Rise in Vendor Fees Could Hurt Expos’ Ethnic Flavor

In ethnically diverse Los Angeles, where culture and cuisine are as tightly linked as the ribs of a hickory-smoked slab, there’s something of a food fight brewing. At issue: a near-doubling of the fees charged to food vendors who sell their native specialties at ethnically themed expos at the Los Angeles Convention Center.

Backers of some ethnic shows--from China Expo-USA to the Latino Book and Family Festival--fear that the increase will make it harder to find food vendors, a key ingredient in the success of the events.

“They want to try to keep the revenue and sales within the convention center,” said Kirk Whisler, manager of the Latino family festival, set for October. “That’s good for them but bad for us because then we won’t have the opportunity to bring in vendors that have that authentic feel.”

Backers of the Philippine-American Convention and Exposition next month were concerned that the rate hike would cause some of their food vendors to bail out, weeks before the show. They fought for--and won--a deferral for this year, said project director Aurora Abayari.

“This is a cultural event,” she said. “Without the food, the festival is not the Filipino expo.”

George Rakis, general manager of the convention center, acknowledged that the city-subsidized center is seeking to garner more of the cash generated by the food vendors as ethnic shows have grown dramatically in recent years. But he insisted that the center’s goal is to share the pie--not eat the whole thing.

“Initially, the food vendors were there to help showcase the food of that particular culture,” Rakis said. “It was not necessarily a profit-making venture; it was more promotional. Since then, a lot of them have gone to a profit-making mode.”

He said that normally the center does not allow outside food vendors to compete with its own food service operation, which is run by Philadelphia-based Aramark Corp., the world’s third-largest food service provider.

So, he said, dishing out ethnic delicacies at the normally exclusive venue is a privilege for which vendors should pay. He said that with the exception of a nutritional show, the ethnic shows are the only exhibit hall events allowed to bring in food--hence the so-called food waiver fee, which he said has been unchanged for years.

Many large convention centers, including Miami, Dallas and New York, rarely allow show hosts to bring in outside food vendors, deferring instead to their exclusive concessionaires, executives at those venues said.

Initially, Rakis said, the center suggested boosting the fee from last year’s $500 to a $1,200 maximum. Responding to the hue and cry from show promoters at a series of recent meetings, the rate was scaled back to a maximum of $700 this year and $900 next year.

“We’re trying to create a harmonious situation,” he said.

Food vendors also must pay for a health department license, booth fees and food preparation expenses that can boost the cost to $3,000, show backers said. Smaller food vendors stand to be hurt the most.

“Since the fee is increased, my mom is not so sure she wants to do the show again,” said Piyalak “Jaime” Akraratana, who co-owns the Sermmith Thai restaurant on Melrose Avenue with her mother, Lakana. She said her restaurant has participated in the China Expo-USA for four years.

“If the LACC waives the fee, we will definitely be in the show. If we have to pay [more], we are not so sure,” she said.

L.A.’s convention center has an operating budget of more than $23 million, with funds coming largely from fees raised by the center, the hotel bed tax and the city’s general fund.

John Sheppard, a planning deputy for City Councilwoman Rita Walters who closely tracks the convention center, said the center has been “encouraged” to reduce the general fund subsidy needed to run the 870,000-square-foot center.

And Deputy Mayor Jennifer Roth said that in the proposed budget for the 2001-02 fiscal year, an increase in convention center revenue is expected to reduce the general fund subsidy by $5 million.

Boosting the fees to the more than three dozen ethnic food vendors won’t erase the city subsidy, however. Rakis estimates that the ethnic festivals contribute less than 3% of the center’s revenue, which for the 2000-2001 fiscal year is expected to be more than $24 million.

Many show backers said their events provide increasing amounts of cash to convention center coffers even without a fee increase.

Last year, the center hosted seven ethnic shows that drew more than 100,000 participants, and most of the shows served food. Although there is no direct relation between attendance and revenues, there is an indirect tie--more people means more parking revenue, and as shows get larger, more space is required.

“The LACC should charge us just for the floor space, not for the food” fee said David Liu, operations manager for the fifth annual China Expo-USA. Set for December at the convention center, it is billed as the largest Chinese exposition in North America.

“If our exhibitors make money, [the center] should be happy. Our show will grow and we will need more space and they will make more money.”

Some show promoters said they believe that the center is within its rights to charge--and hike--fees. And they gave the center high marks for coming down from the higher fee proposed initially.

“The vendors may not think it’s fair, but my personal feeling is that it is fair,” said Masa Kawano, director of the Torrance-based firm that hosts Japan Expo 2001, a two-day show set for late November at the convention center. Kawano said the show is expected to draw 30,000, including many who come largely to sample gourmet Japanese food at the show’s six food booths. “We understand that we are taking their business.”

Aramark took over the contract to run the convention center’s main food service operation in January 2000. Dan Butler, Aramark general manager, declined to give details on what impact the ethnic shows have had on food sales at the mammoth venue, saying, “it varies from show to show.”

But show operators say that when their guests can choose between authentic kung pao chicken and the more traditional fare offered in the concession area, the choice is clear.

“Without a doubt, for our show, people definitely like the authentic tastes,” said Whisler of the Latino family festival. “They’re at our show to celebrate their culture, and they don’t want something that tastes like mini-mart food.”

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Karen Robinson-Jacobs covers minority and immigrant business. She can be reached at karen.robinson@latimes.com.