Lodge Park Sports Centre Bars and Catering Service

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1 Open Decision Item 3 One Corby Policy Committee 11 th April 2006 Lodge Park Sports Centre Bars and Catering Service SYNOPSIS BOX For members to consider the options at Lodge Park Sports Centre for the future management of the bar and catering facilities and development of associated areas. 1. Relevant Background Details The bars and catering at Lodge Park Sports Centre has been operated by external catering contractors, through a tendering procedure, whereby they are charged a fixed rental for use of the facilities. The contract requires the contractor to provide a bar and catering operation for approximately 65 hours Monday to Friday and 25 hours at weekends. The specification requires them to offer food during the daytime operation with bar and a limited catering service during the evenings. They are required to provide the staff and to undertake the marketing of the service. Over the past seven years the Council has had three different companies operate the bars and catering, all have struggled to make the business a success. All three businesses have stated that the facility cannot run as a traditional setting and that daytime operation has been difficult to develop further than students and teachers from the adjourning school site. 2. Report Development of Bar and Catering Facilities It is felt an opportune time to review the present level of service provided and consider ways to development the bars and catering facilities and to consider ways to increase the use of the quieter areas of the centre enabling greater usage and additional income. This would also be in line with the Councils aim of building healthier communities and improving the viability and standard of service. As part of the lottery development in 1999 a second room was added to the Sir Matt Busby Lounge that has subsequently become under utilised and caused management problems relating to security and maintenance. It is proposed to continue with a smaller bar located in the Sir Matt Busby lounge (2) and to market the facility as a coffee bar / bistro, this would offer good quality per prepared food, fresh fruit drinks and smoothies, a range of herbal teas and coffees and a small selection of wines, beers and spirits. This scaled down operation would allow the service to run with a bar supervisor and small team of casual bar attendants and catering staff (See Appendix One). Operating times would be from 10.30am until 2pm and 5.30pm until 10.15pm Monday to Friday, 8am until 2pm and 5.30 until 10.15pm Saturday and 9am until 2pm and 5.30pm until 10pm Sunday. If however it was deemed viable additional operating hours could be extended at weekends via casual staff. This would give approximately 70 hours of staff cover. The evening operation would offer the customers of the sports centre a friendly bar for over 18 s only to relax and enjoy a drink or possible watch sporting events. With the bar being non-smoking it would be able to 1

2 presented and kept it in excellent condition. The purchase of a removable dance floor would allow the venue to hold functions with up to 100 guests in this area if required by customers. These changes would allow areas mentioned to be utilised throughout the day and evening thus creating the opportunity of additional income and combating petty vandalism because the areas will be well used and independent of each other. The Terrace Bar (1) area is currently separated from the Sir Mat Busby Lounge by a large removable screen. It is mainly used for meetings and when large functions have been booked. There are however very few functions that need this additional area and it is proposed to redevelopment this area as a Young Persons Fitness Suite to bring in additional income to the centre whilst working towards the councils aims of building healthier and safer communities and the governments aims in the white paper Every Child Matters. The terrace lounge lends itself ideally to the project. The room already has air conditioning in place, a costly addition if the fitness suite is to be located elsewhere and self-contained toilets that would help to control the risks associated to young people in terms of Child Protection. These facilities are beginning to become extremely popular for young persons. The equipment is designed for 8-15 year olds and it would be marketed as an area that teenagers can easily access and use. (See appendix 3) A development of this kind would allow the council to tackle the issues around inactivity and obesity in young people whilst also having an activity that can combat anti social behaviour. Working with established partners across the town such as Sports Development, Happenin Project, Positive Programmes, local schools, police liaison officers, youth groups, sports clubs and with proactive and positive pricing would ensure usage is borough wide. This Gallery area (4) would also be developed into a Bistro area for daytime use. An investment toward furniture would be required to ensure it is attractive to use for all groups. The Gallery would serve menu specials and beverages from the current servery located within the room. This would allow the Sir Mat Busby Lounge to be utilised for training and seminars during the daytime, discussions have been held with Human Resources who require a quality training venue that could hold up for up to 60 people comfortably. Use of Lodge Park Sports Centre would save on the hire of private venues and would be marketed to other organisations as well. A Sports Bar (3) theme would also be developed, this area would only be accessed during the evening operating hours as an extension to the Gallery and self contained area for children s parties. However on particularly busy periods it would open during the day if needed. This could also be used during the day as a small meeting room with contained OHP screen and direct access to the catering facilities via its link to the Sir Matt Busby Lounge. It is also proposed to make the all of Lodge Park Sports Centre non-smoking from April 1 st This is likely to have an impact on current business from regular users who currently smoke in the bar area, attend functions and watch football games which often create the busiest evenings midweek. It is unclear at this point what the impact of a non-smoking policy would be, but it is intended that new marketing around a smoke free venue would encouraged new and existing customers to use the bars and catering themed around the healthier options. To try and gauge the customer views with regard to non-smoking a customer questionnaire was conducted between Monday 9 th January and Sunday 22 nd January. The questionnaire results showed that of the 135 customers that agreed to complete the form, 105 would like to see the bar facilities non-smoking and felt this would increase there usage of this area. Management options for future service provision. There are two options available;

