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LAWA Chooses Incumbents HMSHost, Delaware North In Rebid Food, Beverage Contracts

SSP America has been shut out of three food and beverage contracts at Los Angeles International (LAX), one year after the company was recommended for a package that was ultimately tossed out due to conflict-of-interest allegations. Los Angeles World Airports rebid the contract, splitting one massive food and beverage package into three smaller ones. Last week, LAWA said it had selected longtime concessionaires HMSHost Corp. and Delaware North Companies Travel Hospitality Services, as well as CMS/Camacho Ventures.

Denise Sample, managing director for the commercial development group at LAWA, said those companies scored highest on a set of selection criteria.

“We have issued a letter of intent to award,” says Sample. “We have not made a recommendation yet.”

The proposed deals are slated to come before the Los Angeles Board of Airport Commissioners on May 16. They will also need city council approval. The contracts include restaurants in Terminals 4, 5, 7 and 8, and together represent revenues of about $60M, or $600M over the length of the 10-year deals. Six companies submitted bids for the contracts.

SSP America suggests the evaluation process used was stacked against newcomers to the airport.  

“SSP America is disheartened by the panel’s recommendations for not only our company and our partners, but for the negative message it sends to the industry,” the company said in a statement. “A fair and transparent process is necessary to continuously improve our industry and ensure the best goods and services are provided to consumers.  

“Further examination of the proposals illustrates the fundamental flaws in the evaluation process that favor the incumbents and protect the status quo,” the company adds. “SSP is committed to bringing the highest quality and most innovative dining experience to travelers, and we will not be deterred from our vision.”

HMSHost said it looks forward to bringing new restaurant concepts to LAX.

“We are pleased that travelers will be able to experience the iconic L.A. restaurants and creative innovations that are part of our proposal,” said Susan Goyette, senior director communications and public relations. “We have a strong history of partnership with LAX, with more than 850 employees and decades of service to travelers and the community, and we are thankful that this partnership will continue.”    

Restaurants in the HMSHost bid include Campanile, Cole’s, 8 oz. Burger Bar, LA Gourmet Street Truck, La Provence Patisserie & Café©, Real Food Daily and Starbucks Coffee. The LA Gourmet Street Truck will feature a revolving roster of new local chefs offering the latest trends and cuisines.

The Delaware North Companies bid includes Loteria Grill and Monsieur Marcel bistro.

CMS-Camacho Ventures was recommended for Package 1C, which includes food and beverage concessions in United Terminals 7 and 8. The concepts included in the bid are Seven Grand, The Counter, Loteria Grill, BLD (Breakfast Lunch & Dinner), Coffee Bean and Tea Leaf, Marmalade Café© and Yogurtland. CMS-Camacho Ventures did not bid, nor will operate a Camacho’s Cantina.
CMS-Camacho Ventures is a 100% ACDBE Certified firm.