Airport Experience® News - ACDBE & Small Business Issue 2024

JULY/AUGUST 2024 / V22 N256

HONORING THE BEST IN AIRPORT CONCESSIONS SMALL BUSINESSES

ACDBES PARTNER FOR SUCCESS

AIRPORTS FORGE UNIVERSITY PARTNERSHIPS

MCI’S COOPER SHARES NEW TERMINAL TRIUMPHS

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With the talents and passion of our outstanding ACDBE partners, we continuously deliver elite traveler experiences that radiate a genuine sense of place through hyper-localized restaurants and retail offerings. Local Partners Influencing Local Inspiration

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15 Distinguished Operators AXN announces its first six ACDBEs of Distinction. Members of the AX Advisory Group and other valued colleagues nominated ACDBE-certified operators that excel in airport concessions. 28 Partnering For Success ACDBE-certified companies have long partnered with primes on airport opportunities. But increasingly, these small businesses are looking to each other, merging talents and resources to bid on new contracts. 34 The University Edge Airports are keen to tap into local talent and knowledge. What better place to look than to nearby universities? New partnerships are building a solid bedrock of incoming talent and supporting cutting-edge innovation projects at airports nationwide.

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4 Letter From The Editor 6 Data Check

A McKinsey & Company report released in May suggests continuing strong demand for travel, but new consumer demands could require some pivots. 8 Latest Buzz Destination CLT is a multi-year, $4 billion investment in capacity enhancement currently underway at Charlotte-Douglas International Airport. Concourse A will be coming on stream soon. 12 Director’s Chair Kansas City International Airport over the past decade from her seat in the properties and development department. Now, with a brand-new terminal open and running smoothly, she’s in the director’s chair making plans for the future. Melissa Cooper witnessed a remarkable transformation of

40 Airlines Travel demand is rising and, for the most part, the nation’s airlines are thriving. But a shakeout is in the works, especially among ultra-low-cost carriers, experts say. 43 Advertising Index 44 What Once Was Lost Dallas/Fort Worth International Airport is using artificial intelligence to reconnect travelers with lost items.

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Andrew Tellijohn Senior Reporter Sally Kral Contributing Writer Sarah Beling Contributing Writer

TEAM

Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Tristan Lueck Marketing Coordinator Emma Vail Marketing Coordinator AXN ADVISORY GROUP Kim Becker, San Diego International Airport Derryl Benton, Avolta Zenola Campbell, Dallas/Fort Worth International Airport Bryant Francis, Cleveland Hopkins International Airport Mark Gale, Fort Lauderdale-Hollywood International Airport Eric Johnson, Nashville International Airport Roddy McOwan, WH Smith North America Pat Murray, SSP America Gregg Paradies, Paradies Lagardère Kevin Westlye, High Flying Foods

Desiree Hanson Chief Commercial Officer Melissa Montes Vice President/Publisher Carol Ward

Editor-in-Chief Nicole Watson Business Development Manager Sally Kral Contributing Writer Sarah Beling Contributing Writer Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Katy Welch Senior Marketing Manager Amanda Litwack Marketing Coordinator Emma Vail Marketing Coordinator

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JULY/AUGUST 2024

Dear Readers,

JULY/AUGUST 2024 / V22 N256

Welcome to the Small Business/ACDBE issue of Airport Experience News Magazine! This issue is special. In a new initiative from AXN, this issue reveals AXN’s ACDBEs of Distinction! The ACDBEs of Distinction program honors small, certified businesses that have excelled in airport concessions. After receiving dozens of recommendations from the AX Advisory Group and other industry colleagues, the AX Team selected six individuals and their companies to be honored in this inaugural class. Each of the six is profiled in the pages of this magazine. Speaking of excellence in airport concessions, the AX Team is preparing for the nomination process for the 2025 AX Awards. Nominations will open in late summer, but first we need to recruit the new AX Awards Committee. Each year, AXN gathers 12 airport executives and 12 concessions/consulting executives to advise on the awards process and ultimately vote on the finalists. If you would like to be part of this year’s committee, please email me directly at carol@airportxnews.com. We’re also gearing up for the 2025 Airport Experience Conference in Washington D.C. While the conference itself is still eight months away, the AX Team is envisioning the Experience Hall, adding new sponsorship opportunities and assessing possible topics for compelling educational sessions. We want you to have a voice! For Experience Hall and sponsorship input, please contact Nicole Watson, business development manager, at nicole@airportxnews.com. For session ideas, please contact me directly at carol@airportxnews.com, and for any additional feedback on how we can make the 2025 AX Conference the best yet, please contact Barb McCarter at barb@airportxnews.com.

HONORING THE BEST IN AIRPORT CONCESSIONS SMALL BUSINESSES

ACDBES PARTNER FOR SUCCESS

AIRPORTS FORGE UNIVERSITY PARTNERSHIPS

MCI’S COOPER SHARES NEW TERMINAL TRIUMPHS

Thanks!

