SAN DIEGO – San Diego Metropolitan Transit System and The Kobey Corporation announced today a new nine-year, $2.75 million Master Concessionaire agreement with BriceHouse Kobey, LLC, an affiliate of The Kobey Corporation, that will provide the agency an estimated 900-percent increase in such revenues.
Under the terms of the deal, new individually owned and operated “MTS StationShops” will be added at stations along the entire transit system. Two new such MTS StationShops along MTS’ lines are already in place in Fashion Valley and San Diego’s Downtown C Street locations.
“MTS continues to diversify our revenue sources to maintain a high level of bus and trolley service,” said Harry Mathis, Chairman of the Board of Directors of San Diego Metropolitan Transit System. “This new agreement is a significant part of that plan. Not is MTS maximizing its assets and substantially increasing non-fare revenue during tough economic times, but it is vastly improving the customer experience.
The MTS StationShops are comprehensive retail program consisting of modular concessionaire kiosks that come in three basic sizes. This retail program is being developed and implemented by BriceHouse Kobey, LLC, an affiliate of The Kobey Corporation. Each StationShop will offer a wider range of food and sundry items for purchase than what was available before at the transit centers, and will replace existing small kiosks that now exist at these outlets. Owners will be required to meet exacting standards in order to continue operating them.
The new agreement affords not only greater value to commuters, but also enhanced business opportunities for the concession franchise owners as well as their vendors. Many of these outlets will more than likely need to hire additional employees as a result.
“This is perfect example of how San Diego is the model for how public-private partnerships can offer substantial benefits to taxpayers, commuters, job seekers, small business owners and communities at large,” said Kimberly Kobey Pretto, President of The Kobey Corporation. “We’re excited to launch this joint initiative with MTS, and look forward to opening the various MTS StationShops system wide in the near future!”
BriceHouse Kobey expects MTS Station Stops to be added at the following locations over the next 12 months: San Ysidro, Gaslamp, Convention Center, Seaport Village, SDSU, and Grossmont Center.
The San Diego Metropolitan Transit System generated more than 90 million trips in 2009 on almost 90 bus routes and 53 miles of rail. For further information on fares, routes, and schedules, or to plan a trip, visit www.sdmts.com or call 511.
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