Delaware North Companies
The story of Delaware North Companies is the epitome of the American Dream, borne of persistence and innovation and strengthened by the bond of family.An enterprise that began with three brothers hawking peanuts at a Buffalo minor league baseball park, Delaware North Companies has grown into an international business empire with more than $1.375 billion in annual revenues. The company employs more than 25,000 worldwide, including 300 at its headquarters in Buffalo.
For its exhibited innovation, financial success and contributions to the Buffalo area community, Delaware North Companies Inc. is recognized as the 2000 recipient of the Award for Excellence, given annually as one of the Galanis Awards for Excellence in Family Business.
The award will be given Wednesday, April 19, at a ceremony held during the Western New York Family Enterprise Forum, sponsored by the Alfred University Center for Family Business and Entrepreneurial Leadership.
The Galanis Awards were named for the Galanis family, owners of Sealing Devices, Inc., of Lancaster, recognized by Business First as one of the Top 100 Privately Held Businesses in western New York. Last April, Terry S. Galanis Sr., a 1940 alumnus of the University and chairman of the board of Sealing Devices; Terry S. Galanis Jr., company president and a member of the Alfred University Board of Trustees; and their family donated $250,000 to the AU Center for Family Business and Entrepreneurial Leadership.
The Galanis Awards for Excellence in Family Business are given to recognize family-owned and operated businesses, which are vital to the American economy. Criteria for award winners include financial stability, innovation, record of growth, quality of life for employees and contributions to the community.
Delaware North Companies Inc. certainly qualifies. Diversity and innovation, growth and financial success and community involvement have been the hallmark of Delaware North for generations.
The business has its roots in 1915, when three brothers, Charles, Marvin and Louis Jacobs began selling popcorn at a Buffalo theater. When the theaters closed during the summer, the brothers moved their fledgling business to a minor league baseball park near Buffalo, selling peanuts and laying the foundation for the modern-day concession industry.
In 1926, Sportservice was created after the Jacobs brothers won concessions contracts at minor league stadiums in Buffalo and Syracuse. The company’s first major league stadium contract was signed in 1930 when it began operating concessions at Tiger Stadium in Detroit. Today, Sportservice provides traditional concessions, fine dining and retail management at more than 50 professional sporting venues and entertainment complexes across the United States and Canada.
In 1939, the company began its involvement with managing horse and greyhound racetracks and the subsidiary known as Sportsystems Corp. was created. Twenty-one years later, the company would acquire Letheby & Christopher, the leading food and beverage supplier to racetracks in Great Britain and Ireland.
Air Terminal Services was formed in 1941 to manage restaurants in airport terminals. The first account was at Washington National Airport, which would become the foundation for Delaware North’s current CA One Services subsidiary. Today, CA One has more than 300 food service and retail facilities in 33 mid- to large-size airports in the United States.
In 1968, Jeremy Jacobs, the son of Louis Jacobs, assumed leadership of the company and today serves as chairman and chief executive officer.
The company purchased Boston Garden sports arena and the Boston Bruins National Hockey league franchise in 1975. Ownership of the Bruins was transferred to Jeremy Jacobs Sr. in 1985.
In 1976, American Park ‘n’ Swap was incorporated and began operating flea markets and swap meets in parking lots at two racetracks in Arizona. Today, the $8-million-a-year division, DNC’s smallest, consists of eight venues throughout the country.
In 1980, the company’s name was changed to Delaware North Companies. The name was derived from the intersecting streets where the company’s headquarters was located in downtown Buffalo. Four years later, Delaware North Companies International was formed. Today, DNC International has food service operations throughout Australia and New Zealand and is primed for global expansion. DNC International has its largest presence in Australia, where it operates airport restaurants and food courts and provides food services at Melbourne Park, host of the annual Australian Open tennis championships. It also operates university and government dining services and a parking services group in Australia.
In 1992, Delaware North won the National Park Service contract to manage food service, lodging and visitor services at Yosemite National Park. The following year, Delaware North Park Services was formed and now serves such national treasures as Sequoia National Park, Kennedy Space Center, the Grand Canyon and Niagara Falls State Park.
Delaware North Companies Inc. is a third-generation family business. Jeremy Jacobs Sr.’s two sons, Jeremy Jr. and Louis both are executive vice presidents of the company.
Looking to the future, Delaware North seeks to expand its operations. Aside from its vision of increasing DNC International’s role in the global marketplace, the company is expanding its CA One operations to place a greater emphasis on retail sales while promoting the local flavor in both food service and retail outlets. DNC is also looking to establish its own brand names for its CA One restaurant and store operations.
Delaware North is seeking to expand its racetrack and gaming business into new areas, including casinos, and the company also expects to gain new contracts in its parks management business to increase annual sales in that area from $200 million today to $1 billion in five years.
Delaware North’s Sportservice subsidiary, which primarily provides concessions and fine dining at premier sports facilities, hopes to expand into new venues, including convention and conference centers.
The Jacobses stay involved with the Buffalo community through a number of charitable endeavors. Jeremy Jacobs Sr. has served as general campaign chairman of the United Way of Buffalo and Erie County. He has funded the Jacobs Management Center at the University at Buffalo, where he has served as foundation chairman for nearly a decade. In addition, he personally purchased the Butler mansion, a historic landmark with significance to the business community, and donated its use to the University at Buffalo’s School of Management.
Jeremy Jr. and Louis Jacobs have continued the tradition of community service to the benefit of the Buffalo Niagara Partnership, the United Way of Buffalo and Erie County, the Salvation Army, the Martin House Restoration Committee, Buffalo General Hospital Health Systems Foundation and the Buffalo Niagara Enterprise.