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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DATA CHECK

A “JOURNEY OF DISRUPTION” New McKinsey Report Forecasts An Altered Travel Landscape

BY CAROL WARD

Web <2024> Exhibit <1> of <5>

Domestic and Regional Demand After falling by 75% in 2020, travel is nearing full recovery, the report said. Spending on travel is expected to reach $8.6 trillion globally in 2024, representing roughly 9% of this year’s global GDP. But while travelers all over the world are venturing out to new destinations, the bulk of travel occurs close to home. Domestic travel still represents 75% of global travel spending. The United States is the world’s largest domestic travel market at $1 trillion in annual spending. Sixty-eight percent of all trips that start in the United States remain within its borders, the report said. While traffic patterns are expected to shift in the coming six years, domestic trips will still make up the lion’s share of travel through 2030. However, China’s domestic travel market is expected to grow 12% annually and overtake the United States to become the world’s largest by 2030. Meantime in the U.S., while domestic travel is projected to continue its growth trajectory, intraregional and international travel are expected to advance at a quicker pace, the report showed. For all of North America, intraregional and international travel made of 12% of total travel in 2023, and that figure is expected to rise to 16% by 2030. The United States, Germany, the United Kingdom, China, and France remain the world’s five largest sources of travelers, in that order. These countries collectively accounted for 38% of international travel spending in 2023 and are expected to remain the top five source markets through 2030, the report said. However, other, smaller destinations are gaining traction as travelers seek lesser-known places to visit.

Domestic Travel Still Represents the Bulk of the Travel Market, Even as Intraregional and Interregional Travel Ramp Up Growth

Global outbound travel spending, by source, $ billion 1

Global outbound lodging nights, by source, billions

38.7

8.6

Interregional

0.9

Interregional

7.3

Intraregional

1.7

27.4

0.5 5.5

Intraregional

4.5

11.6

0.9

6.8

Domestic

6.0

Domestic

19.8

16.1

4.1

2023

2030 projected

2023

2030 projected

Note: Interregional refers to international travel outside a region; intraregional refers to international travel within a region. Regions for the purposes of this exhibit are Americas, Asia, Europe, and Middle East and Africa. 1 Based on in ation-adjusted 2024 dollars. Source: Oxford Economics

T he uptick in air travel demand may be on the verge of becoming a travel boom, research and consulting firm McKinsey & Company says, with tourism and hospitality demand set to soar. According to McKinsey’s The State of Tourism and Hospitality 2024 report, the growth will be powered by new travelers, destinations and trends, with a departure from the norm as shifting source markets and destinations, growing demand for experiential and luxury travel, and innovative business strategies are all combining to dramatically alter the industry landscape.

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DATA CHECK

Younger Generations Show Signi cant, Growing Interest in Travel

Share of respondents reporting increased interest in travel,% 1

The world’s top ten destination countries currently receive 45 percent of all travel spending, including domestic travel spending. But some new locales are gaining traction.

Strongly agree

Agree

Gen Zers (age 18 to 25)

41

35

Millennials (age 26 to 41)

37

35

Gen Xers (age 42 to 57)

28

36

Baby boomers (age 58+)

22

33

Overall

31

35

1 Question: Do you agree or disagree with the following statement: “I am more interested in travel than I used to be”? Respondents who answered “neither agree nor disagree,” “disagree,” “strongly disagree,” or “don’t know/no answer” not shown. Gen Zers, n = 396; millennials, n = 2,037; Gen Xers, n = 1,660; and baby boomers, n = 968. Source: McKinsey State of Travel Survey, Feb 27–Mar 11, 2024 (n = 5,061)

Younger Generations Take Nearly as Many International Trips as Domestic Trips

Gen Zers (age 18 to 25)

Millennials (age 26 to 41)

Gen Xers (age 42 to 57)

Baby boomers (age 58+)

Average number of trips taken in the past year, by trip type

Overall

–9%

–16%

–26%

–71%

–23%

Domestic

2.7

International

2.4

2.3

2.3

2.3

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Prioritizing Travel The State of Tourism and Hospitality 2024 report also contends that travelers increasingly prioritize travel but they are no longer content with a one-size-fits-all experience. “Individual personalization might not always be practical, but savvy industry players can use segmentation and hypothesis-driven testing to improve their value propositions,” the report noted. “Those that fail to articulate target customer segments and adapt their offerings accordingly risk getting left behind.” Sixty-six percent of the travelers surveyed by McKinsey said they’re more interested in travel now than they were before the pandemic. Travel continues to be one of the fastest growing consumer spending areas, rising 6% over a recent 12-month period in the United States, even when adjusted for inflation, the report noted. And in the February 2024 McKinsey

1.9

1.7

1.1

Note: Gen Zers, n = 396; millennials, n = 2,037; Gen Xers, n = 1,660; and baby boomers, n = 968. Source: McKinsey State of Travel Survey, Feb 27–Mar 11, 2024 (n = 5,061)

ConsumerWise Global Sentiment Survey of more than 4,000 participants, 33% of consumers said they planned to splurge on travel, ranking it the third most-popular splurge category—trailing only eating at home and eating out at restaurants. Younger travelers are most likely to venture abroad, the report noted. Gen Z and Millennial survey respondents were planning a nearly equal number of international and domestic trips in

2024, no matter their country of origin, whereas older generations were planning to take roughly twice as many domestic trips. Millennials (now age 26-41) are the most travel-minded, with the survey showing they planned to take an average of five trips this year. Gen Z plans were nearly as prolific, with an average 4.4 trips planned. Gen X respondents planned an average 3.9 trips this year while Baby Boomers anticipated an average 3.4 trips.

