Issue: World-class concessions for LAX airport, the 6th busiest in the world
A Concession Agreement to supply food, beverage and retail services at airports is one of the most political and contentious procurements in the public sector. A subsidiary of the global concessions provider Areas S.A., Areas USA entered the American market in 2005. With only a few U.S. contracts, Areas USA hired arnie berghoff & associates to represent the company before the City of Los Angeles and Los Angeles World Airports (LAWA). LAWA was about to initiate a complete overhaul of the concessions at LAX, the sixth busiest airport in the world. To help assemble the strongest proposal for LAX, arnie berghoff & associates assisted Areas USA in selecting the right concepts and local partners, including the locally acclaimed nonprofit-social enterprise Homeboy Industries. arnie berghoff & associates effectively marketed the experience and value of Areas USA’s world-class operations to Los Angeles World Airports and the City Council. While Areas USA was selected by LAWA for contracts of over $70 million in annual revenue, the long-time incumbent operator was selected for none and subsequently waged a brutal political battle to restart the entire procurement process. arnie berghoff & associates counseled Areas USA on the appropriate positioning and tactics, ensuring the City approved the contracts.