Next wave for ferries: small eateries?

By Erik Lacitis
Seattle Times staff reporter

	HARLEY SOLTES / THE SEATTLE TIMES Michelle Pratt of Kingston offers doughnuts recently to fellow ferry passengers Paul Merritt, center, and Jason Merritt. In the absence of food service, which stopped early this year aboard state ferries, Pratt fills the need during her morning commute to Edmonds by selling doughnuts.
	E-mail this article Print this article Search archive Related stories List of food service proposals for ferries, terminals and Colman Dock A look at the history of ferry food service Other links Talk to us: What kind of food service do you want?

The state ferry system, which shut down its galleys Jan. 1 in a contract dispute, is trying a radical new approach in feeding passengers — looking not for just one big vendor to take over its food-service operation, but at all kinds of them.

That means someone like Andy Moussouras of Anchorage could be serving gourmet sub sandwiches featuring grilled halibut and herbs on one run — or on all of them.

It means Bill Dorn, co-owner of a Vashon Island bakery and restaurant, could be making sandwiches, soups and salads aboard the ferries that travel among Fauntleroy, Vashon and Southworth.

And it means an espresso stand, Catch a Buzz of Poulsbo, could be selling lattes and muffins at Colman Dock.

Previously, a single 10-year contract covered all concessions on every run, from galley food to video games, snack machines and drink machines. But, trying to think out of the box, the ferry system last summer broke the megacontract into seven contracts, hoping, among other things, to attract small local businesses.

Four of the seven contracts have been awarded. But three contracts were still too daunting for vendors and drew no bids. Most crucial of the three was the contract to run the fleet's 22 galleys. Another was for onshore food and beverages, and the third for onshore newsstands.

Ferries at a glance Washington State Ferries came into existence in 1951 when the state bought out the private Puget Sound Navigation Co., which ran about 18 vessels throughout Puget Sound. The system is now the country's largest, with about 25 million riders annually, and the largest in the world based on the more than 11 million vehicles carried annually. • Vessels: 28, most bearing Native American names such as Quinault and Issaquah • Terminals: 20 • Routes: 10 • Employees: 1,700. The system deals with 14 union groups • Annual operating budget: $157 million Source: Washington State Ferries

So the ferry system ventured even further out of the box, breaking down those three contracts. Now, for example, a would-be galley vendor could propose any length of term up to 10 years, providing food on all runs or just a specific one.

"It was time to take a different look," said Brian Volkert, business-development manager for Washington State Ferries. Volkert has even cold-called potential vendors, quite unusual for such a large bureaucracy. You typically come to them for contracts, they don't come to you.

But the new approach hasn't been easy for the ferry system, especially when potential vendors still must navigate a daunting package of contract documents filled with references to penalties, agents, damages, theretos, whatsoevers and "including but not limited tos."

"I know this weighs 5½ pounds," Volkert said of the documents, warning applicants what to expect and inviting them to ferry offices so "we could look at this in a simpler fashion."

One potential vendor simply turned over the documents to an attorney friend, who said upon seeing them: "I was shocked, to be honest."

Until last year, the ferry system was used to dealing with Sodexho USA, a multibillion-dollar concessionaire that had taken over the one big contract, which was initially signed by Marriott Management Services. Complicated sets of documents were not unusual in that setting.

	HARLEY SOLTES / THE SEATTLE TIMES Brian Volkert, right, of the ferry system, gets a taste of a gyro created by Andy Moussouras. "This is my Super Bowl," said Moussouras, who also played a DVD about his Anchorage sub shop as part of his proposal to serve food for the ferry system.

Last year, with four years to go on its contract, Sodexho invoked a termination clause, saying it was losing money because of declining ridership, a bad economy and labor costs.

Sodexho had served up the usual galley fare — hamburgers, sandwiches and popcorn, with Ivar's clam chowder about as innovative as it got on most runs, though the Bainbridge Island run did offer sushi.

Customers didn't exactly throng to the galleys. The average rider spent 50 cents per trip, 60 percent of that in coffee, sodas, beer and wine.

The deadline for final concessions proposals for the galleys and Colman Dock was yesterday, with about 20 vendors applying. With so many proposals to look at, the ferry system extended the deadline for concessions proposals at the other terminals to Feb. 25.

For Moussouras, the 45-year-old founder of Alaska's Gourmet Subs, a lot is riding on his proposal for the fleet's galleys and for Colman Dock. If chosen, he's planning to sell his Anchorage shop and move here with his wife and two daughters.