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LATEST BUZZ

CLT’S CAPACITY PUSH New Gates, Concessions Are Nearing Completion In An Expanded Concourse A

BY SARAH BELING

overall $4 billion capital investment in capacity enhancement projects known as Destination CLT. Under Destination CLT, the airport is currently expanding its terminal lobby and undertaking various terminal renovations in two separate projects slated to be completed next year. Already completed are an elevated roadway and terminal curbfront, as well as an expansion to Concourse E. Expansions to Concourses B and C are in the early planning stages. For Concourse A, CLT began design in 2019 and was set to begin construction

harlotte Douglas International Airport (CLT) is consistently ranked one of the world’s busiest

Above: The Concourse A expansion at Charlotte Douglas International Airport, projected to cost $241 million, is expected to open in September 2024. The project is part of Destination

C

transit hubs, and for passengers traveling through the popular facility, a newly updated and expanded Concourse A will soon provide much-welcomed additional terminal infrastructure. In 2023, CLT welcomed 53.4 million passengers through its doors - a new record, says Jack Christine, chief infrastructure officer at CLT. Plans to expand CLT’s facilities began in 2016, he adds, during the airport’s Master Plan update analysis. The Concourse A project is part of the

CLT, a $4 billion capital investment in capacity enhancement currently underway.

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LATEST BUZZ

was diverted from landfills” and that Concourse A’s redesign process “is on track to earn Green Globes certification,” which recognizes sustainability efforts during design and construction. The $241 million project - funded by a combination of passenger facility charge bonds, non-PFC bonds and a North Carolina Airport Improvement Program state grant - is also the work of several Charlotte-based companies: architecture firm C Design , contractors JE Dunn and construction firm McFarland , with additional collaboration by New York-based architecture firm Perkins&Will . For the C Design team, CLT’s expansion was an opportunity to create a pleasingly modern terminal aesthetic with environmentally friendly infrastructure. “The architectural design of the concourses features large expanses of dynamic glazing and wing-like roof structures, all unified by a wave of LED-lit fins to evoke a sense of movement, which is fitting for the bustling airport,” says Gary Beal, aviation market leader and principal for C Design. “Both expansion phases aim for Green Globes certification, with the first phase already certified. CLT’s commitment to sustainability is captured in the architecture as well through airfoil shaped solar control devices and electrochromic glass, maximizing the daylighting and views provided by two-story windows throughout the space,”

in winter 2020 but the pandemic led the team to pause the start of construction until May 2022. The updated concourse, which is currently scheduled to open in September 2024, will add 191,848 square feet to the airport’s terminal space, including 10 new gates, higher ceilings, and a wider terminal feel. Improvements range from the installation of new art works (including an aviation-themed mural from artist Valerie Britton composed of aeronautical maps and flight patterns), the opening of concessions and retail concepts to logistical upgrades like new restrooms, seats equipped with charging capabilities and auto-tinting window glass designed to help sustainably regulate sunlight and temperatures in the concourse. “We are excited to offer our customers spacious holdrooms with natural light, amenities such as in-seat charging and experiential exhibits that provide our customers an opportunity to learn while on their journey,” adds Christine. Other health and sustainability measures include energy efficient lighting (including natural lighting in the gate area), water saving toilets and sinks in the airport’s new restrooms, HVAC system enhancements to prioritize indoor air quality and UV filters to reduce airborne viruses. CLT has also prioritized a sustainable building practice, adds Christine, noting that “over 70% of waste generated during construction

Above: Last year was a record year for Charlotte Douglas International Airport. At 53.4 million passengers annually, the airport ranks ninth among U.S. airports in passengers served.

