trolli arena

Trolli Arena Joshua Kolodziejski

Ancillary Services and Revenues

SEE 3008

Spring Tri 2016

Professor Stewart

1

Glossary:

Concept Development…………………………………………………………Pg.3

Layout of Events………………………………………………………………Pg.6

Menu Development…………………………………………………………….Pg.8

Serving Staff Guide……………………………………………………………Pg.12

Management Staff Labor Cost…………………………………………………Pg.18

Departmental Income Statement……………………………………………….Pg.20

Operating Cycle………………………………………………………………..Pg.21

Forms………………………………………………………………………......Pg.23

Work Cited……………………………………………………………………..Pg.29

2

Concept Development:

Trolli Arena is a Profession National Basketball Association and National Hockey

Association Arena. It is also home to many concerts and other events in the area. The arena is

located at 4 Pennsylvania Plaza, New York, New York. It is located right above Penn Station.

The arena has a seating capacity of 18,200 in its 820,000 square feet arena. The size of this

facility is easy to accommodate luxurious suite space for more financially inclined customers.

Trollie Arena contains 78 suites that are divided into signature and basic suites. The two

types are divided by two levels. The signature suites are in between levels two and three,

whereas the basic suites are in between levels one and two. The main suites that are fully run are

the 18 Signature Suites. Each side and level of the area where the suites are located will have two

kitchens. Each of the suites will have a fully stocked bar to be able to make simple classics like a

Manhattan, all the way up to Sex in the Driveway. The bars will have all top shelf liquor, along

with few selections of lower shelf liquor too. It will have at least three types of beers on tap,

which will be a stout, a logger, and a draft. There will also be a limited selection of both red and

white wine. The bar will also have all the glass wear needed, all mixers, garnishes, and a POF

system to set up tabs for the customers. Also, there will be two blenders per bar, along with an

ice cooler and sink.

Besides the bar, the suite will be equipped with both men and women private bathrooms

with full size mirrors in each. There will be two large flat screen LED televisions placed along

the wall with a set of couches in front of them incase people want to watch other things then

what is going on at the arena or want to watch the game on the television. One of the walls is a

glass wall made of windows so people can sit inside at a table while they enjoy a drink or food

and be able to watch the game. Outside of the window wall will be seats on a patio type surface

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looking out to the arena main area. Besides the seats near the window wall, there will be high

tops with bar stools placed in the suite incase people want to sit there instead of a couch or the

game seats.

For food service to the suites there will be a separate menu that they can order from the

special kitchen that makes snacks, appetizers and entrees made to order. A trained bartender and

two servers service each suite.

Typical customers of the suites are upper-middle class to upper class. A few big

businesses purchase suites as well. The cliental can vary from the dedicated fan to business men

doing some type of business transactions. The customers are typically better off, or wealthier or

are making purchases on their firm’s dime and are therefore willing to splurge a little more on

food and drink. Since they are spending more they expect better quality of food then what the

lower class is eating. Also, the types of clients are unwilling to accept under par service and

conditions due to how much money they are spending for their experience. The type of clients

will expect top shelf liquor, gourmet nacho with pulled pork or beef, and shrimp cocktail. They

will request the most expensive and luxurious food and beverage items to go along with

experience, but with that comes a higher price tag on things. The Per Capita spending will be $25

per person.

Brining customers to the arena and the suites will not be a challenge. Since the arena is in

New York people are already in the mindset that it is going to cost a pretty penny. Also, they are

there for the experience. Having already purchased tickets to the suite and the event, they are

more inclined in purchasing food and beverages in the suite. Some marketing techniques include

different specialty items. Creating specialty things for different events like making a specialty

drink called the Danger Ranger, which would be Smirnoff Ice, UV Blue Raspberry Vodka, and

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grenadine. It would all be layered like Red, White and Blue for the Rangers colors. This would

be served during the hockey games. Another marketing technique would be doing family deals in

terms of buy two tickets and your kids go free or buy a ticket and your spouse goes free. The

third marketing technique would be a meal deals such as: an appetizer, hot food, and soft drink

for a set price.

