee onsite catering and banquet operations for the casino’s conference and meeting areas. “This is an exciting opportunity for us to display our hospitality expertise in a new market,” said Gaming Hospitality Group Managing Director Nick Liberto. “We’re committed to bringing culinary excellence to the Durant resort.” Launched in late 2007, the Gaming Hospitality Group began working with its first client in 2008, a consulting and management agreement with the Stockbridge-Munsee Band of Mohican Indians. Delaware North is assisting with the expansion and enhancement of hospitality amenities and food and beverage offerings at its North Star Mohican Casino in Wisconsin, located between Green Bay and Wausau. 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 expansion projects at Finger Lakes Gaming & Racetrack, and Fairgrounds Gaming & Raceway are in the works to continue to position the venues in the Western New York gaming and entertainment markets. Delaware North’s Gaming Hospitality Group obtains a significant contract to develop and manage restaurants at the new Durant Casino Resort Spa in Oklahoma when it opens in 2010. The company is sought out and accepts a consulting agreement to help Empire Resorts Inc. enhance operations and marketing efforts at Monticello Casino and Raceway in downstate New York. 19 Delaware North Companies International Delaware North Companies International marked five consecutive years of strong growth in 2008 and then made a splash in August 2009 with the announcement that it had acquired five prestigious luxury resorts in Australia. The resorts, acquired from the GPT Group, are located in some of Australia’s most beautiful locations. Delaware North is set to begin operations this year at the resorts, the company’s first foray into lodging outside of North America. “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 expanded into another new business line later this year when it entered the United Kingdom’s travel hospitality sector with contracts for three major airports – Heathrow, Gatwick and Edinburgh – and one railway station. In addition, the company expanded its U.K. sports venue portfolio, adding Derby County Football Club’s Pride Park Stadium to the new 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. 20 Back in Australia, the company and its associates at Melbourne Park set a new standard for performance under difficult circumstances by handling world-record attendance for a tennis Grand Slam event on several days while dealing with extreme heat at the 2009 Australian Open. Delaware North also expanded its interests in the education sector in Australia with a new contract at Curtin University. In addition, the company in 2008 and 2009 completed a round of new openings at many of its travel sector locations, including the new food court in Melbourne International Airport. 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 countries in Europe and Asia in which it does not yet have operations. Planes, trains and hospitality Delaware North is entering the U.K. travel hospitality sector this year in a big way, debuting concepts in three major airports and a railway station. Caffé Cucina opened in June 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. In Scotland, Delaware North will open a restaurant, and an ice cream and crepe bar in Edinburgh Airport by year’s end. 21 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. Crowded house Even by Delaware North standards, the 2009 Australian Open was a massive food service and catering undertaking. With attendance at more than 600,000 this year, the event has drawn more than one-half million guests for 10 consecutive years. The highest-ever day/night attendance in Grand Slam history was recorded three times, with the new record of 66,018 set Jan. 24. And, as is their custom, visitors ate and drank. A lot. More than 12,000 meat pies, for example, meaning that preparations were essential. This included installing and operating 954 electrical appliances, 272 of them additional refrigerators, and three new temporary kitchens. In total, 22 Delaware North established 88 new structures using 3,378 pieces of equipment to meet the tremendous hospitality needs. All of this was accomplished in 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. Responding to a tragic event All Australians and many international friends were deeply affected by the ferocity of the bushfires (wildfires) that swept across Victoria in February 2009. The fires claimed 195 lives, destroyed towns and thousands of farms, killed countless animals in the wild and farm stock animals, and devastated many areas of remarkable forests. Delaware North associates were evacuated from one site during the fires as a precaution. Fortunately no associates were killed or injured, but many had family and friends who were directly affected. In the aftermath, Delaware North associates donated more than $90,000 (Aus.), countless voluntary hours and leftover food to help ease the burdens of many others. 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 a halfmillion 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 attended one of the Irish rock legend’s two shows. Food for thought Delaware North recently 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. 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 Billy 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 our patrons’ waistlines might not. Over the last year, the program has been introduced at Etihad Stadium, Melbourne Park and Melbourne Zoo. Later this year, it will be available in Wembley Stadium and Emirates Stadium in London and Australia’s The Terrace in the Royal Botanic Gardens, Albert by the Lake function center and Curtin University. The catering services at Curtin have been managed by small independent operators and the Student Guild. By the end of 2009, there will be 12 food and beverage outlets in operation on campus. The guild will operate six of these, independent operators will manage two and Delaware North will handle four proprietary café concepts. 23 Introduced in 2008, Culinary Wellbeing™ is a Delaware North corporate program that focuses on lighter and healthier food options that offer genuine 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. Branching out in Sydney Delaware North in late 2008 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. 