Airport Experience® News - Conference 2023

CONFERENCE ISSUE 2023 / V21 N245

2 0 2 3 O F F I C I A L C O N F E R E N C E I S S U E

FORWARD MOMENTUM FOR AIRPORT CONCESSIONS

ROBOTIC SOLUTIONS WOW TRAVELERS

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The vast majority of the hundreds of brands run by SSP America are local institutions, neighborhood gems, and family owned businesses. Transforming streetside operations into a top notch airside experience requires in-depth collaboration. Having worked shoulder to shoulder with some of the best chefs and restaurateurs in theWestern hemisphere—our powerhouse culinary team has big time culinary chops. They knowwhat it takes to recreate a true ‘taste of place.’

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ing a Taste of Place

The ins and outs of today's aviation industry are changing at a breakneck pace, as airports continue their evolution asmodernmarketplaces, region-representing hubs, and powerful economic engines. SSP restauranters, foodies, and hole in-the-wall-spotters who scour the streets for what’s hot in food and hospitality.We’re bringing the best of what each region has to offer to itsmost essential transportation centers. Ribbon cutting season shows no signs of stopping, andwe’re just getting started. America’s brand developers represent a diverse class of

The SSP America team, joint venture partners and Hunt & Fish Club owners cut the ribbon at Hunt & Fish Grill at Laguardia Airport in January 2023. Leaders pictured here include Frank Scremin, Chief Executive Officer (3rd from left, back row) and Suzette Noble, Chief Operating Officer (3rd from left, front row) of LaGuardia Gateway Partners as well as Lorette Bove, Managing Director of LGA Hub Operations (5th from left, front row). Our thanks to all of our partners for their collaboration and partnership.

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24 Making Headway This March marks three years since the global pandemic ravaged the industry. Revitalization has been quick and airports are thrumming again, but challenges remain for airport concessionaires. 30 Robotic Reality Robotic services are gaining traction at North American airports, increasing efficiencies and wowing passengers in the process. 36 Green In The Kitchen Food waste is a perennial problem in any commercial kitchen, but some airports and concessionaires are being proactive in managing waste and meeting sustainability initiatives. 42 Older, But Still Relevant Millennial and Gen Z consumers are getting the lion’s share of attention these days, but Boomer and Gen X demographics are still big travelers. Catering to them can pay off. 52 Agenda and Experience Hall Map Get familiar with the layout of this year’s Experience Hall and take a look at the schedule of events to choose from over the next few days. 64 Meet Our Sponsors Use this handy guide to become familiar with this year’s supportive event sponsors! 70 Exhibitors At A Glance Before walking around the Experience Hall, take a look at the extensive lineup of exciting exhibitors! 77 Speaker Profiles This year’s session speakers bring an array of experience and expertise to the conference stage. 2023 AX CONFERENCE

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6 Letter From The Publisher 8 Data Check The National Restaurant Association has shared results from its latest “What’s Hot” survey. Fried chicken sandwich anyone? 12 Latest Buzz In Grand Rapids, Michigan, a $500 million improvement project is currently underway, one of the largest capital projects ever for a small hub airport. 18 Director’s Chair ABQ Director Richard McCurley is re-envisioning the concession program at Albuquerque International Sunport, part of an overall upgrade to the airport.

48 Tech Spotlight Amazon’s Dilip Kumar discusses the success of Just Walk Out technology in airports, and hints about new technologies in the works. 82 One-on-One Converging workforce development and DE&I initiatives, Denver International’s Andrea Albo is leading a multi-pronged effort to expand career opportunities at the airport.

87 Advertising Index 88 Before You Take Off

A teen entrepreneur is turning heads with new products available at Austin-Bergstrom International Airport.

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Empire State of Mind Hunt &Fish Club’s founders, includingNelson Braff, set out to soothe the souls of NewYork’s harried financial gurus with a classy, throw-back vibe that would appeal to the likes of Frank Sinatra. The restaurant stands a block and a half fromTimes Square, five blocks south of Rockefeller center and smack dab in themiddle ofManhattan’s theater district. Patrons are amix of celebrities, theater goers, andWall Street executives. SSPAmerica’s airside interpretation aspires to celebrate the iconic brand’s décor andmenu—ensuring travelers depart LaGuardia in an Empire State ofMind.

