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Under Construction: Luna Park Coney Island’s $1.4M Sodexo-Run Restaurant & More

Posted in Food & Drink, Redevelopment, tagged Coney Island, Economic Development Corporation, Luna Park, New Restaurant, NYCEDC, Sodexo on December 2, 2010| 2 Comments »

Under Construction: Restaurant at Surf Ave and 10th Street in Luna Park. November 24, 2010. Photo © Bruce Handy/Pablo 57

At the corner of Surf Avenue and 10th Street in Coney Island, construction workers have been emptying rubble into a dumpster and digging up the street. It doesn’t look like much now, but by next season a $1.4 million sit-down restaurant with a view of the Cyclone roller coaster will be open for business.

As ATZ reported last week, the new restaurant will be run by Luna Park’s partner Sodexo, one of the largest food and facilities management companies in the world. Luna Park CEO Valerio Ferrari told ATZ that $1.4 million is being invested in the restaurant, which will be open year-round and feature waiter service and a variety of food.

Unlike the Sodexo-run restaurants set to take over what Ferrari described as “some but not all” of the Boardwalk businesses, this location is not controversial since the property was already vacant. Gregory & Paul’s Surf Avenue eatery closed after Thor Equities booted out Astroland two years ago. What’s controversial is corporate giant Sodexo’s highly unpublicized partnership with Luna Park Coney Island, which is itself a public private partnership with the City of New York. Why didn’t the NYCEDC issue a press release in May?

Since ATZ broke the news in Meet Sodexo: Luna Park Coney Island’s Partner for “On-Site Service Solutions” (November 23, 2010), readers have emailed us links to articles about everything from high prices in Sodexo-run college cafeterias in New York and New Jersey to the Washington Post’s “D” grade for the Sodexo-run cafeteria at the U.S. Department of Agriculture.

The most notable link is a press release from Attorney General Andrew Cuomo in July announcing “a $20 million settlement with food services provider Sodexo for overcharging 21 New York school districts as well as the SUNY system…” Said Cuomo, “This company cut sweetheart deals with suppliers and then denied taxpayer-supported schools the benefits. The state and federal regulations regarding such contracts exist to protect taxpayers, and I thank the whistleblowers for having the courage to bring this to our attention.”

Forty Year Old Business Being Replaced by Sodexo: Paul's Daughter on Coney Island Boardwalk. Photo © Tricia Vita/me-myself-i via flickr

New York Magazine’s Grub Street asked “Could a 40-Year-Old Coney Institution Be Replaced By a Corporate Cafeteria Giant?” Yes, according to Ferrari, Sodexo is expected to take over the Boardwalk outpost of G & P’s, now called Paul’s Daughter, so it looks like it will indeed be Goodbye to My Coney Island Equivalent of Proust’s Madeleine, barring a reprieve by a judge or the Mayor. Merde alors.

Our readers were equally unenthusiastic about a French multinational best known for running cafeterias for schools, corporations, hospitals, prisons and the military taking over the food operation at the People’s Playground and pushing out the indigenous Mom and Pops. “Sodexo was sub-contracted to handle all food & beverage services at the Fortune 50 corporation that I used to work for,” commented one of our readers. “In a nutshell, it is sterile, soul-less, generic food and beverage service.”

But that’s not why ATZ is unlikely to become a regular patron of the new Sodexo restaurant. As someone who works in Coney Island, we simply don’t have time or money to wait on line with the tourists. When we’re on the job, we brown bag it or a few of us will order from reasonably priced neighborhood places like Classic Heros and Pizza on the Run, which are just outside the amusement area. The prices at Luna Park’s Sodexo kiosks were on the high side for Coney Island. $5.00 plus tax for a cup of watermelon that could be bought for a couple of bucks from a vendor just down the block. $2.50 plus tax for a 20 ounce bottle of water which cost $2.00 in a vending machine across the street. Who’s pocketing the extra quarters and dollars?

Sodexo Kiosk at Luna Park Coney Island. May 31, 2010. Photo © Tricia Vita/me-myself-i via flickr

Ask New York City’s Economic Development Corporation, the secretive, quasi-governmental entity that is the City’s vehicle for promoting economic growth. It is the NYCEDC that made the 10-year contract with Zamperla for $100,000 annual rent plus a reported 10% of the gross in the first year of operation and pulls their strings like a puppeteer.

Interestingly, an Associated Press article about the eviction of the Boardwalk businesses misreported that the company is “paying the city $1 million plus part of gross receipts.” We got a laugh out of that, but the reporter can be forgiven for thinking the correct $100K figure was so paltry as to be a typo. To put this number in perspective, consider that Boardwalk businesses like Ruby’s and Cha Cha’s have been paying $100,000 annual rent in recent years. As for Luna Park’s second year of operation, including who stands to earn what from the Boardwalk leases and Sodexo’s cut, neither the NYCEDC nor Zamperla is saying, despite ATZ’s repeated requests.

Last year when the Coney Island Amusement Operator RFP was issued, NYCEDC disclosed to potential bidders that “While we cannot share information on individual licenses at this time, we can report that in the past, the gross potential rent for the Boardwalk tenants was approximately $750,000 to $900,000.” Considering that the property is City-owned and was purchased with $95.6 million of public funds, do you think this information is proprietary or public? We’ll let you know when we receive the results of our Freedom of Information Law (FOIL) request.