24 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. Derby County Football Club is currently in the English FA Coca-Cola Championship and is building to return to the Barclay’s Premier League. Derby County is known as the Rams and its supporters are recognized as being among the most passionate in English sports. HIGHLIGHTS The company takes its lodging and hospitality prowess beyond the shores of North America with the purchase of five Australian resorts. Delaware North enters the United Kingdom travel hospitality sector and will operate in three airports and one railway station by the end of 2009. World-record attendance and extreme heat are dealt with in turn by Delaware North associates at the 2009 Australian Open at Melbourne Park. Delaware North expands its interests in the education sector in Australia with a new contract at Curtin University. A zeal for big parties Thanks to Delaware North, in just two years since its opening, Vector Arena has become the go-to venue for New Zealand’s biggest banquets. erby County Football Club’s Pride Park D Stadium now features the food service, hospitality, and sales and marketing expertise of Delaware North. 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. 25 26 Delaware North Companies Parks & Resorts Leave it to Delaware North to be well-positioned in the destination-travel sector even at a time when the economy prompted many to stay put – or at least stay closer to home. As so-called “staycations” increased in popularity since summer 2008 and into summer 2009, Delaware North Companies Parks & Resorts properties came to understand, appreciate and leverage their value. The key, operating company President Kevin Kelly said on CNBC, has been the special places in which Delaware North operates and the company’s strong efforts to ensure guests have memorable experiences. “Whether we continue to see increased travel and people traveling closer to home or the industry changes and brings us completely different kinds of travelers, we take pride in enabling them to best experience these special places and destinations,” Kelly said. “Telling the stories of these historic places and seeing to it that guests get everything they hope for from their vacations are what strikes to the core of our company.” While the U.S. Travel Association was predicting domestic travel during summer 2009 would be at a five-year low and that 10-percent fewer international travelers would arrive on U.S. soil, Delaware North locations like The Lodge at Geneva-on-the-Lake, Tenaya Lodge and Yosemite National Park were bucking the trend. Delaware North acquired two inns near key national park locations, and won a bid to operate the Queen Mary, a 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. Another bite at the Apple Looking to expand its lodging offerings for visitors to the fabled Yosemite National Park, Delaware North in December 2008 completed 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. Delaware North immediately launched a softgoods renovation of the inn and began welcoming guests this spring. The acquisition came as Delaware North continued work to expand Tenaya Lodge’s High Sierra conference and spa facilities for the 2010 season. The main ballroom is growing to 10,000 square feet and three new 700-square-foot breakout spaces are being added. A new 8,000-square-foot spa, with numerous treatment rooms, is also being built. Tenaya also opened a new restaurant, Embers, this summer. 27 Adding special places Delaware North continued to expand its portfolio of owned and managed properties in May 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 was the fourth hotel Delaware North has acquired since 2001, marking another “special place” where the company offers its distinctive brand of hospitality to travelers. 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 guest laundry. In fall 2009, Delaware North began managing the storied Queen Mary, the grand 1936 ocean liner that is now permanently docked in Long Beach, Calif. Resorting to renovations 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. 28 Earlier this year, Delaware North completed $1.8 million in renovations, part of a planned 20-year, $18 million investment program that will include improvements to the hotel’s guest accommodations, lobby, corridors and dining room, as well as the storied 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. As part of the project, this spring the renovated Putnam’s restaurant opened with menus featuring locally grown foods and produce, and regional beers and wines. 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 thousands who visit Yosemite National Park each year, the company partnered with travel and hospitality marketing communications agency MMG Worldwide to launch 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. 29 A stellar attraction Kennedy Space Center Visitor Complex, operated by Delaware North for some 13 years, just keeps getting better and better. On the heels of the 2007 opening of Shuttle Launch Experience, Delaware North opened Eye on the Universe: The Hubble Space Telescope exhibit in October 2008. The exhibit celebrates the stunning discoveries of one of the most useful telescopes ever built by featuring powerful Hubble images that let visitors step into the universe and walk toward the ancient stars, nebulas and galaxies. Kudos for Kennedy The accolades for the Delaware North-operated Kennedy Space Center Visitor Complex came in regularly. Here is a sampling: 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.” 