Having the center’s management firm run the food-and-beverage services has increased profits

August 15, 2013 at 6:21p.m.

Under JAC, food-and-beverage revenue jumps $89K for first half of 2013

The center made more in first 6 months of this year than any other full year

Covelli concessions give city a boost

YOUNGSTOWN

Having the Covelli Centre’s management company take over the facility’s food-and-beverage services is proving to be a financial boom for Youngstown with more money collected in just the first half of 2013 compared with any other entire year.

As of June 30, the center generated $210,622 in food-and-beverage sales for the city.

If the city had retained Centerplate, the center’s vendor from its opening in October 2005 to its buyout in April 2012, during the first six months of this year, the city’s food-and-beverage share would have been $121,321.

That’s according to figures provided by Eric Ryan, the center’s executive director and head of JAC Management Group, the firm that runs the facility’s day-to-day operations.

But a deal with JAC Management Group provides additional income to the city from the sale of food and drinks.

Through that agreement, the city made an additional $89,301 through the first six months of the year.

“Operating the food-and-beverage department in-house is proving to be a great move by the city,” Ryan said. “The money is in addition to the [operating surplus and admission tax] and is truly extra money for the city as all of this would have gone to the former operator.”

Under the Centerplate deal, the center received a 30 percent commission based on gross sales. Centerplate kept the rest of the money for expenses and profit, Ryan said.

The JAC deal, which took effect April 17, 2012, has the same language on the gross sales and keeps money for its expenses as well as a 3 percent profit. But the remaining balance — $89,301 for the first six months of this year — goes to the city.

“It’s proven to be the right decision,” said Mayor Charles Sammarone.