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Some Winnipeg city councillors want to know why a local restaurant chain lost a long-standing contract to a massive U.S.-based company.
Salisbury House had provided food and beverage services at the Windsor Park and Kildonan Park golf courses since 2009, but when the contract expired at the end of March, the city awarded a new deal to Aramark Canada following a competitive bidding process.
Aramark is a Philadelphia-headquartered company that operates in more than a dozen countries, according to its corporate website. Aramark Canada is based in Mississauga, Ont.
The move has prompted questions from Winnipeg-owned restaurant chain Salisbury House and some city councillors, particularly as governments and businesses have emphasized supporting local companies.
“This just doesn’t pass the sniff test,” Salisbury House operations manager David Petrishen told host Julie Buckingham in an interview with CBC Radio’s Up to Speed, pointing to broader efforts to prioritize Canadian and local businesses.
Petrishen said the company has spent years building up the service at the two courses, offering what he described as affordable options for golfers, while sourcing ingredients locally and supporting Manitoba suppliers.
Salisbury House had provided food and beverage services at the Windsor Park and Kildonan Park golf courses since 2009. (Rudi Pawlychyn/CBC)
“We’ve been doing this … for 16 years,” he said. “[We] buy Manitoba beef, we bake our own buns with Manitoba flour, buy Manitoba produce … whenever we can.”
Losing the contract will have a noticeable impact on Salisbury House, including reduced production at its commissary and the loss of seasonal positions tied to the golf courses, he said.
Pushback from councillors
Coun. Jeff Browaty (North Kildonan) said he has asked the city’s chief administrative officer for more information about how bids were evaluated, and whether council has the ability to revisit the decision.
“I’m getting a lot of negative feedback,” Browaty wrote in an email to city officials, also asking what consequences the city could face if the contract was overturned.
Coun. Russ Wyatt (Transcona) has called for the city to cancel the deal and bring Salisbury House back, saying in a Wednesday news release public services should reflect local priorities.
Mayor Scott Gillingham said the city is reviewing the situation, but stressed the contract was awarded through a standard procurement process.
“We work hard to have processes that are fair,” he said in an interview with CBC’s Information Radio Thursday morning. That includes a bidding process and a scoring matrix, “and Aramark — which employs 13,000 Canadians across this nation — won the bid,” he said.
Gillingham also pointed to broader legal constraints, saying the city must follow provincial and national trade agreements that limit its ability to favour local companies.
“We cannot, under those trade agreements, give preferential treatment to local companies,” he said.
He added the city is looking into whether the decision could be reversed, but cautioned that doing so could come with consequences.
“What would the penalties be? Would we be opening ourselves up … to litigation?” he said.
Tories criticize provincial contract
The Manitoba NDP government has also faced criticism for awarding a three-year contract to Aramark Canada to provide food services in hospitals. Progressive Conservative Leader Obby Khan said Wednesday the $36-million contract should have gone to a Manitoba company.
The NDP government argued Aramark Canada is a domestic company with more than 200 Manitoba workers and won a competitive bidding contest.
In a statement, the city said Aramark Canada was selected for the golf course contract after scoring highest in the evaluation process. The contract is valued at about $70,000 annually and runs for four years, with an option to extend.
Petrishen said the outcome is frustrating, but he hopes it won’t be final.
Salisbury House plans to bid again when the contract comes up in the future, he said, adding the company still believes there’s a place for Winnipeg businesses in city-run services.
WATCH | Golfers, councillors raise questions over course contract:
Golfers, councillors raise questions after Sals loses course contract
A City of Winnipeg contract for food services at two golf courses is drawing criticism, after local restaurant chain Salisbury House lost out to a Canadian subsidiary of Aramark, a U.S.-based company.