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.” Kennedy Space Center Visitor Complex was 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 earned both the Vehicle Fleet 30 Safety Award, for associates driving approximately 1.5 million miles in company vehicles without an at-fault accident, and the Safety Achievement Award for outstanding safety performance. The public relations team at the visitor complex picked up some hardware by capturing two statewide public relations awards in the 2008 Golden Image Awards held by the Florida Public Relations Association. Kennedy associates received an Award of Distinction for the Shuttle Launch Experience integrated marketing campaign in the Public Information and Promotional Marketing categories. The successful campaign resulted in a double-digit increase in attendance, an increase in Florida resident visitation and $2.5 million worth of publicity. Grapes, not gripes, at this lodge The Lodge at Geneva-on-the-Lake celebrated its fifth anniversary earlier this year, 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, begun in summer 2008. It proved so successful, that it was expanded 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 acquires two lodging properties to add to its operations near two of the most popular national parks: the Apple Tree Inn adjacent to the Delaware North-owned and –operated Tenaya Lodge near Yosemite National Park and the Holiday Inn West Yellowstone near an entrance to Yellowstone National Park. The new inns add to Delaware North’s portfolio of owned properties. The company also continues a project to expand conference and spa facilities at Tenaya Lodge. 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 historic Roosevelt Baths & Spa, in Saratoga, N.Y. Delaware North Companies Parks & Resorts weathers the storm of economic recession by embracing the emerging “staycation” trend of people recreating closer to home and leveraging the special places at which it operates as popular regional getaways. elaware North’s management and massive D operations in Yosemite National Park and Kennedy Space Center Visitor Complex continue to be recognized in the news media and through various awards. 31 Delaware North Companies Sportservice As the dark clouds of economic recession began gathering during the second half of 2008, Delaware North Companies Sportservice was nevertheless well-prepared and positioned for the future. Under the leadership of President Rick Abramson, Sportservice was undeterred in continuing to expand its client base, adding four new accounts and increasing the scope of several others, especially in retail merchandising. 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.” Over the last year, Sportservice was also bolstered by strong showings from a number of client teams, including the Milwaukee Brewers, Chicago White Sox and Los Angeles Dodgers, all of which made the 2008 playoffs. The Brewers were joined by the Detroit Tigers in helping Sportservice by posting attendance records. 32 The Columbus Blue Jackets made their first-ever NHL playoff appearance in May, and Sportservice was there to provide Nationwide Arena fans with great food and merchandise to celebrate. 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. New York, New York In 2010, Sportservice will have a larger presence in the NFL – and in the Big Apple – when the company begins operating 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 by the New Meadowlands Stadium Co., the two teams’ joint venture developing the world-class venue. A formal announcement is being planned for later this year. The Jets and Giants represent the fifth and sixth NFL clients for Sportservice. Located near the current stadium in New Jersey, the $1.7 billion New Meadowlands Stadium will seat 82,000 fans, including 17,000 indoor seats in clubs and suites. It will feature more than 800 points of sale, and a catered tailgating area outside the stadium will serve fans arriving via commuter rail. 33 “Delaware North Companies Sportservice is working with the Giants and Jets to develop a unique, world-class experience for the fans at the New Meadowlands,” Sportservice President Rick Abramson said. Sportservice anticipates operating a significant catering business, as well as handling hospitality and food service for large concerts and other entertainment events at the New Meadowlands. Bullish on New Jersey…and Glendale…. and Hartford Sportservice’s presence in the New York-New Jersey area will grow even larger in 2010 with a contract to operate food and beverage services at the new Red Bull Arena. The soccer-specific venue is being 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., will seat 25,000 fans under a European-style roof that leaves the field open. Sportservice has been spreading out in other regions as well. Earlier this year, the company opened Camelback Ranch, the impressive new spring training home of the Los Angeles Dodgers and Chicago White Sox in Glendale, Ariz. 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, and Sportservice helped make the venue’s first-ever concert, featuring Bob Dylan and John Mellencamp in August, a great success. 34 In September 2008, Sportservice began operating food and beverage services at the XL Center in Hartford, Conn., the state’s largest indoor sports and entertainment facility. The XL Center is the home of the national power University of Connecticut Huskies men’s and women’s basketball teams, and the Hartford Wolf Pack of the American Hockey League. Getting ready for Twins Sportservice has been ramping up its new operation in Minneapolis-St. Paul in preparation for the inaugural season next year at Target Field, the Minnesota Twins’ signature ballpark. The company will handle all concessions, catering, premium dining and retail for the 40,000-seat ballpark. Sportservice took over management of the team’s two suburban retail stores in November, and in January handled retail sales at the annual Twin Fest at the Metrodome. Sportservice worked with the team on sponsorships and themes for planned restaurants and clubs at Target Field and continued planning menus and assembling the culinary and retail teams. Widening the retail trail Sportservice continued to expand its retail operations – in terms of revenue, scope of retail stores and number of clients. The company’s revenue growth was fueled by strong sales for a number of client teams, most notably the Boston Bruins, Los Angeles Dodgers and Milwaukee Brewers, who were honored as the MLB Retail Club of the Year for 2008. At Miller Park, 2008 saw Sportservice open the new Brewers Team Store at Home Plate Gate and then fully renovate the Brewers Team Store by Majestic Athletic in time for the start of the 2009 season. In St. Louis, Sportservice opened 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 All-Star Game. After taking over retail operations for the Buffalo Bills in mid2008, Sportservice greatly expanded the number of retail outlets at Ralph Wilson Stadium. In addition to the Bills account, Sportservice took over management of the Columbus Blue Jackets’ retail stores prior to the start of hockey season, as well as the Twins’ stores located outside of the stadium. An all-star performance in St. Louis The 2009 MLB All-Star Game might well have been the largest-ever Sportservice operation, feeding 150,000 people and selling merchandise to likely just as many fans over the four-day event in St. Louis. Regardless, there’s no doubting it was one of the company’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 the temporary operation Sportservice erected in Ballpark Village to cater MLB’s two big parties, each of which drew more than 4,000 guests. 