BEND, Ore. (KTVZ) — The Bend Parks and Recreation District intends on getting into the food and beverage business at some of its facilities in the near future.

At a park board meeting Tuesday evening, park district staff said that their proposed budget for fiscal year 2023-24 includes funding to create a food and beverage division under the Recreation Department that includes the hiring of a full-time supervisor and up to $30,000 in equipment purchases and improvements.

Bend Park & Rec Services Director Matt Mercer is speaking with KTVZ’s Blake Mayfield on Thursday to discuss their vision for the proposal. Mayfield will have his report on NewsChannel 21 tonight at Five.

You can read the full board agenda item from Tuesday’s meeting below:

The district currently operates simple food and beverage operations at recreation facilities including Juniper Swim & Fitness Center, Larkspur Community Center and The Pavilion. The district has also provided concession operations at athletic fields in the past through concessionaires.

These operations have generally sold over-the-counter, pre-packaged items with the exception of some pre-prepared, warm-food options at The Pavilion.

As a result, food and beverage options have been limited in terms of quality, variety and healthy choices. The operations have also generated very little profit to help support district subsidized services.

The district intended to operate a small café in Larkspur Community Center; however, this was delayed due to the COVID pandemic and has yet to open. The Pavilion concession operations were also suspended during the pandemic and are still operating at a reduced capacity. District staff has used this time to explore opportunities and alternatives for future food and beverage services, including resources, levels of service and contracting versus in-house delivery methods.

The district believes there are opportunities to enhance the experience of users by offering higher quality, healthier and convenient food and beverage options while at the same time developing a significant and ongoing revenue source to support the Recreation Scholarship Program. Staff believes these goals can best be realized by developing an internal food and beverage operation and complementing this with concessionaire agreements.

This will require some investment and an entrepreneurial approach, including the willingness to explore mobile concession operations in some parks and athletic complexes. Several recent district surveys have shown an increasing acceptance and desire for some park concessions.

The operation will require some subsidy (up to $70,000) in the first year due to start-up costs associated with 3-months of planning and development before operations actually start. The expectation is that the food and beverage division will generate net revenue the following year with the goal of providing substantial six-figure support to the Recreation Scholarship Fund in future years.

Although we anticipate success with this program, there are no assurances that we will generate enough revenue to see a sufficient return on investment. Part of the business planning process will be setting realistic financial targets with divestment strategies should the program not meet expectations. Staff will provide additional information during the board work session and seek board input and support for the concept in advance of the budget. Staff also intends to bring a more complete business plan to the board for review once it has been developed.

The 2023-24 Proposed Budget includes resources to support the creation and implementation of a food and beverage division. Expenses are budgeted at $460,000 with revenue budgeted at $390,000. The $70,000 budgeted subsidy in the first year of operations is due to start-up costs including the hiring of a supervisor to develop plans prior to launching operations. The proposed budget also includes $30,000 in one-time capital equipment outlay. As described above the operation would be expected to generate a profit in future years with proceeds supporting the Recreation Scholarship Fund.