MCG lowers food prices

[Slax]

This is what I've been eluding to all the time

“You just can’t cut 40 per cent off the price of an item and run your business the same way,” Mr. Chandler said.

“So obviously they’re making significant savings somewhere or they’re receiving some benefits somewhere else, and we’re certainly not aware of that.”

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Something has been offered by the AFL to Spotless to get them to agree to the cut.

 

[Ned_Flanders]

This is what I've been eluding to all the time
Something has been offered by the AFL to Spotless to get them to agree to the cut.

Proof?

 

[Slax]

Proof?

As I have said before also, Spotless is a publicly listed company which means that the board are legally required to look after the interests of the shareholders, this will come under scrutiny at their next AGM. You don't cut prices by 40% overnight in a market where you have a monopoly on catering without being able to offset those costs somehow and it won't be in labour. Anyone who thinks this is done out of the kindness of their heart is kidding themselves, there have been deals done behind close doors that have satisfied Spotless' business needs in either financial terms or kind.

 

[Ned_Flanders]

As I have said before also, Spotless is a publicly listed company which means that the board are legally required to look after the interests of the shareholders, this will come under scrutiny at their next AGM. You don't cut prices by 40% overnight in a market where you have a monopoly on catering without being able to offset those costs somehow and it won't be in labour. Anyone who thinks this is done out of the kindness of their heart is kidding themselves, there have been deals done behind close doors that have satisfied Spotless' business needs in either financial terms or kind.

So, no, you have zero proof that the afl is paying cash subsidies to the mcc?

 

[The_Wookie]

This is what I've been eluding to all the time
Something has been offered by the AFL to Spotless to get them to agree to the cut.

not necessarily.

Mr Gough said the price of food items was a key factor in Epicure securing an extension of their contract with the MCC to 2022.

"This is a $2 million hit to the profit of both the MCC and Epicure; we have decided to re-invest that money back into the reduction of prices," he said.

http://www.abc.net.au/news/2015-03-...ed-by-up-to-40-pc-under-catering-deal/6275132

 

[The_Wookie]

So, no, you have zero proof that the afl is paying cash subsidies to the mcc?

Neither he nor anyone else does. The only proof we'll get is if the AFL comes out and says so, or if theres an increase in payments to the MCG in the annual report next year.

 

[Ned_Flanders]

Neither he nor anyone else does. The only proof we'll get is if the AFL comes out and says so, or if theres an increase in payments to the MCG in the annual report next year.

Completely agree

There are too many holes in the conspiracy theory idea though

Why only spotless at one site and not all?

Why has none of the details of the deal leaked to sa/wa media

How do the afl make this payment, considering they have no current role in catering, and the match day arrangements are with the home club

The much simpler explanation is the mcc did a deal to make up for the loss of prestige and rep it has recently experienced as a match day venue for the average punter

 

[The_Wookie]

Completely agree

There are too many holes in the conspiracy theory idea though

Why only spotless at one site and not all?

Why has none of the details of the deal leaked to sa/wa media

How do the afl make this payment, considering they have no current role in catering, and the match day arrangements are with the home club

The much simpler explanation is the mcc did a deal to make up for the loss of prestige and rep it has recently experienced as a match day venue for the average punter

This sheds even more light

Gough believed the league would greet the announcement positively. "The AFL would be very pleased. I haven't spoken to Gill - I gave him a heads-up earlier by email."

While he acknowledged that cheaper food could lead to greater sales, Gough said there was no guarantee.

"Our sales have been very strong, so people have enjoyed (the food) even though they'd like to pay at a lesser prices."

He would not speculate on whether other stadia would be forced to lower their own prices as a result of the news. "What other stadiums do is not my business, what AFL and cricket do with other stadiums is not my business."

Spotless' general manager of leisure, sport and entertainment Ian Delmenico said that this was a landmark day for his organisation.

"This is an iconic contract for us," he said.

"Part of the commercial contract with the MCC has always been to invest in the business."

Delmenico indicated that discussions with the MCC had been in place for several months.

He added that Spotless would now approach other stadia for whom it caters, including Brisbane's Suncorp Stadium, and major New Zealand venues Eden Park and Westpac Stadium, with a view to initiating similar deals.

"I'd be very keen to start dialogue with other stadiums. it will all depend on their appetite to invest into this part of their business."

http://www.smh.com.au/afl/afl-news/...nk-prices-20150302-13sga0.html?skin=text-only

Worth noting that the other stadiums Spotless are going to try this at have little to nothing to do with the AFL.

 

[Ned_Flanders]

This sheds even more light


http://www.smh.com.au/afl/afl-news/...nk-prices-20150302-13sga0.html?skin=text-only

Worth noting that the other stadiums Spotless are going to try this at have little to nothing to do with the AFL.

Good pick up, and it means we can put the afl anti wa conspiracy to rest

 

[Albert Ross]

Sometimes you cut prices in an attempt to increase sales, and increased sales actually leads to increased revenue. Standard supply and demand graphs. If a couple of hundred extra people decide to buy food at grounds Spotless may actually come out ahead. That is one of the problems with monopolies, the lack of competition often means they don't actually choose the best price points to maximise their own income.

