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The Honolulu Advertiser
Posted on: Wednesday, December 31, 2008

Hot dog! There will be cheap eats at UH events

By Ferd Lewis
Advertiser Staff Writer

To help entice fans to its events in a worsening economy, the University of Hawai'i athletic department and its concessionaire, Sodexo, will reduce prices for food stand items beginning Saturday, under the terms of a new, innovative seven-year contract.

Beginning with Saturday's Western Athletic Conference men's basketball opener against Boise State, 105 of the 110 items sold at UH athletic events at the Stan Sheriff Center, Les Murakami Stadium and Rainbow Wahine Softball Stadium will be cut from 10 to 20 percent, according to UH officials. Food items will be reduced by 20 percent and alcohol by 10 percent.

Items not covered under the agreement include Italian ices and smoothies, which are subcontracted, according to Andy Lachman, manager of UH Food Services. Prices will be slightly higher for non-UH events other than high school activities, Lachman said.

Previously, when UH put its athletic concessions agreement out to bid, the athletic department only asked prospective bidders to offer a percentage of sales for rebate. For the new contract, UH mandated that bidders lower concession prices.

UH officials maintain they have gotten the best of both worlds in the new deal, a higher percentage on the rebate (30.52 percent compared to 18.5) and lower prices for consumers.

"I think it was a real novel approach and it really paid off," Lachman said.

Marc Nakamoto, district manager for Sodexo, which UH said out-bid Centerplate, said, "this is a very unique operation. Our goal is to fill the seats and it comes at the perfect time with what we are dealing with (economically)."

Under the new deal, for example, hot dogs and 32 oz. soft drinks that had been priced at $3 each will be $2.40.

In addition, a four-person "family pack" will be offered for the first time. The "pack" — consisting of four 20 oz. sodas, four hot dogs and four churros — will cost $18. Previously, they would have been $31.

Nakamoto said Sodexo is looking at "bundling" other items, including kids meals, as the program unfolds. "We're trying to support (athletic director) Jim Donovan's vision and make sure it is family friendly."

Donovan said the impetus for the changes came from his family's experience at a men's volleyball match in March, his first week on the job. Donovan, who had been away from UH for five years, said he was surprised at the $80 tab to take a family of four to the match.

Since then he has set about repricing tickets and looking at other ways to, in his words, "make our events more fan- and family-friendly. We want to make it so fans can go to our events without feeling the hurt in their wallets," Donovan said.

When the concessions contract came up, Donovan asked prospective bidders to lower prices. "What Jim wanted to do was different from traditional thinking," Lachman said. "We really valued the consumer in this."

Donovan said he believes the repricing will help ticket sales that are already declining without detracting from the rebate UH receives from its concessionaire. UH received $266,084 in rebates from sales of food items at its athletic venues in the most recent fiscal year, the school said.

Reach Ferd Lewis at flewis@honoluluadvertiser.com.