5

Layouts of Events:

6

Menu Development:

* Some prices based off past and current menus used at Ralston Arena*

Menu Item Price

Snack:

Bottomless Bowl of Popcorn

$12

Snack:

Soft Pretzel

$4.50

Snack:

Fried Snickers

$4.00

Snack:

Cream Cheese Egg Rolls

$5.00

Appetizer:

Buffalo Chicken Dip

$7.00

Appetizer:

Chicken Wings

$8.00

Appetizer:

Smoked Gouda Mac % Cheese Bites

$8.00

Appetizer:

Memphis Sweet Potato Fries

$8.00

Beverage:

Beer (12oz)

Domestic: $9.50

Imported: $11.00

Beverage:

Wine

6oz House: $12.00

8

Beverage:

Bottled Water

24oz Bottle: $6.00

Beverage:

Soft Drink

12oz Bottle: $8.50

Beverage:

Milkshake

$10.00

Beverage:

Coffee/Tea

$7.00

Hot Food:

Smoked Brisket New Yorker

$7.00

Hot Food:

Hebrew National Hot Dog

$4.75

Hot Food:

Char-Grilled Angus Cheeseburger

$7.50

Hot Food:

Chicken Tenders

$6.00

Hot Food:

Turkey Burger

$6.50

Hot Food:

Veggie Burger

$8.00

Cold Food:

Chicken Caesar Salad

$16.00

Cold Food: $14.00

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Banana Split

Cold Food:

Triple Decker Club

$8.50

Cold Food:

Classic Reuben

$8.50

10

Service Staffing Guide:

Step A:

Structure of Management:

Arena General Manager

Assistant General

Manager

Warehouse Manager

Warehouse Staff

Food and Beverage Manager

Service Staff and Kitchen Supervisor

Staff

Office Manager Sales Staff

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Step B:

Low:

Attendance Level (event) Low (5,000 and below)

Suite Attendance 5-10 People

# of Supervisors Scheduled 1 Service Staff, 2 Kitchen

Total Part-Time Employees Scheduled 20

Part-time Employees per Suite 1 Service, 2 Kitchen

Low attendance games result in Suites being at minimum capacity. To efficiently service each

suite it is necessary to have minimal management on hand and staff. The Suite section of Trolli

Arena has 3 Service Staff Supervisors and 5 Kitchen Supervisors. With the event of low

attendance, only 1 Service Supervisor and 2 Kitchen Supervisor need to be on call that day. In

this event there will 1 part-time service and 2 kitchen part-time on call per suite. This does not

include the bartender. There is one server for every 5-10 customers. Each server acts as their own

bus boy and helps out with cleaning. In the occasion that there is low attendance event, because

there is only one server on clock, the bartender is required to assist when necessary.

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Medium:

Attendance Level (event) Medium (5,000-10,000)

Suite Attendance 10-20 people




Medium attendance events result in Suites being at medium capacity. To efficiently service

each suite it is necessary to have minimal management on hand and staff. The Suite section of

Trolli Arena has 4 Service Staff Supervisors and 5 Kitchen Supervisors. With the event of

medium attendance, only 2 Service Supervisor and 3 Kitchen Supervisor need to be on call that

day. In this event there will 4 part-time service and 4 kitchen part-time on call per suite. This

includes the bartender. There is one server for every 5-6 customers. Each server acts as their own

bus boy and helps out with cleaning.

High:

Attendance Level (event) High (10,000-18,200)

Suite Attendance 20-25 people




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High attendance events result in Suites being at maximum capacity. To efficiently service each

suite it is necessary to have minimal management on hand and staff. The Suite section of Trolli

Arena has 4 Service Staff Supervisors and 6 Kitchen Supervisors. With the event of High

attendance, only 3 Service Supervisor and 4 Kitchen Supervisor need to be on call that day. In

this event there will 5 part-time service and 6 kitchen part-time on call per suite. This includes

the bartender. There is one server for every 5-7 customers. Each server acts as their own bus boy

and helps out with cleaning.

