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IMMEDIATE RELEASE

Release No: 351-01
August 02, 2001

DOD TAPS NAVY EXCHANGE SYSTEM TO PROVIDE PENTAGON FOOD SERVICE

The Department of Defense (DoD) Concessions Committee has unanimously selected the Navy Exchange Service Command (NEXCOM) to provide food service at the Pentagon starting in March 2002.

The agreement with NEXCOM will make extensive use of brand name franchises such as Dunkin' Donuts, Kentucky Fried Chicken, Manchu Wok, McDonalds, Pizza Hut, Sbarro, Starbucks, Subway and Taco Bell. NEXCOM also will provide its in-house signature brands that include Market Carvery and Trattoria.

Recent independent surveys of the Pentagon workforce indicated a growing preference, by a 3 to 1 margin, for brand name franchise food programs over the typical cafeteria and snack bar programs currently operated in the Pentagon.

Over the past decade, both NEXCOM and the Army and Air Force Exchange Services (AAFES) have developed highly successful and popular brand name food programs on military installations. Both resale organizations presented business plans to provide branded food service programs at the Pentagon. The concessions committee evaluated the proposals based on a variety of criteria, including operational strategies, variety and brands of foods offered, projected income and expense to the committee, and price of meals.

The current food service management firm at the Pentagon is ARAMARK Corp. of Philadelphia, Pa., which traditionally offers its own in-house food programs.

"Although the decision to go with NEXCOM was strictly a business one, it was a difficult decision because the Pentagon has had a long and very satisfactory relationship with ARAMARK," said Nelson Toye, chairman of DoD's Concessions Committee. Toye added that the overwhelming desire for brand name food service and the financial aspects of the NEXCOM and AAFES proposals were too attractive not to select one of them.