Making the case for outsourcing Cedar Fair's food and beverages

Editor's note: Justin Dietz is a Register correspondent representing CPFoodBlog.com and @CPFoodBlog on Twitter.Could it be time for a change in the way Cedar Fair handles its food and beverage operation?For decades, Cedar Point offered food and beverage stands that were wholly operated by outside vendors. TTake, for example, the iconic Berardi's Fresh Cut Fries. The family sold its now-famous fries for almost 40 years before Cedar Point decided to make a shift in 1978 to run the food and beverage stands on its own.Today the Cedar Fair food and beverage programs, thanks to the dining plans and drink programs, account for more than 30 percent of net revenues, only trumped by admissions. So food and beverage is a big player in the profitability of Cedar Fair, but it comes with its own set of drawbacks.As a food and beverage provider, you need to account for supplies while also estimating demand. The products must be stored in warehouses and then moved to their appropriate stations. All of that then needs to be managed and addressed by a large workforce.The most glaring issue facing the food and beverage departments is staffing, and it is no secret.Cedar Fair's outgoing CEO, Matt Ouimet, was recently quoted in an Ohio Chamber of Commerce article, saying, "Noticing that work and life skills have started to decline in the potential workforce, it has become more difficult to find and retain high-quality workers for the park."Cedar Fair relies heavily on bringing in seasonal employees, most of which are high school kids and college-aged adults. Cedar Fair also depends heavily on bringing in International students to fill the void of staffing levels required to fully operate.The problem with a relatively young workforce is this: As soon as schools go back in session, amusement parks within the corporation's family lose a large majority of overall staffing. During the non-summer periods, the parks rely on fundraising groups to come in and staff food and beverage operations. The workers need to be properly trained, but they generally have a lack of experience in dealing with crowds or system protocols.So, as a company, there are many employees in which this is their first jobs and need to be trained in food and beverage protocols; work long hours and days with very little time off and no overtime pay; and deal with large fluctuation in crowds and their expectations.On top of this, most of the food offered at Cedar Fair parks provide very little "inspiration" and creativeness that drive an employee toward owning his or her work.We are not saying the parks should be providing Michelin Star level of cuisine and service, but some creativity goes a long way from just dropping the fry basket into the oil. (Before anyone says anything, we get this is an entry level job just like those offered outside the parks).Food and beverage expectationsAs a guest, regardless of whether it's your first time with family or as a season passholder who visits often, you expect to be treated the same and consistently. If I pay for a Cedar Point Chickie's & Pete's Philly cheesesteak with Crabfries, I expect it to be the same regardless of whether I pay in cash or use a dining plan.Guests were shocked this season to see inconsistent rollout of only half a sandwich when redeeming a dining plan. We understand trying to hedge your redemption of all-season dining plans, but the protocol was unannounced and should be built into the plan costs, not a change in service.Depending on if you have a Cedar Point dining plan or not, and what kind it is, the size of a Chickie's & Pete's Philly cheesesteak and side of Crabfries might differ Why do platinum all-season dining plan holders have to pay a premium for their plan when they already pay a premium for a platinum pass? Since a platinum passholder gets access to all the Cedar Fair parks, which we pay for the privilege, why do we then get hit with another upcharge for dining plans above what someone pays with a regular or gold season pass with all-season dining? A platinum all-season dining customer is not more expensive then a regular all-season dining customer.Furthermore, Cedar Point, in particular, offers different menu options for those with all-season dining versus those with other plans. Rather than making the plans consistent, like all the other parks, Cedar Point makes it more difficult by making multi-tiered dining plans.A customer expects his or her food to be hot, fresh and served in a timely manner, especially at the Cedar Fair price points.But the complaints we hear the most is how long the waits are for food and beverage, whether the food was cold or just a plain uninspired experience. Guests have no problem paying a premium for food and beverage as long as the quality and experience exceed what they are used to outside the park.The excuses of "It is the beginning of the season, and the staff need time to train" or "Staffing is now run by fundraising groups with no experience" only go so far in providing a "best day experience." If I go to a Disney park, you never hear that excuse as the guest experiences a flawless experience.While there always is the customer who wants a plain burger, pizza, or chicken fingers, there are many more that want that special experience they are accustomed to when visiting their local fair. The whole purpose of coming to an amusement park is to experience what we can, not outside the park.Guests love creative, great food options when the fair rolls into town, however, as a whole, Cedar Fair parks tends to generally