The Houston City Council Wednesday approved a seven year extension of the Terminal C concessions contract at George Bush Intercontinental (IAH). That means the joint venture between JDDA Concession Management and Creative Host Services Inc. will manage two food courts there until at least 2016.
“The partnership with JDDA and the investment in this valuable 10 year deal will bring a great range of International, National and Local brands to the George Bush Intercontinental Airport.” said Les Cappetta, CEO and President of Creative Host Services.
As part of the deal, the two companies will invest $10.5M in capital improvements and will increase the fees paid to the city. Houston will now receive 14% of sales for non-branded foods and 12% of sales from branded foods, both up from 10%, and will be paid 15% of alcohol sales, up from 13.5%, says Richard Fernandez, spokesman for the airport.
The contract had gotten somewhat contentious as, according to media accounts, some members of the council were bothered the contract was not put up for bid or reviewed by two committees, including the Transportation, Infrastructure and Aviation committee, which is chaired by Michael Berry, whose wife works at the law firm handling the JDDA contract, according to the Houston Chronicle.
In a call with Airport Revenue News, Fernandez says Mayor Bill White told the partners the city had a series of high standards it planned to set for the contract in order for it to be extended.
JDDA and Creative Host “met the high standards set by the mayor,” Fernandez says. “We were looking for some major improvements in the facilities and the service and food offered.”
JDDA is owned by Jason Yoo, a Houston businessman. It owns 51% of the partnership. Creative Host, an SSP company, operates more than 170 concessions in 40 airports.