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Step C:

Payroll Expense Budget

High Attendance

Event Projected

Attendance

# of Employees

on Staff

Hourly

Wage

Hours to be

worked

Total Event

Wage Cost

NHL

Game

18,200 40 $9.00 8 $2,880

Medium Attendance

Event Projected

Attendance

# of

Employees on

Staff

Hourly Wage Hours to be

worked

Total Event

Wage Cost

NHL Game 10,000 40 $9.00 6 $2,160

Low Attendance

Event Projected

Attendance

# of

Employees on

Staff

Hourly Wage Hours to be

worked

Total Event

Wage Cost

NHL Game 5,000 20 $9.00 4 $720

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A part-time employee would work an average shift would be as low as 4 hours and as long as

8 hours during an NHL game. Each employee is required to be on site at least 2 hours before

game time. This is required in case there is any new information to be relayed to them or if it is a

popular game and patrons start coming early. This will also allow time to get the suites set up to

the specifications of the client that purchase the space. The time spent after game time will be

determined by the event itself. All duties assigned to the staff must be completed to the standered

of the arena before the employee is allowed to clock off for the night. This includes but not

limited to: cleaning their suite, resetting the suite, filing any paperwork, cash drops, and having

management sign off on all paperwork. All part-time employees will be paid $9.00 per hour.

Bartenders will be starting out at $7.50 and will be allowed to take tips while working the bar.

16

Management Staff Labor Cost Projection

Staff Title # of Staff Weekly Wage # of Weeks Annual Cost

General Manager 1 $2,000 52 $104,000

Assistant

General Manager

1 $1,700 52 $88,400

Warehouse

Manager

1 $1,300 52 $67,600

Food and

Beverage

Manager

1 $1,350 52 $70,200

Service Staff

Supervisor(s)

5 $995 52 $258,700

Office Manager 1 $1,300 52 $67,600

Suite Kitchen

Supervisor(s)

6 $980 52 $305,760

Total

Management

16 Subtotal of Cost $962,260

Pay Roll Related

Costs at

12%Taotal

$115,471.20

Projected Labor

Cost

$1,077,731.20

17

Two strategies I will use to effectively manage payroll include using an electronic attendance

monitoring and paying employees through direct deposit. By using this attendance system the

arena can track the exact amount of hours each employee worked so they only get paid for those

hours. This system also helps to minimize the amount of fraud that can happen and will be easier

to track individual employees. Using the Internet to book attendance and payroll can help

increase performance of the arena. The second strategy of direct deposit is beneficial for

everyone involved. It personalizes each payment, but also cheaper and environmentally friendly

then handing out thousands of paper checks. The employees can also get their check preloaded

onto a debit card if the wish.

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Departmental Income Statement:

Scenario A:

Type of Event Number of

events

Average

Attendance

Total

Attendance

Per Capita

Spending

Revenue

High

Attendance

8 18,200 145,600 $25 $3,640,000

Medium

Attendance

9 10,000 90,000 $25 $2,250,000

Low

Attendance

10 5,000 50,000 $25 $1,250,000

Total 27 33,200 285,600 $75 $7,140,000

Scenario B:

Type of Event Number of

events

Average

Attendance

Total

Attendance

Per Capita

Spending

Revenue

High

Attendance

5 18,200 91,000 $25 $2,275,000

Medium

Attendance

6 10,000 60,000 $25 $1,500,000

Low

Attendance

7 5,000 35,000 $25 $875,000

Total 18 33,200 186,000 $75 $4,650,000

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The Operating Cycle of Cost Controls:

Many different challenges can arise for the manager of a Suite operations in an NHL Arena.

A manager in this section could run into issues such as an over order of materials needed for the

next game, typos on important paperwork, mix up in order arrival time, employees doing jobs

that they are not trained for and wrong supplies go to the wrong department. Other issues could

arise in the production of food and beverage. The item that they need could not stocked, food

could be time temperature abused when the order arrives. Without a proper system to manage

each aspect of the operating cycle a manager for the suite could have many different issues

including customer service, food spoilage, missing orders, and expenses.

The policy for Order Forms is as follows: All order forms are to be approved by the

Warehouse Manager. Every Food and Beverage Manager is eligible to submit a form that must

contain their signature. The Warehouse Manager must go through every form and check to see is

there are no repeats throughout each department.. The Warehouse Manager has the main

responsibility of ordering the food for the arena. This is the main policy that ensure that the right

amount is ordered and that no extra money is being spent.

