Airport to consider new food and beverage contract
The Des Moines Airport Authority Board next month is expected to consider issuing a request for proposals for a new food and beverage system that could sharply increase the airport’s take from sales. The 20-year old contract language now used basically leaves the liability for improvements and decisions about what to sell to the concessionaire (currently SSP America), and the airport gets a percentage of gross revenues. The contract expires June 30, 2017. Airport Executive Director and General Manager Kevin Foley said with the uncertainty of whether a new airport terminal would be open within the 10-year window of a normal contract, he decided to recommend a five-year deal that gives the airport more control over the “passenger experience.” The airport will take on the expensive of improvement and call the shots, and will pay a company to manage the facility for a percentage of net revenue. Foley estimates that even in the worst case, the airport is likely to make $1.2 million a year, compared with the $713,000 it took in for its 13.7 percent share of gross from the current contract. It could be much more.