STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: December 13, 2023
COUNCIL DISTRICT(S): 2
DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize a Fourth 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 exercise a seven-year renewal term to the contract - Estimated Revenue: Aviation Fund $3,189,798.14
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BACKGROUND
On March 7, 2021, the City Council authorized a concession contract with Air Star-Concessions, LTD (formerly Dallas Love Field Joint Venture Ltd), for a food and beverage concession contract for the construction, management, and operation of Whataburger (C2081), Campisi’s Pizza (C2077) and Cantina Laredo (C2596) by Resolution No. 12-0706. The contract’s primary term commenced November 1, 2014, for all three units, with a contract primary term expiration of October 31, 2021, for Whataburger and Campisi’s and October 31, 2023, for Cantina Laredo. In addition, based on the concession’s excellent operation throughout the contract primary term, but especially during the COVID-19 pandemic when airline traffic was significantly reduced, with drastic staffing reductions and sales lost, the concessionaire continued operations to service passengers and airport employees in a very trying climate. Post-COVID recovery progresses but at a significantly higher cost. Wages and hiring costs, merchandise and food costs have increased, and delivery costs and all aspects of operations at the airport have increased the costs of those operations. As enplanements continue to rise, throughput at the food & beverage outlets must be improved. To this end, Air Star Concessions, LTD projects to spend $6,475,000.00 million in Capital Improvements and rebranding of some units. The Department of Aviation seeks City Council approval to exercise a seven-year renewal term to the Air Star Concessions, LTD contract.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 7, 2012, the City Council authorized a concessions contract, with Air Star Concessions, LTD (formerly Dallas Love Field Joint Venture), with two one-year renewal options, for food and beverage services at Dallas Love Field Airport by Resolution No. 12-0706.
FISCAL INFORMATION
Estimated Revenue: Aviation Fund $3,189,798.14
OWNER
Air Star Concessions, LTD (Cantina Laredo, Campisi’s Pizza, Whataburger)
Gilbert Aranza, President of the Managing Partner