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OAKLAND, CA-Airport concessionaire Host International Inc. has been awarded the contract to build and operate food and beverage, retail and duty free concessions in Terminals 1 & 2 at Oakland International Airport. Awarded by the Port of Oakland following a competitive RFP process, the 12-year contract with the Port of Oakland is scheduled to start this fall.
Oakland International served 14.4 million passengers in 2005. Host's contract covers 15 food and beverage locations (totaling approximately 21,188 sf) and 16 retail locations (totaling approximately 8,415 sf), including one duty free shop.
Host says it expects to generate revenues in excess of $675 million and that total contract sales including subtenants are expected to reach $900 million over the life of the agreement. The contract is expected to generate $117 million in revenue for the Port.
By comparison, the contract with Oakland's current prime concessionaire, Delaware North Co. (formerly known as CA One Services Inc.), generates an estimated annual $28 million in gross receipts and $4.65 million in percentage rent revenue paid to the Port on an annual basis. The contract was awarded in 1984, when the airport served 4.1 million annual passengers and extended in 1995. It expires May 31, 2008.
In addition, the Port says it signed a 10-year contract with Andalé Management Group, Inc. to operate a 1,500-sf sit-down restaurant in the new seven-gate concourse in Terminal 2. The restaurant is expected to open in fall 2006 and generate $2.2 million in revenue for the Port.
Host International operates in more than 70 airports globally. The subsidiary of Autogrill SpA has annual sales in excess of $2 billion and employs more than 26,000 associates worldwide. The contact is the first for Host at Oakland International.
Host's proposal for Oakland International calls for local and national food & beverage and retail concepts. The local brands will include Everett & Jones, Genova Delicatessen & Ravioli Factory, Restaurant, an Oakland Tribune-branded newsstand, Heinold's First & Last Chance Saloon, Fenton's Creamery, Otaez Mexican Restaurant, and Silver Dragon Restaurant. The national brands will include Sony Style, California Pizza Kitchen, Palm One, See's Candies, Quiznos Sub, Chevys Express, Pyramid Alehouse, Famous Famiglia, Starbucks, Chili's, Burger King, Subway, Pizza Hut and Gordon Biersch Brewery.
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