PENSACOLA INTERNATIONAL AIRPORT

SELECTION COMMITTEE MEETING

REQUEST FOR PROPOSAL 13-008

CREATIVE FOOD GROUP PRESENTATION

Held at the Pensacola International Airport, 2430 Airport Boulevard, 2nd Floor Conference Room, Pensacola, Florida, on the 21st day of August, 2013, at 3:30 p.m.

Hitchcock and Associates

Registered Professional Reporters

111 South Baylen Street P. O. Box 13253 Pensacola, Florida 32591-3253

(850) 434-6447 / 434-6773

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2 A P P E A R A N C E S

Greg Donovan, Director Pensacola International Airport Wes Payne, Manager Cordova Mall Perry Hunter, Manager McGuires Irish Pub Bill Dagnall, Business Account Officer Navy Federal Credit Union Brad Roberts, Power Quality Systems Director S&C Electric Company Michael Laven, Property and Budget Manager Pensacola International Airport Richard Chinsammy, Consultant Concessions Solution Group

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3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 airport. Donovan. MR. DONOVAN: Good afternoon. Im Greg

Im the airport director, and we have a Well start over on

selection committee here.

this end, and theyll formally introduce themselves. We have our staff that will go

through some procedural items about how the presentation needs to follow, but starting overMR. ROBERTS: Okay, Im Brad Roberts

with S&C Electric Company, and Im the token highvolume flyer out of this airport. MR. DAGNALL: Im Bill Dagnall with I manage the

Navy Federal Credit Union.

commercial lending division for the Southeast region here out of Pensacola. MR. PAYNE: Im Wes Payne. Im with

Simon Property Group, general manager of Cordova and University Mall. MR. HUNTER: Im Perry Hunter, general

manager of McGuires Irish Pub. MR. LAVEN: Im Michael Laven with the

Im just changing out my batteries, and Well, weve got one

its still not working. going. Welcome.

Thank you all for coming to

the proposer presentations for the City of

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4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Pensacola Request for Proposal No. 13-008, Pensacola International Airport Food and Beverage Concession lease. This opportunity-youll be given a chance to elaborate on your proposal and to present the contents in oral formats. The

selection committee has already been introduced to you. Today is August 21, 2013. It is now

approximately 3:30.

You will be given 30 minutes

for your presentation and an additional 15 minutes following for questions from the committee. After this presentation, well be taking a ten-minute break, and then we will be opening up the-well open this up to the public. Itll become a public meeting at that time. selection committee will meet as an official committee of the City of Pensacola. They will The

evaluate the two proposals, and they will make their final recommendation to the mayor for approval. We invite you to come back-take a ten-

minute break, come back and listen in on that one. So at this time let me just reiterate the fact that we are recording this. This

recording is going to be made a public record after the award of the concession as will your

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5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 everyone. ladies. MS. ISANI: Thank you. Good afternoon, proposals. So please take it away, gentlemen and

Thank you so much for the opportunity

youve given us to present our proposal in person to you. My name is Saniya Isani, and along with

Roger Schwandtner and Rick Jenkins, we are representing Creative Food Group, and I would just like to briefly introduce to you our local partners that weve chosen to work together with on this RFP. My name is Maria Goldberg. Im the

director of marketing and events for the Great Southern Restaurant Group-the Fish House, Atlas, Jacksons, the Deck, the Palafox House, and Great Southern Catering. My name is Collier Merrill and, along with my brothers, Burney and Will, own the Fish House, Atlas, (unintelligible). My name is Rob Mackey. I own and

operate Bagelheads along with my wife, Jan. My name is Elliott Eckland, and Im the owner and founder of Pensacola Bay Brewery. Im Robert de Varona. I operate Varona

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6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Enterprises and the food concessions here in the airport. Ive been here at the airport since

1995-of course, with a lot of help from my wife, Eloise, and my right-hand person, Audrey. MS. ISANI: Thank you. So, you know,

we will get a little bit into-further into our partners and what they do, who they are, where theyre from; but first, wed like to tell you a little bit more about our company. Im not sure

if it was perfectly clear during our presentation on our initial proposal, but we are a family-run business. You know, my father actually started As any first-

this company back in the 90s.

generation immigrant parent would, he worked long, long hours at a coffee shop. Through perseverance

and love for being in the food industry, he actually started strategically and systematically growing and acquiring businesses, building businesses throughout the time; and every partner he brought onboard eventually became part of our family. In 2005 is when we actually entered the airport industry by acquiring a Surf City Squeeze at Newark Liberty International Airport. After

our first year of operations of the Surf City, we

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7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 were able to increase sales by 32 percent, just by attention to detail. In 2008 we actually converted that Surf City Squeeze into a Jamba Juice, and we raised sales to $1.2 million. You know, it basically tells us that when we do grow and when we do pay attention and when you really do our passion about the industry, you can get success. In the last 12 years we are now at 50 restaurants in six airports, three Simon Property malls, four office buildings, and New York Citys Penn Station Train Terminal; and our recipe for success is honestly that we choose the right local partners along the way. A little bit about our people-as a minority-owned business, we value diversity and encourage it in our hiring standards. extremely sensitive and very open and understanding towards all sorts of employees that we do have in our facilities. In addition, at We are

Baltimore Airport where we operate, we are the food and beverage concessionaire that the landlord turns to to stay open late for military flights, open up early when needed; and we also donate to

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8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the USO as much as possible. Now, as I mentioned, we do want to get a little bit more detail into our partners, though you may have already addressed it during the presentation, but Im going to hand it over to Maria just to tell us some fun facts that maybe werent clear just in the presentation. Thank you, Saniya. First of all, thank you very much for having us here today. Its always a pleasure to

be here; and I thank you very much, guys, for allowing me to speak on behalf of all of us. all know each other. long time. I want to first talk about Bagelheads. Bagelheads-Rob and his wife, Jan, theyve been in business for quite some time. here in Pensacola. Everything is made Ill We

Weve known each other for a

Coffee is brewed there.

tell you (unintelligible) the other day, almost every Saturday my husband and I go there every single Saturday for breakfast and say hey to Rob, you know. Its a family affair. We love them so

much at the Fish House that a lot of our sandwiches are actually made with bread from Bagelheads. You know, weve got this family thing

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9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 going on. But another thing that you need to know is that everything that they do is fresh. good. Its quality. Its

If it werent, we wouldnt

be using it.

So we are firm believers in that.

