Beverage Contract by rob14866

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Beverage Contract document sample

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									 Concession Delivery System
Washington Dulles International
           Airport
                 Background
• Airports Authority built commissary in 1992 to
  house centralized delivery system
• Prior to Westfield
  – Host was master operator (operating 50% of units)
  – Host ran the commissary and delivered to itself and
    other food and beverage tenants
• Westfield awarded food and beverage contract
  April 2004
  – Management contract only
  – Assumed responsibility for commissary operations
       Operating Conditions
• Multiple Operators
  – New contract created a number of owners,
    each with only 2 or 3 locations


• Only food tenants used Commissary
  – Retailers received direct deliveries from
    FedEx and UPS
  – Not required to use the commissary system
          Facility Constraints
• Commissary
  – On airport, landside only
  – Only location with capacity to accommodate central
    deliveries
• No Loading Docks
• No freight elevators in Midfield concourse C/D
  – Pallet deliveries broken down at Commissary and
    placed on smaller carts, or
  – Unpacked on ramp at delivery points
        Commissary Services

• Deliveries at the Commissary
  – Broken down
  – Grouped for delivery by concourse
• All food vendors required to participate
  – Only exceptions for highly perishable product, e.g.,
    Dunkin Donuts.
• Contractor costs passed directly to tenants
  – Based on utilization (number of cartons delivered)
  – No Westfield mark-up
• Contract Cost:     $700,000 per year, estimated
              Challenges
• Adds an extra layer of occupancy costs to
  tenants that they cannot directly control
• Requires communication and coordination
  between commissary and tenants to
  ensure deliveries are promptly accepted
  and unpacked
• Tenants must still bear the cost of having
  staff in place to accept and unpack the
  shipment
            Lessons Learned
1. Planning concession sales and storage
   space is key to efficient deliveries and
   storage
     •   Lack of loading docks or dedicated delivery
         spots, and lack of freight elevators, makes
         deliveries and unpacking more time consuming
            •   increases the amount of time that food remains out
                of temperature controlled environment
            •   Increases potential for ramp traffic conflict
           Lessons Learned
2. Storage space needs to be large enough
   to accommodate and unpack deliveries.
3. Close coordination required between
   commissary and tenants to ensure
   properly acceptance and unpacking of
   deliveries
  •   Documentation of delivery and acceptance
      is critical
           Lessons Learned
4. Having a central commissary facilitates
   screening of product where deliveries
   arrive from street-side.
5. A commissary large enough to accept all
   product deliveries before distribution to
   individual locations will be critical to any
   implementation of 100% product
   screening.

								
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