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LATEST BUZZ

he adds. “Additionally, the concourses feature both digital and sculptural art as well as displays that will educate and enhance the passenger experience.” For contractors JE Dunn, “our vision for this project is to create an exceptional space that delivers a world-class experience for travelers and airlines while upholding the highest standards of quality and safety,” says project executive Nick Christoffersen. Concessions Mix In addition to a state-of-the-art, spacious concourse, CLT passengers will soon be able to enjoy new and updated retail and concessions offerings from operators HMSHost (part of Avolta ), Paradies Lagardère , and DBE concessionaire SB&J Enterprises . HMSHost will manage the concourse’s new Dunkin’ Donuts, Crown Diner (which will also feature a bar program) and a relocated Great Wagon Road Distillery (formerly known as the Broken Spoke). “HMSHost has a longstanding relationship with Charlotte Douglas International Airport, so we have had a front-row seat to watch its exciting evolution and growth, and are proud to be a part of enhancing the passenger experience through food and beverage,” says Steve Johnson, president and CEO at Avolta North America of the concessionaire’s incoming concepts. “In

the Concourse A expansion, we took a very thoughtful, intentional approach to creating a dining experience that would fulfill the diverse needs of travelers at CLT. Passengers will see a mix of nationally recognized brands, local favorites, and proprietary concepts created exclusively for CLT. This is a wonderful example of collaboration that puts the traveler at the center of all we do.” Charlotte-based SB&J will manage a new retail concept called the Marketplace, while Paradies Lagardère will manage retail concepts iStore and Tripadvisor. At press time, an additional portfolio of retail offerings was in the works but not yet announced. “We appreciate our strong partnership with the Charlotte Douglas International Airport and are excited to support the Concourse A expansion with new and renovated retail offerings that include outstanding brands such as iStore and Tripadvisor,” says David Bisset, chief development officer for Paradies Lagardère. “Our activities in Concourse A are part of a larger effort as we will be unveiling a total of 13 new or renovated concepts across the airport that showcase an excellent blend of national brands and iconic local nameplates. With more than 50% of our retail program here being directly managed and operated by our excellent ACDBE partners, we are thrilled with the opportunity to continuously elevate the traveler experience in Charlotte.”

Elevating the traveler experience and bringing CLT’s facilities up-to-date are critical touchpoints to maintaining the airport’s robust economic contributions to the region, adds Christine. “As an economic engine of the Carolinas, CLT contributes $32 billion in annual economic output, $1.82 billion in state and local taxes, supports 151,575 jobs for North Carolina residents and $9.9 billion in personal income, according to the N.C. Department of Transportation Division of Aviation,” he notes. By improving CLT’s infrastructure, he says, the airport has future-proofed its facilities as passenger numbers continue to rise. Top, Above: The Concourse A project will add 10 gates, higher ceilings and a wider terminal feel. The project is on track to earn Green Globes certification due to its sustainability-focused building practices.

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DIRECTOR’S CHAIR

TAKING MCI FORWARD With New Terminal Facility, Kansas City International’s Cooper Shares Vision For Growth

BY CAROL WARD

ditor’s Note: In February 2023, the new 40-gate terminal at Kansas City International Airport opened for commercial air service, replacing three aging terminals and an awkward layout that limited commercial activity at the airport. The one million square foot terminal was constructed with a budget of $1.5 billion and is the largest single infrastructure project in the city’s history. Nine months after the new terminal debuted, Melissa Cooper, was named aviation director for the Kansas City Aviation Department. Cooper had built her career at MCI over 17 years. Prior to being named director, she served as deputy director of aviation over properties and commercial development, a position from which she helped envision and launch the new facility. Now with nine months leading MCI, Cooper spoke with AXN’s Carol Ward about what’s next for the airport. E

WARD: You’re coming up on a year in the director role at Kansas City International. Can you share how the transition has gone? And with the big terminal project behind you, what’s your vision for MCI going forward? COOPER: Kansas City International Airport is a unique airport. With the old layout, we were in a small facility with multiple security checkpoints. We found that we didn’t even really know our passengers. With the new terminal we have had to learn how to be an airport [in the same vein] as other airports within our state and within the United States. We’ve learned who our passengers are. We’ve learned their needs. We’ve learned how to have airlines in the same space and be neighbors, and [we’ve learned] how to handle concessions with and actual [robust] program, which has been a real learning curve. Our vision for the next several years is to continue really learning our customers - our travelers as well as our partners and our airport stakeholders - and how they can work together and how we can be a benefit to them. Each day we’re looking at new challenges, just being more prepared and offering a first-class experience for our passengers.

WARD: I know the new terminal was controversial, especially in the early years of planning. Now that it’s been open for more than a year, what feedback have you gotten from passengers? COOPER: Our passengers, our city, they’re loving the new terminal. They like the openness. They like the convenience. They really love how they can get in, get through security, have options, have seating capacity, shop, eat and still get to their gates and be on their airplane within an hour or so. They really just love the facility and are proud to have it in Kansas City. WARD: MCI has seen quite strong passenger growth in recent years. What is contributing to the growth and how are you handling it? COOPER: Kansas City International is seeing strength and growth in our numbers. Unlike most of our peer airports where 2019 was a record year, our record years were in 2000 and 2001, pre 9/11. Now we’re seeing numbers rebound past 2019 numbers for Kansas City, but also approaching those 2000 numbers. The aviation industry is seeing a spike in growth. We see that in the

Above: Melissa Cooper, aviation director, Kansas City Aviation Department.

