STRATEGIC PRIORITY: Transportation & Infrastructure
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 a Third Amendment to the concessionaire contract with Host International, Inc. (La Madeleine, Paciugo Gelato/Auntie Anne's, Starbucks East Wing, Starbucks West Wing, and Chick-fil-A) for food and beverage concession services at Dallas Love Field Airport to exercise a seven-year renewal term to the contract - Estimated Annual Revenue: Aviation Fund $3,925,168.25
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BACKGROUND
Host International, Inc. (Host), pursuant to Resolution No. 12-0706 was awarded a food and beverage concession contract for Cool River Caf? (C2125), La Madeleine (C2546), Paciugo Gelato (C2321), Starbucks East Wing (C2653), Starbucks West Wing (C2452), and Chick-fil-A (C2063). 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 all aspects of operations at the airport have increased the costs of those operations. As enplanements continue to rise, throughout at the food and beverage outlets must be improved. To this end Host International, Inc. projects to spend $2.6 million in capital improvements and rebranding of some units. The Department of Aviation seeks City Council approval to exercise a seven-year renewal term to Host's contract.
PRIOR ACTION/REVIEW (COUNCIL, BOARDS, COMMISSIONS)
On March 7, 2012, the City Council authorized a seven-year and nine-year concession contract, with two one-...
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