Contracts for 10 New Food Concessions at LAX Terminals Proposed
By Art Marroquin, Staff Writer
April 15, 2010
Airline passengers at LAX may soon have a choice of meat skewers prepared by celebrity chef Masaharu Morimoto, steaks and burgers from posh Beverly Hills restaurant B Grill, or Mexican food from local eateries Border Grill and Homegirl Cafe.
The diverse culinary selections are part of 10 proposed concession contracts aimed at dramatically improving the dining and shopping options offered inside four terminals at Los Angeles International Airport, officials announced Thursday.
Airport officials said they were seeking businesses that reflect the distinctive culture of Los Angeles in selecting the lucrative concession contracts covering 44 restaurants and shops spread across 70,000 square feet inside Terminals 4, 5, 7 and 8.
Concession bids for the airport's remaining terminals will be sought later this year.
"We have a cast of new, talented and proven restaurants that will help put the L.A. back into LAX," said Gina Marie Lindsey, executive director of LAX.
Areas USA, the Miami-based firm of a Barcelona-based company with operations at nine airports nationwide, was selected for three food contracts at LAX. The company is a relative newcomer to the United States, earning its first domestic contract at Miami International Airport in 2005.
Areas USA intends to bring Sammy's Woodfired Pizza and gang-intervention eatery Homegirl Cafe to Terminal 4; B Grill steakhouse to Terminal 7; downtown Los Angeles steakhouse Engine Co. No. 28 to Terminal 8; and Culver City-based Ford's Filling Station to Terminal 7. Ford's Filing Station is owned by chef Ben Ford, the son of actor Harrison Ford.
One retail contract also was awarded to Areas USA, which plans to open shops bearing the names of Newsweek, Telemundo and the Los Angeles Times.
"We will be honored to be granted the opportunity to operate concessions within LAX," said Xavier Rabell, CEO of Areas USA. "We are confident that passengers, visitors and airport employees will be thrilled and impressed with the results."
SSP America, the Virginia-based arm of a British company with operations at 130 airports around the world, was awarded one food contract at LAX.
The company plans to bring downtown Los Angeles steakhouse Nick and Stef's and Santa Monica-based Border Grill to Terminal 4; East L.A. staple La Serenata de Garibaldi to Terminal 5; and an Italian eatery operated by celebrity chef Nancy Silverton to Terminal 7.
"I think there was a historical misnomer that concessionaires could get away with overcharging for poor food at airports and that's not what consumers are looking for," said SSP America's CEO Les Cappetta.
"Passengers are looking for affordable options in Los Angeles with real food and edgy environments that they can connect with," he said. "And we plan to deliver on that."
Morimoto's Skewer's eatery is slated for Terminal 5, while a Wolfgang Puck restaurant is set for Terminal 7 under a contract proposed for a joint venture of Delaware North Travel Hospitality Services and Marbella Food Services.
Officials with Delaware North were unavailable for comment.
The restaurants could open as early as the start of 2011.
"The competition resulted in a slate of new food and beverage establishments representing some of L.A.'s most sought-after restaurants and celebrity chefs," Lindsey said of the 25 food contract proposals received from eight companies.
On the retail side, 18 different proposals were received from eight companies, airport officials said.
Of the five available retail contracts, three were offered to a joint effort between the Hudson Group and Magic Johnson Enterprises. The collaboration is expected to bring Magic Johnson Sports, The Mattel Experience, Hugo Boss, Ed Hardy, Oakley, Entertainment Weekly, E! News, Sunglass Hut, See's Candies, NBC Universal and Harley-Davidson shops spread across four airport terminals.
A small retail package also was awarded to XpresSpa, which will offer personal care services.
"The selected retail concessions will add some well-established consumer brands and bring some of L.A.'s most distinctive businesses to LAX," Lindsey said.
LAX has long struggled with poor shopping and dining choices and was criticized for its offerings in a J.D. Power and Associates survey released earlier this year.
LAX, the world's seventh busiest airport, sets aside significantly less room for shops and restaurants than most major airports, offering only 5.1 square feet of concession space for every 1,000 people passing through. Additionally, the average passenger passing through LAX spends a mere $7.85, according to a report released in 2007.
The airport commission will consider two of the pending retail contracts on Monday, while the remaining deals will be decided by the Board of Referred Powers, a five-member City Council committee headed by Councilman Tony Cardenas.
After that, all of the 10-year food and retail contracts will go to the full City Council for consideration.
A potential conflict of interest by airport commission President Alan Rothenberg preempts the entire seven-member panel from being able to vote on eight of the concession contracts, according to the City Attorney's Office.
Rothenberg, an investment banker, owns more than $1 million worth of stock in the California Pizza Kitchen and serves on the company's board of directors. Several bids placed by Host International included California Pizza Kitchen, but the concession company was was not selected for any food or retail contracts at LAX.
"Neither you nor the board may consider any concession contract in which Host submitted a proposal, whether or not California Pizza Kitchen is included in the particular package," the City Attorney's Office wrote in a letter delivered last week to Rothenberg, who requested the legal advice.
Rothenberg could not be reached for comment on Thursday.
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