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 what is believed to be the highest retail sales ever for the Mid-Summer Classic. To top it off, Sportservice hosted a pregame reception that drew several clients and MLB team executives, as well as Baseball Hall of Fame members Harmon Killebrew and Ferguson Jenkins. 35 Grand venue, grand menu Two exciting events over the last year spotlighted the restored Grand Ballroom of the historic Plaza hotel in New York City. The iconic 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 afforded one lucky couple a fantasy wedding and reception within the gilded splendor of the landmark ballroom, which was restored by Delaware North. Also on the show, CPS Events unveiled a new signature drink, the Pomona. In August 2008, CPS Events hosted a dinner for a select crowd of 250 New York City insiders to celebrate the ballroom’s 100-Mile Menu, composed solely of ingredients sourced within a 100-mile radius of New York City. The Plaza Grand Ballroom was the first major entertainment and event venue in the country to incorporate the 100-Mile “field to fork” concept into all of its menus. 36 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 President Rick 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. Helping farms Willie Nelson, Dave Matthews and John Mellencamp helped provide the music, and Sportservice provided the appropriate food for the Farm Aid annual benefit concert September 20 at the Comcast Center in Mansfield, Mass. Sportservice put the environment and the role family farmers play in protecting it center stage by serving guests, crews, artists and VIPs familyfarm food. Sportservice’s menus included pizza, hamburgers, hot dogs, sandwiches, burritos, corn on the cob, baked goods and fresh fruits. Going healthier in Cleveland As more and more fans in recent years have sought to eat healthier at sporting events, Sportservice has played a major role in fulfilling their wishes with ever-broader menus featuring vegetarian and other lower-calorie fare. HIGHLIGHTS Sportservice adds another marquee account with the New Meadowlands Stadium in New Jersey, which will serve as the home of the NFL New York Giants and New York Jets beginning in 2010. The state-of-the-art venue will also host top college football games, concerts and many other events. Not far from the New Meadowlands, Sportservice will begin operating at the new Red Bull Arena in Harrison, N.J., in 2010. The 25,000-seat, soccer-specific venue will be home to Major League Soccer’s Red Bull New York team. Sportservice continues to grow its retail business, adding the Buffalo Bills, Columbus Blue Jackets, Minnesota Twins, New York Giants and New York Jets to its lineup. For the 2008 season, Sportservice took the trend a step further by offering a new line of ultrahealthy menu options at Progressive Field under the world-famous Cleveland Clinic’s Go! Foods program. Sportservice Regional Executive Chef James Major developed a number of dishes for suite and club menus, and concessions items for a new grab ’n go station, all meeting strict nutritional standards: no trans fats; no more than 4 grams of saturated fats for main dishes and 2 grams for salads, soups and desserts; and less than 600 milligrams of sodium for main dishes and 480 grams for sides and desserts. Among the Go! Foods menu items are fresh fruit and veggie cups, yogurt parfaits, vegetable chili, guacamole with whole-grain chips, Waldorf salad, grilled chicken and salmon sliders. 37 38 Delaware North Companies Travel Hospitality Services With the airport travel sector hard hit by the economic recession during the last year, Delaware North Companies Travel Hospitality Services nevertheless aggressively reinvested in the 60-plus-year-old business. 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 The Travel Channel and Which Wich. 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 soon-tobe-developed new locations, including Sports Illustrated, Heineken, The Coffee Bean & Tea Leaf, Moe’s Southwestern 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 that Delaware North is adding or has added over the last year that fits the company’s innovative Gateway Concept. 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. 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. Illustrating Delaware North’s value in Detroit In September 2008, Delaware North opened six new food and retail concepts, including the firstof-its-kind Sports Illustrated retail store, when Detroit Metropolitan Wayne County Airport unveiled its new North Terminal. The SI store features an array of SI-branded consumer products and branded merchandise of the area’s professional (Red Wings, Tigers, Pistons, Lions) and college (Michigan State University and the University of Michigan) sports teams. Delaware North also created interactive kiosks where fans can access the latest sports news at SI.COM and visit SI VAULT, the magazine’s online archive containing 150,000 stories, 2,800 covers and more than 500,000 photographs. Additionally, Delaware North opened a second location of Detroit’s popular Hockeytown Café, a Le Petit Bistro, an Everything ASAP shop, a new T.G.I. Friday’s restaurant, and a Gayle’s Chocolates. 