Roberta Aguirre
After over two decades, Pappas Restaurants are leaving Houston's William P. Hobby Airport, with their lease ending on 11 May 2023. The departure follows a controversial vote by the Houston City Council to award a 10-year, $470 million contract to Areas USA, a Spanish company that operates food and beverage outlets at airports worldwide. Pappas Restaurants, a Houston-based company, filed a lawsuit against the city, citing a flawed contracting process and claiming that the city violated its own procurement rules. The change in concessionaires will bring in an estimated $10 million in additional revenue for Houston-area airports, but it leaves travelers without local dining options.
| Characteristics | Values |
|---|---|
| Reason | Contract dispute |
| Date of leaving | May 11, 2023 |
| New restaurants | Hubcap Bar & Grill, Pink's Pizza, Gastrohub Bistro and Bar, Streat Bar, Bullrito's, Pick Up Stix, Chick-fil-A, Buffalo Wild Wings, Peet's Coffee, Wendy's, Starbucks, Fat Cat Creamery, Dunkin', The Spot Bar, Velvet Taco, The Rustic, Jersey Mike's, Pei Wei, Throughgood Coffee, Common Bond Cafe, Yard House |
| Previous restaurants | Pappasito's, Pappas BBQ, Pappas Burgers, Pappadeaux |
| Company response | Pappas sued the City of Houston, claiming the procurement process was flawed |
| Court response | Two separate judges rejected Pappas' requests to stay while the legal case played out |
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What You'll Learn
- Pappas Restaurants CEO questions a ''flawed' City Hall contract process
- Pappas files a lawsuit against Areas and the City of Houston
- Pappas Restaurants will be replaced by a Spanish company
- Pappas Restaurants to lose its foothold on the airport
- The new concessionaire will operate local concepts at Hobby Airport
Pappas Restaurants CEO questions a ''flawed' City Hall contract process
After Areas was awarded a contract over Four Families, Pappas Restaurants CEO Chris Pappas questioned the City Hall contract process, calling it "flawed". Pappas Restaurants, LaTrelle’s Management, and Grover Jackson/GP Capital America LLC had served as the airport’s food and beverage concessionaire since 2002 under the name Four Families. The Houston City Council voted to enter an agreement with Areas to handle restaurant operations at the airport for the next 10 years.
Pappas said that the company included its best contribution rate in its initial proposal, which it kept in subsequent ones. That number, he said, was based on the real history of his restaurants in the airport. He claimed that Areas was using "looser, less predictable" numbers that assume they make more revenue than the Pappas restaurants.
Christina Pappas, the restaurant company’s marketing director, asked the council:
> "Why are we here? We’re questioning the process. Explain to me how three rounds of bidding, two cancellations, doesn’t deserve some questions and some transparency. I want to see that. We should all want to see that."
After the dispute, the Pappas Group filed a lawsuit against Areas and the City of Houston, claiming that the procurement process was flawed.
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Pappas files a lawsuit against Areas and the City of Houston
Pappas Restaurants has filed a lawsuit against Areas and the City of Houston, disputing the contract that will see the company lose its footprint at Hobby Airport. Pappas Restaurants' lease at the airport ended on 11 May 2023, after the Houston City Council voted to enter an agreement with Areas to handle restaurant operations at the airport for the next 10 years.
Pappas Restaurants' CEO, Chris Pappas, has criticised the contracting process at City Hall, calling it "flawed". He argues that the city violated its own procurement rules in awarding the contract to Areas, and that the process was protracted, involving three separate rounds of bidding over four years. Pappas also claims that Areas is using "looser, less predictable" numbers in its projections, assuming higher revenue than Pappas Restaurants.
The Pappas-led group, 4 Families of Hobby, initially finished tied for first in the scoring, but came third after the city asked for best-and-final offers. Pappas Restaurants filed a lawsuit against the City of Houston in April 2023, asking a judge to throw out the contract with Areas and to allow Pappas to stay at the airport while the legal case plays out. However, two separate judges have rejected the company's requests to stay, and Pappas Restaurants will continue its legal battle against the city as it vacates Hobby Airport.
The new contract with Areas will bring in over $10 million in revenue for Houston-area airports, and the city has defended its decision, stating that it was a competitive procurement process. The change will also mean that Hobby Airport will generate more money for the city, but it will leave travellers without local dining options, as Pappas Restaurants is a Houston-based company with several brands synonymous with the city.
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Pappas Restaurants will be replaced by a Spanish company
After over two decades, Pappas Restaurants is leaving Houston's Hobby Airport. The company's lease at the airport ended on May 11, 2023, following a contract dispute with the Houston City Council. The dispute began when the council voted to enter an agreement with Areas, a Spanish company, to handle restaurant operations at the airport for the next 10 years. The new contract is expected to bring in over $10 million in revenue for Houston-area airports.
Pappas Restaurants, a Houston-based company with several brands synonymous with the city, had been a fixture at Hobby Airport since 2002. The company's CEO, Chris Pappas, questioned the contracting process, calling it flawed and expressing disappointment in the City of Houston's decision. Pappas Restaurants even sued the city and tried to stay at the airport while the case was ongoing. However, their requests were rejected by two separate judges.
