Former City Council President Maren DeWeese reported today that that the food concessions at the Pensacola International failed to meet its revenue projection by $255,185.
The likely culprit is how long it took for OHM Concessions to open its food and drink services. Chick-fil-A didn’t open until early June 2015. The actual revenue performance of OHM Concessions has been kept from the public until now–when City CFO Dick Barker has to make the year-end budget adjustments.
Maybe the City could add monthly airport food concessions revenue to its Transparency page.
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Update Nov. 17:
A week later, the city updated its “Transparency page” with the following:
To clarify any misinformation the City of Pensacola has compiled a more accurate explanation as to the revenues and sales of OHM Concessions.
FY15 revenues and sales exceeded budgeted projections by over 50%.
o The initial revenue amount established in the FY’15 budget for the food and beverage concession was $300,000. The total revenue collected thru September 30, 2015 was actually $454,815. Therefore we collected $154,815 more than we budgeted to collect.
o The gross sales for OHM for FY’15 were $3,333,223.47, as compared to gross food and beverage sales of $2,430,261 in FY’14 when the operation was split between Varnas and OHM for the year, and as compared to gross sales of $2,412,591.35 for FY’13 when Varonas operated the concession.
o In August 2015, a budget resolution was performed, adjusting various lines in order to balance the Airport’s overall budget, and the food and beverage line was one of those adjusted because overall Airport revenues were coming in greater than forecast. For the November 2015 budget resolution, lines are again being adjusted, and with respect to the food and beverage revenue.