3 1) Continue to use private catering contractors by tendering the bars and catering operation, developed around a specification and contract for a three-year period. 2) Operate the bars and catering using the In-house Team. Private Catering Contractors Provides minimum risk for the council with a guaranteed fixed income dependent on the tender sum submitted. The council does not need to provide management, staffing, financial or audit support. The Specification will require the contractor to have specialised knowledge and expertise in the bars and catering field. However as previously reported, the previous three catering companies have not been able to make the success as originally envisaged, despite the considerable investment that the council has made into the bars and catering at the sports centre. The specification required the companies to proactively market their business, however this has always been an area that seems to have fallen short. Over the past two years the last contractor has had seriously difficulty in maintaining rental payments to the council. In House Team Use of a dedicated In-House catering team would ensure that the council through the sports centre management would have complete control over the service and be able to actively market it within the overall promotion of the centre. Due to problems with insurance cover for late functions, centre staff have had to double up with the bar staff resulting in increased expenditure on the centre. An In-house Service Catering Team of staff would be amalgamated in to the centre staffing structure providing better flexibility and economies of scale. By operating an in-house catering service the council would take all the risks but would benefit from any additional income if the service is successful, adversely if the service is poor the council will have to bear the additional cost above the income threshold. 3. Options to be considered (if any) The report proposes modifications to the bars and catering facilities to make these more attractive and improve usage in areas of the centre that are identified as low usage. The areas can remain as they are but without change it is difficult to predict how improvements and additional usage income can be generated. The proposal to make the whole of Lodge Park Sports Centre a no smoking facility complies with the council policy on introducing no smoking in all public places. The two management options are contained within the report. 4. Issues to be taken into account:- Policy Priorities The development of the bars and catering and making this Non Smoking would assist the council s aims within One Corby and its commitment to building healthier and safer communities. Financial The bench marking against the rental previously provided shows the bars and catering should provide a surplus of between 7,500 (lowest estimated) and 15,000 (highest estimated) if tendered. However the previous catering contractors tender figure for 2006/07 is 23,000 which is now perceived as over optimistic, as this figure is included in the sports centre budget, this will be the target set to achieve. A full analysis of estimated in-house costs has been undertaken and is summarised as follows:

4 Financial Commitment if operated for a full year Staff costs 34,310* On-costs 8,580 (25%) Holiday and sickness cover 4,800 Bar supplies 50,000 Catering supplies 20,000 Supplies and services 7,000 Income (140,000) Total surplus (15,310) * Post will be subject to job evaluation. There are a number of additional savings that could be realised if the bars and catering service is taken in house and the associated rooms are delivered in the way described within the report. Staff at the centre could be finished at 11pm Monday to Friday and by pm on Saturdays rather than / 12am. This will reduce the need for overtime where in the past the bar has closed late. This can be achieved because the council will employ the bars and catering staff so they will be able to lock the facility with support of a duty manager.. The cleaning of these areas will be reduced thus saving on staff hours. This would allow more effectively cleaning plan and the implementation of a deep cleaning programme. Utility costs will slightly reduce due to the proposed way of operating the facility if agreed, in line with the council s environmental policy. A dedicated bar supervisor will be able to market the facility as a whole thus creating the chance for additional income from all areas of the sports centre. This provides an estimated further saving of 3,000 per annum. Income projections for the operation of a young person s fitness suite Income details 2006/ / / / /11 Pay and play 10,000 12,000 14,000 15,000 15,500 Clubs 12,500 12,875 13,250 13,650 14,000 Youth groups 1,000 2,000 2,500 2,500 2,500 Schools 1,000 1,000 1,000 1,000 1,000 Expenditure 2006/ / / / /11 Annual costs 7,500 7,725 7,950 8,200 8,500 Total surplus 17,000 20,150 22,800 23,950 26,000 Therefore the anticipated additional revenue less the expenditure allows the overall net surplus to be reduced by 17,000 over a full year. If approved, all improvements will be accommodated within the 2006/07 capital budget allocation of 88,000.