Also, they are great contributors to our community. Everyone knows that with all of the

leftover stuff that they have every day, so it doesnt go bad, they donate it to Manna. I think

in that slide there it says over ten tons per year, and thats one thing we do as local businesses, we give back to the community that we live in. So thats a little bit about Bagelheads. You know, were really excited about this partnership because its all of us that have known each other for years; and weve worked together for so long, we know that we are all quality local businesses. So moving on to Varonas, Robert de Varona, he has been a stalwart here at the airport, and he brings a lot of knowledge and expertise that, you know, really enhances our root that we bring here for you today. One of those things I do want to mention is that, again, how this proposal is put

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10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 together, there is now not a monopoly, so to say, on the airport concessions. Rather, it is a

friendly competition amongst good friends; and, you know, Ill tell you what. One of the things

you hear-I mean, if youre in Pensacola and youre around people that travel, you know that whether youre a local or a tourist, Robert has some of the best Cuban sandwiches around, and you better get one while youre at the airport. Also, Robert and Eloise, you know, they do a ton for our community, whether it be for the Humane Society, whether it be for Artel Gallery, Pensacola Opera, you name it, Habitat for Humanity-I think that theyre building a house right now. So again, by supporting local

businesses and what were doing here, we, in turn, give back to our community right here where we live. One of the things that is great about what Varonas does is, again, get back to that fresh quality product. You go get eggs at

Roberts restaurant, and theyre not out of a carton. Theyre cracked. Theyre cooked right Its good. Its

there on site, and its fresh. delicious.

It gets people coming back for more.

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11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So then to our newest kid on the block. Thats Pensacola Bay Brewery, and Elliott-we have a great relationship with them. Theyve just been

around for a short time, but in that short time they have just blossomed. impact in Pensacola. They have made a huge

I know that for our

restaurant-again, were all friends here-we have their beers on tap at our restaurants, and that is our highest producing draft that we have at the Fish House. So that says something about the

quality of what-we wouldnt serve it if we didnt think it was fabulous. We think its a perfect fit for the Pensacola airport, and especially with right now, if youve noticed, if you go to any restaurants, do anything, that craft beer movement is huge, and its what people want. They want that, and when

theyre in that place, they want to be able to say, Hey, I was in Pensacola, and I was at the airport. I didnt get a chance to go to the Im going to get one

brewery, but you know what? here.

And thats great, and thats great for

Pensacola; and I think we all need to keep that in mind, is that whats good for Pensacola is good for all of us.

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12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I think that that pretty much covers what weve got going on for Pensacola Bay Brewery. Again, quality organization. In fact, right now

we are working with the Pensacola Bay Brewery personally to try to develop a house beer for the Fish House. Thats how much we believe in that

product and what weve got going on. Then that brings me to whats near and dear to me, and that is the Fish House. I cant

tell you-I cant tell you from a marketing perspective, from just a general girl on the street, I could not be happier to work for the company that I work for. It is a local company, I couldnt be more

local business, local pride.

happy; and with that, Im going to shout out to my man in charge, Collier Merrill. something you want to say? MR. MERRILL: Thank you, Maria, and I Do you have

appreciate yall, too, volunteering your time, most of yall doing this. You met John Pierre coming in the door. He is our general manager at the Fish House, been there 12 years. When this first came up, we had a

couple of meetings with Roger, and we werent sold on the idea when they came to us about, you know,

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13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 he does. this is where airports are going. Theyre looking Were

for that regional-it just wasnt for us.

very protective of our brand, as other restaurants are, but, you know, weve been doing it 15 years. We like being part of the community. here along with my two brothers. You know, we just were worried about quality where the other things are getting in the airport and, you know, we have half a million people come through the Fish House a year, and, you know, that was our main focus, that and some of the other restaurants we have associated down there; and quite frankly, it wasnt until Rick came on to the third meeting we had, and he was in charge of their quality control in charge of four executive chefs they have on and told us that, you know, that is not going to be a problem. Thats I was born

what they do and what they are really interested in for that repeat business; and thats what sold us, quite frankly. You know, Roger-hes very good at what We researched them. We saw-we checked-

we actually checked other airports theyre in and appreciate everything they did, but when we do the quality-because we certainly didnt want to lose

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14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that, you know, in the downtown restaurant. were very happy with that. Then, of course, weve done business with Rob for years. Elliott is a neighbor. As So we

Maria said, weve been doing stuff with her. De Varona, they do community stuff forever. We

give back a lot of stuff to the community and like being part of this area and appreciate the opportunity to present for yall. MS. GOLDBERG: And just to follow up on

that, is that one of the things thats cool about being the Fish House is that we get a lot of really neat things that happen for us. Whether-

were a local place, but were a local place that is a big place, and I say that because-and Ill shout out to Rob and Bagelheads again-I dont know how many times-or if you guys happen to watch Morning Joe , Joe and Mika, and he probably shouts out Bagelheads, I dont know, at least once a month; and also, Joes a good friend of ours as well, and Joe and Mika come down, and they do their broadcast out on the deck, and they come a couple of times a year. And with that, we get a lot of other residual things. We get a lot of national press.

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15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Needless to say, whenever a politician comes into town, regardless of their party, theyre at the Fish House. Mitt Romney had his rally out on the-

Presidential rally out on the deck of the Fish House, standing room only. of the New York Times . I mean, theres a lot of things. really proud of all the relationships that we have. Weve been featured on the History Were We were on the cover

Channels American Pickers , an entire episode, History Channels Picked Off . on that. Makeover . chefs. Weve been featured

Weve been featured on Extreme Home Emeril has come and cooked with our

I mean, were everywhere. So like I say, were a local restaurant

but with big impact, and we really do appreciate the opportunity to be here today, and we think that staying with Pensacola and staying local is the way to go. Thank you, Roger. MS. ISANI: Thank you, Maria. So, you

know, truly being on this end, were very proud and honored that were working with such great people, and theyve now become officially part of our family of companies.

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16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Our business model is fairly simple, and our goals for Pensacola International Airport are fairly straightforward. We want to create a

sustainable, growing revenue stream for Pensacola. We want to provide the highest quality food service experience and at reasonable prices for our passengers, and we want to enhance the Pensacola brand by ensuring its the best, first, and last impression your passenger has when they travel through here. If theyre getting off that plane and they dont have time to stop by to eat, but if they see the Fish House or Bagelheads or Pensacola Bay Brewery, theyre going to see it when theyre out in town. Adviser. Theyre going to look it up on Trip

Theyre going to read about it on Yelp,

and theyre going to drop by because all these guys fall in the Top Twenty, and I know we did that while-in the few months weve been here, we were like who is the best here, and we picked the best; and were very proud of that. So in short, were not only partnering with the airport, but we truly feel we are partnering with the community were in, and we truly feel that these are the goals of the

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17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 airport. As stated in the RFP, The city encourages all proposers to consider supporting local vendors and businesses. Proposers are urged

to incorporate a buy local program into their proposal, and were very proud that we were able to meet the citys goals in that regards. The way we do this is simple. We pay

attention to every single detail of operations. My father has an extremely keen eye, and growing up under that scrutiny always made me have an extremely keen eye, and every single one of our employees was trained the same way. When you walk

in and you notice a light is out in the store, its not your fault, so just walk away. duty or responsibility to tell someone. We are extremely careful with how we operate our business. We partner with local Its your

brands, and we know they have a reputation to uphold. We know that if we mess up, were not Maria,

going to get the first phone call.

unfortunately, might be on the receiving end of that call, and we know that shes going to call us. We dont even want to go there. We want to

provide the best we can.

