"Palm Springs Airport plans to add national vendors"

Thursday, March 15, 2007

Airport plans to add national vendors

By Debra Gruszecki
The Palm Springs (CA) Desert Sun

PALM SPRINGS - Airport commissioners on Wednesday learned that HMSHost Corp. wants to beef up concessions at Palm Springs International Airport with nationally known franchises.

The potential concession list includes these vendors: Freshens Frozen Treats, Starbucks Coffee, LaBrea Bread Co., an outdoor wine bar, Nature's Harvest Café and Dewar's Clubhouse Bar & Grille.

Richard Walsh, aviation director, said HMSHost plans to propose making about a $3- to $3.5-million capital investment to carve out these concessions with a caveat: It will seek modifications to the contract it assumed from Antons Airfoods.

Bethedsa-based HMSHost, formerly known as Host Marriott Services, is expected to bring deal-points to the April board meeting, Walsh said.

Likely subjects arising from negotiations with the corporation will be an extension on the contract - now valid through 2014 - and revenue sharing.

Rana Florida, a spokeswoman for HMSHost, said the company is looking forward to serving travelers of Palm Springs airport by offering a "customized mix" of favorite brands that capture the spirit of the city and make the traveler's day better through a mix of dining offerings.

HMSHost, with locations in over 100 airports worldwide and 106 motorway travel plazas in North America, reported revenues of $2 billion on its corporate Web site. It is a wholly owned subsidiary of Autogrill S.p.A.

The airport has wanted to super size its concessions since May 2006 when consultants Simat, Helliesen & Eichner Inc./The Center for Airport Management unveiled guidelines to optimize food, beverage and retail sales at the Palm Springs airport.

"HMSHost was provided a copy of that guideline," and their proposal will be an outgrowth of that, Walsh said.

Concession expansion is meant to coincide with the debut of the new regional jet terminal and airport causeway. Walsh said the goal was to inspire travelers with a sense of place and bolster revenue: He predicted sales totaling $4.6 million in fiscal year 2004 could rise to $8.8 million by 2010.

In other action, the airport commission approved:

The $300,000 purchase of 350 new, Herman Miller Eames Tandem Sling seats and 30 tables for the regional jet hold room now under construction.

Replacement of an airfield paint striping machine with a new $147,167 unit.

Installation of permanent speed humps in the Commercial Loop Road.