offer mostly the simple, easy food and beverage options.While it makes sense, financially, when you are trying to hedge your bets against programs like all-season dining plans where a guest could potentially eat every day of operation, and you are only open half the year, simple also works with a relatively uninspired workforce.It is easy for an employee to throw a frozen burger onto the rotating broiler and slap it into a bun, but it is far from the unique experience. You come to the parks to ride roller coasters. Should it not be the same special experience for food and beverage?We had high, high hopes that the food and beverage scene across Cedar Fair parks would change drastically under the leadership of Matt Ouimet, who brought with him years of Disney experience. Generally speaking, guests eating at Disney parks know they are getting a premium meal for their dollar.While we have seen some change over the past couple of years at Cedar Fair properties, it had not been as drastic as we envisioned.So the question becomes this: "How does Cedar Fair deal with a declining workforce to inspire them to work harder, get people through lines quicker and serve a consistent food and beverage product?Many food vendors, including Fire House Grilling Co., have popped up at Cedar Point and other parks within the Cedar Fair family. It's a growing trend for Cedar Fair to bring in outside vendors so they can sell food to its guests.SolutionsDo you pay the employee more? Sure it is an option to entice more people to join the food and beverage workforce, but does it work? Outside of the amusement park industry, profits are relatively low in food service. So the resulting higher wages would increase the cost to the customer.Within an amusement park, the profit margins are substantially larger due to exorbitant prices on food and beverage, while maintaining a relatively cheap workforce. As a customer, you see a $12 burger and fries and expect something special, quick and hot like you can experience at Applebee's down the road.Would an increase in payroll equate to more workers and better quality? We're not sure as that debate continues to get played out on the national scene.Over the past year or so, you likely saw the self-service kiosks throughout the park. Guests walk up and order their food and pay directly from the computer and then wait for their food. While there is a learning curve on the machines, specifically for the guest that has not used the system prior, it helps with staffing.Now the majority of the workers can be preparing and handing out food as it becomes available while not having to worry about the register. There is still typically an employee available to handle the register should the guest not be able to use the self-service kiosks. The machines were a smart move to handle the staffing issue, so long as the learning curve and functioning of the machines do not cause a backup.Another move we have been applauding for the past two years is bringing in outside vendors in the form of food trucks. Cedar Point has seen the largest proliferation of food truck use during the past two years, with other Cedar Fair parks slowly getting into the practice, and the company is very happy with their performance.Think about it: Bring in an outside food truck specializing in their prepared meals. They handle all the staffing on their own, including payroll. Food trucks handle all of the supply of food and incidentals. Cedar Fair does provide all Coca-Cola-branded bottled beverages to outside vendors.A food truck parks on Cedar Point's premises to sell food. In recent years, the amusement park and others within the Cedar Fair family have brought in outside vendors to sell food to its guests.All the food preparation and cooking are handled in a small space with their own supplies and workforce. Food trucks are masters of well-prepared, fresh food in small spaces. Cedar Fair then sits back and takes a portion of the profits. Shifting the supply chain to outside vendors has been a strong move for both Cedar Fair and honestly a far better experience for the guest who gets to try different food options they are accustomed to all season.Want your standard burger and fries on the dining plans? Sure go ahead. Or stop at Fire House Grilling Co. and try a superb smokehouse burger (trust us, you will not regret it. Or try some amazing New Orleans-themed food from Creole 2 Geaux or a fantastic plantain sandwich from empanadas and more. The food trucks provide great opportunity for non-traditional food you typically do not find in the parks!So back to our question: Is it making more and more sense for Cedar Fair to transition back to the ways of old, and let outside vendors fully handle food and beverage throughout the parks while sitting back and earning profits? In addition to less required staffing, the company would deal less with the supply and demand chain, training and other related tasks.While the most important aspect for the guests at any Cedar Fair park is to ensure all of the rides and attractions are up and running (pending mechanical issues, etc.), you do not often see them not running due to staffing, though it does happen.Food and beverage is often where the guest sees the impacts of short staffing, like on many days where you see locations not open. So if as an industry you are plagued with a workforce shortage, want to provide better options for food and beverage and offer a better experience, is it not too far stretched that we continue to see a transition where the entire food and beverage department is handled by outside resources?