39 Delaware North also opened a Popeye’s Louisiana Kitchen restaurant, famous for its chicken and biscuits, in the airport’s McNamara Terminal, the first food and beverage concept Delaware North has operated in the airport’s A concourse. With the opening of these new concepts, Delaware North now operates more than 30 retail and restaurant locations in the airport. We love L.A. In July, Los Angeles International Airport (LAX) awarded Delaware North Companies a contract extension to continue operating the popular Daily Grill restaurant, the largest full-service airport restaurant in the United States, through 2013. The Daily Grill features a private dining room, intimate booths and large bar. Delaware North will undertake renovations to open up the floor plan, modernize the bar and update the exterior facade. Equally exciting, the extension includes the go-ahead for Delaware North to bring Pink’s to LAX. Pink’s will arrive at the Tom Bradley International Terminal of LAX later this year. The Hollywood restaurant dates back to the 40 ‘30s and is a favorite of many celebrities, with customers routinely lining up outside its busy doors. Turning over a new leaf Earlier this year, Delaware North struck an exclusive partnership deal with The Coffee Bean & Tea Leaf. In addition to opening new shops in Ontario International Airport in California and Phoenix Sky Harbor Airport last year, Delaware North is set to open two more shops this fall in Detroit Metropolitan Wayne County Airport. 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. New gateway a brewin’ Boulder Beer Co., founded in 1979, was Colorado’s first microbrewery. That gives the enterprise a special place in the microbrewery landscape, given the state’s status as a major player in the increasingly popular microbrew industry. Knowing a great Gateway Concept when we see one, Delaware North opened the Boulder Beer Tap House in Denver International Airport in summer 2008. Now travelers to Denver can taste some of the most flavorful beer in the world from the still-operating brewery, which celebrated its 30th anniversary this year. “We’re passionate about the cities and airports in which we operate and we work hard to find concepts that embody their cultures,” King said. 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. Earlier this year, the company announced an exclusive partnership with the Travel Channel to develop retail stores at airports throughout the United States. The 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. Give me Heineken Newark Liberty International Airport now boasts one of the best airport bars in the country, according to ForbesTraveler.com, thanks to Delaware North and its opening of the first Heineken Lounge in December. 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. 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 Northoperated Ray Benson’s Roadhouse, Lefty’s Bar & Grille, Earl Campbell’s Sports Bar and Waterloo Records/Austin City Limits. Since it was introduced in 1999, the airport’s music program has grown from two to 11 shows a week. In addition, when the airport celebrated its 10th birthday this year, Delaware North provided free birthday cake, live music and discounted concessions for all ticketed guests. 41 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. Doing fine in Oklahoma Another airport. More great concepts from Delaware North. The company this year added two new restaurants in Will Rogers World Airport in Oklahoma City: Moe’s Southwest Grill and The Salt Lick Bar-B-Que. 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 this summer of the majority of Delaware North’s $7.5 million renovation and expansion project. 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 Austin-Bergstrom International Airport in 2007. 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 the new Lake Erie Pub, a presecurity lounge featuring a variety of light fare, and an Everything ASAP travel convenience store. Man, are these guys busy! Delaware North’s busy year of putting fresh new concepts in airports included Memphis and Richmond, Va. Through an exclusive partnership, Delaware North is bringing one additional new concept, the innovative new sandwich chain Which Wich, to the airport this winter. 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. Checkmate In yet another example of how Delaware North Companies Travel Hospitality Services has forged exciting new partnerships, the company opened its first Checkers restaurant and two others in Western New York. Two of the casual-dining restaurants, known for their outstanding burgers, fries and milkshakes, were opened on the New York State Thruway and another in Buffalo Niagara International Airport. 42 Take a bow, Delaware North Airports Council International (ACI) announced the top-performing airports in the Airport Service Quality (ASQ) survey earlier this year. Airports at which Delaware North operates that were honored: 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, Albuquerque International Sunport and Minneapolis-St. Paul International Airport. For the first time ever, ARN also polled frequent travelers about their favorite airports, and 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 – The Encounter and The Salt Like Bar-B-Que – on its list of the nine best airport eateries in the world. HIGHLIGHTS Delaware North strikes up strategic partnerships, many of them positioning the company as the exclusive airport operator, with a number of exciting national and international brands such as The Travel Channel, The Coffee Bean & Tea Leaf, and Which Wich. 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 Concept with new restaurants and stores reflecting regional culture and heritage. Examples include Hockeytown Café in Detroit and the Pink’s Hot Dogs planned for LAX. 43 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. Now celebrating 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. We’re replaceable 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. 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. 44 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. 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 like Target Field and the New Meadowlands, 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. 45 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. The past year was especially noteworthy. A maiden journey to the International Culinary Olympics, a show-stopping performance at the MLB All-Star Game, award-winning performances from individual chefs and a renewed commitment to having the best chefs in the world are just some of the stories we have to tell. 