Terminal 3 North 2 Concourse Food & Beverage (F&B) Concessions

The City of Phoenix Aviation Department is soliciting proposals to operate and manage Food & Beverage concession spaces in Terminal 3 North 2 Concourse at Phoenix Sky Harbor International Airport, with responses due September 2, 2026, and a pre-offer conference scheduled for June 18, 2026. Package 2 (Coffee Focus plus Cafe, 1,198 square feet) is exclusively available to small businesses with personal net worth not exceeding $2.047 million and average annual gross sales not exceeding $56.42 million over the preceding five years.

The City offers three packages under this concession lease structure: Package 1 comprises two quick-serve restaurant concepts, a cafe bar, and beverage vending machines totaling 6,091 square feet; Package 2 is the small-business-only coffee and cafe concept at 1,198 square feet; Package 3 is a full-service restaurant with bar at 2,267 square feet. Respondents may bid for multiple packages but will be awarded only one unless the City determines otherwise. All operations commence with a portable interim unit during a 12-month initial term, then transition to permanent leasehold improvements over a 15-year primary term with no renewal options.

Rent is structured as percentage of gross sales with no minimum annual guarantee, varying by package and category (18% alcohol, 12–14% food and non-alcoholic beverages, 13% vending). Respondents must invest a minimum $650 per square foot in initial leasehold improvements and $125 per square foot in midterm refurbishment by the eighth year. Response guarantees are $10,000 (Packages 1 and 3) and $5,000 (Package 2); successful respondents must post performance guarantees via irrevocable letter of credit or cash deposit. Core qualifications include three or more continuous years of food and beverage business ownership or executive management in airport operations; minimum gross sales of $2.5 million in one of the last five years (Packages 1 and 3); and documented experience managing comparable concepts.

All respondents must comply with Airport Concession Disadvantaged Business Enterprise–Neutral (ACDBE-N) program requirements, including submission of completed small business outreach documentation (Forms EO1-200, EO2-200, and EO3-200) at proposal submission. Post-award, lessees must submit annual small business participation plans, maintain monthly reporting in the City's certification system, and obtain Equal Opportunity Department approval before modifying approved small business subcontracts. Contracts require compliance with Phoenix City Code heat safety provisions (Sections 18-413, 414, 415), federal and state nondiscrimination statutes, environmental laws including CERCLA and RCRA, E-Verify verification, and Title VI civil rights assurances. Lessees must carry comprehensive general liability ($2 million aggregate, $1 million per occurrence), automobile liability ($5 million combined single limit), workers' compensation, property insurance at replacement value, and a fidelity bond or crime policy ($10,000 minimum for employee theft). The City must be named as additional insured on liability policies and loss payee on property policies. Written inquiries are due by June 30, 2026. Evaluation is tentatively scheduled for November–December 2026, with City Council award anticipated in April 2027.