LOS ANGELES WORLD AIRPORTS TO RECOMMEND TRANSFORMATION OF AGING TERMINAL CONCESSIONS AT LAX
Officials at Los Angeles World Airports (LAWA) announced today that it will take the results of a comprehensive competitive selection process for new concessions at Los Angeles International Airport (LAX) to the Los Angeles City Council’s Board of Referred Powers. The Board of Referred Powers will consider proposed 10-year contracts for five food-and-beverage packages and three retail packages for LAX Terminals 4, 5, 7 and 8. Two other retail packages will be considered by the Los Angeles Board of Airport Commissioners in an upcoming public meeting.
In recent years, food-and-beverage and retail service at these LAX terminals have received less than flattering reviews in passenger satisfaction surveys conducted by LAWA – placing LAX near the bottom among major U.S. airports. According to airport officials, low customer opinions of the concessions at LAX resulted in a long-term lag in the growth of passenger spending in these terminals. The December 2010 expiration of the current concession leases in these four terminals prompted a concession competition for alternatives to the current passenger experience. Requests for Proposals were issued May 2009, five addenda issued, and proposals received in October.
Food and Beverage Concessions
In the food-and-beverage area, LAWA’s goal was to establish a setting where passengers are offered a unique Los Angeles experience with local and regional eateries provided by celebrity chefs and popular local restaurants. The food-and-beverage proposal opportunities covered 20 terminal locations totaling approximately 50,000 square feet bundled into five packages ranging from two to seven units. Among 25 proposals received from eight companies, five packages were selected. Of these new concession concepts, 12 have headquarters in the City of Los Angelesand 10 others are based in Southern California.
“The competition resulted in a slate of new food and beverage establishments representing some of L.A.’s most sought-after restaurants and celebrity chefs,” said LAWA Executive Director Gina Marie Lindsey. “We have a cast of new, talented and proven restaurants that will help put the ‘L.A.’ back into ‘LAX.’”
Retail Concessions
In the retail area, LAWA’s goal was to provide passengers a high-quality shopping experience with a variety of new and innovative shopping options that offer a “sense of place” reflecting the Los Angeles region. The retail proposal opportunities covered 22 terminal locations totaling approximately 20,000 square feet bundled into five packages ranging from one to eight units. Among 18 proposals received from eight companies, five packages were selected. Of these new concession concepts, five have headquarters in Los Angeles and eight others are based in Southern California.
“The selected retail concessions will add some well-established consumer brands and bring some of L.A.’s most distinctive businesses to LAX, the City’s front door to millions of people traveling through the airport,” Lindsey said.
The new concessions will replace existing restaurants and stores in the four terminals, as well as in converted public space. Once existing concession leases expire at the end of this year, the new retail concessions are expected to be built out by Summer 2011 and the new food-and-beverage concessions by the end of 2011.
Selected finalists and their package of concepts in the food-and-beveragearea are:
? SSP America, Inc.: Red Mango, Nick & Stef’s Steakhouse (restaurateur Nick Valenti and Chef Joachim Splichal), M Café de Chaya (macrobiotic), Border Grill Taqueria (Chefs Mary Sue Milliken and Susan Feniger), 25 Degree Burger (Chef Tim Goodell and Liza Goodell), LA MILL Coffee, Groundwork Coffee, La Serenata de Garibaldi (Chef Jose Rodriguez), Bertha’s Soul Food, Panda Express, Peet’s Coffee & Tea, (Chef) Nancy Silverton’s Spuntino, and Market Café (Chef Joachim Splichal)
? Areas USA LAX, LLC (three contracts): Ford’s Filling Station (Chef Ben Ford), B Grill by BOA, Klatch Coffee, Carl’s Jr., Natural Break, Homegirl Café, Lemonade (Chef Alan Jackson), Concert Bar, Engine Co. No. 28 (Chef Kenneth McCaskill), Corona Bar & Grill and Sammy’s Pizza
? THS/Marbella Food Service Partnership IV: Skewers by Morimoto (Iron Chef Masaharu Morimoto) and (Chef) Wolfgang Puck Express
Selected finalists and their package of concepts in the retail area are:
? LAX Retail Magic 2 Joint Venture: Kitson, Magic Johnson Sports, Rip Curl, Hugo Boss, Hudson Booksellers, Vroman’s Bookstore, Kids Corner, Papyrus, Entertainment Weekly, Mattel Experience and E! Entertainment
? LAX Retail Magic 3-4 Joint Venture (two contracts): True Religion, Monarchy, Ed Hardy, T-Tech by Tumi, Oakley, King Baby, Bartels’ Harley, Sunglass Hut, Hollywood Bling, See’s Candies, Hudson News/Vroman’s Bookstore and NBC Universal
? Areas USA LAX, LLC: Newsweek, LA Times Newsroom, Telemundo and Diverse
? XpresSpa (personal care services)
In order to ensure a wide-ranging and inclusive competitive process, airport officials described their outreach to local businesses as “unprecedented,” including three public workshops attended by over 625 executives to describe the LAX concessions program, the City’s competitive process, and how to prepare responsive proposals.
Proposals were evaluated by a panel of LAWA executives on criteria that included: overall mix of brands/concepts; financial return and investment commitment; customer service, marketing and operations plan; aesthetics and design intent; and experience and qualifications.
The Board of Referred Powers is a Los Angeles City Council committee comprised of five councilmembers: Board Chair Tony Cardenas (District 6), Vice Chair Bernard Parks (District 8), Janice Hahn (District 15), Ed Reyes (District 1), and Bill Rosendahl (District 11).
If the contracts for five food-and-beverage and three retail packages are awarded by the Board of Referred Powers and contracts for two retail packages approved by the Board of Airport Commissioners, the 10 contracts then would go to the City Council for approval.
Los Angeles International Airport (LAX) is the sixth busiest airport in the world, offering more than 565 daily flights to 81 destinations in the U.S. and over 1,000 weekly nonstop flights to 65 international destinations. LAX is part of a system of three Southern California airports – along with LA/Ontario International and Van Nuys generation aviation – that are owned and operated by Los Angeles World Airports, a proprietary department of the City of Los Angeles that receives no funding from the City’s general fund.