TEAM

Desiree Hanson Executive Vice President Melissa Montes Vice President/Publisher Carol Ward Editor-in-Chief Jean Claude Chaouloff Business Development Manager

Andrew Tellijohn Senior Reporter Sally Kral Contributing Writer David Ward Contributing Writer

Barbara McCarter Portfolio Manager Chad Wimmer Senior Editorial Art Director Rae Lynn Cooper Production Manager Amanda Gochee Vice President, Marketing Strategy Paige Heady Senior Marketing Manager

Airport Experience ® News Is a Division of CLARION Events 6421 Congress Ave., Suite 107 Boca Raton, FL 33487 Phone 561.257.1026 Fax 561.228.0882 To subscribe visit https://airportxnews.com/subscribe/ ISSN: 1948-4445 Russell Wilcox Executive Chairman Lisa Hannant Chief Executive Officer, Clarion Events Greg Topalian President and Chief Executive Officer Clarion Events North America Copyright © 2023 Airport Experience ® News, all rights reserved. Any reproduction of this magazine is strictly forbidden without prior permission from Airport Experience ® News.

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CONFERENCE ISSUE 2023

LETTER FROM THE PUBLISHER

Dear Readers,

As I write this letter in the lead-up to the 2023 Airport Experience Conference, I can’t help but think back three years ago when we all gathered in Denver for the 2020 AX Conference. We went into that event with only vague and generally benign ideas about a virus that was spreading halfway around the world. We came out of the conference just a bit more concerned, and a few short weeks later the industry was upended. Now as we head back to Denver, the industry has returned to vibrancy and is pushing forward with new strategies for optimizing the passenger experience. Some of those strategies are spotlighted in this issue of Airport Experience News. From the increasing use of robotics in traveler interactions, to challenges in tackling the current economic upheaval, to ensuring older travelers aren’t left out of the new customer service paradigm, this issue is full of trend analysis and best practice advice from an array of industry leaders. This issue of AXN serves as your show guide for our 2023 AXConference. Inside you’ll find the conference agenda and map, as well as profiles of the sponsors, exhibitors and speakers who make this event so successful. I hope to connect with each of you while we are in the Mile High City. On behalf of the entire AXN team, we express immense gratitude for your continued support of Airport Experience News and the AX Conference. Together, we are revitalizing and evolving our industry for the next generation of travelers.

Cheers,

Melissa K. Montes Vice President & Publisher Airport Experience News

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DATA CHECK

MENU MATTERS National Restaurant Association Shares Results of “What’s Hot” Survey

BY C AROL WARD

hicken sandwiches and charcuterie boards top the list of consumer demands from restaurants in

sheer convenience of accessing any kind of meal or snack 24/7 through delivery, curbside pickup, counter pickup and drive-thru has had an impact on foodservice,” the report said. “The proliferation of hand-held items, bowls, sandwiches, wraps and new sandwich carriers set up more menu items and meal solutions to go.” Spending Trends The What’s Hot report also examined how inflation is impacting how customers spend their restaurant dollars. It noted

that in October, the growth in cost of groceries was outpacing higher menu prices, and added that even in inflationary times, consumers want to use restaurants. “Even in inflationary times, consumers want to use restaurants. The challenge for operators is to stay interesting and relevant to attract consumers who are looking to experience food they can’t replicate at home.” Operators have responded to the ongoing demand in a recessionary environment by innovating their offerings to include fewer price-intensive dishes and by streamlining menus.

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2023, according to the annual What’s Hot Culinary Trends Report from the National Restaurant Association . The NRA, in partnership with the American Culinary Federation and Technomic, surveyed more than 500 culinary professionals on what they see as the leading menu trends for the 2023. The Top 10 Trends list was topped by the general move toward more experiences and more local culture through food. Among actual food items, fried chicken sandwiches and what the researchers call “chicken sandwiches 3.0,” which includes flavors such as spicy and sweet heat fusion, was the top trend, followed by charcuterie boards, flatbread sandwiches/ healthier wraps, sriracha variations and globally inspired salads. The trends list also included more general moves toward comfort fare, menu streamlining and foods prepared with regard for zero waste practices and upcycling. The outlook document also noted changing customer demands in terms of dayparts, which the NRA says are “blurring.” “Remote work has profoundly disrupted the concept of set meal periods and the

