Timeline
Related documents
What is Being Proposed?
The Board of Airport Commissioners is requesting City Council approval to allow Areas USA Inc. to take over food and beverage concession operations at Los Angeles International Airport (LAX) from the current operator, Delaware North Companies Travel Hospitality Services Inc. This change of control affects two concession agreements: LAA-8589 and LAA-8549.
Why This Matters
When a concession operator changes hands, the airport authority must approve the transition to ensure the new operator meets operational standards and requirements. The Board of Airport Commissioners already approved this change on October 16, 2025, and is now seeking City Council's formal authorization to finalize the transfer and allow the new operator to execute the agreements.
Key Details
Current operator: Delaware North Companies Travel Hospitality Services Inc. New operator: Areas USA Inc. Location: Los Angeles International Airport Concession agreements affected: LAA-8589 and LAA-8549 (food and beverage services) Approval date by Board: October 16, 2025 Board Resolution: No. 28252 Financial impact: No impact to the City's General Fund
Impact
This change affects airport passengers and employees who use food and beverage services at LAX. The transition is routine airport management that requires City Council approval as part of the airport's governance structure. There are no costs to Los Angeles taxpayers.
What is Being Proposed?
The Los Angeles World Airports (LAWA) is requesting Board approval to allow Areas USA, Inc. to take over food and beverage concession operations currently run by Delaware North Companies Travel Hospitality Services, Inc. (DNC/THS) at Los Angeles International Airport. This change of control requires City Council approval and includes a waiver of any termination rights that might otherwise be triggered by the ownership change.
Why?
DNC/THS requested this change of control on July 29, 2025, as part of a business transaction. LAWA is granting consent to ensure the transition does not constitute a breach of the existing concession agreements and allows Areas to seamlessly continue operations under the current terms.
Key Details
The two concession agreements affected are: LAA-8589 (approved June 2011): Covers Terminal 5 food court and two coffee locations LAA-8549 (approved October 2010): Covers casual dining/bar concepts in Terminals 5 and 7 These agreements were originally 10-year terms, extended twice due to COVID-19 and to delay replacements until after the 2026 FIFA World Cup and 2028 Olympic Games. The change requires no new funding or fiscal impact.
Impact
This primarily affects LAX travelers and airport operations. The change is administrative—passengers will see no disruption to food and beverage services at these terminal locations, as Areas will maintain operations under the existing agreements and service standards.
What is Being Proposed?
The City of Los Angeles Department of Airports is approving the change of ownership for two food and beverage concession operations at LAX: DN Dakota/JME LAX 8589 Farmers, LLC and DN Dakota/JME LAX 8549 Pucks, LLC. AREAS USA, Inc. is acquiring these operations from Delaware North Companies, Incorporated through a stock purchase transaction dated July 9, 2025. This change of control requires the City's formal consent before the ownership transfer can take effect.
Why?
Change of control provisions are standard in airport concession agreements to ensure continuity of service and protect the City's interests. The City must verify that new operators will maintain service quality, comply with all existing contract terms, and meet all regulatory requirements. This consent document establishes that all original concession agreement obligations remain in force regardless of ownership change.
Key Details
Locations: Terminal 5 Units 5H, 5R, 5T (Farmers); Terminal 5 Unit 5C and Terminal 7 Unit 7D (Pucks) at LAX Transaction Date: July 9, 2025 Buyer: AREAS USA, Inc. (CEO Carlos Bernal, Miami, FL) Previous Owner: Delaware North Companies, Incorporated Guarantor: AREAS S.A.U. reaffirms its guarantee of all concession obligations Refurbishment Commitments: Buyer must complete Wolfgang Puck T7 renovations by December 31, 2026, and Wahoos Terminal 6 rebranding by June 30, 2027, with failure constituting material default.
Impact
This approval allows AREAS USA to assume operation of these popular airport restaurants. Residents and travelers will likely see continued dining service with planned renovations and upgrades to certain locations. The City protects itself through cross-default provisions that allow termination if the new operator breaches any other City contracts or fails to maintain compliance with hazardous substance and safety regulations already in place.