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City of Kenai·Alaska

Airport Restaurant Concession- Request for Proposals

Closes 12/5/2024$300k – $600kRequest for Proposal
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Description

The City of Kenai is seeking a qualified concessionaire to operate a quick‑service restaurant inside the Kenai Municipal Airport terminal. The contract is non‑exclusive, runs for three years with optional one‑year extensions, and requires the operator to maintain City‑owned equipment, meet a minimum of 60 operating hours per week, and pay a monthly maintenance fee plus a percentage of gross receipts. The concessionaire must provide food and non‑alcoholic beverage service, cater to private aircraft, and comply with all FAA, health, safety, and security regulations. • Operate ~2,200 sq ft of terminal space (Spaces 102‑106) with a minimum 60 hours/week schedule. • Financial obligations include a $1,000 monthly maintenance fee, a minimum 10 % gross‑receipt rent (subject to higher proposed percentages), a $3,000 security deposit/bond, and required insurance coverage. • The award process includes a non‑mandatory pre‑proposal conference on Nov 7, 2024, a question deadline of Nov 26, 2024, and a final proposal due date of Dec 5, 2024.

Attached files

Contact

Derek Ables(Airport Manager)

[email protected]

(907) 283‑8281

Key dates

Opened
10/17/2024
Questions due
11/26/2024
Pre-bid meeting
11/7/2024
Closes
12/5/2024
Projected award
1/9/2025
Duration
3 years

Last updated

Details

Type
Request for Proposal
Industry
Food and Beverage Services
NAICS
722311

Budget estimate

$300,000 – $600,000

Based on historical gross receipts (~$500 k / year) and the minimum 10 % rent, the concessionaire will retain roughly 90 % of revenues after paying the rent and the $1,000 monthly maintenance fee. Assuming operating expenses (labor, utilities, supplies) consume about 70‑80 % of gross receipts, net profit could range from roughly $70 k to $150 k per year. Over the three‑year base term, total earnings might therefore fall between $210 k and $450 k, with potential upside if a higher percentage of gross receipts is proposed and accepted.

AI estimate from the solicitation

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