PILLAR: Sustainable
AGENDA DATE: November 12, 2025
COUNCIL DISTRICT(S): 6
DEPARTMENT: Department of Aviation
PRIORITY: N/A
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SUBJECT
Title
Authorize a Fifth Amendment to the concession contract with Air Star Concessions, Ltd. (Cantina Laredo, Campisi’s Pizza, Whataburger) for food and beverage concession services at Dallas Love Field Airport to (1) require an additional capital investment by Air Star Concessions Ltd. of $4,000,000.00 into Campisi’s Pizza and Whataburger; and (2) reduce the current percentage for Whataburger from 20% of annual gross revenues from the sale of food and beverages to 13.5% - Estimated Revenue Foregone: Aviation Fund $4,200,000.00 over 7 years
*In alignment with Capital Improvement Program.
Body
BACKGROUND
On March 7, 2012, the City Council authorized a concession contract with Dallas Love Field Joint Venture, Ltd. (whose name was later changed to Air Star Concessions Ltd.), for the construction, management, and operation of food and beverage concessions at Dallas Love Field Airport, which has been subsequently renewed, extended, and otherwise amended. Air Star Concessions, Ltd. currently operates three restaurants pursuant to the concession contract - Whataburger (C2081), Campisi’s Pizza (C2077), and Cantina Laredo (C2596).
Air Star Concessions, Ltd. has been an excellent operator, especially during the COVID-19 pandemic, and has continued to serve passengers and airport employees even with reductions in staffing, sales and significantly increased costs. Post-COVID recovery progresses but at a significantly higher cost. Wages and hiring costs, food costs, delivery fees, and all aspects of operations at the airport have increased the costs of those operations, including capital costs. As enplanements continue to rise, throughput at the food & beverage outlets must be improved.
To this end, Air Star Concessions Ltd will commit to spending $4,000,000.00 in capital for a total demolition of the Whataburger and Campisi’s Pizza units, rebuilding, adding all new equipment, self-ordering kiosk, and queue line tablets, and training of over 100+ employees. The city will reduce the percentage fee under the contract for Whataburger, which is a quick-serve restaurant, from 20% of annual gross revenues from the sale of food and beverages to 13.5%, which is the average percentage fee for all the quick-serve and casual dining units in the airport. The reduced percentage will be mitigated by projected additional annual sales of $2,000,000.00 due to the demolitions, rebranding, additions, and training.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 7, 2012, the City Council, authorized a concession contract with a seven-year term for two fast casual/quick serve spaces and a nine-year term for two sit-down spaces, with two one-year renewal options for food and beverage services with Concessionaire, whose entity was Dallas Love Field Joint Venture, Ltd at the time and later changed, to Air Star Concessions Ltd; (the “Contract”) by Resolution No. 12-0706.
On August 12, 2015, the City Council authorized the City Manager to execute the First Amendment to the Contract to allow product pricing at street pricing plus ten percent (10%), establish a minimum wage of $10.37, and remove the shared cost provision of the Contract by Resolution No. 15-1335.
On November 6, 2018, the City Council authorized the City Manager to execute the Second Amendment to the Contract to add space No. C2086, a bar with limited food service, Dallas Cowboys Club, and a non-contiguous patio for the existing Cantina Laredo restaurant by Resolution No. 18-1483.
On September 22, 2021, the City Council authorized the City Manager to execute the Third Amendment to the Contract to exercise both renewal options and extend the term of the Contract by an additional two years, by Resolution No. 21-1509.
On January 29, 2024, the City Council, authorized the City Manager to execute the Fourth Amendment to the contract to extend the Contract for an additional seven years after the expiration of the two additional years added to the term of the Contract by the Third Amendment, and increase the street plus 10% pricing to 15% for the sit-down food and beverage location covered by the Contract (Cantina Laredo) and 17% for the fast casual/quick serve food and beverage locations covered by the contract (Campisi’s Pizza and Whataburger) by Resolution No. 24-0107.
FISCAL INFORMATION
Percentage fee reduction will take effect on December 1, 2025.
Estimated Revenue Foregone: Aviation Fund $4,200,000.00 over 7 years
OWNER/EXECUTIVE
Air Star Concessions, Ltd.
Gilbert Aranza, President