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CITY COUNCIL AGENDA REPORT
City of Anaheim
CONVENTION, SPORTS & ENTERTAINMENT
DEPARTMENT
DATE: OCTOBER 28, 2025
FROM: CONVENTION, SPORTS & ENTERTAINMENT
DEPARTMENT
SUBJECT: AGREEMENT BETWEEN ARAMARK SPORTS AND
ENTERTAINMENT SERVICES, LLC AND THE CITY OF
ANAHEIM FOR EXCLUSIVE FOOD AND BEVERAGE
SERVICES AT THE ANAHEIM CONVENTION CENTER
ATTACHMENT (Y/N): YES ITEM # 14
GOVERNMENT CODE § 84308 APPLIES: NO
RECOMMENDATION:
That the City Council, by Motion:
1. Approve the Services Agreement, by and between Aramark Sports and Entertainment Services, LLC (Aramark) and the City of Anaheim (City), granting Aramark the exclusive right to provide food and beverage services at the Anaheim Convention Center (ACC).
2. The Agreement will include a base term, beginning January 1, 2026, of seven (7) years and at the end of the seventh year, the City shall, at the sole discretion of the Executive Director, have an option to extend for an additional three (3) years, one year at a time, by providing written notice at least sixty (60) days prior to the end of the current term.
3. Net revenues from the food and beverage operations at the ACC will be retained by the City, with the City paying Aramark an annual management fee of $450,000 for their services, and Aramark being eligible to receive annual Incentive Fees up to an additional 30% of the base management fee, contingent upon established performance criteria. Aramark will pay to the City a Capital Investment in the amount of $2,500,000, for equipment, retail, small wares, tableware, and other miscellaneous items.
4. Authorize and direct the Executive Director of the Convention, Sports & Entertainment Department to execute the Agreement and any other related documents, including all actions necessary to implement and administer the Agreement.
Agreement between Aramark Sports and Entertainment Services, LLC and the City of Anaheim for the exclusive food and beverage services at the Anaheim Convention Center
October 28, 2025
DISCUSSION:
The City has enjoyed a long and successful relationship with Aramark for the exclusive management of the food and beverage operation at the ACC. Aramark’s current agreement expires on December 31, 2025, and the current contractual extension provisions have previously been exercised. To that end, and in keeping with City contracting requirements, staff conducted a Request for Proposal (RFP) process for the selection of the ACC’s food and beverage provider.
In April 2025, staff and its food service consultant, Chris Bigelow, President of Bigelow Consulting, prepared an RFP document inviting qualified food and beverage providers to submit their detailed proposals to the City for the opportunity to provide exclusive food and beverage services at the ACC.
The RFP was posted on April 15, 2025, on OpenGov to all registered vendors.
Thirty-six (36) vendors download the RFP. Staff conducted a mandatory, in-person meeting on May 13, 2025, at the Anaheim Convention Center with eight (8) companies in attendance.
Prospective food and beverage service providers, in attendance at the mandatory meeting, were then required to submit their proposal along with evidence of their qualifications to the City by June 5, 2025.
The RFP identified the following minimum qualifications for the food and beverage providers:
Operational Plan - Creativity reflected in the proposal for unique operational plans, point of sale areas, menus, uniforms, and related marketing and promotional plan at the convention center.
Experience- Proposer’s performance at other centers of similar size, to include contacts and references from representatives of those centers as well as clients, including contact information.
Strategic Plan/Management-Experience, training, and past performance of staff designated by the demonstrated in the proposal, as proposed management personnel. Which includes transition plan, organizational chart, staffing guidelines, trainings, and policies.
Financial-
o 1- Proposers' management fee and incentive fee;
o 2- Capital investment amount and planned use;
o 3-Financial Strength- Independent audited financial statements, including a balance sheet, income statement, and statement of cash flow with all footnotes and disclosures in accordance with Generally Agreement between Aramark Sports and Entertainment Services, LLC and the City of Anaheim for the exclusive food and beverage services at the Anaheim Convention Center
October 28, 2025
Accepted Accounting Principles (GAAP) for the last three full fiscal or calendar years of operation
In order to ensure a thorough and impartial evaluation of the proposals, the City created a committee for the review of the proposals and the Oral Interview/Presentations. The Review Committee was comprised of:
Mindy Abel, Deputy Director, ACC
Tom Morton, Executive Director, Convention, Sports and Entertainment Department
Ted White, Deputy City Manager
David Hernandez, Financial Services Manager, ACC
Dan Lee, Deputy Director, Convention, Sports and Entertainment Dept. Monica Vera, Contract Services Administrator, ACC
Ronnie Collins, Senior Vice President Sales and Services, Visit Anaheim Each member of the Review Committee scored the written Proposals submitted and also attended and scored an Oral Interview/Presentation. The evaluation criteria included items such as:
Experience in large convention center operations – similar buildings Financial resources and capability to perform the services required Management and Operational Qualifications
Marketing, Merchandising and Sales Creativity
On site Management Team Qualifications
Bottom Line Financial Results to the City
Sustainability and Overall Business Plan
Proposals were received from the following three providers:
Aramark Sports and Entertainment Services (Aramark)
Legends Hospitality (Legends)
Levy Premium Food Service (Levy)
The Review Committee, in a majority vote, recommended awarding the exclusive food and beverage service agreements for the ACC to Aramark. Aramark Final Total Score: 680. Average Committee Member Score: 136 Levy Final Total Score: 626. Average Committee Member Score: 125 Legends Final Total Score: 513. Average Committee Member Score: 103 The Review Committee agreed that both Legends Hospitality and Levy Premium Food Service submitted very good proposals and had excellent references from the venues in which they serve; however, Aramark proved more qualified based on their experience in comparable sized venues, the experience and qualifications of the Agreement between Aramark Sports and Entertainment Services, LLC and the City of Anaheim for the exclusive food and beverage services at the Anaheim Convention Center
October 28, 2025
proposed General Manager and Executive Chef, commitment to sustainability and the creativity of their future proposed programs.
The proposed food and beverage services agreement would run from January 1, 2026, through December 31, 2032, with three (3) additional one-year renewal options. The management fee agreement allows for net revenues from the food and beverage operation at the ACC to be retained by the City, to help offset operating costs, while the City pays Aramark a management fee for managing these services.
Net revenues from the food and beverage operations at the ACC will be retained by the City. Aramark will receive an annual base management fee of $450,000 throughout the seven-year term annually and be eligible for an Incentive Fee up to an additional 30% of the base management fee paid by the City, per year, contingent upon review and scoring of established key performance indicators, included in Appendix B in the Services Agreement.
As shown in Table 1, net revenues over the past three fiscal years have ranged between approximately $3.6 million and $4.4 million.
Table 1. Net Revenue from Aramark
Fiscal Year Net Revenue (in $)
FY 22/23 4,138,61.71
FY 23/24 4,447,374.47
FY 24/25 3,628,851.16
Additionally, Aramark will provide to the City a Capital Investment in the amount of $2,500,000 for ACC investment in equipment, retail, small wares, tableware, and other miscellaneous items.
IMPACT ON BUDGET:
There is no impact on the General Fund. Net revenues from this Agreement will be recorded in and used to support the Convention, Sports & Entertainment Department’s operations.
Respectfully submitted,
Tom Morton, Executive Director
Convention, Sports & Entertainment Department
Attachment:
1. Aramark Sports & Entertainment Services Agreement-Anaheim Convention Center