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18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The beauty of our presentation is we are eliminating the monopoly within the airport, and, you know, weve had that happen in many airports. People need the friendly competition to This is

work and thrive in a good environment. what were going to do.

Were fighting for every

single dollar of that passenger that walks into this terminal. Theyre going to have to choose They have options, and

where they want to go.

were glad to provide those options. And last but not least, we want to create a sustainable revenue stream for the airport. We dont want to create aggressive bids, We dont want to be at

aggressive numbers to you.

the table renegotiating our lease with you. Whatever we say today is what we owe you for our term of our lease, and we want to stand by that. Weve never negotiated with our landlords before. We dont want to do it. As Collier mentioned, were not your typical concessionaire. management enterprise. Were a culinary Many of our managers are

often chefs and have extensive culinary training, have gone to some of the best universities around the world and have the experience. They know how

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19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to cook cuisines from around the world, and we pride ourselves on having a variety of cuisines within our buckets of stores that we operate. Our philosophy is simple. Were not-

we know you can be at the airport, and you know you can charge the customer whatever you want, but thats never what weve believed in. Our

philosophy is price our items right and believe in what you sell; and if we dont believe in it, were not going to cook it. Were not going to

make it, and were not going to sell it. So to talk about our culinary team, Mr. Rick Jenkins, whos also our director of operations, hes been in Pensacola touring everywhere with us for the last couple of months, and were glad because that gave our partners the confidence, and were not going to be here and say that we cant do it. I cant make you that

delicious snapper I had last night, but Rick is going to be training under the Fish House chefs. Hes going to be training under the Bagelheads bakers, and hes going to be able to train our crew; and were proud of that. Because of all the work that Rick does, were able to sleep at night, and I guarantee you

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20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the airport director and all the airport staff know this, you want to have an operator where you can sleep peacefully at night knowing that your businesses are open seven days a week, 365 days a year, and if need be, 24 hours. These are a few of our other culinary team players-and I want to specify one additional thing about our company, is that when someone starts with us, they stay with us; and if they leave us, we dont like it. personally. We take it very

A lot of our folks had actually

started as graveyard shift, overnight bakers, and today theyre managing partners; and we like that, and thats how every single employee we bring on, we want to make sure that we treat them as part of our family. All of these fine folks have allowed us to have double-digit growth year over year. Weve

been able to expand a local presence and make an economic impact in the communities we are. capital investment and design has led the industry, and most importantly, weve provided a consistent revenue stream to our landlords. As mentioned before, we dont want towe dont want to over-promise and under-deliver, Our

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21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 story. but instead, we want to be realistic, and these are the brands that are going to be able to-these are the brands that have carried Pensacola over the last 20 years, and we know that theyre going to carry Pensacola through the next 20 years. I want to point out a few of our-I dont want to be here and say, Were the best. Were the best, but I just want to-I want to show some facts and figures, just to kind of prove our point. We acquired a Ben & Jerrys Ice Cream at Newark airport. jump in sales. In the first year, 75 percent We changed

Thats what we did.

the light bulbs because they were all low. Ironically, little things like that make the difference in your business. Fresh City at Boston-Logan Airport, 78 percent jump in sales after we started operating. Market Fresh-this is an interesting Baltimore airport, it was

(unintelligible), a nationally recognized brand. We shut it down, painted up into our own brand, Market Fresh, 34 percent increase in sales. We did the same at Kentucky, Kentucky Blue Grass Airport, and at Tallahassee airport

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22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 where we took two local brands, converted them into two even stronger local brands and saw a difference in sales. But like I said, we dont just walk the walk, we also talk the talk, or hope we do. So

these are a few of the recommendations that our landlords wrote for us without hesitation, one of them being Mr. Brett Kelly from BaltimoreWashington airport. Weve supported him, like I

said, during any military flights that have come in, any donations needed for the USO, were always there by its side. Ironically, were renegotiating our lease with him, and the first thing he told Roger is, Buy me some local concepts, and now Roger has been out on the streets finding the best local concepts he can. UNIDENTIFIED: (unintelligible). MS. ISANI: You might be right. You I think I need

might not be doing your job right. As a Simon Property tenant, were in three Simon malls up in the Northeast, and Mr. Tom Hanchar from the leasing department graciously wrote us a letter of recommendation and

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23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 asked us to be in a few Simon Property videos to convince other tenants to join into the different malls we operate. recommendation. And last but not least, our landlord up at Lexington Blue Grass wrote us a very nice letter of recommendation, and currently we just finished negotiating our lease for another eight years there. As I mentioned, everywhere we go, we do like to be part of that local community, and we have done it in the past, and we want to do it again. In Boston-Logan we partnered with Harpoon Brewery which is obviously the best local brewery out there. In Baltimore-Washington, Rams Head Tavern, we operate the brewery out there along with a full-scale restaurant. In Kentucky Ale Taproom, same thing, we partnered with Kentucky Ale Brewery and Alltech to create the Taproom. Now, all of these not only have the best beer that the local community can find, but they have an excellent menu, which is exactly what So were very proud of his

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24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 we did at Pensacola. We bought the best beer. We

bought the best food and put them together. So I know you guys know this, but Im just going to repeat it one more time to just highlight the concept that were saying that we are creating from the competition and eliminating the monopoly. As we have Bagelheads pre-security,

we have Varonas right across Pensacola Bay Brewery and Fish House; and as I mentioned, when that customer is walking down that concourse and they have that dollar or five dollars, ten dollars, whatever it is, Robert is saying, Come to me. Were saying, Come to me. Now the

customer is saying, Im going to go to where I think is best. Robert is going to work very hard to maintain his quality. Were going to work very We are fighting for

hard to maintain our quality.

that customers dollar, and that is very important to us; and we like being in those types of friendly environments. it at Boston. We do it at Newark. We do

We do it at Baltimore.

