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File #: 20-1351   
Type: Real Property Lease
In control: City Council A Session
On agenda: 2/13/2020
Posting Language: Ordinance approving a five year concession agreement with R&J International Company dba Dunkin Donuts to operate a food service kiosk concession at the exit of the skybridge into Terminal B of the San Antonio International Airport. The agreement has an option to extend the term for three, one year periods. The concessionaire will pay a rental percentage fee annually, which will be deposited into the Airport Operating and Maintenance Fund. [Carlos Contreras, Assistant City Manager; Jesus Saenz, Director, Aviation]
Indexes: Aviation Concessions, Aviation Contract
Attachments: 1. Contracts Disclosure Form, 2. Agreement, 3. Map, 4. Draft Ordinance, 5. Concession Agreement, 6. Ordinance 2020-02-13-0088, 7. Staff Presentation
DEPARTMENT: Aviation


DEPARTMENT HEAD: Jesus Saenz


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Agreement with R&J International Company dba Dunkin Donuts for Food Service Kiosk Concession at the San Antonio International Airport

SUMMARY:

City Council consideration of an agreement with R&J International Company (R&J) dba Dunkin Donuts (Dunkin Donuts) to operate a food service kiosk concession at the San Antonio International Airport (airport). The kiosk will be located on the Terminal B Mezzanine side of the Skybridge to offer airport visitors with the option to purchase coffee or baked goods. The initial term of the agreement is for five years and can be extended for three, one-year periods. For the first year, the rental rate is 10% of gross revenue.

This kiosk will provide passengers and visitors in Terminal B and the Consolidated Rental Car Facility (CONRAC), with an opportunity to purchase coffee and a baked good while they wait. The kiosk is intended to enhance the customer experience as well as generate non-airline revenue.


BACKGROUND INFORMATION:

Surveys of passengers to the airport identify that many would like additional food and beverage concepts in pre-security line areas. Two new concepts, Sip Brew Bar and Market and the Sip kiosk, are pre-security options on the ticketing and baggage claim levels of Terminal A that will open in 2020. The Dunkin Donuts kiosk will be the third option for pre-security food and beverage items.

Currently, there is no pre-security option for Terminal B and CONRAC passengers or visitors who enter and exit the airport through the Skybridge into Terminal B. A local vendor, R&J, is operating a Dunkin Express kiosk in the main food court in Terminal A through March 8, 2020 and has agreed to operate a kiosk in the Terminal B entrance of the Skybridge from 4 a.m. until 7 p.m. seven days a week. The area of the kiosk will be less than 112 square feet and allow customers to purchase Dunkin' Donuts brand coffee ...

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