STRATEGIC PRIORITY: Transportation & Infrastructure
AGENDA DATE: May 8, 2024
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
Title
Authorize a Fourth Amendment to the concession contract with Pop Four Love Field JV, LLC for food and beverage concessions services at Dallas Love Field Airport to (1) extend the term of the contract by an additional seven-years; and (2) increase the current street plus 10 percent pricing to 15 percent for the sit-down restaurants covered by the contract (Cru Wine and Bruegger's Bagels) - Estimated Revenue: Aviation Fund $1,577,025.00
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BACKGROUND
On March 7, 2021, the City Council authorized a concession contract with Pop Four Love Field JV, LLC for food and beverage concession services for the construction, management, and operation of two food and beverage concessions, Cru Wine (C2261) and Bruegger's Bagels (L1045), by Resolution No. 12-0706. The contract's primary term for Pop Four Love Field JV, LLC began November 1, 2014.
Based on the concessionaire's excellent operation through the 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 the passengers and airport employees in a very trying climate. Post-COVID recovery progresses but at a significantly higher cost. Wages, hiring costs, merchandise and food costs have all increased, along with the delivery costs and all aspects of the operations at the airport have increased the costs of those operations. As enplanements continue to rise, the food and beverage outlet's must be improved. To this end, Pop Four Love Field JV, LLC projects to spend $1,800,000.00 on capital improvements and rebranding of one unit and a refresh of the other unit. The Department of Aviation seeks City Council approval t...
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