STRATEGIC PRIORITY: Mobility Solutions, Infrastructure, and Sustainability
AGENDA DATE: December 13, 2023
COUNCIL DISTRICT(S):|910|DEPARTMENT: Department of Aviation
EXECUTIVE: Kimberly Bizor Tolbert
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SUBJECT
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Authorize an increase to the current 10 percent above street pricing to (1) 15 percent above street pricing for all sit-down restaurants; and (2) 17 percent above street pricing for all fast-casual and quick-serve restaurants for all Food and Beverages and Retail Concessionaires at Dallas Love Field to help mitigate the increased costs of providing products and services to the traveling public and airport employees - Estimated Annual Revenue: Aviation Fund $19,552,251.00
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BACKGROUND
Pursuant to Resolution Nos. 12-0706 and 12-0707, for all food, beverage, and retail concession contracts for the construction, management, and operation of all units at Dallas Love Field. The contract's primary terms commenced on November 1, 2014, for all units, with a contract primary term expiration of October 31, 2021, for all retail and quick-serve food and beverage units and October 31, 2023, for all sit-down restaurants. Subsequently, by multiple council-approved amendments, renewal terms (2 years) and extension terms (2 years) extended the expiration dates.
On August 12, 2015, the City Council authorized the amendments to all contracts to allow street plus 10 percent pricing by Resolution No. 15-1535 in addition, based on the concession's excellent operation throughout 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 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 ...
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