Aboard ferries, machines bring more cash than food galleys

By Susan Gilmore
Seattle Times staff reporter

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For January through April, the state expects to receive $338,960 from Sodexho, the company that used to provide galley service on the ferries and now has the contract for vending machines and onboard games.

During the same four months last year, the state made $326,485, said Brian Volkert, business-development manager for the ferries. He said that if January, the start-up month, was eliminated from that span of time, the state would be making 8 percent more money this year than last.

"We have made money with the galleys closed," said Volkert, "but we really want onboard services to work. The way the contract was bid and the way the numbers work out, we're ahead."

Last year, Sodexho had the contract for the galley services, vending machines and onboard games and paid the state 10.5 percent commission on all sales.

This year, the state decided to bid each contract separately and awarded Sodexho the contract for the onboard vending machines and games. Sodexho pays varying amounts on the machines, from 60 percent on the games to 40 percent on the coffee machines, or an average of 45 percent, Volkert said.

He said he was told by Sodexho that revenues on the vending machines are running 100 percent higher than expected.

Sodexho spokesman Greg Yost confirmed that Sodexho has seen a higher-than-expected increase in its ferry vending-machine revenue.

"We expect this will continue as long as the galley service isn't operating," he said.

Sodexho dropped its ferry-galley contract last year, with four years to go on a 10-year deal, because it said it wasn't making enough money.

The state rebid the contract and, though Sodexho bid on it, the contract was awarded to Cascade Concessions of Vancouver, Wash.
 
But Cascade has been unable to reach labor-contract agreement with the Inlandboatmen's Union, which represents the galley workers, and said it won't be able to start food service on the ferries this summer. The state has no plans to rebid the contract.

Meanwhile, Volkert said that while the state may be making more money with the galleys closed, he expects that would change if they reopened, because vending-machine business likely would go down.

Further, he said, the state wants food on board to help attract riders.

"We're going to do everything we can to get it on the boats," Volkert said.

Susan Gilmore: 206-464-2054 or sgilmore@seattletimes.com