SSP America has been shut out of three food and beverage contracts at
Los Angeles International (LAX), one year after the company was
recommended for a package that was ultimately tossed out due to
conflict-of-interest allegations. Los Angeles World Airports rebid the
contract, splitting one massive food and beverage package into three
smaller ones. Last week, LAWA said it had selected longtime
concessionaires HMSHost Corp. and Delaware North Companies Travel
Hospitality Services, as well as CMS/Camacho Ventures.
Denise Sample, managing director for the commercial development group at
LAWA, said those companies scored highest on a set of selection
criteria.
“We have issued a letter of intent to award,” says Sample. “We have not made a recommendation yet.”
The proposed deals are slated to come before the Los Angeles Board of
Airport Commissioners on May 16. They will also need city council
approval. The contracts include restaurants in Terminals 4, 5, 7 and 8,
and together represent revenues of about $60M, or $600M over the length
of the 10-year deals. Six companies submitted bids for the contracts.
SSP America suggests the evaluation process used was stacked against newcomers to the airport.
“SSP America is disheartened by the panel’s recommendations for not only
our company and our partners, but for the negative message it sends to
the industry,” the company said in a statement. “A fair and transparent
process is necessary to continuously improve our industry and ensure the
best goods and services are provided to consumers.
“Further examination of the proposals illustrates the fundamental flaws
in the evaluation process that favor the incumbents and protect the
status quo,” the company adds. “SSP is committed to bringing the highest
quality and most innovative dining experience to travelers, and we will
not be deterred from our vision.”
HMSHost said it looks forward to bringing new restaurant concepts to LAX.
“We are pleased that travelers will be able to experience the iconic
L.A. restaurants and creative innovations that are part of our
proposal,” said Susan Goyette, senior director communications and public
relations. “We have a strong history of partnership with LAX, with more
than 850 employees and decades of service to travelers and the
community, and we are thankful that this partnership will continue.”
Restaurants in the HMSHost bid include Campanile, Cole’s, 8 oz. Burger
Bar, LA Gourmet Street Truck, La Provence Patisserie & Café©, Real
Food Daily and Starbucks Coffee. The LA Gourmet Street Truck will
feature a revolving roster of new local chefs offering the latest trends
and cuisines.
The Delaware North Companies bid includes Loteria Grill and Monsieur
Marcel bistro. CMS/Camacho Ventures will open Camacho’s Cantina.