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DIRECTOR’S CHAIR

TSA checkpoint numbers throughout the United States, but for Kansas City, we now have a facility that can handle that growth. We have airline partners who are ready to grow and expand because we have a facility that is state of the art and that passengers enjoy. WARD: About 18 months in on the new terminal, are there now any tweaks necessary or any changes in the works? COOPER: We’re still actually trying to close out the terminal project. We’ve learned some things through the first year and a half of operation and we continue to want to be the best we can be. WE are [in the process of adding] a common-use lounge area for our passengers. We also looking at ways to improve our arrivals, our curb and our cell phone lot experience and we continue to and try to enhance the security checkpoint line experience and our concessions experience. We have a great product, but we want to be better every day.

WARD: How is the concessions program performing? COOPER: We’ve seen in the a significant increase – our old terminal didn’t lend itself to concessions development. [Travelers] couldn’t see beyond the next curve of our horseshoe shaped terminal, and so our concessions program really was there to meet the minimum requirements of our passengers. With this brand-new terminal being wide open and connecting all of our airline partners and our stakeholders and our passengers in one space, we really had an opportunity to lean into a concession program that reflected on Kansas City. We’ve seen significant improvements in our revenue. (For calendar year 2022, with the previous terminal, MCI had food and beverage gross sales of $25.35 million, and news and gift gross sales of just under $6 million. In the first 11 months of the new terminal, food and beverage gross sales came in at $42.04 million while news and gift sales jumped to $22.27 million.)

Above: The new 40-gate terminal at Kansas City International Airport opened about 18 months ago, offering a more streamlined experience for travelers.

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DIRECTOR’S CHAIR

As part of the concessions program, we have a BBQ competition annually. The 2024 competition is scheduled for September, [hosted by] our concessions partner OHM. They will open up the competition [to BBQ experts] within a 60 mile radius of Kansas City International Airport. The winner of this competition will receive $25,000, a licensing agreement and the rights to [operate in] the terminal starting March of 2025 for 12 months. [The winner has] a first hand opportunity to learn how to run a business within the airport. It’s been a great experience. It’s fun for our travelers to experience this fine food choice and really fall in love with it, and they’re sometimes sad when their favorite menu items [are replaced with the advent of] new operators.

Right: New shopping and dining options in the new terminal have helped to boost revenues significantly, as travelers have much easier access to a broad range of concessions. Below: Passenger traffic is growing at Kansas City International Airport, exceeding 2019 levels and challenging the records set around the turn of the century.

WARD: Are there other changes or initiatives that you’d like to share? Cooper: We have less than two years to prepare for FIFA World Cup coming to Kansas City, and that is a significant event. We’re going to have six games in Kansas City, so that’s like six Super Bowls in a two-month period. We’re really focusing our efforts on preparing the airfield, preparing our terminal, preparing our transit system, preparing our concession program. We’re going to have international travelers and people coming to Kansas City for the first time, and we’re the smallest host city. We also continue to look for development opportunities on our airport property, both at the Charles B Wheeler Downtown Airport, as well as Kansas City International.

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A DISTINGUISHED CROWD

AXN Spotlights High-Performing Small Businesses With “ACDBE Of Distinction” Honor

BY THE AX TEAM

Airports across North America are focused on providing an exceptional customer experience. As part of that goal, they rely on extraordinary execution of their airport concessions program. Integral to the success of any program is participation of small businesses. In a new initiative, Airport Experience News has launched the ACDBE of Distinction award to honor small, Airport Concessions Disadvantaged Business Enterprises certified firms that excel in their field. Based on feedback from the AXN Advisory Group and other industry stakeholders, the AXN Team selected six ACDBE companies that embody the best attributes of the program. Each company was nominated by industry colleagues as an exemplary tenant or partner, providing an extraordinary experience for the traveling public.

The six operators in the inaugural group of ACDBEs of Distinction are: • Marc Brooks, Hyde Park Hospitality • Roz Mallet, Phase Next Hospitality Group • Cheng Lor, Aero Service Group • Shane Robinson, SC Robinson Enterprise • Katherine Lam, Bambuza Hospitality Group • Pilar Guzmán Zavela, Half Moon Empanadas

PROFILES OF THE HONOREES appear on the following pages. AXN congratulates this year’s winners and looks forward to putting the spotlight on other exceptional performers in the coming years.

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Right: In the eight years since Hyde Park Hospitality entered the airport space at DFW, the company has expanded its food and beverage operations to four additional airports. Pictured is the New Belgium Brewing Company opening at DEN.

