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Econ 919: Kenai Municipal Airport's RFP

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The Kenai Municipal Airport in October, 2023.
Riley Board
/
KDLL
The Kenai Municipal Airport in October, 2023.

The Kenai Municipal Airport is a hub for many travelers to and from the Kenai Peninsula. It serves two airlines that offer direct services to Anchorage. It’s also home to a gift shop, restaurant and upstairs bar.

Now, the airport is seeking requests for proposals from concession vendors for the 2,200-square-foot restaurant space. It’s currently Brother’s Cafe, a breakfast and lunch restaurant. Their contract expired last year and the airport is looking for competitive bids.

“The space is great for restaurants that are already established or somebody looking to break into the restaurant business,” said Derek Ables, manager of the airport. “All of the equipment is there, ready to go. Where else can you do that if you want to get started in the restaurant business?”

City buildings in Kenai, like the airport, are required to put out requests for proposals every three years. For airport concessions, it’s every five years, with the option to extend for two more years.

The airport is looking for a restaurant that’s open seven days a week, 60 hours a week. They say business hours should best serve terminal employees and passengers. The restaurant that’s accepted should also be flexible with changing airline schedules.

The airport is open every day of the year, which Ables says is an advantage for restaurants to generate revenue. Last year, the airport saw over 70,000 passenger departures. This doesn’t account for the airport’s arrivals or other visitors.

By design, Ables says the restaurant's location brings in customers without advertising.

“There’s a lot of foot traffic in the airport, so you don’t necessarily have to go out looking for it," he said. "Passengers are coming and going all day.”

And, Ables says customers seem to enjoy the atmosphere of the restaurant space. It has large windows with views of the runway and nearby mountains, which he says brings in travelers and locals who just want to drop by the airport for a quick meal. This, in turn, brings in money from all over.

“All the restaurants in Kenai are a big deal for the economy, so this is just one of the restaurants that contributes to that,” Ables said.

Last year, the restaurant space in the airport grossed over $500,000 in revenue.

Applications for the request for proposals will be scored on restaurant experience, qualifications, operations plan and gross revenue expected. So far, Ables says no applications have been submitted, but he’s excited to see what businesses apply.

Applications for the request for proposals are due at 4 p.m. Dec. 5. The winning restaurant will be contracted for the space until 2028.

Hunter Morrison is a news reporter at KDLL
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