5 Legal This is essentially a new contract for the delivery of the service in-house although as it is to be run in-house it will not be subject of a written contract. Performance Information Similar developments of young people s fitness suites have attracted the following performance information and can be used to measure our success. Edmonton Development - 20 new induction s per month with over 1,500 young people currently able to use the facility. Fitness First Liverpool 15 new induction s per month with over 500 young people currently able to use the facility. Best Value The proposals are in line with best value, in considering methods of improving usage, taking on board views of the public through consultation and make best use of facilities and staff. Human Rights Their are no human right implications contained within the report. Equalities The developments will be in line with DDA requirements and offer young people across the borough fitness opportunities regardless of gender, disability and background. Community Safety The proposed developments will allow Lodge Park Sports Centre to work with key partners to help tackle anti social behaviour across the borough The existing terrace bar has also recently been identified through a national training scheme Leisure Watch held at the centre as an area that could potentially be used by members of the public to gain access to young people. Although CCTV is located within the area, Leisure Watch identified the area as medium to high risk. The modifications would eliminate the risk in this area. 5. Conclusion Lodge Park Sports Centre is predominately a business that deals with healthy lifestyles and fitness activity as its core business. The proposal to redevelop and theme the bar and function areas will offer customers either a drink and/or a light snack after taking part in physical activity whilst still offering functions if required by the public. The development of the associated catering areas will generate additional income, reduce expenditure and improved services for users. With the healthy agenda in local and national government becoming more and more apparent the creation of a bistro / bar service with training venue, fitness suite and meetings room will be an added beneficial improvement to the very popular centre. The Council s One Corby Policy Committee have recently approved the continuation of the In-house Team for the overall management of Lodge Park Sports Centre and the New Swimming Pool subject to a review and reduction in subsidy around staffing at the sports centre. This was based on the high standards of service provided, the sports centre being benchmarked in the top 75% quartile for performance and with customer satisfaction levels being constantly above 95%. The suggested improvements linked to an in- house bars and catering service provided an excellent opportunity to improve the standard and quality of service in the quieter areas of a very well used sports centre. This will generate higher usage and income as reported.

6 Recommendations For Members of the Committee to consider agreeing to the following: the capital improvements to the bars and catering facilities and the creation of young persons fitness suite in the terraced area. the In-house Team manage a Lodge Park Sports Centre bars and catering operation with further report back to committee in twelve months reviewing the performance. Background Papers Management Options Committee Report to One Corby Policy Committee March 2006 External Consultations Shokk Fitness. Pemberton Leisure Centre - Rushden List of Appendices Appendix 1 Layout of Bars and Catering Appendix 2 Staffing Appendix 2 SHOKK Young Persons Fitness Development Plans Appendix 4 - SWOT Analysis of proposed developments Wards Lodge Park Officer to Contact Roger Jones Facility Manager Lodge Park Sports Centre

7 Appendix One Proposed Layout Bars and Catering Facilities. (4) Gallery Bistro (3) Sports bar (5) Kitchen (2) Sir Matt Busby Lounge Training and conference venue (1) Terrace Area Young Peoples Fitness Area Appendix two

8 Staffing Previous Staffing Structure Bar Manager 37 hours per week Monday to Friday 9am to 5pm Cook - 25 hours per week Monday to Friday and 15 hours Saturday and Sunday Bar Supervisor 35 hours per week Monday to Friday 9am to 5pm Bar Attendant 30 hours per week Monday to Friday 5.30pm 11.30pm Bar Attendant 25 hours per week Saturday and Sunday Function Staff As and when required Party Cook As and when required Proposed Staffing establishment Financial Commitment if operated for a full year. Bar Supervisor scale 3/4 17,469 Bar Attendant / Catering Attendant Man grade 4 5,460 Casual Bar Attendant / Catering Attendant Man grade 4 4,368 Casual Bar Attendant / Catering Attendant Man grade 4 4,212 Casual Bar Attendant / Catering Attendant Man grade 4 2,808 Example Staff Rota Position Mon Tue Wed Thur Fri Sat Sun Ttl Hrs Bar Supervisor Off Off Bar / Catering At Off Casual Staff Casual Staff 5.30 Casual Staff

9 Appendix Three Proposed Layout of Young Peoples Fitness Suite

10 SWOT Analysis of Proposed Service and Facility Development Appendix Four Strengths Additional income from young persons fitness suite Additional income from development of quite areas Council control the bars and catering service Savings by the council by using the facility rather than local training centres Reduction in staff costs Slight reduction in utility costs Limited building work and effect on current service if suggested rooms are used Weakness Unable to hold functions in excess of 180 people Opportunities New business through training venue. Training venue for SHOKK. Tackle health issues for young people. It will be something the young people in Corby can have a real pride in. Schools to us the facility as part of there curriculum time. Threats Limited take up of the fitness opportunity Replacement of the facility in yrs It will make Lodge Park Sports Centre look more expensive to run SWOT Analysis of Current Service and room use Strengths Ability to hold large functions Weakness Repair and Maintenance costs Petty Vandalism of areas due to rooms not being used but required to be left open due to fire regulations Contractors reneging the contract Legal implications with regard to resuming the service Hidden costs such as overtime for late functions Increased utility costs Management time meeting with contractors Limited use of associated areas Staff frustration because of anti social behaviour and under age drinking Cost of Sky Opportunities Ability to hold large functions Threats Hidden costs to the facility Contractors not fully supporting contract Legal implications and changes to contracts to assist delivery of contract Lodge Park Sports Centre having to cover shortfalls in management fees.