DIVERSIFY TO THRIVE With Hyde Park Hospitality, President and CEO Marc Brooks Just Keeps Growing

BY SALLY KRAL

Hospitality, coupled with an entrepreneurial spirit, are the driving forces behind Marc Brooks’ career, which began with him operating restaurants in his hometown of Chicago. “At one point I was running 23 restaurants,” he says. “But brands have life cycles, and my former partner and I happened to come in at the tail end of a good cycle into a difficult cycle.” It was 2009 and they had signed a franchise deal with Burger King to run restaurants throughout the Midwest. “They had a younger management team and we saw that they were building some traction, and they welcomed us with open arms to grow in the system and become one of the largest African-American franchisees,” he says. “Lo and behold, not long after consummating the deal with them they were sold to private equity. We as franchisees in the field felt the brunt of a reduction in corporate resources, in national and local marketing, and in the headcount side of the corporation. So, we had to live through four years of negative same-store sales, which was tough, and at that point we elected to sell the entity back.” Those difficult four years led Brooks to shift his career goals. “I wasn’t going to be caught in that position again—I promised

myself that I wouldn’t be pigeonholed to one brand,” he explains. “I want the benefit of having some diversification where if one brand is struggling, it’s offset by another brand that’s positive or having some growth.” Brooks transitioned from freestanding restaurant ownership to starting Hyde Park Hospitality and initially developing accounts in the food service management arena with companies like Aramark . It was during those early stages of Hyde Park Hospitality that Brooks was approached by Anthony Joseph, who was president of Concessions International at the time. “This was around 2013 and they were looking for local folks to round out their team for a bidding opportunity that was coming up at Chicago O’Hare International Airport (ORD),” Brooks says. “Even though I knew of airport concessions, I didn’t know all the granular details – Anthony and Concessions International really helped me understand the scope of it.” Jumping In And so Hyde Park and Concessions International put together their plans to bid on the ORD opportunity but the RFP never ended up coming out. Despite

Above: Marc Brooks, president and CEO, Hyde Park Hospitality.

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this disappointment, Brooks persevered. “I still had an interest in and affinity for the industry, so I had to figure out a way to move forward with getting into airport concessions, but not necessarily getting in in my home market because it wasn’t available,” he says. “I plowed forward and I was able to get a deal with High Flying Foods at Dallas Fort Worth International Airport (DFW) in 2016.” Brooks had already been forming a relationship with the concessionaire, so when a live deal came up and he had both ACDBE certification in Texas and access to capital, the pieces fell into place. “It’s a joint venture and we have 35-percent ownership of the concept, called Artisan Market, and we’re still there today,” he says. From there, Brooks has grown Hyde Park Hospitality tremendously: The group partnered with High Flying Foods again at Denver International Airport (DEN) for a New Belgium Brewing location, with a new concept called Santo slated to open next year; entered a joint venture with HMSHost at Los Angeles International Airport (LAX) for Rolling Stone Bar & Grill, Panda Express, The Counter Custom Burgers, two locations of Coffee Bean & Tea Leaf, Taste of LA and BLD; and entered a joint venture at

AT A GLANCE NAME OF COMPANY: Hyde Park Hospitality HEADQUARTERS: Chicago, IL FOUNDER(S): Marc Brooks YEAR FIRST AIRPORT LOCATION OPENED: 2016

NUMBER OF AIRPORT LOCATIONS: 17 food and beverage locations, plus 1 opening in 2025 and 1 opening in 2026. 17 lounge locations, plus 4 slated to open by year-end and at least 4 more to open by 2026. AIRPORTS: Food and beverage operations in DFW, ORD, EWR, DEN and LAX, with lounge operations in an additional 15 U.S. airports, with more to come in 2025. FOOD AND BEVERAGE CONCEPTS OPERATED: Artisan Market, New Belgium Brewing, Rolling Stone Bar & Grill, Panda Express, The Counter Custom Burgers, Coffee Bean & Tea Leaf (2), Taste of LA, BLD, Starbucks, Chick-fil-A, Manchu Wok (3), Saladworks, Cafe Zoot, Half Moon Empanadas, Santo (slated to open in 2025), Bronzeville Bar + Bites (slated to open in 2026) LOUNGE CONCEPTS OPERATED: The Club (13, plus 2 more by year-end) and Chase Sapphire by The Club (4, plus 2 more by year-end), FUTURE PLANS: Hyde Park Hospitality will continue to take a methodic approach to business development, looking for continuous, yet calculated growth that fits within its overall corporate strategy.

interested in doing something with you, but we want to be able to build some scale – a one or two lounge deal doesn’t really interest us.’ And Nancy came back and said, ‘Let’s start with these three or four lounges and see how it goes.’ Fast forward to now and we’re operating 17 lounges with them, including both The Club and Chase Sapphire by The Club,” Brooks says. By the end of this year, Hyde Park will be operating more than 20 lounges, and additional openings are planned in 2025 and 2026. In addition to airport food and beverage and lounge operations, Brooks also accepted an offer in 2019 from the Hilton Hotel on the ORD campus to operate its food and beverage business. “It’s not a traditional concessions deal, but it was a huge opportunity for us, and today we have almost 100 employees there managing $12 million of business,” Brooks says. “As an entrepreneur, you either build this huge infrastructure and then hope you get the business, or you get the business and backfill the infrastructure. We did the latter because we just didn’t know a lot of these opportunities existed. We’re talking about going from me having one employee back in 2013 to now north of 1,000.” It certainly seems the sky is the limit for Hyde Park with Brooks at the helm who says a focus on leading with service and quality is at the core of the business. “We’re a hospitality company through and through and we pride ourselves on that.”

