Terminal 3 and Dianne Feinstein International Terminal Coffee Shops Lease

Background

The Airport Commission of the City and County of San Francisco is initiating a Request for Proposals (RFP) for the lease of two coffee shop locations within the San Francisco International Airport. The goal of this contract is to enhance the food and beverage offerings available to passengers, reflecting the unique flavors of the San Francisco Bay Area. The selected proposer will operate concessions at Terminal 3 Boarding Area E and Dianne Feinstein International Terminal Arrivals, contributing to the airport's mission of providing excellent services to travelers.

Work Details

The lease includes two locations: 1) Post-Security Coffee Shop in Terminal 3 Boarding Area E, approximately 668 square feet; 2) Pre-Security Coffee Shop in Dianne Feinstein International Terminal Arrivals, approximately 1,000 square feet. The lease term is 14 years with an option for a two-year extension. The Minimum Annual Guarantee (MAG) for the Post-Security location is $400,000 and for the Pre-Security location is $167,000. Rent will be based on a tiered percentage of gross revenues: - 8% on revenues up to $1 million, - 10% on revenues between $1 million and $2 million, - 12% on revenues over $2 million for the Post-Security location; - 6% for the Pre-Security location. Proposers must also meet a minimum investment amount of $1,200 per square foot for tenant improvements.

Period of Performance

The base term of the lease is approximately 14 years with an option to extend by an additional two years at the discretion of the Airport Commission.

Place of Performance

San Francisco International Airport, specifically at Terminal 3 Boarding Area E and Dianne Feinstein International Terminal Arrivals.

Bidder Requirements

Proposers must demonstrate a minimum of three years' experience in restaurant ownership or management within the past seven years. They must also achieve minimum gross sales of at least $2 million per qualifying year from a single restaurant location. Additionally, proposers are encouraged to participate in the Small Business Enterprise Concession (SBEC) Program.