The City of Austin’s Department of Aviation has issued a Request for Proposals for concessionaires to operate at Austin-Bergstrom International’s (AUS) Barbara Jordan Passenger Terminal. The solicitation is comprised of 18 packages encompassing food and beverage, news/convenience, specialty retail, duty free, and services concessions.
Contracts will be issued for a 10-year term.
The packages are as follows:
- Wine Bar and Specialty Retail. Two locations totaling 2,335 square feet.
- Branded Specialty Coffee. One location at 711 square feet.
- Branded Specialty Coffee. Two locations totaling 1,750 square feet.
- Branded Specialty Coffee. One location at 712 square feet.
- Branded Snack. One location at 250 square feet.
- Quick-Serve Pizza. One location at 544 square feet.
- Food Hall and Market. One location at 4,600 square feet.
- Casual Dining Concept. One location at 2,681 square feet.
- Casual Dining Concept. One location at 2,081 square feet.
- Theme Bar. One location at 8,064 square feet.
- Two locations totaling 2,887 square feet.
- Local-Themed Gifts. One location at 254 square feet.
- Duty Free Retail. One location at 962 square feet.
- Massage Services.Two locations totaling 1,262 square feet.
- Barber Shop and Bar. One location at 1,302 square feet.
- Retail – Tech and Electronics. One location at 1,173 square feet.
- Shoe Shine. Two locations totaling 100 square feet.
- Casual-Serve Snack/Dessert Concept. One location at 422 square feet.
The RFP signaled the airport’s commitment to a local-focused program.
“The city wants to promote Austin and Central Texas by highlighting a strong business environment, regional products and tourism opportunities,” the RFP noted. “At the same time, it seeks to portray the airport as the area’s gateway for commerce. Offerors are encouraged to use concepts and materials that reinforce these themes and are consistent with the city’s suggested merchandising plan.”
AUS will hold a pre-proposal meeting on Aug. 8. Proposals are due October 14.
The RFP comes at a time when the airport is expanding to enable it to handle increasing passenger numbers.
AUS has experienced substantial passenger growth over the past three years, including an 11 percent increase in total passengers from 2014 through 2015. Growth continues in 2016. From January through May of 2016, passenger volume increased 8.5 percent to more than 4.5 million. AUS has experienced consistent passenger growth for five consecutive years.
The airport is developing to meet future needs. Recent terminal improvements include a $60 million Terminal East Infill Project. This terminal addition included a new customs facility, which doubled the processing of international passengers to 400 per hour, and created a new concourse access for passengers, which added six new U.S. Transportation Security Administration security checkpoint lanes. It also provided new federal inspection facilities, new airline baggage carousel devices, new TSA and U.S. Customs back office space, and reconfiguring of other spaces.
Other airport growth beyond the terminal include an expanded cell phone parking lot, new public parking areas and the consolidated rental car facility. A $325-plus million terminal concourse and apron expansion and improvements project commenced Summer 2016 for completion by 2018-2019 and will add 88,340 square feet of new terminal concourse space, nine new loading bridges and passenger hold rooms, nearly 20,000 square feet of concession space, increased international gate capability, and aircraft parking positions. In 2015, the design and expansion for an additional public parking garage began, with proposed completion for the end of 2018, for a 5,000-space garage close to the existing garage.
Amidst the expansion, concessions sales have enjoyed strong growth. From 2013 to 2015, food and beverage, retail, and personal services sales increased from $43.9 million to $58.6 million, AUS said in the RFP. Sales per enplanement increased from $8.77 in 2013 to $9.82 in 2015, a 5.8 percent annual growth rate. Growth continues in 2016, the airport said. However, the program is currently undergoing substantial construction due to the redevelopment of much of the current food and beverage and retail program underway following lease renewals for the airport’s prime concessionaires.
