Washington State Ferries’ choice to replace all of their current, locally owned food service providers with a large, Connecticut-based company has business owner Margie Iapopo questioning the motives. Iapopo has run the Cheesecake Cafe, espresso stand and gift shop at the Anacortes Ferry Terminal for the past 12 years but will be replaced by Centerplate Corporation this June.

Not only is Iapopo upset that she and the other Washington- based vendors are being displaced, she’s worried about how Centerplate, who has had multiple lawsuits filed against them concerning employee treatment and payment, will work with her staff.

“I employ ten year-round employees, 30 in the summer,” said Iaopopo. “I hire about 20 students every summer. These are kids with no work experience and I give them their first job. I can’t imagine them working for this company.”

In February a California lawsuit was filed against Centerplate, alleging that the company did not pay employees for all hours worked, failed to grant rest breaks and engaged in unfair business practices during the 2015–2016 NFL season at the San Francisco 49ers Levi Stadium, the host of Super Bowl 50, according to website The Investigative Fund.

In August of 2013, in the case Williams versus Centerplate, Inc., a California federal judge signed off on a deal that required Centerplate to pay $650,000 to a group of workers who filed a lawsuit alleging the company violated California state labor laws at Qualcomm Stadium and the San Diego Convention Center.

Also in 2013 Centerplate was ordered to pay $250,000 in civil penalties after settling a discrimination suit with the Justice Department, as reported by the Associated Press.

In 2011, Centerplate was sued by employees in New York who claim that the company cheated them out of gratuities, according to Crains New York Business magazine.

Olympic Cascade Services, based in Bremerton, and CDX Dining Services out of Mukilteo, will also be replaced by Centerplate. Olympic Cascade Services, which operated the majority of the food galleys on the ferries since the early 2000s, including the San Juan runs, filed an official complaint with Thurston County Superior Court in an attempt to the halt the awarding of the contract to Centerplate.

“They [WSF] violated their mission in awarding the contract to Centerplate,” said Nove Meyers, President of Olympic Cascade Services, who placed a bid to provide food service on board all WSF ferries. “In our rejection letter they said we were highly qualified. How they came this decision is totally beyond me.”

In the summer season Olympic Cascade Services employs approximately 100 people who are part of the Inland Boat Workers Union. In the new contract, WSF removed the clause that required vendors to use existing union employees, leaving the door open for Centerplate to not hire back the current staff or to pay union wages.

By law the ferry system is required to put their food services contracts up for bid every ten years, according to Ian Sterling, Washington State Ferry spokesman. Nine vendors put in a bid for the contract. “Centerplate checked all the boxes better than everyone else,” said Sterling “There was a lot of competition. Unfortunately when there is a winner, there is always a loser.”

The ability to provide a system-wide galley and vending service is one of the top reasons WSF chose Centerplate. “There will be one vendor handling all of the routes, so there will be (fewer) closures,” Sterling said in an interview with the Vashon Island Beachcomber newspaper last week. “We will be able to keep the facilities open regardless of vessel moves. Overall, this is a good thing.”

Some of Centerplate’s proposals include consistent hours across the ferry system, with additional service on the San Juan Island routes, and serving local items such as Hempler’s beef and ham, Uli’s sausage, Beecher’s cheese and Stimson Estate Cellers wine. The corporation also has plans for “creative concepts for using existing spaces, such as opening additional coffee and beer kiosks on the Jumbo Mark II class ferries,” according the WSF website.

“What people really need to ask themselves is, are they satisfied with the state of food on the ferries now?” said Sterling. Complaints in the past have ranged from poor food choices, inconsistent hours and complete lack of food service to high prices. WSF chose Centerplate, with their more than 23 years of experience in providing concessions in a maritime environment, in part to help combat these problems.

“I’ve heard they just come into a market with a captive audience and price gouge,” said Iapopo. With WSF raising its concession fees this go-round to 12 percent of monthly gross sales for food and 14 percent for beer and wine up from 7–10 percent, higher prices could be forthcoming. And with Centerplate running all food service operations at the terminals, the galleys and even on-board vending machines, there is no competition for prices.

“Centerplate has a history of labor troubles.” said Meyer in Olympic Cascade Services official protest. “Did the Washington State Ferry evaluation committe consider these factors? Did they even make the effort to become aware of them?”

“Choosing an out-of-state biz, with bad business practices,” said Iapopo. “Did they [WSF] know or not know? Either way shame on them!”