city of San Antonio


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File #: 19-6685   
Type: Real Property Lease
In control: City Council A Session
On agenda: 9/12/2019
Posting Language: Ordinance approving a lease with R&J International Company dba Dunkin Donuts to operate a food service kiosk concession in the food court of Terminal A at the San Antonio International Airport through March 8, 2020. The concessionaire will pay a rental rate of 14% of monthly gross revenue sales. [Carlos Contreras, Assistant City Manager; Russell Handy, Director, Aviation]
Attachments: 1. Dunking Donuts TA Agreement, 2. Dunkin Contract Disclosure, 3. Draft Ordinance, 4. Ordinance 2019-09-12-0714
Related files: 19-5936
DEPARTMENT: Aviation


DEPARTMENT HEAD: Russell Handy


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Lease Agreement with R&J International Company dba Dunkin Donuts for the operation of a food service kiosk concession at the San Antonio International Airport


SUMMARY:

City Council consideration of a lease agreement with R&J International Company dba Dunkin Donuts (Dunkin Donuts) to operate a food service kiosk concession at the San Antonio International Airport. The rental rate is in the amount of 14% of gross revenue which will be paid monthly through the expiration of the agreement on March 8, 2020.


BACKGROUND INFORMATION:

Dunkin Donuts has operated a kiosk in the food court of Terminal A since the location it previously occupied was closed to allow for the expansion of the Terminal A Security Checkpoint. The Aviation Department and operator would like to continue the kiosk operation, which is approximately 40 square feet through March 8, 2020.

Sales for the kiosk have increased by an average of 20% since March 2019. Additionally, the kiosk is one of two locations in Terminal A predominately serving coffee for patrons during the construction period for the first phase of the new concessionaires.


ISSUE:

City Council authorization is required for lease agreements over six months.

The lease agreement will allow Dunkin Donuts to continue operating a moveable kiosk that offers donuts, coffee and other associated products through March 8, 2020. As part of the agreement, Dunkin Donuts will pay the Airport System 14% of its gross revenue every month. The location of the kiosk is anticipated to remain in the food court of Terminal A, but the Aviation Director has the sole discretion to change the location with a 30-day written notice.


ALTERNATIVES:

City Council could chose to not approve this lease agreement, which would mean Dunkin Donuts could not continue to operate in Terminal A and the Airport System would not generate revenue from the k...

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