Newark Liberty International Airport (EWR) for Starbucks. In addition, Brooks and his partner and Hyde Park executive vice president Cortez Carter are part of a subtenant deal with HMSHost at ORD where they collectively operate three Manchu Wok locations, plus Saladworks, Cafe Zoot and Half Moon Empanadas. Also at ORD, Hyde Park is the majority partner of an all-ACDBE deal for a Chick fil-A slated to open this September. And most recently, Hyde Park entered a joint venture with High Flying Foods at ORD for Bronzeville Bar + Bites, which is slated to open in 2026. In the middle of this rapid expansion, an unexpected opportunity came Brooks’ way in 2018 when Airport Dimensions reached out to see if Hyde Park would be interested in coming on as an ACDBE partner to help run airport lounges. Brooks hadn’t previously considered lounge operations, but felt that the hospitality element fell well within his wheelhouse – plus he also has a background in retail, having operated stores in the wireless space before getting into restaurant ownership. “But I told Nancy Knipp, president of Airport Dimensions and who has since become a great friend and colleague, ‘We’re Left: Since starting out in lounge operations in 2018, Hyde Park Hospitality now operates 17 Airport Dimensions owned lounges in 15 airports across the country, with more locations to open by the end of this year.

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Right: Buffalo Wild Wings has become PhaseNext Hospitality’s core brand, with the company currently running locations at ATL, DFW and MSP, with a Buffalo Wild Wings GO currently under construction at BOS.

PATIENCE AND PERSEVERANCE PAYS OFF Roz Mallet, President and CEO of PhaseNext Hospitality, Is Proof Of It

BY SALLY KRAL

In her own words, Roz Mallet is a “recovering corporate geek,” having held leadership positions for such sizable restaurant companies as Carlson Companies , owner of the T.G.I. Friday’s franchise, La Madeleine de Corps and Caribou Coffee Co. “I loved working with franchisees and I really enjoyed the idea of creating brands,” she says. “I have a great passion for the restaurant industry.” This passion led Mallet to strike out on her own. “I had been in Minneapolis with Caribou for two years as CEO and I was ready to move back home to Dallas,” she says. She knew she didn’t want to do corporate again and she wanted more control over where she lived. “I had been in and out of Dallas most of my career – I’ve owned a home here for 27 years, but I’ve only lived in it for about 16 or 17 years of that because my corporate jobs would take me to other places.” Given her experience working with franchisees over the years, and at the encouragement of mentors, Mallet decided that becoming a franchisee was the best option for her to have the control over her decision-making that she was seeking. “And so becoming an entrepreneur was a fairly easy decision,” she says.

But this was toward the end of 2008, and the recession was raging on, which is what led Mallet to set her sights on the non-traditional space. “When I was at Caribou, we had closed over 60 restaurants in the previous year; it was very challenging,” she explains. “I was looking for something that had a little protection from recessions.” She wanted to enter the airport space, but as she learned more about the landscape, she determined she wasn’t interested in entering into joint ventures with prime concessionaires. Rather, she wanted to be a subtenant with the ultimate goal of being a tenant in her own right some day. But she also knew that this would require building up a reputation for her newly created company, PhaseNext Hospitality. “So, I started on a military base, Fort Bliss in El Paso, Texas, with Buffalo Wild Wings, a brand I had a connection with thanks to my time spent as an officer of the National Restaurant Association alongside fellow officer Sally Smith, who was the CEO of Buffalo Wild Wings at the time, as well as a Smashburger,” Mallet says. “I really wanted to find a way to gain enough credibility so that I could convince the primes that

Above: Roz Mallet, president and CEO of PhaseNext Hospitality.

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subtenancy makes sense –I knew it was going to take me a while but I wanted to take multiple steps.” She had already received her ACDBE certification, which she calls her “foot in the door,” but she didn’t stop there. “I got my HUB certification at the same time, and I just kept going: I got WBE certified, DBE certified, I did all these pieces with the goal of setting myself up to be not the typical ACDBE, to really be involved in how my company showed up, to be an operator.” Eyes On The Prize Mallet acknowledges that her approach to the airport business slowed her down compared to ACDBEs that agreed to joint ventures, but she cared more about being firm in her goal. “I didn’t want to do joint ventures because the only offers I got were to be a 10-percent partner while the prime runs the space and I’m just stuck being the human resources person – I didn’t want that,” she says. “I didn’t want to make impractical decisions for what my strategy was. You can learn to make adjustments and still have the long-term strategy in sight.” Her determination finally paid off: After beginning her business officially in 2009 and opening Buffalo Wild Wings and

AT A GLANCE NAME OF COMPANY: PhaseNext Hospitality HEADQUARTERS: Dallas, TX FOUNDER(S): Roz Mallet YEAR FIRST AIRPORT LOCATION OPENED: 2013 NUMBER OF AIRPORT LOCATIONS: 11, including 1 currently under construction AIRPORTS: ATL, DFW, MSP, BOS

CONCEPTS OPERATED: Buffalo Wild Wings (3), Buffalo Wild Wings GO (under construction), The Italian Kitchen by Wolfgang Puck, Jimmy John’s, Dunkin’ Donuts, Smashburger, Cousin’s Bar-B-Q (3) FUTURE PLANS: PhaseNext Hospitality has three additional executed Buffalo Wild Wings leases to be built in the next 15 months. Additionally, Mallet will continue to participate in selected RFPs.