 

[Kwality]

As I have said before also, Spotless is a publicly listed company which means that the board are legally required to look after the interests of the shareholders, this will come under scrutiny at their next AGM. You don't cut prices by 40% overnight in a market where you have a monopoly on catering without being able to offset those costs somehow and it won't be in labour. Anyone who thinks this is done out of the kindness of their heart is kidding themselves, there have been deals done behind close doors that have satisfied Spotless' business needs in either financial terms or kind.

No announcement to the ASX backs up your view.

 

[Kwality]

Sometimes you cut prices in an attempt to increase sales, and increased sales actually leads to increased revenue. Standard supply and demand graphs. If a couple of hundred extra people decide to buy food at grounds Spotless may actually come out ahead. That is one of the problems with monopolies, the lack of competition often means they don't actually choose the best price points to maximise their own income.

Income eh, turnover or profit Alby, must be in the graphs yes/no?

 

[Kwality]

Completely agree

There are too many holes in the conspiracy theory idea though

Why only spotless at one site and not all?

Why has none of the details of the deal leaked to sa/wa media

How do the afl make this payment, considering they have no current role in catering, and the match day arrangements are with the home club

The much simpler explanation is the mcc did a deal to make up for the loss of prestige and rep it has recently experienced as a match day venue for the average punter

Writing off the questioning of the AFL is the easy way to dismiss the reduction in profits - IF Epicure took a $mil per annum hair cut on their contract I'm surprised there was no ASX announcement.
Couple that with it is the AFL in discussions at Etihad.

Its the AFL that is desperate for higher crowds in Melbourne in 2015.

 

[Ned_Flanders]

Writing off the questioning of the AFL is the easy way to dismiss the reduction in profits - IF Epicure took a $mil per annum hair cut on their contract I'm surprised there was no ASX announcement.
Couple that with it is the AFL in discussions at Etihad.

Its the AFL that is desperate for higher crowds in Melbourne in 2015.

So even though the media report it, it's still a lie?

 

[Slax]

No announcement to the ASX backs up your view.

And why would they get the ASX involved.

 

[Rob]

So even though the media report it, it's still a lie?

Come on, the media regularly report matters where theyve drawn their own conclusions. It doesnt make them lies, even if it turns out that they're wrong.

 

[Ned_Flanders]

Come on, the media regularly report matters where theyve drawn their own conclusions. It doesnt make them lies, even if it turns out that they're wrong.

Are you buying this whole afl conspiracy though? It's even reported spotless will talk to other stadia now, but apparently that's just a smokescreen

Fwiw I think this is Subi knowing they have no competition, the party ends soon, and having zero interest in reducing prices. After all, what competition do they have, or incentive to give something back?

Personally I think the MCC reply would have been the same as subis if not for the recent soft crowds

 

[Kwality]

And why would they get the ASX involved.

A material sum ongoing, full disclosure.

 

[Kwality]

So even though the media report it, it's still a lie?

spin rfc, Goughy out front ... lie NO !

 

[Ned_Flanders]

spin rfc, Goughy out front ... lie NO !

Out of interest, are you in favour of secession?

 

[Kwality]

Are you buying this whole afl conspiracy though? It's even reported spotless will talk to other stadia now, but apparently that's just a smokescreen

Fwiw I think this is Subi knowing they have no competition, the party ends soon, and having zero interest in reducing prices. After all, what competition do they have, or incentive to give something back?

Personally I think the MCC reply would have been the same as subis if not for the recent soft crowds

Be pointless where they (Spotless) dont hold the catering contract.

The agitation for the AFL to act suggests they are indeed a player, a $player.

 

[Kwality]

Out of interest, are you in favour of secession?

Depends

 

[The_Wookie]

Be pointless where they (Spotless) dont hold the catering contract.

The agitation for the AFL to act suggests they are indeed a player, a $player.

Spotless havent talked about doing it at stadiums where they arent a player. They have talked about doing it at Stadiums where they are. Its even in the articles.

The agitation for the AFL to act is coming from people with little to no understanding of the simple fact that the AFL has nothing to do with catering contracts. Its contracts are with the ground management - and I have yet to see a single document or quote that suggests the AFL has anything to do with the catering - everything said so far says the AFL has nothing to do with it - including the fact that Adelaide Oval, Subiaco and Lang Park have all declined to follow the MCGs lead.

 

[Kwality]

Spotless havent talked about doing it at stadiums where they arent a player. They have talked about doing it at Stadiums where they are. Its even in the articles.

The agitation for the AFL to act is coming from people with little to no understanding of the simple fact that the AFL has nothing to do with catering contracts. Its contracts are with the ground management - and I have yet to see a single document or quote that suggests the AFL has anything to do with the catering - everything said so far says the AFL has nothing to do with it - including the fact that Adelaide Oval, Subiaco and Lang Park have all declined to follow the MCGs lead.

& the stories in the WA & SA press are ... CEOs meeting today & tomorrow. Guess you'd think Brayshaws rant was a coincidence.

For the record the caterer at Subi is Delaware North, a JV partner in the WAFC bid for the managent rights of the new pert stadium.

 

[The_Wookie]

& the stories in the WA & SA press are ... CEOs meeting today & tomorrow. Guess you'd think Brayshaws rant was a coincidence.

For the record the caterer at Subi is Delaware North, a JV partner in the WAFC bid for the managent rights of the new pert stadium.

The stories in the WA and SA press?