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Decisions Expected Soon On Major Concessions Opportunities


It’s a waiting game right now for concessionaires and developers who
have bid on several airport opportunities over the past few months.
Decisions are expected within weeks on concessions-related contracts at
airports including Lambert-St. Louis International (STL) and
Metropolitan Washington Airports Authority (MWAA), while decisions on
other major opportunities, including those at Chicago’s Midway (MDW) and
Detroit Metropolitan Wayne County (DTW) will likely take a bit longer.

The first decision will likely come from STL, where three bidders –
HMSHost Corp., Hudson Group and incumbent The Paradies Shops – are vying
for a contract to operate 14 news, gift and specialty retail locations.
The term is 10 years with a three-year option. STL spokesman Jeff Lea
says the airport will make a recommendation for an award to the St.
Louis Airport Commission on August 1.

MWAA is expected to announce a decision soon in its search for a “fee
manager” to develop concessions at both Washington Dulles International
(IAD) and Ronald Reagan Washington National (DCA). MWAA spokesman Rob
Yingling says a recommendation could come as early as mid-August,
although he stressed that MWAA is “still in the evaluation stage of the
proposals that were received in June.”

The latest bids are a second attempt for MWAA to tap a developer. An RFP
last year yielded a recommendation to award a contract to MarketPlace
Development. Incumbent Westfield Concession Management protested and a
new RFP was drafted with responses due last month. In a May interview
with ARN, MWAA president and CEO John “Jack” Potter said he was looking
to the developer for guidance on the way forward for the concession
programs. “We’re really excited about the opportunity to have somebody
come in and take a new, fresh look at our airports” Potter said. “We
have some ideas, but more importantly we want to hear from our new fee
manager.”
 
Other major contracts will take a bit longer. DTW received 32 proposals
for 11 retail packages that encompass 37 retail locations in the
McNamara Terminal. DTW is seeking two prime concessionaires for two
packages, including 11 stores each, as well as some smaller direct-lease
opportunities, according to spokesman Michael Conway.

“The terminal opened in 2002, and this is the first time we’ve had a
complete overhaul,” Conway says. “We’re very excited. It’s going to
freshen up the terminal.”

“We hope to be able to take recommendations to the board sometime this
fall, but the review process has just begun,” Conway adds. The current
prime retail concessionaires in the McNamara Terminal are Delaware North
Companies Travel Hospitality Services and The Paradies Shops.

Bids for companies to lease, develop and operate food and beverage
concessions at MDW is under review, according to Gregg Cunningham,
coordinator of special projects for the Chicago Department of Aviation.
Bids were due in January, but Cunningham says the review process will
take several months, with an announcement anticipated in spring 2013.
The RFP contains eight packages totaling 13 concession locations at the
airport.

Looking forward, among the upcoming concessions opportunities, Miami
International (MIA) has an RFP out for five food and beverage units and
one specialty retail unit, slated for development in the North Terminal.
Proposals are due on July 27. Upcoming at MIA will be an RFP for two
food and beverage units, one located pre-security in Terminal D and the
other in the airport’s Rental Car Center.

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