We like

when theres friendly competition. Maria mentioned this, but local partners are truly good for the local businesses,

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25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 benefits. and theyre good for local consumers. Everyone

who walks into any restaurant, you know when something is fresh, and you know when something is frozen, bottom line. Everyone who passes through Come

the airport, they know what good food is. on.

We all have great taste buds; and basically,

people know when things have been sitting in a walk-in freezer for the last three months or they were picked fresh and brought to you by that local vegetable vendor or that local dairy vendor, whatever it may be. We can showcase the unique experience of Pensacola. National brands cant do that, and

thats why we feel so strongly about the group of people we brought together in this room, because you can have a Chick-fil-A, a McDonalds, a Subway, anything you want at any other airport. You can have it at any other mall you go to, but you can only have Pensacola Bay Brewery, the Fish House, Bagelheads, and Varonas here in Pensacola. We know that local partners equal local We know that our stream of income that

we give to these guys, they do so much for the community that you live in, and they do so much for the city of Pensacola.

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26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In addition, were, you know, guaranteeing that we can increase the workforce here by 50 percent in the first year alone. We

are going to be able to hire a ton more people here than are here now. I believe Pensacolas disparity study calls for more local and minority contracting. our business model we truly believe we fit those criteria. Im just going to have Rick hand out a piece of paper here. So we can stand here, all our partners can stand here and tell you what we want, what they want; but no one can tell it like the customers. Landrum Staffing conducted a survey In

during the weekend at Pensacola International, and out of 500 people who answered the survey, the results were overwhelming; over 75 percent people wanted to go local. They wanted to eat in a local

restaurant rather than a national restaurant at the airport. So the next slide just goes into the fact that local businesses spend twice as much money in the local economy as chain restaurants do. We can pay a royalty to a national brand who

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27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 can, in turn, pay that back to their investors, their shareholders and end up back on Wall Street, or we can take our royalties and our license fees and give it to these guys who do so much for the city, and we feel strongly that way as a small business ourselves that we wanted to be supported, and we truly have found the right partners to support. I want to turn it over to Roger to give a little bit more clarity on the financial aspect of our proposal, and I believe that he will be sharing his experience at the airports. Hes been

with many of the large companies and has a ton of experience working in this industry; and if it wasnt for him, we truly wouldnt have been here in front of you today. So Im honored to

introduce Roger Schwandtner. MR. SCHWANDTNER: Thank you, Saniya. What I want to do is I want to kind of go through the numbers that we proposed in our proposal, the actual numbers that are in the proposal and the justification behind those numbers and how we obtained those numbers and kind of give the reasoning and also some comparisons. Good afternoon.

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28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 In the airport industry we use a standard or a benchmark thats called sales per enplane passenger, and what Ive done is Ive taken six local airports-three of them are local in Florida, and three of them are also tourist destinations-and show you what the sales per enplane passenger was. chance to look at that. Then I also show comparables for Creative Food Group in our current locations in Lexington and Midland and then also show Pensacola. What we proposed was 3.85. It I want to give you a

averages only 3.61, yet we average in our other airports 3.92. conservative. So our sales number was very We intentionally kept it

conservative because we didnt want to overpromise. Then our minimum annual guarantee, we proposed 369,750, and then in addition, we also are going to use additional space in the storage area, in the kitchen area, approximately 500 square feet. Thats an additional 27,000, or

close to 27,000, which brings us just under 400,000; but because our sales number is so conservative, we are sure were going to beat and

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29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BWI. start paying percentage rents as opposed to just the minimum. So we will be paying well over

400,000 in rents. Then I show where the MAGs of three of our other airports, all six of our airports that we operate in, we pay percentage rents. above the minimum. And here, were 11 percent higher at Were 27 percent higher at Midland and We pay

90 percent higher in Newark. The next slide, on the investment, we proposed 1.7 million. That doesnt include the

investment for the storage or any back-of-house space other than what we show in one of the stores there. What weve done elsewhere, at Newark we proposed 1.5 million, yet spent 2 million. will be much higher. Saniya, do you want to take it back? MS. ISANI: Sure. So I think Roger So we

very well put that, you know, though we were conservative, it doesnt mean that we dont think we can do it. We can do it, and weve done it

elsewhere, and were excited to take on the challenge to do it here; and because this is the

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30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 done. questions. MR. DONOVAN: Very good, very well first time that the airport is going to have so much activity and change, we truly hope we can be part of this new change. Weve, you know, been going back and forth from Pensacola to the different parts of the country where we live, and weve actually had a great time visiting this city, and weve had an even better time actually meeting these wonderful partners of ours. Like I said, were very honored

to be here, and we really hope that we dont get boring at Pensacola. Food Group. We get creative at Creative

We do bring the national experience.

These guys are helping us bring the local flavor. We have real estate revenue projections, and we want to preserve the upside for the airport. and stability. place. We have a track record of growth Pensacola is an extremely unique

Last night we saw two rainbows, so we

really want to make sure the airport stays unique as well. Thank you, and well open it up for any

Before we go into questions, I think weve

got a formality of-

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31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. LAVEN: Yeah, weve got a little

fine print Ive got to disclose here. Specifically, the city has a prohibitive conduct policy that was outlined in the RFP document itself. Since May 25, 2013, the date this RFP was

first advertised, has anyone from your organization or anyone associated with your proposal made contact with anyone on the selection committee, any member of the city council or anyone who may be considered for the selection committee, including airport staff or Mr. Chinsammy, but not including the citys purchasing manager or his staff? MS. ISANI: MR. DONOVAN: out of the way. First, I want to thank you for what is very evident of an amount of energy and effort to put together a proposal well done. I will say No. Okay, and weve got that

that this is a very impressive array of local talent and local, really, brand names that weve all come to appreciate from this community. appreciate your time and effort with this. Could you go into a little detail-and Ill bring it over to the panel because I think So I

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32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 everybody will have some questions to ask, but help me understand a little bit about the price range of-weve got a very nice menu here, but what type of range would you have on the product for the customer? MS. ISANI: Sure. Roger. Sure. I mean,

MR. SCHWANDTNER:

obviously, Bagelheads prices are somewhere around $6 a sandwichMR. MACKEY: 6.95. -and runs up to

MR. SCHWANDTNER: about 8 or $9.

