Officials at Los Angeles World Airports (LAWA) plan to present the results of a 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, a committee of five council members, including 11th District Councilman Bill Rosendahl, will consider proposed ten-year contracts for five food-and-beverage concessions and three retail concessions 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.
Airport officials said that 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 at these terminals.
The December 2010 expiration of the current concession leases in these four terminals prompted a concession competition for changes to the current passenger experience, officials noted.
Among 25 proposals received from eight companies for food and beverage concessions, five packages were selected. Of these new concession concepts, 12 have headquarters in the City of Los Angeles and ten 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,” LAWA Executive Director Gina Marie Lindsey said. “We have a cast of new, talented and proven restaurants that will help put the ‘L.A.’ back into ‘LAX.’”
Among 18 proposals received from eight companies for retail concessions, five packages were selected. Of these new concession concepts, five are headquartered 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 by Summer 2011 and the new food-and-beverage concessions by the end of 2011, airport officials said.
The concession 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 contracts are subject to City Council approval.