Council members voted 11-6 in favor of awarding a 10-year contract with a Miami-based company called Areas SAS.
SEE RELATED STORY: Houston City Council votes against renewing Pappas restaurants' contract at Hobby Airport
Our partners at the Houston Chronicle reported Pappas filed a protest, asking the city of Houston to set aside the new contract and re-evaluate the bidding process.
Areas offered a higher percentage of sales to the city at 22.2% compared to Pappas, which offered 15.2%.
Council Member Dave Martin said he loves Pappas but can't look beyond the revenue.
Pappas argues officials violated city and state law when they gave the Hobby Airport concession contract to Areas.
Pappas had the Hobby contract for 20 years, but the transition is planned for later this year.
In a press release, Hobby said Areas operates more than 130 restaurants inside 10 major airports in the U.S. The new agreement is set to include Killen's Barbeque, The Spot, SpindleTap Brewery, Starbucks, and Yard House, and is projected to generate as much as $104 million in revenue.