As far as on the top end, youre looking at the Fish House which is probably up as high as-if youre looking at a full entree or fresh fish, it could be as high as $20. have a full range. Then Varonas-Robert, do you want to kind of mention your price points? MR. DE VARONA: Well, we start at a So you

fairly low price for breakfast, and the selection is very broad. I think that breakfast with eggs,

so forth, starts around 3.50, and it goes up to maybe 8 or $9, including drinks. MS. ISANI: And the other thing is that

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33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 yeah. MR. SCHWANDTNER: Yeah, and then the in all of our airports we have an employee meal that we always advertise because we know our employees are a constant customer. So we always

do some sort of $5 meal deal, $10 meal deal, depending on the location we operate in, to keep that-you know, keep the people who work hereMR. SCHWANDTNER: Actually, in all of

our airports we run special menus for the employees. MS. ISANI: Just for the employees,

military we give a 25-percent discount. MS. ISANI: Yeah, and we want to do

that, and were glad we have that flexibility and local partners who support us in that. MR. DONOVAN: UNIDENTIFIED: Very good. Thank you. I just want

to give a couple-can you clarify for us, please, your minimum annual guarantee proposed? MR. SCHWANDTNER: MR. DONOVAN: 369,750.

Say that again, please. 369,750.

MR. SCHWANDTNER: UNIDENTIFIED:

And the reason I ask you

to clarify, Roger, is your actual submittal five

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34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 you. MR. SCHWANDTNER: We didnt notice that is 300,000. MR. SCHWANDTNER: That was an error.

If you go to the calculation, it shows the 369,750. UNIDENTIFIED: Right. Yeah. We saw that.

MR. SCHWANDTNER: UNIDENTIFIED:

And youre saying that

your minimum annual guarantee is the 369 calculated on the bottom of thisMR. SCHWANDTNER: UNIDENTIFIED: wanted to give youMS. ISANI: Thank you. Yes. Thank Yes, it is.

Okay, thats-I just

until after it was submitted, and we couldnt change it at that point. UNIDENTIFIED: Okay, thats-I just Go ahead.

wanted to clarify that for now. MR. DONOVAN:

Okay, another question I

had, too, is about-can you go into a little more detail about the pre-security location? I

understand by some of the drawings that were submitted in the proposal that there is a blank space that-so theres some kind of concept-

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35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that. Roger? MR. SCHWANDTNER: That space is MR. SCHWANDTNER: Im kind of sorry

that he did that because this actually goes back to the airport. What we were looking at is just

(unintelligible) the area thats currently the bar area and kind of shortening the bar, because obviously you dont need that large of a bar pre-security, and then making the Bagelheads at the front of the store. right there pre-security. MS. ISANI: Our architect is So the Bagelheads is

overambitious, wants to decorate your space, too. UNIDENTIFIED: How many square feet,

actually 1,000 square feet, and then the production kitchen was another-it was 2,100 square feet, is the way it was calculated. UNIDENTIFIED: All right. So-

MR. SCHWANDTNER:

Its actually 600

square feet additional that we would be paying rent for. MR. ROBERTS: I have a question on

You show this kitchen-this existing

kitchenMR. SCHWANDTNER: Yes.

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36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 theMS. ISANI: MR. ROBERTS: Main public-main passengerpathMR. SCHWANDTNER: MS. ISANI: MR. ROBERTS: Yes. -secure pathYes. Yes. you haveMR. ROBERTS: So theres an alternate MR. ROBERTS: -that youre usingYes.

MR. SCHWANDTNER: MR. ROBERTS:

-so anything you compare

there thats going to be used on the other side of security has to go through security? MR. SCHWANDTNER: Yes. There is

actually-Robert could probably talk to this more than I could, but there is a-it basically goes outside and back inside. MS. ISANI: airports as well. MR. SCHWANDTNER: MR. ROBERTS: SoUsually-generally, Yes. We do that in our other

MR. SCHWANDTNER:

MR. SCHWANDTNER: MR. ROBERTS:

-without going through

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37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 right nowMR. SCHWANDTNER: UNIDENTIFIED: Yes. MS. ISANI: Yes. Yes, there is.

MR. SCHWANDTNER: MR. ROBERTS: UNIDENTIFIED: producing in that kitchen? MR. SCHWANDTNER:

Okay. What would you propose

Well, I mean, any Robert

type of craft production, sandwiches.

would just continue to use it because he bakes everything from scratch. use that kitchen. So he would continue to

It would become a shared

production kitchen with Robert and us. UNIDENTIFIED: question, Roger. So it goes to a core

You requested certain exceptions There was a list of

to the concession agreement. items onMR. SCHWANDTNER: suggestions. UNIDENTIFIED:

Yeah, and just

No, no.

I know.

One of

it was, you know, the use-the re-use, if you will, of that production kitchenMR. SCHWANDTNER: UNIDENTIFIED: Yes.

-thats in the back

-as part of your

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38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 thatMR. SCHWANDTNER: I mean, they are-I program. If that-if the city and the airport

decided not to allow that to happen, how would you-can you articulate how you would retool? MR. SCHWANDTNER: Well, that would be

somewhat difficult because of the capital to kind of rebuild that production kitchen. I mean, to

support that space, even though the one space is 3,100 square feet, that kitchen is not going to fully support that space, not the Fish House. mean, youre going to need a larger production area. Could we create a smaller production area out front? Yes. Okay. Okay, and would I

UNIDENTIFIED:

guess-my thing is that they-I dont know if youve walked through the production kitchenUNIDENTIFIED: I havent. -but, I mean, its

MR. SCHWANDTNER: not in bad shape.

Its older, but its not in bad

shape, and thats a lot of capital invested in that space that would beUNIDENTIFIED: Yeah, I-torn out.

MR. SCHWANDTNER:

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39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 brand. MS. ISANI: And weve already-you UNIDENTIFIED: clarify the use ofMS. ISANI: Sure. Thank you. Yeah. Im asking to sort of

MR. SCHWANDTNER: MR. ROBERTS: MS. ISANI: MR. ROBERTS:

I haveYeah. -another question. I

guess Im trying to understand, your chef or your people are going to learn from these people how to do their food? MR. SCHWANDTNER: MR. ROBERTS: Yes.

In other words,

Bagelheads is not going to run thatMS. ISANI: No. No.

MR. SCHWANDTNER: MS. ISANI:

Were the operators. We are the operators.