The policy for Receive/Store/Issue Forms is as follows: The Warehouse Manager is the only

person allowed to receive and order. The Warehouse Staff is required to store and issue all

orders. The Warehouse manager is to supervise his workers in the warehouse. Each order is to be

checked with a Receipt and Oder Form to make sure each order being received by the arena is

correct. Each order is to be put away immediately upon the orders arrival. Must always check

temperature of item if applicable.

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The policy for Production is as follows: all employees will receive proper training of food

and beverage production depending on where they are located for their job. There will always be

a manager on duty to ensure all production and policies are being followed. There will be a strict

protocol for handling all the food. This is to make sure that the staff is staying consistent and

looks professional.

The policy for Sales is as follows: All items being sold at the price listed unless otherwise

approved by management. There will be strict cash handling policies and process put into effect.

Each employee is required to do at least one cash drop per shift and receipts must match up.

Inventory on sold products will be taken at the end of every day shift.

The policy for Records is as follows: Inventory is taken at the end of every day shift to keep

track of what we use and what we need to order more of before the next event. This makes doing

order forms simple and easy. It must be recorded if anything looks out of the ordinary such as to

much of a product or not enough of a product. This policy helps keep other sections in order and

helps keep track of what we have in stock and what we don’t.

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Order Form:

This form is used by the Warehouse Manager as guide for what each department ordered.

This form helps keep track of past and present orders, but also to compare to what items we have

received in a shipment

Receiving Form:

This form is used by the supplier who we ordered from and given to the Warehouse

Manager. This from informs the manager what was in the delivery. The form is always cheeked

against the original order from to make sure the company is not paying for anything they did not

order. This form keeps a detailed track of the delivery

Production Form:

The Production From is the main form used to show there was a malfunction in the

production of an item that was made or even delivered. If an item was made with an overage it

would be recorded on this form. This form also is used for spills and waste during any shift and

if there were any damage or spoilage products delivered to their department.

Sales Form:

This is the form that is used to show any discount on items sold during a shift or even if

something was given away for free. This form has to be signed off by a manager and they must

give a valid reason for doing so. Keeps all financials in order.

Record Form:

This form is how a shift starts and ends to take count for what inventory there is. It allows

management to know what they need to order or what they have an overflow of.

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ORDER #____________ Order Form

o Reorder

o New Account

SOLD To: INSTRUCTIONS:

SHIP TO:

Order Date: Customer: Price:

Delivers Name: Warehouse Manager: Terms:

Ship Vin: Cancel Date: Ship Date:

Quantity Stock Description Unit Price Extended Price

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INVENTORY FORM

(RECORD FORM)

ITEM AMOUNT

EMPLOYEE CLOSING:______________________

DATE:_________________

MANAGER SIGNATURE:____________________________________

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SALES FORM

DATE:______________

STAFF MEMBER:_________________

ITEM PRICE DISCOUNT

APPLIED

REASONING MANAGER

SIGNATURE

25

RECEVING FORM

P.O #.___________

QUANTITY DESCRIPTION PRICE/UNIT EXTENSION

PURCHASING AGENT:________________________________

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DELIVERED TO:

SHIPPED TO: ORDERED FROM:

DATE

ORDERD

DATE

DELIVERED

SHIP VIA TERMS RECEIVED

BY

PRODUCTION FORM

ITEM DESCRPITION MANAGER

SIGNATURE

1

2

3

4

5

6

DATE:___________________

EMPLOYEED NAME (PRINTED):____________________________

MANAGER ON DUTY:____________________

MANAGER SIGNATURE:_________________________________

MANAGER COMMENTS:

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WORK CITED

"Arena Food & Beverage | Ralston Arena." Arena Food & Beverage | Ralston Arena. N.p., n.d. Web. 05 May 2016. <http://www.ralstonarena.com/plan-your-visit/arena-food-beverage>.

"Madison Square Garden Salaries." Glassdoor. N.p., n.d. Web. 05 May 2016. <https://www.glassdoor.com/Salary/Madison-Square-Garden-Salaries-E16146_P2.htm>.

"Madison Square Garden - Official Web Site." Madison Square Garden - Official Web Site. N.p., n.d. Web. 05 May 2016. <http://www.thegarden.com/content/msg/the-garden.html>.

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