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 HSBC Arena in Buffalo, N.Y.; Kevin Doherty, a regional chef for Sportservice and executive chef at TD Garden in Boston; Scott Green, executive chef at Fairgrounds Gaming & Racing in Hamburg, N.Y.; and Ambarish Lulay, executive sous 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 Federationcertified 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, last January. 46 More than medals Jeremy Jacobs Jr., Delaware North principal and the force behind the company’s campaign to be the most respected culinary company in the world, described the chefs’ Olympic accomplishments as “phenomenal” after the final awards ceremony. “You exceeded all of our expectations,” Jacobs told the chefs. 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 oftentimes more closely identified with casual fare than it is with high-end cuisine. “The fact is, we have incredible culinary talent,” Jacobs 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 national park system. In addition, two of the company’s airport restaurants – Salt Lick Bar-B-Que in Austin-Bergstrom International Aiport and The Encounter 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 last July, 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 comprised solely of ingredients sourced within a 100-mile 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: he Culinary and Hospitality Council that T was formed in 2003. It is a group that meets every other month to examine issues such as recruitment, retention, training and standards. andatory ACF certification of all Delaware M 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. he continuation of culinary scholarships in the T name of Delaware North at the Culinary Institute of America and at Johnson & Wales University. he Delaware North Food & Beverage Summit, T a weeklong developmental and teambuilding experience designed to give company chefs and front-of-the-house staff much-needed time away from the kitchen for the sake of meeting colleagues, learning about trends and discussing challenges. 47 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 introduce their retail brands to the marketplace. Over the last year, 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. In September 2008, Delaware North opened the first-ever Sports Illustrated store in Detroit Metropolitan Wayne County Airport. Earlier this year, it was announced that Delaware North has the exclusive rights to develop and operate Travel Channel stores in airports nationwide. Then there is the growing list of major sports franchises that have turned to Delaware North Companies Sportservice to operate their teambranded retail stores – both at their 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 and Minnesota Twins. New accounts with other new high-profile sports clients are in the works. Sportservice already handles retail operations for the Boston Bruins, Chicago Bears, St. Louis Cardinals and a dozen other franchises. The right stuff The way people shop at airports has changed significantly since the Sept. 11, 2001, terrorist attacks and continues to change as travelers look for value and convenience. 48 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 earlier this year. 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: Pepsi, Diet Pepsi, Mtn Dew and other carbonated drinks; Gatorade sports drink; Tropicana juices; Aquafina water; Frito-Lay snacks such as Lays 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 this 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 throughout the year. 49 50 Corporate Social Reponsibility 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 this 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 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 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 a minimum of $3.3 million last year 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. One recent example of the foundation’s work is NHL Street, a program that gives kids a free athletic and educational program. 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. 51 No small endeavor When Delaware North served fans at the Little League Baseball® World Series in Williamsport, Penn., it also aided 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 last summer 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 of the Major League Baseball All-Star Game in St. Louis, Mitchell not only tapped fellow Delaware North chefs for assistance, 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 at a major American sporting event. Delaware North donated what it would have paid in wages to the ACF. 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. ENVIRONMENTAL STEWARDSHIP GreenPath®, Delaware North’s formal and documented system of environmental management, originated in 1999 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 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 want to 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 standards put forth by the International Organization for Standardization (ISO 14001). GreenPath® has been recognized nearly 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, 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 52 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. Reduce, reuse, recycle Delaware North was lauded twice in as many years by the U.S. National Park Service for the recycling programs in place in Yosemite and Yellowstone national parks. 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 a 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. In 2008, more than 153 tons of food scraps – approximately 2 tons per game – were diverted from local landfills. Making the whole world greener Delaware North’s commitment to environmental stewardship extends to all of its worldwide operations. Delaware North Australia and New Zealand appointed a manager of corporate social responsibility in 2008, the first time someone has been dedicated solely to social responsibility for those Delaware North operations. 