MR. SCHWANDTNER:

We do this all over the country. UNIDENTIFIED: licensees for themMR. SCHWANDTNER: UNIDENTIFIED: Licensing. We become franchisees or

-to represent their

know, we have letters in the RFP with our

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40 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 agreements between us and these brands, and weve had that success throughout the country, and different brands have entrusted us with their name and their product, and we take it very personal. UNIDENTIFIED: What typically would

happen, depending on the brand-the Fish House would be a bigger scale brand. I would go in

there with the G.M. or the head chef of that property, and we train for what we deem necessary. It might be three weeks. It might be four. After

we do our thing, then well probably set up a schedule with them, and well roll people in through their kitchen to train with prep andMR. ROBERTS: UNIDENTIFIED: all the other brands. Okay. -do the same thing with

Then once we get closer to

open, theyll come with usMS. ISANI: And stay with us. -and theyll designate

UNIDENTIFIED:

their people, and theyll help us open to make sure their standards were met and the brand is protected. MR. SCHWANDTNER: Which is another

point that we didnt kind of bring up, is that they are local. We have to meet their standards.

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41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. ISANI: through here. MR. SCHWANDTNER: -because theyre Its not like a Theyre going to be coming

coming through here all the time.

national brand that only shows up once or twice a year. MR. ROBERTS: sales per enplanement? MS. ISANI: Yes. Yes. You had a chart showing

MR. SCHWANDTNER: MR. ROBERTS:

And you show these Whats the national

different reference sites. average? MR. SCHWANDTNER:

That would be

slightly close to the national average for that size of an airport. The only-out of the data that

I could find, the only airports that even come significantly higher than those were in New York or California; and all of that is driven by price. MR. ROBERTS: highest one was Sanford. MR. SCHWANDTNER: Sanford-Orlando. Yeah. I noticed the

Sanford-Orlando is a discount carrierMR. ROBERTS: Yeah. -Allegiant Airlines

MR. SCHWANDTNER:

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42 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 kitchen? MR. SCHWANDTNER: Without the here, so. MR. SCHWANDTNER: Whenever you have only. They are known for delays. MS. ISANI: Thats why its so high. Theres a lot of money

UNIDENTIFIED: to be made-

MR. SCHWANDTNER: whenever you haveMR. ROBERTS:

Yeah.

So as-

Well, we have our share

delays-unfortunately, delays, you know, for a passenger is bad. For us its good. Good, yes. What percentage of the

MR. ROBERTS: UNIDENTIFIED:

Fish House menu would we be seeing in the airport? MR. SCHWANDTNER: Well, actually, it

would probably be well over 50 percent because-oh, you mean of their actual menu? UNIDENTIFIED: that they serve today. MR. SCHWANDTNER: Of their menu, yeah, Of their actual menu

it would probably be in the 50-percent range. UNIDENTIFIED: Without the production

production-you know, the kitchen that weve

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43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 designed in that space-or that space is large enough to produce some production, but it-youve been in this business. tight. You know that would be You would definitely

It would be tight.

need some additional production space. MR. DONOVAN: Can you elaborate a

little bit more on the-kind of the quality assurance? And Im getting back to really the When people leave Pensacola

staples of Pensacola.

or the Fish House or McGuires or Jacksons, that brand is very sacred to the local, you know, business owners here. MR. SCHWANDTNER: MR. DONOVAN: Tell me about it.

How-I mean, how much on

a monthly basis or a quarterly basis-are you anticipating hiring people from those local establishments to integrate in the airport to keep that brand solid? MR. SCHWANDTNER: same standards. We will follow the

We will make sure that our-that

the staff that we hire is trained in the Fish House so that they know what those standards are. Our managers, our chef will be trained in that-in the Fish House. They will make sure that when you

sit down at the Pensacola International Airport,

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44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 youre going to get the same experience that youre going to experience in the Fish House. MS. ISANI: Were franchisees for a lot So we completely

of big national brands as well.

understand how a national brand trains, and weve been able to translate that to our proprietary brands as well as our local partners. So Jamba Juice, Subway-were franchisees for all of them. their guidebook. So we know-we have

Rick has created our Creative

Food Group guidebook based on those same principles. So we maintain extremely high quality

standards across every single one of our brands, whether its a national or a local brand. MR. SCHWANDTNER: MR. JENKINS: your question. I mean, for instance-

Let me further answer

Basically, what will happen,

sometimes the brand might have-the brand partner might have some people that might want to transfer. They might have some extra people.

Their sales might be going down, and we need people, you know. Weve done many different

scenarios where they might come work with us for two weeks. depends. They might stay. You know, it

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45 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 The net is they give us the stamp that were ready to go. The doors do not open unless

they say we open, and my job is to make sure that happens before that happens. MS. GOLDBERG: Well, and Ill just add

a point to that, because this is for-at least for the Fish House, is that this is what I do, and I can guarantee you that should we be successful, which we feel that we will, I guarantee you Im going to be up at this airport once a week. know what I mean? because thatUNIDENTIFIED: MS. GOLDBERG: And we encourage that. Were so-as Collier had You

Thats how we are, is that-

mentioned, is that we are so careful about our brand, and if something damages that brand, that affects us. You know, it really does. It affects So

us, and we are not going to let that happen.

as long as the Fish House is involved with this project, I can guarantee you, its not going to happen. UNIDENTIFIED: That was a question that

I had as far as the involvement of-since you have such a fantastic local ownership representation across the board, and all the hands-on, building

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46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 their own businesses, if they turn it over to you and their name and their concept is out there being run by somebody else, what is your relationship with-or attitude towards-say if someone walks in and says, I dont like the way this is being done, is it handled immediately, or does it go to a board, or how does it work? MR. SCHWANDTNER: Can I-let me just-

Im going to call on Elliot and Rob for a secondin addition to Collier. Hes already spoken and

said the same thing, but Elliott and Rob-when I sit down-and I do this all over the country. When

I sit down with local partners, the one thing that theyre mostly concerned about is can you operate our brand as good as we can? And I have to

convince them, along with Rick and Saniya-we have to convince them that we can. We have a-we have a

proven track record of doing it with other brands. Rams Head Tavern is not just one, but theres like three or four in the Baltimore area. We operate there. Not only does the owner come

by, but also his friends come by; and every time someone stops in there, I get a text from the guy saying, Great job. The food was great. We got

a good compliment, and I hear that all the time.

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47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 a minute? MR. ECKLAND: Well, what I will say is But, Elliott, do you want to speak for

that was really my biggest concern doing this, is because all my staff, I teach them how to brew. They know the beer. They know the ingredients.

So one of the things that Im going to insist on, and weve already discussed it, is that youre not just going to have a bartender. Heres a beer. You want a beer?

