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Big
court cases often create unlikely heroes: just ask Marcia
Clark or Kato Kaelin. And so it was in the case of SkyDome
Corp., which runs Toronto's SkyDome stadium (home to baseball's
BlueJays, football's Argonauts and basketball's Raptors),
versus Bitove Corp., the private Toronto-based conglomerate
that ran the catering operations for the SkyDome's pricey
SkyBoxes. The unlikely star of this case? A mid-mannered food
consultant named Douglas Fisher.
In
July, 1996, SkyDome tried to evict Bitove from the stadium's
food facilities, claiming that the caterer, owned by the wealthy
Bitove family, was gouging SkyBox clientele. The Bitoves sued,
SkyDome countersued and the fight was on. SkyDome hired Fisher,
a food-service and franchise consultant, as an expert witness.
Fisher, who runs his own firm -- Toronto-based FHG International
Inc. -- and who has written a couple of books on restaurant
and food-service management in North America, was largely
unknown outside of his own small industry before the trial.
But
that was soon to change. Because SkyBox prices had become
a long-running joke in Toronto -- a basket of chicken fingers
then cost $75, a "two four" of imported beer more
than $100 -- the case quickly attracted press attention and
Fisher became the champion of the food management consultancy
set, the unsung hero who was taking on a faceless corporation.
In September, he won the Foodservice Consultants Society International's
award for excellence in management advisory services, and
his publicity firm -- Toronto-based iDirect -- made the most
of it in a press release quoting the FCSI judgment: "Fisher
put it all on the line for his client. He risked his reputation,
his company and his ability to get future work... This is,
in our opinion, the essence of what management consulting
is all about."
In
person. Fisher is somewhat more subdued than his press release.
A quiet, slightly plump man, Fisher has trouble deciding on
a restaurant for a lunchtime interview, explaining that he
is on a no-fat diet. (After negotiations, a decision is reached
to have sushi.) The attention Fisher has received from the
case is well-deserved, he says, considering how much press
his client got. "We provided all the ammunition for these
guys, but the publicity went to SkyDome, the Bitoves and the
lawyers," he complains. "'Douglas Fisher' was rarely
mentioned."
Fisher
spent more than two years on the case against Bitove. First,
he toured the SkyDome facilities, ate in all of the stadium's
restaurants and spent five nights eating SkyBox dinners. Then,
for comparison, he did the same at six major US stadiums.
Bitove, he concluded in his report, partly justified high
prices by comparing SkyBox services with those of Toronto's
"first-class" restaurants. SkyBox ticketholders
had to pay for both waitstaff and their own "hostess"
to load beer into the refrigerator and serve -- at an additional
charge of between $65 and $75 per event. They also had to
pay for plastic utensils -- for example, $5.75 for 25 plates
and $5.95 for 50 forks. As well, Fisher, who painstakingly
recreated blueprints of the Bitove facilities from his tours,
estimated that Bitove's building costs were lower than the
$30 million the company had claimed them to be. "If you
have a monopoly, you can sell a candy bar for $3,000,"
Fisher says. "But Bitove's contract stated that (the
company) was not allowed to take advantage of its exclusive
rights."
Fisher's
final report, brimming with comparisons and statistics (it
even contains a colorful allusion to an ancient Greek stadium),
put Bitove's profit margin on its SkyBox operations at 41.5%
which is well above the industry average of 9.8%. When his
numbers hit the press, even Torontonians who had never been
to SkyDome were up in arms.
Bitove
didn't publicly challenge Fisher's report when it was released.
In February 1997, the company agreed to let SkyDome Corp.
buy out its operation for an undisclosed price. But Bitove's
president and chief operating officer, Tom Bitove, still disputes
Fisher's findings and the resulting publicity: "SkyDome
said that we defaulted on the lease just because it had an
'expert's report' saying prices were too high," he says.
"We were going to hire our own expert, but then we closed
the deal."
Order
has since been restored to the stadium. Since Bitove left
and SkyDome took over the facility's food operations, the
price of a case of 24 imported beer has dropped to slightly
more than $70. While there are still some SkyBox users suing
both SkyDome Corp. and Bitove to get their beer and weiner
money back, Fisher says he bears no animosity toward the Bitoves.
"I have no problem, personally or professional, with
Tom Bitove or his family. They run a well-respected firm,"
he says. "My publicists pushed the case, but it's nothing
personal."
He
should probably be thanking them. After his 15 minutes of
fame, Fisher's consulting firm, FHG International, has opened
an office in Florida and is receiving requests to help North
American food companies expand into China, Japan and South
America.
But
what exactly was the career-threatening "risk" that
his press release talks about?
"The
risk was in saying: 'Here are my findings,'" Fisher explains.
"It might have been easier to say, 'Bitove's prices are
only about 10% (too high) -- don't worry about it." If
the report did not hold, my career would be over."
Reprinted
Nov. 28, 1997
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