Smashburger at Fort Bliss in 2010, she won her first airport contract—a subtenancy agreement with Delaware North —in 2012 at Hartsfield–Jackson Atlanta International Airport (ATL), with a Buffalo Wild Wings that opened in 2013. And just as she had planned back when she started her business, Mallet’s experience as a subtenant eventually earned her a direct lease agreement: In 2015, she won her first independent bid to open The Italian Kitchen by Wolfgang Puck in her home market at Dallas/Fort Worth International Airport (DFW). “I lost two bids before that 2015 win, but you can’t give up,” Mallet says. “You have to know where you want to go and be

patient and flexible. I just kept learning as I moved along.” Following her big 2015 win, Mallet earned two more direct leases at DFW for a Buffalo Wild Wings and a Smashburger, plus a 35-percent joint venture with a local restaurant operator called Cousin’s Bar-B-Q; another subtenant agreement with Delaware North at ATL for a Dunkin’ location; a subtenant agreement with Areas USA at Minneapolis–Saint Paul International Airport (MSP) for a Buffalo Wild Wings; and direct leases at Boston Logan International Airport (BOS) for a Jimmy John’s and a Buffalo Wild Wings GO that’s currently under construction. “In 2023, my business ended at about $25.5 million in revenue,” Mallet says. “And, you know, that’s over 15 years – to me it’s really slow. But there was Covid and I did start the business in the recession. It was hard to get momentum at the beginning. But that development strategy stayed, and I’m happy with the outcome.” Looking forward, Mallet is focused on continuing to grow the business. “Dallas/ Fort Worth has an RFP out now, Atlanta has an RFP out now – it’s about growth through the RFP process,” she says. “I’m also more open to doing a joint venture with a prime concessionaire now; it’s more attractive to me because it can help accelerate my growth. And I no longer have to worry about my credibility. I’m secure that the mutual respect is there.”

Left: After building her company’s reputation as a subtenant with prime concessionaires, Mallet won her first direct lease agreement in 2015 at DFW with The Italian Kitchen by Wolfgang Puck.

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Right: One of Aero Service Group’s most prominent operations is Stone Arch Craft Beer & Food at Minneapolis-St. Paul International Airport.

THE RELUCTANT RESTAURATEUR A Pivot To Help His Aging Parents Turned Into A New Career For Cheng Lor

BY SARAH BELING

Cheng Lor’s path to founding, operating and growing Aero Service Group – now in its second successful decade in business – has been a long and winding road. A refugee whose family fled the deadly Killing Fields of Cambodia in a dangerous six-year journey through slave camps, landmines and refugee camps before migrating to the United States, Lor’s first brush with the hospitality industry was working as a cashier and busboy, and later, assisting his parents in establishing their own restaurants near their new home in the Minneapolis-St. Paul area. “I worked in a Chinese restaurant that my dad worked at when I had just turned 14,” says Lor. “I was a busboy and a cashier for six months, and I said, ‘I will never do this again. I’m going to school.’” Lor went on to study accounting and political science and later, pursue his J.D. (Juris Doctor) degree. But while working as a corporate attorney for Minneapolis based firm, Lindquist & Vennum , he was pulled back into hospitality. This time, he was motivated by a desire to help his parents with their retirement. “As refugees to this country, retirement planning was never on their radar. Feeding the kids and getting them to school was always the number-one priority,” says

Lor. Drawing on what he’d learned from his parents’ restaurants, he began to investigate the possibility of opening an airport concessions space. To do so, Lor reconnected with fellow Twin Cities restaurateur Bob Helman, who he remembered from their time as neighboring restaurant operators in a downtown St. Paul office building. In 2003, Lor met with Helman, then working for sandwich brand Erbert & Gerbert’s , about a potential airport location opportunity. The two teamed up with Bob’s colleague Michelle Ranum and another concessionaire, Sayed Ali of Creative Host Services (now SSP America ) to pitch an Erbert & Gerbert’s location in response to an RFP from Minneapolis-St. Paul International Airport (MSP). They didn’t win the RFP, but when Ali offered them an opportunity to operate a Ben & Jerry’s and Stage Deli with him in 2005, Lor took the chance, and jumped with both feet into the airport concessions space. “I had no intentions of ever going back to food and beverage,” says Lor. “Mr. Ali saw what I was trying to do, which was really to build a retirement portfolio for my Mom and Dad, and offered us an opportunity,” he adds. “We would not be here today without Mr. Ali and the ACDBE program.”

Above: Cheng Lor, president, Aero Service Group.

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