Areas, the new concessionaire at Hobby Airport, has experience in 89 airports worldwide, including nine in the United States. They plan to bring various food and beverage concepts to the airport, including local favorites and national brands. Some of the new restaurants that will replace Pappas include Killen's BBQ, The Spot, SpindleTap Brewery, Throughgood Coffee, and Clutch City Coffee.
The change in concessionaires at Hobby Airport has sparked mixed reactions from travelers. While some will miss the Pappas restaurants, others are looking forward to trying the new dining options. The introduction of new bars, restaurants, and coffee shops is expected to provide a fresh experience for travelers passing through the airport.
The departure of Pappas Restaurants from Hobby Airport marks a significant shift, as the airport transitions from a Houston-centric dining scene to a mix of local and national brands. The new contract with Areas is projected to increase revenue for the city and provide a variety of options for travelers.
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Pappas Restaurants to lose its foothold on the airport
After over two decades, Pappas Restaurants are set to lose their foothold at William P. Hobby Airport in Houston, Texas. The popular local chain had served as the airport's food and beverage concessionaire since 2002 through a joint venture called Four Families, which included LaTrelle's Management and Grover Jackson/GP Capital America LLC. However, in March 2023, the Houston City Council voted to enter into a new agreement with Areas, a company that operates food and beverage outlets at airports worldwide. This decision sparked controversy and led to a legal battle between Pappas and the city of Houston.
Pappas filed a lawsuit against Areas and the City of Houston, challenging the procurement process as "flawed". They argued that the city violated its own procurement rules and that their proposal included the best contribution rate based on the actual performance of their restaurants in the airport. Pappas also launched a social media campaign, #SaveOurPappas, and gathered 50,000 signatures on a petition to save their presence at the airport. Despite their efforts, two separate judges rejected Pappas' requests to stay while the legal case was ongoing.
The loss of Pappas Restaurants at Hobby Airport means that diners will no longer have access to local Houston dining options. Pappas restaurants that were part of the airport included Pappas BBQ, Pappas Burgers, Pappasito's, and Pappadeaux. These eateries will be replaced by a mix of local and national brands, including Killen's Barbeque, The Spot, SpindleTap Brewery, Throughgood Coffee, and Clutch City Coffee. While some travellers lamented the loss of Pappas, others expressed their dissatisfaction with the quality of the food, a sentiment that is often associated with airport dining.
The new contract with Areas is expected to bring in over $10 million in revenue for Houston-area airports and give the city a larger percentage of that revenue. This decision is part of a broader trend of airports seeking to maximise their income from concessions, which are often among the most lucrative contracts available. While the change may bring financial benefits, it comes at the cost of removing a well-known Houston-based brand from the airport, as noted by Council Member Robert Gallegos, whose district includes the airport.
As Pappas Restaurants vacate Hobby Airport, they express their pride in their achievements and gratitude for their partnerships. CEO Chris Pappas shared his disappointment in the City of Houston's decision-making process, emphasising the importance of a fair and transparent process that supports local businesses. The departure of Pappas Restaurants from Hobby Airport marks a significant shift in the dining options available to travellers passing through Houston.
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The new concessionaire will operate local concepts at Hobby Airport
The new concessionaire, Areas, will operate numerous local concepts at Hobby Airport, including Killen's Barbeque, The Spot, SpindleTap Brewery, Throughgood Coffee, and Clutch City Coffee. The change will happen over the next two years, with 20 new food and beverage concepts opening between fall 2023 and winter 2024.
Areas is a Spanish company with experience in 89 airports worldwide, including nine in the United States. The company has partnered with several local partners on its proposal, including former state Rep. Helen Giddings and Houston attorney Harry Johnson.
The decision to award the contract to Areas was made by the Houston City Council in March 2023, following a controversial vote. The 10-year, $470 million contract is expected to bring in over $10 million in revenue for Houston-area airports and give the city a bigger percentage of revenue.
Pappas Restaurants, the previous concessionaire at Hobby Airport, has questioned the contracting process, filing a lawsuit against Areas and the City of Houston. Pappas Restaurants is a Houston-based company with several brands that are synonymous with the city, and its departure from Hobby Airport has sparked mixed reactions from travellers.
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Frequently asked questions
Pappas Restaurants lost its contract with Hobby Airport, with the council voting to enter an agreement with Areas, a Spanish company, to handle restaurant operations at the airport for the next 10 years.
The council members decided to award the contract to Areas in an 11-6 decision.
Pappas's CEO questioned the 'flawed' contracting process, and the company sued the city, but two separate judges rejected the company's requests to stay while the legal case played out.
Restaurants like Killen's BBQ, Velvet Taco, Longhorn Steakhouse, Yard House, and Spindletap Brewery, among others, will replace Pappas at Hobby Airport.
Pappas's lease at Hobby Airport ended on May 11, 2023, and the company moved out of the airport overnight on Thursday, May 11, into Friday, May 12.