No, these people are going to Theyre

know the history behind the brewery.

going to know how the beer is made and what ingredients are in it and know the ABV and the IBUs. You know, theyre going to know all these things because theyre representing my brand, and I dont just want a bartender, okay? Im going to teach them hands-on, me personally, how I want them to conduct themselves as far as representing my brewery, and, yes, well have other beers in there, too; but, you know, thats important, you know, absolutely. MR. JENKINS: Well, the Taproom is a

similar thing, but its bourbon, and we have some bourbon experts that work there, and you could ask

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48 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 too high? MR. ROBERTS: MR. JENKINS: MR. ROBERTS: I just-well, theThe quality is too high? Well, its just-noBrad. MR. ROBERTS: I love everything. Im them any question you want about bourbon, and theyll tell you. cant tell you. Now, you can ask me, and I Im going to tell you there are

some that I like, but Im going to surround myself with people that know it all, and the guys like that are going to know it all; but like he said, the bartenders arent just going to be bartenders. They have to know everything that they sell. includes food as well, not just beer. MR. ROBERTS: I have a-I mean, thanks That

to American Express, my annual report, my number one expenditure is Delta Airlines, and my number two expenditure is restaurants, okay? everythingMS. GOLDBERG: We love you for it, So I love

just concerned that its too high of a mark for the travelers going through this airport. reallyMS. ISANI: You mean the price point is I just

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49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 offeredMR. ROBERTS: MR. ROBERTS: I know youreBecause youre going to joke. MR. ROBERTS: MR. JENKINS: MR. ROBERTS: No, whats beingI mean, thats scary. No, no. Whats being MR. JENKINS: I dont mean that as a

have a tough time maintaining that quality because these are all very unique foods, and I just dont know how many people are going to have enough time to take to enjoy that. MR. JENKINS: down to menu design. Well, I think that comes

Theres going to be-there

are probably some things that well sell that well come up with in their house that we can sell. It can be ten-minute ticket times, and

theres going to be things that are the standard, you know, 15 to 20. yet? No. Have we gotten to that part

I mean, thats a lot of work yet to be Yeah, thats-to me

done, but can it be done?

thats where it starts getting fun. MS. ISANI: Yeah, thats the fun part. Thatll just be menu

MS. GOLDBERG: engineering.

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50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. ISANI: But not only that, were

going to have an express component at each of our facilities which is going to haveMR. JENKINS: MS. ISANI: Grab and go. -that grab-and-go concept

for the travelers, and well take some of the Fish House base core ingredients and create a to-go option thats ready for the passenger whos on-you know, in a rush. MR. JENKINS: MR. DE VARONA: Thats what we do. This is a void that

Varonas is trying-is thinking of filling, and that is going with a low pricing menu. Being

across the Fish House, hopefully, their prices will be much higher than mine, and I will grab thatMR. SCHWANDTNER: competition we talked about. MR. DE VARONA: -that $3.50 person Theres that friendly

that wants, you know, a low-cost meal. MR. ROBERTS: the Fish House. But the biggest space is

I mean, the mostWell, the Fish House

MR. SCHWANDTNER:

and Pensacola Bay Brewery, but obviously its the same menu on those, yes. But were-

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51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MS. ISANI: But we-going to gear more

MR. SCHWANDTNER:

on his lunch menu as opposed to his dinner menu. MS. ISANI: His dinner menu, exactly. Because his lunch

MR. SCHWANDTNER:

menu covers everything, but the price points arent quite as high as the dinner menu. MR. LAVEN: Were going to have to

start wrapping this up because we do have the public meeting shortly thereafter, but I know there are a couple of other questions we need to ask. Does anybody else on the committee have

something they would like to ask beforeMR. ROBERTS: One of the questions on

the list was theres a sublease agreement. MR. SCHWANDTNER: Yes. It would have-

Varonas-Robert would be a subtenantMS. ISANI: A subtenant of ours. -of ours.

MR. SCHWANDTNER: MR. ROBERTS: running hisMS. ISANI: MR. ROBERTS:

So you would not be

Were not running his-space? No, no. Were

MR. SCHWANDTNER: MS. ISANI:

Hes running his.

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52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 us. sublease. running the others, and thats the friendly competition we were referring to. UNIDENTIFIED: Its a straight

He guarantees the lease. MR. SCHWANDTNER: It would be through We would become

Wed guarantee the lease.

the master concessionaire, and hed become a subtenant. So he would get a lease from us that

would be similar to the lease that wed have with the city. MS. ISANI: Help to maintain theAnd the reason we asked

UNIDENTIFIED:

the question is because in the lease agreement that we sent out through the RFP, a subtenant-if there was a subtenant relationship, theyd have to guarantee the lease. UNIDENTIFIED: Right. It would have to

be a separate approval by the Pensacola City Council. UNIDENTIFIED: And thats why we asked

you the question, just to get some clarity from you. MR. SCHWANDTNER: UNIDENTIFIED: done? when? where? how? Yes. Yeah.

When was the survey

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53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 one? UNIDENTIFIED: Well, just the nonissue? MR. SCHWANDTNER: UNIDENTIFIED: At this point, yes. okay? MR. SCHWANDTNER: Landrum sent six

people in this weekend, three people each day on Saturday-Friday, Saturday, and Sunday and conducted the survey. UNIDENTIFIED: Just two more questions,

We have a couple of (unintelligible), you Would you please

know, with the time here.

explain to us the kind of (unintelligible background noise) you have-the BWI contract as it pertains to the National Labor Relations Board? MR. SCHWANDTNER: There is no issues

other than a union is trying to come into the airport, and theyve been working with the governors office. to this point. UNIDENTIFIED: Okay. Okay, so its a Nothing has actually happened

Okay, and-do you have

calculation of the pre-security location, again with a $240,000 investment-proposed investment, the minimum is $300 per square foot, so youre only talking about an 800-square-foot pre-security

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54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Absolutely. question. activity? MR. SCHWANDTNER: between 800 and 1,000. I think that-its location. We just want to know do you feel that

this is going to be sufficient or would be adequateMR. SCHWANDTNER: UNIDENTIFIED: For pre-security?

-for all pre-security

Obviously, the drawings

were put together fairly quickly, and renderings were put together fairly quickly; but, yeah, its going to be somewhere between 800 and 1,000 square feet. UNIDENTIFIED: Okay, but you only

proposed 800 square feet based on (unintelligible) for $240,000. MR. SCHWANDTNER: UNIDENTIFIED: Okay.

So if it was 1,000, then

the investment would go up (unintelligible). MS. ISANI: Of course, absolutely. Yes. Thank you for that

Absolutely. Yes.

MR. SCHWANDTNER:

No.

