CHARLESTON, W.Va. -- Guest Services, the Virginia company that has operated the state Capitol food court since it opened in January 2008, soon won't be running it, Department of Administration officials said Thursday.

Administration spokeswoman Diane Holley confirmed Thursday that the state has agreed to allow Guest Services to terminate its contract, which would have extended through December 2010 with options to renew, as soon as a contract can be awarded to a new operator.

"We're parting ways in a friendly manner," she said.

Guest Services marketing director Allison Metzger said the issue was one of logistics and flexibility.

The Fairfax, Va.-based company operates a large number of government, university, and corporate dining facilities, predominantly in the metro Washington area, but has no facilities close to the Charleston area.

Metzger said Guest Services' closest operation to Charleston is Canaan Valley resort, which she said makes it impossible to share staff.

"You can't ask a cashier there to fill in at the Capitol tomorrow," she said.

She said the company has been satisfied with the amount of business at the food court in the basement level of the main Capitol, but determined it would be more feasible to have a company with stronger local ties operate the facility.

Administration spokeswoman Diane Holley confirmed Thursday that the state has agreed to allow Guest Services to terminate its contract, which would have extended through December 2010 with options to renew, as soon as a contract can be awarded to a new operator.

"We're parting ways in a friendly manner," she said.

Guest Services marketing director Allison Metzger said the issue was one of logistics and flexibility.

The Fairfax, Va.-based company operates a large number of government, university, and corporate dining facilities, predominantly in the metro Washington area, but has no facilities close to the Charleston area.

Metzger said Guest Services' closest operation to Charleston is Canaan Valley resort, which she said makes it impossible to share staff.

"You can't ask a cashier there to fill in at the Capitol tomorrow," she said.

She said the company has been satisfied with the amount of business at the food court in the basement level of the main Capitol, but determined it would be more feasible to have a company with stronger local ties operate the facility.

"It turned out to be something that probably would be more profitable and easier to operate for someone having a good, strong presence in the city," she said.

Holley said the department is in the process of preparing a new request for proposals for an operator of the facility.

"We've been pleased dealing with Guest Services, and with their quality," Holley said. "They had a little bit of a transition when they started out, but I think the prices were affordable."

Guest Services has operated the state's $3.7 million food court since it's opening. The facility replaced a 30-year-old cafeteria that had been located on the same site, which was shut down in September 2005, following numerous health code violations.

Under the contract with the state, Guest Service pays no rent or utilities for the food court, but pays the state a 3 percent commission on sales up to $1.5 million, and 5 percent on sales over $1.5 million.

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