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 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 Daytona Beach Kennel Club & Poker Room to LEED’s (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. Four sites – Melbourne Zoo, Melbourne Park, The Terrace and Sovereign Hill – are well on their way down the GreenPath® and moving toward a carbonneutral business model. In 2008, 293.73 tons of materials were recycled. In addition: elaware North Companies Australia is D currently moving to Rainforest Alliance-certified coffee. In this way, the company is helping to maintain rainforests and improve biodiversity for future generations. elaware North Companies Australia has D introduced waterless woks into Billy 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 over 1.4 million liters of water every year. reen and healthy, Crisco Liquid Gold cooking G oil is being used extensively in Delaware North’s operations in Australia. This unique oil is cholesterol-free, gluten-free and virtually trans fat-free. It is approved by Heart Foundation Tick and comes in large 15-liter bags that don’t produce as much packaging waste as smaller bags. s the food and beverage provider for the A Australian Open, Delaware North is now using 100-percent recycled packaging for all food items. 53 Awards and Recognition elaware North Companies Sportservice takes D three of the top-six spots on the 2008 PETA list of best vegetarian-friendly ballparks. F ood Management ranks Delaware North fourth on its list of 50 top management companies. aster Chef Roland Henin, Delaware North’s M corporate chef and chief culinary ambassador, is recruited to coach Team USA in the 2009 international Bocuse d’Or cooking competition. enin travels to Erfurt, Germany, with five H Delaware North chefs to compete in the International Culinary Olympics. Chefs Scott Green and Ambarish Lulay receive silver medals; Chef Kevin Doherty receives a bronze medal; and Chef Tab Daulton receives a diploma. elaware North Companies Parks & Resorts D at Yellowstone National Park receives a 2008 EcoStar Award for successful and efficient waste reduction efforts at the historic park. elaware North enjoys another successful D evening at the Restaurant & Caterers Association (Victoria) 2008 Awards for Excellence. The company is named caterer of the year and receives two category awards: one in venue catering and another in wedding catering. elaware North at The Terrace, part of Royal D Botanic Garden Melbourne, is named wedding caterer of the year, in light of the fact that in 2008 The Terrace was the wedding venue of choice for 120 couples. 54 he Jacobs family receives the 2009 Hero T of the Heart award from the American Heart Association for its contributions to improving vascular health. elaware North Companies again has a presence D on Forbes’ List of America’s Largest Private Companies. The company is 207 on the roster. elaware North Companies Sportservice helps D its client the Milwaukee Brewers receive Major League Baseball’s (MLB) Retail Club of the Year award. Sportservice handles the retail operation for the Brewers. he Yosemite National Park Deaf Services T Program is selected as the recipient of the 2008 National Park Service (NPS) Programmatic Accessibility Achievement Award. elaware North Companies Parks & Resorts is D twice lauded by the U.S. National Park Service, receiving an environmental achievement award in 2008 and 2009 for its recycling programs in Yosemite and Yellowstone national parks. S outhland Park Gaming & Racing is recognized for its advertising efforts at the Voice Awards in Las Vegas. The Delaware North gaming destination’s “Be Lucky That Way” billboard campaign is a finalist in the best outdoor advertising category. he Profit Sharing Council of America (PSCA) T gives Delaware North Companies an honorable mention for its “The Right Direction” employee benefits enrollment guide. The PSCA cites the piece for being engaging, easy to understand and full of positive messaging. 55 he Lodge at Geneva-on-the-Lake earns T recognition as the employer of the year for hiring veterans in the state of Ohio. elaware North Companies Chairman and D Chief Executive Officer Jeremy Jacobs is again named one of the most influential people in sports business, according to SportsBusiness Journal. The popular sports business trade publication publishes a list of the top 50 sports business executives each year. elaware North Companies Parks & Resorts D operates and manages two of the 500 best hotels in the world, according to popular travel magazine Travel + Leisure. Both The Ahwahnee in Yosemite National Park and The BALSAMS Grand Resort Hotel in New Hampshire make the magazine’s list. Delaware North’s contract at The BALSAMS ends several months afterward. os Angeles International Airport’s Encounter L Restaurant is among the best airport restaurants in the country, according to popular culinary magazine Food & Wine. he Encounter is again singled out when Travel T + Leisure names it and Salt Lick Bar-B-Que two of the nine best airport restaurants in the world. Both are Delaware North operations. asino Player names Wheeling Island HotelC Casino-Racetrack best casino as part of its 2009 Best of Gaming awards. The Delaware Northowned and –operated gaming and entertainment destination receives eight other first-place awards from the respected publication. elaware North Companies chefs from D 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. 56 echniques for Effective Alcohol Management T (TEAM) Coalition honors individual Delaware North trainers for their commitment to responsible alcohol management training of their operations and concessions associates. ennedy Space Center Visitor Complex is K 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. Trudy Shomo receives the Certified Occupational Safety Specialist of the Year Award for her commitment to making the complex a safe workplace. A irport Revenue News (ARN) names numerous North American airports within 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, Albuquerque International Sunport and Minneapolis-St. Paul International Airport. elaware North Companies benefits publications D employing the theme “The Right Direction” earn a second-place award for excellence in training, advocacy and education at the Pension & Investments Eddy Awards. L odging Hospitality, a major trade publication of the lodging industry, names Delaware North one of the top management companies based on the portfolio of properties it owns and/or operates. irports Council International (ACI) announces A 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. elaware North at Melbourne Zoo is named D caterer of the year by the Restaurant & Caterers Association (Victoria) for professionalism, vision and creativity of the front- and back-of the-house teams in consistently delivering service excellence in catering and hospitality. elaware North Companies Principal Charlie D Jacobs is inducted into SportsBusiness Journal’s Forty Under 40 class of 2009. elaware North Companies receives a handful D of ADDY awards from the American Advertising Federation for its 2008 annual retrospective and a global branding video. Daytona Beach Kennel Club & Poker Room’s team earns a bronze ADDY for its consumer-focused Web site. aytona Beach Kennel Club & Poker D Room achieves Leadership in Engineering and Environmental Design (LEED) gold certification from the United States Green Building Council (USGBC). 