This story was updated to add new information.
SOUTH BEND — Surrounded by his employees and family members, President of the South Bend Chocolate Company Mark Tarner appeared to get emotional speaking about the pride he has in his company and the journey it’s endured over 35 years in business. He took many risks, including signing a contract to be the South Bend International Airport’s master concessionaire in 2014, he said.
Which is why when the airport chose to part ways with the Chocolate Company and instead went with out-of-state vendor Sky Dine during a rebidding process, something didn’t feel right to Tarner. The Chocolate Company announced May 4 that it was suing the South Bend International Airport, accusing the airport of not conducting the bidding process with fairness.
Tarner said during the company’s time at the airport, it increased sales to $4.6 million, which equates to a 372% increase. His dispute with the airport isn’t that the Chocolate Company didn’t have its contract renewed, Tarner said, but rather about accountability.
“I sense that hasn’t been fairness in this process, and maybe it was predetermined,” Tarner said. “I have serious concerns about the level of transparency and consistency that our community needs and that the law actually demands.”
According to the originally filed complaint, on or about Sept. 30, 2025, staff members of the Airport Authority held a non-mandatory pre-proposal meeting that some of the businesses that submitted proposals attended. A representative of the South Bend Chocolate Company did not attend this meeting, and Tarner said certain information was given during the meeting to those who attended concerning factors that would be considered in evaluating their likelihood of receiving an approved bid.
“I think at that point they told the other vendors they wanted Jimmy Johns and Dunkin’ Donuts,” Tarner said. “We never got the message, and they didn’t tell us. … We could have gotten the franchises and done it ourselves, but they left us in the dark.”
Four other multi-airport operators submitted proposals, including Sky Dine, and each one included a Jimmy Johns and a Dunkin’ Donuts, Tarner said.
In a statement released on May 5, the airport said it disagrees with the claims being made against it by Tarner. According to the statement, the selected proposal submitted by Sky Dine includes a mix of local and national brands, such as two full-service Lauber restaurant locations, two new Dunkin’ locations, a Jimmy Johns, a new burger and beer concept, and expanded retail.
The original complaint also stated the Chocolate Company learned that Airport Authority staff, its director Mike Daigle and certain Airport Authority board members were told before the contract was awarded that Sky Dine had entered into an agreement with South Bend Chocolate Company to purchase and market South Bend Chocolate Company product at the South Bend International Airport and at other airports where Sky Dine is the concessionaire. There is no such agreement and such an agreement has not even been discussed between Sky Dine and South Bend Chocolate Company, Tarner alleges in the lawsuit.
The South Bend International Airport has filed a formal response with a motion to have the case dismissed.
The Tribune called the airport’s spokesperson after Tarner’s press conference to seek a response to more of his allegations. She referred The Tribune back to the airport’s May 5 statement denying Tarner’s allegations.
South Bend Chocolate Company’s proposal
Tarner’s proposed plan for the airport included integrating the University of Notre Dame throughout the space. Around 60% of fliers, whether leaving from the airport or returning to it, are connected to Notre Dame in some way, Tarner said.
Executive director of Visit South Bend Mishawaka Jeff Jarnecke as well as Notre Dame representatives presented the Chocolate Company’s proposal to the airport alongside Tarner, he said.
“My vision is when you come to South Bend, the airport’s a world-class place like Notre Dame,” Tarner said. “Notre Dame is a world-class attraction, and I don’t think things Dunkin’ Donuts screams God, Country and Notre Dame.”
Tarner’s plan included building a Notre Dame team store, remodeling the Legendary Traditions gift shop and bringing South Bend Farms to the airport. The Chocolate Company also offered to give the airport 18% of its revenue, while Sky Dine offered 16%, he said.
End goal unstated
During the press conference, Tarner said he wanted to emphasize that he’s not avoiding competition but rather pointing out red flags he’s noticed.
“The airport has a track record of how it treats its employees, tenants, vendors, contractors and, for that matter, other government entities,” Tarner said. “That pattern makes transparency and fairness even more important.”
The red flags add up to a critical assessment.
“Their behavior and environment at the airport is toxic and it’s unsustainable,” he said. “Bad places like this are unsustainable.”
There isn’t a clear dollar amount or agreement imposed if Tarner wins the lawsuit, he said. He hasn’t asked for any money and instead is hoping for a fair chance to compete.
“I can’t foretell the future, but I can tell you this, I performed better than out of state vendors before. I can again,” Tarner said. “The Lauber’s a great place, [but] it’s been in business for three years. What’s a better brand, Notre Dame and the South Bend Chocolate Company or The Lauber?”
Losing the airport contract puts the South Bend Chocolate Company at risk of losing $4.7 million worth of business and 25% of the company’s overall revenue, Tarner said.
With the Chocolate Company’s 10-year lease with a two-year extension expiring May 31, a lot of the future is uncertain. Tarner said he plans to seek an injunction and doubts the Chocolate Company will be moved out of the airport by the end of the month.
“We’re worried,” Tarner said. “This lawsuit is about trying to figure out why a vendor of our caliber and our success record there wasn’t even considered.”
Email South Bend Tribune business reporter Jessica Velez at jvelez@usatodayco.com.
This article originally appeared on South Bend Tribune: South Bend Chocolate chief says airport’s behavior ‘toxic,’ rigged
Reporting by Jessica Velez, South Bend Tribune / South Bend Tribune
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