"Port of Oakland considers changing concessions for first time in 20 years"

Tuesday, October 18, 2005

Food options for airport may expand
Port of Oakland considers changing concessions for first time in 20 years
By Paul T. Rosynsky
The Oakland (CA) Tribune


OAKLAND - Oakland International Airport has become a popular takeoff point
for millions of air travelers because of its low fares and relatively
on-time flights.

Soon it could become known for its wide range of food and beverage options
as well. 

For the first time in more than 20 years, the Port of Oakland is considering
changing its main concessionaire at the airport and expanding the number of
places travelers can go to grab a drink or buy a book. 

"I think we are behind the curve," Aviation Director Steve Grossman said.
"We want more national brands and more opportunities." 

Since the port hired its current concessionaire in 1984, the airport has
undergone a rapid expansion, with passengers going from 4.1 million to 14.1
million a year. In that same time, its concession stands have remained
static with only a few improvements or expansions. 

Now with its new terminal expansion set to open next year and renovation of
Terminal 1 soon after, port officials think it's time to redo the
concessions. 

They want more options for passengers and more recognizable chains where
people can spend their cash as they wait for a flight. The new contract
could earn the port up to $6 million a year, about $2 million more than the
port is receiving now from CA One of Buffalo, N.Y. 

During the same time, CA One has racked up more than $247 million in gross
receipts, port documents show. 

In addition to deciding if it wants to seek new proposals, the port's
Aviation Committee will discuss how a new deal should be written, what kind
of labor provisions should be included and how much of the new concessions
should be awarded to local firms. 

Airport staff members have suggested signing a 10-year deal with the winning
firm to provide food and beverage stations. A separate five-year deal would
be given to a company to construct new newsstands and bookstores. 

The deals would be phased in to allow CA One to finish its current
agreement, which ends in 2008. 

Whoever wins the prize will have to work with two local high schools, which
use two concession stands at the airport as an educational experience for
students.

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