Food & Beverage: The Aramark Era begins

[Tom]

The only insight we have is observation. The way prices have gone up exponentially since Aramark took over leads me to believe there will be a link to the park benefiting from that - even if it is rent based on revenue or whatever. It would make no sense for Aramark to win a contract and then massively increase it's profit margin under said deal. And all this stuff about inflation, energy prices, and wage rises, are nowhere near enough to justify the price hikes we've seen.

 

[GooseOnTheLoose]

Unless, I've missed some new information that has been shared more recently, it is probably worth reiterating that none of us have any insight into the contract Alton Towers have with Aramark. So anything stated in this thread about how this contract works is supposition rather than fact.

From the outside, looking at how Aramark are operating, we can infer various things about the contract, but have no actual factual insight into the mechanisms behind this. We do not know if the contract is on an income-sharing model, or a rent based model, a combination of the two or any of the other various contractual models that could exist. Similarly, we also don't know much about Merlin's and Aramark's specific responsibilities within that contract, including how the pricing/level of quality are decided and then regulated.

Given how far into the contract we are now, I thought it was worth reiterating this, so it is clear that this thread regularly still includes supposition relating to questions that none of us really know the answer to. And tbh we never will unless some at Merlin or Aramark share more info about the working relationship between the two.

(And again, apologies if a source of this nature has been shared at some point, and I've missed it)

On this point, I have previously explained the insight that I do have about the Aramark and Merlin contract.

As you've mentioned though, some time has passed and this explanation is 10 pages previously. I've quoted it below for those new to the conversation, or who have forgotten.

I have not read the actual agreement, but I am aware of the general agreement and the frustrating lack of stick and carrot elements for Merlin to use for quality control, at least with the outlet brands Aramark inherited, rather than developed alongside. It's causing no end of headaches for the Customer Experience team.

I have an old professional contact who works within that team. The last time we saw each other, about 16 months ago, we briefly discussed the general situation. I'd previously encouraged a TST user to email them directly about a negative experience and lack of dietary provision. They were frustrated that they couldn't provide a more helpful response, or meaningful action, to the TST user.

It is pertinent to mention that my contact left their position recently.

I fully expect the contract to be revised at some point, but it is worth remembering that the initial deal was struck during COVID and Merlin were looking for quick fixes, cash injections and sticking plasters... Not much has changed there.

And all this stuff about inflation, energy prices, and wage rises, are nowhere near enough to justify the price hikes we've seen.

The price hikes, aside from the cost of living crisis bits you've mentioned, can be attributed to Aramark having to provide a 20% discount to MAP holders, without any kickbacks from Merlin for doing so.

 

[Tom]

The price hikes, aside from the cost of living crisis bits you've mentioned, can be attributed to Aramark having to provide a 20% discount to MAP holders, without any kickbacks from Merlin for doing so.

That might justify initial and sustained high prices, but not the inter-and-intra-season hikes we've seen since they took over.