UPDATE March 31, 2013:

Surf’s Up for CAI Foods in Coney Island, Sodexo Is Out. Sodexo’s departure had long been rumored and is something to cheer about. According to the partnership agreement, after 3 years either party was free to terminate the lease, with CAI having to reimburse the remaining value of Sodexo’s initial investment, with interest.

CIDC Map of the Coney Island Amusement Operator Sites. Credit: Coney Island Development Corporation

Meet Sodexo: Luna Park Coney Island’s Partner for “On-Site Service Solutions”

Posted in Food & Drink, Redevelopment, tagged Boardwalk, Coney Island, Luna Park, Sodexo, Zamperla on November 23, 2010| 5 Comments »

Sodexo Kiosk at Luna Park Coney Island. May 31, 2010. Photo © Tricia Vita/me-myself-i via flickr

If you had Fresh Fruit Fresca, Dippin’ Dots, Coke or any other food or beverage at Luna Park Coney Island this summer, you were experiencing the “Quality of Daily Life Solutions” of Sodexo, one of the world’s largest food and facilities management companies. Zamperla’s new Luna Park was one of Sodexo’s “wins” in 2010, though the partnership is certainly news to the public since it wasn’t mentioned at any of the NYCEDC/Luna Park press conferences.

In addition to managing the kiosks in Luna Park, Sodexo’s involvement extends to planning and running the restaurant currently under construction at Surf and 10th Street in the Gregory & Paul’s location which closed two years ago. Luna Park CEO Valerio Ferrari told ATZ that $1.4 million is being invested in the new sit-down restaurant. It will be open year-round and feature waiter service and a variety of food. As for the Boardwalk, Sodexo-run restaurants are set to take over “some but not all” of the Boardwalk locations, Ferrari says, including Paul’s Daughter and Pio Pio Riko, which flank the Boardwalk entrance to Luna Park.

In May, a Sodexo manager posted news of the win on the company’s Facebook career page: “Sodexo is excited to announce the newest addition to our Leisure account portfolio is none other than Coney Island. We look forward to a wonderful partnership!” Luna Park Coney Island is also listed in Sodexo’s third quarter press release. It is Sodexo Operations LLC’s name on the liquor license at 1000 Surf Avenue. And if you look up Dippin’ Dots retail locations for 11224 on their website, you’ll find the listing Sodexo Inc – Luna Park @ Coney Island.

Sodexo Careers Page on Facebook: "Sodexo is excited to announce the newest addition to our Leisure account portofolio is none other than Coney Island. We look forward to a wonderful partnership!"

Though Sodexo’s partnership with Luna Park may be news to New Yorkers, the company’s presence was known within Coney Island. The Sodexo rep setting up the food service for Luna was a gregarious fellow who introduced himself to people working in neighboring businesses. It wasn’t till mid-summer, when some Boardwalk business owners who’d never heard of Sodexo received a visit from the rep asking details about their business and leaving his card, that some began to ask who is Sodexo?

Founded in France in 1966 by Pierre Bellon with a single dining room, the company now has more than 350,000 employees on 30,600 sites in 80 countries. According to the company’s official bio: “In North America, Sodexo Inc has 7.7 billion (USD) in annual revenue and 120,000 employees and Sodexo serves more than ten million customers daily in corporations, health care, long term and retirement centers, schools, college campuses, government, and remote sites.” Sodexo is an acronym that comes from a French phrase, Societe d’Exploitation Hoteliete, which means a company of service and hospitality. In 2009, “Food and Facilities Management Services” became “On-site Service Solutions.”

According to the Leisure and Entertainment page of the company website….

Sodexo is a global leader in providing guest and facilities services to museums, zoos, aquariums, historic properties, sports venues, and more.

While you focus on your core business and mission, we create and offer a wide array of services specific to your venue that enhance your guests’ experience. A few examples of our services:

Guest Services, Restaurants & Dining
Catering & Special Events
Gift Shops & Retail
Vending

Facilities Services, Planning & Assessment
Operations & Maintenance
Landscaping & Grounds
Housekeeping & Custodial
Construction Services
Unarmed Security

Wherever people come together, Sodexo matches the menu to the venue and creates a truly unique dining experience for your guests. We feature fresh, seasonal cuisine presented in a style appropriate to your venue and to creating a truly memorable dining experience. Our customized services will maximize participation and guest satisfaction.

From fine dining at our museums, aquariums, and historic properties to elegant tea rooms in botanic gardens to family meals or high volume concessions at your zoo or arena, we have the perfect solution.

Halloween Treats at Luna Park Coney Island. October 15, 2010. Photo © Tricia Vita/me-myself-i via flickr

After the Boardwalk businesses received the November 1st notice to “vacate the premises” from Luna Park/CAI, Cha Cha’s told the blog Grub Street that “a French company that was handling Central Amusement’s food and beverage program asked him to submit a business plan and he did so, promising to spend half a million dollars turning his dive into ‘the lost city of Atlantis, with live music and entertainment and food.’ ” Another Boardwalk owner told us he was promised a multi-year lease by the Sodexo rep and was asked to sell some of their products. The business owners, now known as “The Coney Island 8,” are going to court to try and hold onto their longtime spots on the Boardwalk. A plan has also been floated to relocate the evicted businesses to the north side of Surf Avenue.