That was a-I

was under the impression it was 800 square feet when I got the drawings back from the architect, which was after the RFP (unintelligible) 1,000

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55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 square feet. UNIDENTIFIED: Last question, and its

from a financial perspective because as you know, you submitted MAGs and percentage rents and (unintelligible) to the city-to the airport and to the city, and you had-where is the list of-the exceptions. So at this point with the exception

of the minimum annual guarantee rent language, which will be adjusted on the previous years rent, as traditionally done in the industryMR. SCHWANDTNER: for clarification. UNIDENTIFIED: Absolutely. Were going Yeah. That was just

to reject all the other line items. MR. SCHWANDTNER: UNIDENTIFIED: Thats right.

How does that change

your financial, especially since some of those exceptions were directly related to percentage payments to your local brands in terms of royalties and percentages? MR. SCHWANDTNER: UNIDENTIFIED: It does not.

It does not change? No.

MR. SCHWANDTNER: UNIDENTIFIED: MR. DONOVAN:

Okay. Do you have a percentage

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56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 vary. in here in terms of food cost, what your food cost percentage would be? MS. ISANI: Across the country would

Obviously with some of the brands-you know,

it depends on where youre operating, but I think nationally wereMR. JENKINS: We run anywhere-again,

it depends on the brand-26 to 32MS. ISANI: MR. JENKINS: I think that sounds right. -depending on the-you

know, if its a heavy seafood, theyre going to be higher. If its-you know, if some were burgers, It just depends on

theyre going to be lower. your (unintelligible). MR. DONOVAN:

And you would say it

would be-the range would be-would equal that? MR. JENKINS: Be here? Yeah, I think-

MR. SCHWANDTNER: MR. JENKINS: MS. ISANI:

30 to 32.

Yeah, 30 to 32. Which is what we run across

the country at a lot of our big restaurants that we operate, and were comfortable with that. MR. DONOVAN: UNIDENTIFIED: Okay. Now, if the Fish House

is running a 35-percent food cost, are they going

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57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 ten? MR. JENKINS: Depending on when youre to run a 35-percent food cost at the airport location to guarantee that quality and quantity? MR. JENKINS: Most likely. Yes. We

MR. SCHWANDTNER: MS. ISANI:

If they want to, sure.

operate our two restaurants at Boston also at 35. UNIDENTIFIED: Okay, thats street plus

buying fresh, its market price. UNIDENTIFIED: MR. JENKINS: MS. ISANI: Oh, sure. Thats whatever it is. Its (unintelligible), yeah. How much(Unintelligible) come

UNIDENTIFIED: UNIDENTIFIED: down to (unintelligible). MS. ISANI: come down, yes.

Itll come down.

Itll

MR. SCHWANDTNER:

But there are some

price points here that we would not do street plus ten. MS. ISANI: No, no. -because the price

MR. SCHWANDTNER: points areMS. ISANI: Yeah.

No, no, we want to-

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58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 SurfMR. JENKINS: -were not going to get questionUNIDENTIFIED: Why did yall get rid of I mean, listen. travel. You travel. I travel. We all

It sucks to put out money at the airport, To

especially when youre traveling so often.

really part with that hard-earned dollar, its not what we want. any customers. In fact, a funny story, that Surf City Squeeze that we acquired, I was very young at the time, and my dad hated traveling with me because I was that kid whod be like, I want this orange juice. My dad would go to that Surf City Squeeze We dont want to take advantage of

and buy that orange juice for me for $5, and he used to hate me for it. for a small orange juice? He used to be like, $5 What is this?

Ironically, when he bought it, the first thing he did was bring that down to $3. So, I mean, you know what Im saying? Its like we know it. anyone. We dont want to hurt

We want to create an ambience and the

price points that make passengers come back. MR. JENKINS: But to answer your

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59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 your time. MR. JENKINS: UNIDENTIFIED: Thank you very much. Were going to proceed thatMS. ISANI: happy with Jamba Juice. MR. DONOVAN: questions from the panel? again. The airport. Now were a cheaper fish than him. If hes serving this red Were

snapper, its coming from the same guy. getting the same thing. UNIDENTIFIED: Surf City Squeeze? MS. ISANI: I dont know.

Its the same across theWhy did you get rid of

It came to

that we had a relationship with Jamba Juice where we met them along the way, and to be honest, they said that Surf City wasnt at the standards that they-so they choseMR. SCHWANDTNER: That was the airport

We have six of them, so. Very good. Any other

I want to thank you

You did a fantastic job in presenting and Thank you so much for

a very impressive array. your effort. MS. ISANI:

Thank you.

Thank you for

with (unintelligible), ten, fifteen minutes, and then well assemble-

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60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. LAVEN: Well, first, let me just

give you a timeline while were still on the record. August 21 is today. After a ten-minute

break, were going to reconvene here for a public meeting of the selection committee. The selection

committee will review the first proposal, the second proposal, come up with a recommendation which we will present to the mayor. We estimate between August 22 and by the end of August, the mayor will have approved of the selection committee recommendation. Sometime

around September 1-I know thats a Sunday, and then theres a holiday involved there-the city purchasing department will be issuing a notice of the results of the RFP. At that time we will

begin contract negotiations with the successful proponent. We expect to bring this to the city council agenda meeting on Monday, September 23, for final approval of the full city council on September 26. This will be the only time that you

will be able to present to the city council, so we ask that you prepare to give a short presentation to the council, if required. We will give you

some more information about that as we get closer

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61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 WHEREUPON, the presentation by Creative Food Group was concluded. everything? MR. LAVEN: MS. ISANI: Yes. Okay, thank you. to the date. We expect to have a fully executed contract by the end of September so we can give you your fully executed contract on or about October 1, give you the new area in the concourse at that time, which will give you approximately six months to get that ready for production for opening on April 1; and then we expect the remaining facilities to be open by the end of 2014-so by 12/31/2014. I see that you have given us copies of your presentation, so Im going to scan that, and that will become part of the public record. Also,

these recordings, if I did these correctly, will also become part of the public record. So I do

thank you, and I thank you for your indulgence. Lets take a quick ten-minute break, and then we will meet back here. MS. ISANI: Were going to clear out

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62 CERTIFICATE OF REPORTER

STATE OF FLORIDA COUNTY OF ESCAMBIA

I, Professional Florida at

PATRICIA

D.

HITCHCOCK, Public,

Registered State I of was

Reporter Large, to

and

Notary

hereby

certify the

that

authorized

transcribe

foregoing

recorded

Selection Committee meeting and that the transcript is a true record of the proceeding. I further

certify that I am not a relative, employee, attorney or counsel of any of the parties, nor am I a relative or employee of any attorney or counsel connected with the action; nor am I financially interested in this proceeding or its outcome.

Dated this

day of September, 2013.

PATRICIA D. HITCHCOCK Registered Professional Reporter and Notary Public, State of Florida at Large My commission expires October 22, 2015.

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