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 Second Amendment to the concession contract with CBC SSP America DAL, LLC for food and beverage concessions services at Dallas Love field Airport to (1) extend the term of the contract for an additional seven years; and (2) increase the current street plus 10 percent pricing to 17 percent for the fast-casual restaurants covered by the contract (AV8 and Fly Bar) - Estimated Revenue: Aviation Fund $900,000.00
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BACKGROUND
On October 24, 2018, the City Council authorized a concession contract with CBC SSP America DAL, LLC formerly known as Creative Bar Concepts, LLC. for the construction, management, and operation of two food and beverage concessions, AV8 (2151B) and Fly Bar (L2001), by Resolution No. 18-1482. The contract's primary term began on February 1, 2020.
On December 8, 2021, Administrative Action No. 21-5889 authorized the City Manager to consent to the assignment and assumption the contract from Creative Bar Concepts, LLC, as Assignor, to CBC SSP America DAL, LLC as Assignee, effective upon date of execution.
On December 8, 2021, the City Council authorized the First Amendment to the concession contract to exercise both one-year renewal terms and to add two additional extension years to the contract by Resolution No. 21-1941.
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 inc...
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