After Would-Be Love Field Vendors Complain, City Slashes Prices of Minimum Guarantees

Categories: City Hall
newDiamondConcession211.jpg
Yet another sneak peek at the "new" Love Field Airport
No need to recap at this late date the messy process that led to city officials finally looking for new concessionaires at city-owned Love Field Airport, presently undergoing that extreme makeover expected to wrap in 2013. But the bidding process isn't going too smoothly either: Last month we noted that several would-be eat-n-drink vendors -- among them an unnamed "proud Dallas business ... excited about the prospect of partnering with Dallas Love Field to represent the brand" -- complained that the city was demanding far too much when it came to the minimum guaranteed payment due every year. Several said what they city was asking was " highly unrealistic" and "would be considered highest in the industry."

To which the city said: Fine, we'll adjust it. And it did. By a bunch.

Yesterday, the city posted yet another addendum to its bids website (the sixth, so far) that dramatically lowered the amount Dallas will expect from the 14 food and beverage spaces presently up for grabs. As in: If you'll go back and look at the very first RFP, the city originally set $201,000 as the minimum annual guarantee for the 1,765-square foot restaurant that will feature "Texas-Themed Cuisine." But according to yesterday's addendum, that figure's been cut almost in half -- to $111,195. Where the city once expected to make at least $173,000 annually from a "branded coffee" spot, it's now asking only $49,455. And that "Branded BBQ Quick Service" from which the city was once demanding $265,000 has dropped all the way down to $97,145.

If my math's right -- and it probably isn't -- the city initially expected to pocket at least $3.7 million annually from the food and beverage vendors. That number is now $1.89 million. But, of course, vendors always have the option of paying more -- because, after all, that will push 'em to the front of the line:
As a result of input from some potential proposers, the Minimum Annual Guarantee requirement has been adjusted to increase the competition among proposers, it has been set at the lowest level required to generate sufficient revenue from the food and beverage program to sustain airport operations. It is not based on sales projections, nor does it reflect the potential for each package. However, with this adjustment, the City will give greater weight in the evaluation criteria to those proposals that submit a MAG for a package that is above what the City has set as the minimum.
The whole revised chart follows -- for those who like to follow the money. Oh, and the deadline's been changed again: Bids, once due this week, aren't scheduled to be turned in till June 15. For now. Love Field Concessions RFP Addenum No 6
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9 comments
Who Ray
Who Ray

'sounds almost like the City doesn't know what they are doing, doesn't it?

Bettyculbreath
Bettyculbreath

The folk working this RFP don't know what they are doing.Remember they have never bidded that space .The City has always went straight contract negotiations.City needs to ask for help .City Manager and others at City Hall,complain about salaries of DFW staff,DFW is a city we run the Airport without any City support,they are professional.This same City staff had not raised landingfee at Love Field in 30 years,making it almost free for Southwest to land at Love.Also what happen to lower fare City promised?

Stupid is as stupid does
Stupid is as stupid does

Our City Manager Team in action once again.........This is what you get when you put an enterprise fund under City Management and expect solid business decisions. After all you have an Interim Director Mark Duebner, who has never run an airport, came from Purchasing via the City Manager's office Special Projects to the Dallas Police Department - Administrative Service and running an airport under the capable Assistant City Manager, who oversees economic development..........What a Funny Farm.

And we expect professional decision - making for such a critical asset of the City undergoing multiple millions of dollars in improvements.......Give me a break.....this is so inept, yet unfortunately.....what we come to expect from City Management.......

financial 112
financial 112

Don"t all these bids include a per centage of sales, so if the stores are successful the minimums will be eclipsed. did they change the per centage of sales number or leave that the same?

Watching South Detroit
Watching South Detroit

Does anyone in Dallas have a clue with some real research or facts for backup or are they using the old dart board again?

Wylie H.
Wylie H.

The effective per square foot the City of Dallas was asking for that 1st space you mentioned worked out to $114 per square foot! That's completely laughable.

Sigh, Mary Suhm's incompetence strikes again.

Wylie H.
Wylie H.

Well it's not what I "expect" from the management of most cities, and I get the sense that many other cities don't think too highly of Dallas' management, either.

I recently had breakfast with the City Manager of a larger southwestern city, and he mentioned that he had recently dined with Mary Suhm and (then Mayor) Tom Leppert. I asked him for his impressions, at which point he looked at his assistant uncomfortably and quickly changed the subject. Sigh....

Wylie H.
Wylie H.

It looks like they've got the dart board out.

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