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 Dickey's 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 17 percent for the quick-serve restaurant covered by the contract (Dickey's Barbecue Pit) - Estimated Revenue: Aviation Fund $1,200,000.00
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BACKGROUND
On March 7, 2012, the City Council authorized a concession contract with Dickey's BBQ Restaurants, Inc. for the construction, management, and operation of one food and beverage concession by Resolution No. 12-0706, which contract was later assigned to the current concessionaire, Dickey's Love Field JV, LLC. 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, Dickey's Love Field JV, LLC, has spent $400,000.00 on capital improvements. The Department of Aviation seeks City Council approval to amend the contract with Dickey's Love Field JV, LLC to extend the term by an additional seven-years ...
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