(Update: Added video, comments from BPRD Services Director Matt Mercer on future food establishments)
Bend, Oregon (KTVZ) — Bend Parks and Recreation District plans to enter the food and beverage business at some of its properties in the near future.
At a park board meeting Tuesday evening, park district staff said the fiscal 2023-24 budget proposal would include hiring a full-time supervisor and up to $30,000 to create a food and beverage division under the recreation division. said it included funds for the purchase and improvement of equipment.
Bend Park & Rec Service Director Matt Mercer says fresh food is a priority for the new café.
“We are certainly looking to offer more fresh food options and freshly prepared options as well as prepackaged options,” he said Thursday.
First year start-up costs are $460,000, revenue is $390,000, and first year grant start-up costs are $70,000.
Mercer spoke about why the effort is underway.
“One is to improve people’s experience by giving them better options than what we currently offer them. Generating revenues and profits that will allow us to grow and sustain that program for the future.”
Next year’s budget includes funds to hire staff and up to $30,000 to purchase and improve equipment.
“Staffing will fluctuate from time to time,” Mercer said. “We will have a full-time supervisor and an area manager. The rest will likely be part-time seasonal staff.”
Meal preparation is done at the Bend Senior Center, which already has a commercial kitchen, Mercer said. I’m here.
“We already have in-house resources that are dedicated to food and beverage, so some will be in-house,” Mercer said. We’ll also look to see if we can possibly contract with a concessionaire for the specific things we decide to do.”
You can read the full Board agenda for Tuesday’s meeting below.
The district currently operates simple food and beverage businesses at recreational facilities such as the Juniper Swim & Fitness Center, Larkspur Community Center, and The Pavilion. The district has also provided concession operations at the playground through concessionaires in the past.
These businesses have generally sold pre-packaged goods over the counter, with the exception of a few pre-cooked hot food options at The Pavilion.
As a result, food and beverage options are limited in terms of quality, variety and healthy options. Also, the business generates little profit to support District Grant Services.
The district intended to operate a small cafe at the Larkspur Community Centre. However, this has been delayed due to the COVID pandemic and is not yet open. The pavilion’s concession operations were also suspended during the pandemic and are currently operating at reduced capacity. District staff used this time to consider future food and beverage service opportunities and alternatives, including resources, levels of service, and contract and in-house delivery methods.
The district sees an opportunity to develop a significant and recurring revenue stream to support recreational scholarship programs while enhancing the user experience by providing higher quality, healthier and more convenient food and beverage options. I’m here. The staff believes these goals can best be achieved by developing an internal food and beverage business, complementing this with a concession agreement.
This requires some investment and an entrepreneurial approach, such as the willingness to consider operating mobile concessions at some parks and athletic facilities. Several recent district surveys show growing acceptance and demand for some park concessions.
Some subsidy (up to $70,000) is required in the first year of operation due to the initial costs associated with planning and development for the three months before actual operation begins. The food and beverage sector is expected to generate net income in the coming year and aims to provide substantial six-figure support to the Recreational Scholarship Fund in the future.
We expect this program to be successful, but there is no guarantee that it will generate sufficient returns to provide a satisfactory return on investment. Part of the business planning process will be setting realistic financial goals along with a divestment strategy in case the program fails to meet expectations. Staff will provide additional information during Board work sessions and seek Board input and concept support prior to the budget. The staff also plans to submit a more complete business plan to the board for review as it is developed.
The 2023-24 budget includes resources to support the creation and implementation of the food and beverage sector. Expenses are budgeted at $460,000 and revenues at $390,000. A budget grant of $70,000 in the first year of operation is for start-up costs, including hiring a supervisor to develop a plan before operations begin. The proposed budget also includes a one-time capital equipment expenditure of $30,000. As noted above, the business is expected to generate revenue in the future and support the Recreational Scholarship Fund.