His lease expires on September 28 and will not be renewed.
Over the years, Mr Davis has taken on up to 60 people to cater for big sports events, including speedway and gala dinners.
TCVL earlier bought out Mr Kay's contract, which had nine years to run, and is also using its own staff to run future speedway meetings.
Mr Davis said: "It's how things go and that's business. We've been talking about it for a year. I'll still go and watch the rugby and speedway at the stadium, and I'll keep sponsoring a race car."
He said Onsite Group catered at four other stadiums and he was negotiating with another one. He also has a video business in downtown Tauranga.
Mr Davis was also the original caterer at the Waikato Stadium before its revamp and Montana took over.
Mr McSweeney said Baypark had a catering team ready to go, including two full-time managers who were chefs. He would not name them.
Baypark Catering will operate the cafe in the new TECT Arena, which opens on August 26, and will be applying for a liquor licence.
Mr McSweeney said the team would be changing the way food was served at the stadium during a big event - rugby, speedway and others.
"For a crowd between 7000-8000 people, we will need up to 10 outlets and we will redesign the service areas. People will be able to select their food and drink and pay on the way out. They will not have to wait in lines and they will be able to get back to their seats quicker," he said.
"We will need about 30 people working at these events, including the kitchen staff and attending to the corporate boxes."
Baypark is also providing 12 purpose-built food kiosks that will be placed outside the TECT Arena when major concerts and events are held. This will take pressure off the food service in the cafe when crowds of up to 5000 assemble.