New Orleans Ceasars Superdome food contract talks stall | Business News

The global hospitality company that provides food and beverage services at the Caesars Superdome and Smoothie King Center began telling employees Friday that they could be out of a job as of July 15 if the company’s long-running contract with the state is not renewed.

Sodexo Live! said it was filing a Worker Adjustment and Retraining Notification, or WARN, notice on Friday notifying the state and employees of the potential layoffs, according to a Sodexo spokesperson. By law, companies must give the state 60 days notice before cutting 100 or more jobs. 

Sedexo’s current contract the Louisiana Stadium and Exposition District, the state agency known as the Superdome Commission that oversees the stadium and arena, ends on July 14. Sodexo spokesperson Paul Pettas confirmed that the company and the LSED have yet to agree on terms of a new contract. 

While the official layoff warning, which was not publicly posted as of Friday morning, suggests a possible impasse in contract talks, long-term job losses are not necessarily going to result. If a new vendor is chosen to replace Sodexo, it’s likely that it will offer to rehire most if not all of the laid off Sodexo employees, according to people familiar with the industry. And if a new contract is finalized with Sodexo in the next 60 days, the layoffs will not happen, according to Pettas. 

“There is ongoing dialogue with the respective managers of the venues, including LSED, to hopefully come to a long-term agreement,” said Pettas. “We are confident our offer is of the most benefit to the city and the state.”

In a statement, Robert Vosbein, chairperson of the Superdome Commission, suggested that officials are looking for a different vendor.

“We believe that the ticket-buying public deserves better than the status quo of food service and this board will do whatever it takes to ensure that it does improve,” Vosbein said.  “While the process of selecting a new food service provider is in the final stages, it is not complete.”

“We look forward to completing that process soon. We are fully committed to the fans in this endeavor,” he added.

It is not clear how the commission, a public body, is involved in selecting a new food service provider outside of a public selection process. ASM Global, a private contractor, manages the Superdome and other venues for the commission. A spokesperson for the commission said it did not issue a request for proposals.  

Upcoming Superdome and Smoothie King Center events

Sodexo is a $1 billion company that operates in dozens of countries. It employs more than 1,000 workers in New Orleans — not only at Caesars Superdome and the Smoothie King Center, but at the Ernest N. Morial Convention Center and the National World War II Museum. 

In 2023, the union representing Sodexo workers at the Superdome, arena and Convention Center reached a new agreement with the company that raised pay and benefits. The Sodexo WARN does not apply to employees at the Convention Center or museum.

Also unclear is whether a new food and beverage provider, if one is selected, will be in place by several high-profile events in July, including the UFC 318, a mixed martial arts showcase, and the U.S. Gymnastics Championship, both of which will be held at the Smoothie King Center.  

Pettas said Thursday he hopes Sodexo will able to retain its contract.

“We are embedded in Louisiana and we are confident that whatever other provider is out there, we are the best,” he said. “We hope we can continue to stay.”

This is a developing story. Check back for more details.