He was a little nervous the other day as he stood at one end of a conference table at the ferry offices, meeting with Volkert. Moussouras dreams of expanding to a franchise of 1,000 stores and getting a contract to serve food on the ferries.

"This is my Super Bowl," he said, arranging a flip chart for a PowerPoint presentation and producing a DVD player on which to show a commercial and a TV news report about his sub shop in Anchorage. He passed out sandwiches he'd prepared that morning.

Moussouras had packed a carry-on with cold packs and smoked salmon, reindeer sausage, broiled halibut, dry salami, pepperoni and various cheeses to make the sandwiches. The chef at the downtown hotel where he was staying let Moussouras use the kitchen.

As the meeting went on, Moussouras became more assured. He told about how proud he was of his sandwiches and pizzas, how his shop turned a profit shortly after opening two years ago, how he'd like to see ferry passengers place orders from cellphones and get those orders delivered to their cars.

Moussouras said he knew the ferry galleys haven't exactly been moneymakers, while the average customer at his shop spends $12 a visit. "The union issue will no longer be an issue," he said. "We will be able to pay."

Your feedback is wanted If you have an opinion about ferry food, the state ferry system would like to hear it. Go to http://seattletimes.nwsource.com/ news/local/links/response_ferryfood.html. You'll see the names of many vendors who have made proposals to provide food and drinks on the ferries or at terminals. Which vendors appeal to you? What food services would you like at Colman Dock? Would you like to see any changes in the vending machines on the boats? What local business do you think could serve one of the smaller ferry terminals? Brian Volkert, the ferry system's business-development manager, will forward your comments to vendors. Times reporter Erik Lacitis will do a follow-up article, so please include your full name and daytime and evening phone numbers (not for publication).

Any new galley vendor will have to come to terms with the Inlandboatmen's Union of the Pacific, which represents about 130 food workers who provided service under the Sodexho contract. A spokesman for the union said of dealing with interested vendors, "some things could possibly be negotiated."

But the union has been an issue for other potential vendors.

Emerald Bay Catering, of Bellingham, run by Britain and Gail Walker, does about 1,000 events a year, "feeding from two to 10,000." The couple is trying to decide about their proposal for the Anacortes run. They planned to serve a range of food, from pancake and bacon breakfasts to hamburgers, Ivar's chowder and lasagna. Britain wants to apply. His wife isn't so sure — not after reading the labor contract.

"You have to pay 100 percent of the medical and dental for the family, you have to contribute to 401(k), and if you have four people working one run and one calls in sick, the other three get to divide up that person's wage for the day," she said. "Basically, you gotta pay $20 an hour for somebody to pour coffee."

Jay Ubelhart, business agent for the IBU, said there is more to it than working in the galleys. Union employees earn between $10 and $14.83 an hour, plus benefits. He said the members need a merchant mariner's document from the Coast Guard, and they take part in safety training and are on a "muster list" for helping in cases of fire, a person overboard or abandoning ship.

Given the ferry system's more-flexible new approach, Sodexho planned to submit a proposal, and so did giant Aramark, though they did not comment on what they had in mind. Some of the smaller players, though, gladly tell of their dreams.

Paul Pluska opened J'aime Les Crepes ("I love crepes") a year ago by the Kingston ferry terminal, having fallen in love with crepes during a decade in Europe.

Pluska imported two crepe makers and began selling crepes filled with ham and cheese, fresh fruits and chocolate.

	Andy Moussouras of Alaska's Gourmet Subs runs up the stairs at Washington State Ferries offices with his sub sandwiches and business plan in hand. He applied to serve food on the ferries.

"It takes a few minutes to cook, it's rolled up and easy to take away," he said — fast food in countries such as France or Switzerland. He's hoping to land one of the small vending slots at Colman Dock.

Volkert said he hopes galley service will be restored by May. "Whatever is going to be done has to be done quickly. July and August is the Christmas season because of all the tourists," he said.

That means vendors must come up with a business contract agreeable to the ferry system and a labor contract agreeable to the union. Only after that might passengers have the choice of a halibut sub, a time-honored burger or a strawberry crepe.

The ferry system wanted to get out of the box. The entrepreneurs responded.

Erik Lacitis: 206-464-2237 or elacitis@seattletimes.com

Copyright © 2004 The Seattle Times Company