ALBANY The 3 million people annually traveling through Albany International Airport’s terminal will see new food and beverage franchises starting in January, including national brands Starbuck’s and Dunkin’ Donuts.
The Albany County Airport Authority on Monday approved a 10-year concessionaire agreement with HMS Host of Bethesda, Md., starting Jan. 1, that will bring in the national vendors, as well as other new restaurants.
Others are leaving, though, and one franchise owner — Peter P. Kwan, owner of the locally-based Coffee Beanery Ltd. — charged the authority’s process for selecting new food vendors was unfair. “The corporate giant won, and the small guy is out of business,” he said.
Authority members responded that their decision was made based on competitive bids sought last spring, because the current 10-year concession agreement with SSP America was due to end Dec. 31, and HMS Host offered the best proposal.
With the changeover, new food options coming to the airport include a Starbuck’s and Silks Saratoga Bistro in the main terminal; an informal restaurant called Adirondack Lodge in Concourse A; Hudson Valley Wine Bar in Concourse B, a cafe with bar called Brioche Doree in Concourse C; and a Dunkin Donuts in the pre-security area. Altogether, HMS Host will be investing more than $3 million in renovations.
Businesses that will be leaving include the Coffee Beanery, Checkpoint Cafe, Saranac Brew House, Capital Deli & Pub, Arrezio’s, and Saranac Street Pub.
Not affected by the transition are business in the food court, including McDonald’s, Villa Fresh Italian Kitchen, Banana’s, and Green Leaf’s.
HMS Host, which was formerly Host Marriott Services, provides food service at 107 airports worldwide, including all three New York City area airports, Hartsfield in Atlanta, and Los Angeles International, according to the company’s Web site.
Authority members said HMS was selected over other bidders, including the current concessionaire, based on its high revenue guarantees, its bringing in two national brands, and its using regional themes in three of the other new eateries.
HMS Host will be paying the authority 10 percent on all food sales up to $4 million, and 14 percent on food sales above $4 million.
The authority will also receive 15 percent on all beer, wine and liquor sales up to $1.5 million, and 17 percent thereafter. At the Dunkin Donuts outside the secure area, the authority will get 6 percent on the first $1 million in sales, and 10 percent above $1 million.
The minimum guaranteed payment to the authority will be $401,000 in 2009, rising to $501,000 in 2010-2011, and not less than that through the end of the new agreement on Dec. 31, 2018.
Kwan, whose Coffee Beanery has been at the airport since the current terminal opened in 1998, claimed the selection process, in which he bid, was unfair.
The authority, aware of Kwan’s concerns, had encouraged him to negotiate with HMS Host to remain, but Kwan said the company was inflexible about allowing him to remain in the coffee business at his current two locations within the terminal.
“They basically are putting me out of business,” Kwan said.
The Coffee Beanery has four other Albany-area locations, including at the Rensselaer train station.
Authority members listened sympathetically to Kwan, but in the end voted unanimously to approve the new concessions.
“I think in fairness to the authority, it has done in good faith what it can for you,” said board member Daniel Sleasman. “We have to look at the entirety of the proposal … before us. It will provide enhanced food service here in a variety of venues.”
Authority Chairman David E. Langdon said the concession contract issues, including Kwan’s concerns, had been addressed at a number of meetings. “After reviewing what the proposals were, it became a very attractive package,” he said.
Airport Authority spokesman Doug Myers said renovation work will probably begin early next year, with some service remaining available to air travelers throughout the renovation work.