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 The Grove, Inc. 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 17 percent for the quick-serve restaurants covered by the contract (Moe's Southwest Grill and Manchu Wok) - Estimated Revenue: Aviation Fund $1,401,800.00
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BACKGROUND
On March 7, 2012, the City Council authorized a concession contract with The Grove, Inc. for food and beverage concession services for the construction, management, and operation of two food and beverage concessions, Moe's Southwest Grill (C2181) and Manchu Wok (C2186) by Resolution No. 12-0706. The contract's primary term 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, The Grove, Inc. projects to spend $1,000,000.00 on capital improvements and rebranding of one unit and remodel of the other unit. The Department of Aviation seeks City Council approval to amend the contract with The Grove, Inc. to extend th...
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