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. D Garden receives a prestigious regional T Environmental Protection Agency (EPA) award. The Garden and its associates receive the awards for the considerable strides they’ve made in reducing the building’s environmental impact. In particular, The Garden provides newspaper and bottle recycling opportunities for more than 20,000 commuters who walk through North Station in Boston each day and 2.5 million people who attend concerts, shows and sporting events at the venue each year. ETCO Park in San Diego is awarded P Recycler of the Year for 2008 by San Diego’s Environmental Services Department. Delaware North Companies Sportservice operates all concessions, catering and retail at PETCO Park and has helped integrate strong environmental practices at the ballpark. he Delaware North-operated Gideon T Putnam Resort and Roosevelt Baths & Spa are 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. embley Stadium in London is nominated as W 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. oston Bruins Head Coach Claude Julien is B 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. elaware North Companies is honored by the D Buffalo Niagara Partnership as a major Western New York company that has thrived for 50 years or more. Delaware North was founded in Buffalo, N.Y., in 1915. team of chefs from TD Garden and nearby A Agganis Arena receive the highest overall score for the third consecutive year during the American Culinary Federation’s competition at the University of Massachusetts at Amherst. Competing chefs are: Kevin Doherty, Patrick Kilduff, Josh Ingraham and Paul Hartz. The Ahwahnee Executive Chef Percy Whatley receives the highest overall score at another ACF competition on the West Coast. wo Delaware North locations—Southland T Park Gaming & Racing and Fort Lauderdale/ Hollywood International Airport—achieve firsts in their industries by capturing ISO 14001 registration for their environmental management systems. mirates Stadium is voted best business venue E in the Enjoy England Awards for Excellence, following its win in the Visit London Awards in the same category. Emirates Stadium hosted more than 1,000 business events in its first 18 months of operation. 57 Faces and Places of Delaware North Delaware North is nothing if not a collage of some of the most remarkable faces and places on the planet. No one knows that better than our 50,000 associates. So, we asked them to take their best shots – literally – and send us photographs of the faces and places that make us what we are. We received hundreds of responses from every corner of our company. We invite you to take a look at the moments, the scenery, the smiles and the experiences that fill our days, and make up the kaleidoscope of images that is Delaware North’s alone. G RAND PRIZE Submitted by Jillian McRae, Kennedy Space Center Visitor Complex. Jillian McRae poses in front of a space shuttle preparing to roll out to the launch pad. R UNNER-UP Submitted by Shawn Mattox, Rangers Ballpark in Arlington. Shawn Mattox captures the excitement of opening day 2009. UNNER-UP R Submitted by Carrie Putz, Grand Canyon. Delaware North associates show their pride at the South Rim of the Grand Canyon. R UNNER-UP 58 Submitted by David Stone, Yosemite National Park. Yosemite firefighter Gary Rosenfeld demonstrates the power of water. 59 Executive Team and Corporate Information LEADERSHIP OPERATING MANAGEMENT Jeremy M. Jacobs Sr. Chairman & Chief Executive Officer Delaware North Companies Boston Bruins Peter Chiarelli, General Manager Daniel J. Zimmer, Vice President, Business Operations Jeremy M. Jacobs Jr. Principal Delaware North Companies Delaware North Companies Boston (TD Garden) John Wentzell, President Louis M. Jacobs Principal Delaware North Companies Delaware North Companies Gaming & Entertainment William J. Bissett, President Charles M. Jacobs Principal Delaware North Companies Boston Bruins/Delaware North Companies Boston (TD Garden) Charles E. Moran Jr. President & Chief Operating Officer Delaware North Companies Delaware North Companies Parks & Resorts Kevin Kelly, President Delaware North Companies Sportservice Rick Abramson, President Dennis J. Szefel Chief Administrative Officer Delaware North Companies Delaware North Companies Travel Hospitality Services Matthew King, President CORPORATE EXECUTIVE STAFF Global Headquarters 40 Fountain Plaza Buffalo, New York 14202 716.858.5000 Bruce W. Carlson Vice President, Controller and Treasurer Delaware North Companies Jeffrey Hess Vice President, Retail Delaware North Companies James Houser Vice President, Facilities Project Management Delaware North Companies Bryan J. Keller Vice President, General Counsel & Secretary Delaware North Companies ABOUT DELAWARE NORTH COMPANIES 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 Jamel Perkins Vice President, Information Technology Delaware North Companies United Kingdom Delaware North Companies (UK) Ltd. 12th Floor, York House Empire Way Wembley HA9 OWS United Kingdom 44.(0)20.8795.9000 Main (Wembley Stadium) 44.(0)20.8795.9630 Managing Director 44.(0)20.8795.9640 Fax Michael Reinert Vice President, Supply Management Services Delaware North Companies Web Site www.DelawareNorth.com Eileen Morgan Vice President, Human Resources Delaware North Companies Wendy A. Watkins Vice President, Corporate Communications & Marketing Delaware North Companies 60 Delaware North Companies International Jonathan Tribe, Managing Director Simon Dobson, Managing Director, United Kingdom Maria Kucherhan, Director of Marketing & Strategic Growth www.DelawareNorth.com