10 HOT TRENDS FOR 2023 1. Experiences/local culture and community 2. Fried chicken sandwiches & chicken sandwiches 3.0 (i.e., spicy and sweet-heat fusion flavors on chicken, etc.) 3. Charcuterie boards 4. Comfort fare 5. Flatbread sandwiches/healthier wraps

6. Menu streamlining 7. Sriracha variations 8. Globally inspired salads 9. Zero waste/Sustainability/Upcycled foods

10. Southeast Asian (Vietnamese, Singaporean, Filipino etc.) 2023 What’s Hot Culinary Forecast, National Restaurant Association.

TOP HOT TREND BY CATEGORY BREAKFAST: Value meals LUNCH: Chicken sandwiches 3.0 (spicy and sweet-heat fusion flavors, etc.) DINNER: Less-expensive meat cuts (chicken thighs, beef chuck, pork shoulder, etc.) DESSERTS: Alternative sweeteners (maple sugar, coconut sugar, etc.) SNACKS: Elevated bar snacks APPETIZERS & SIDES: Charcuterie boards BEVERAGE NON-ALCOHOL: Oat, nut or seed milks BEVERAGE ALCOHOL: Spritzes CONDIMENTS, SAUCES, SPICES & SEASONINGS: Sriracha variations GLOBAL TRENDS: Southeast Asian (Vietnamese, Singaporean, Philippine, etc.)

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DATA CHECK

ONES TO WATCH 1. Globally inspired sandwiches (Chinese Rou Jia Mo or jianbing, Argentine choripan, etc.)

COOLING DOWN

1. Pickle pizza

2. Breakfast salads

2. New sandwich carriers (paratha, roti, pastry buns, crepes, etc.)

3. Fried lasagna

3. Amazake (Japanese drink made from fermented rice)

4. Balsamic cocktails

4. Alfajor (sweet of almond paste, nuts, breadcrumbs & honey)

5. Fruit-flavored coffee (e.g., banana, etc.)

5. Balkan (Croatian, Bulgarian, Turkish, etc.)

6. Pickled French fries

6. Raki (Turkish alcohol made of twice-distilled grapes & anise)

7. Ranch water

7. Automation technology (monitoring volume, temperature & time)

8. Upscale pigs-in-a-blanket

8. Hawaiian haupia (coconut pudding)

9. Name-brand snacks (i.e., retail brands incorporated into restaurant recipes)

9. Huacatay (Peruvian black mint sauce)

10. Elevated breakfast bowls (breakfast rice bowls, breakfast pasta bowls, etc.)

10. Crudité platters

Source: 2023 What’s Hot Culinary Forecast, National Restaurant Association.

Source: 2023 What’s Hot Culinary Forecast, National Restaurant Association.

A separateNational Restaurant Association report showed that consumers are still spending in restaurants despite the ongoing financial upheaval. Eating and drinking places registered total sales of $90.4 billion on a seasonally adjusted basis in November. That represented the fourth consecutivemonthwith a sales increase of at least 0.9%. The research

attributed the gains to excess household savings and increased use of credit cards. Finally, theWhat’s Hot study also identified emerging trends that it anticipates could portend future hot trends. These include everything from globally inspired sandwiches such as Chinese Rou Jia Mo or jianbing, or Argentine choripan; to Hawaiian haupia

(coconut pudding) to elevated breakfast bowls that could include pasta or rice. “Global influences play a strong role in many of these potential up-and-comers,” the study noted. “Diners, especially Gen Zs who are starting into their earning years, like to sample – and post about – breakthrough foods and flavors.”

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LATEST BUZZ

BIG LIFT IN GRAND RAPIDS GRR’s “Elevate” Expansion and Modernization Is Underway

BY C AROL WARD

nahugemove for a small hubairport, Gerald R. Ford International Airport (GRR) is investing more

The total passenger count for 2022, at 3.46 million, was just shy of the 2019 record year. “We expect in 2023 we’ll be right back to that [overcapacity] situation, which goes back to why we need the projects,” Richardson says. “In 2019 we were leaving people and bags behind because we couldn’t process everything fast enough.” The overall Elevate project consists primarily five parts: • The Concourse A expansion, currently underway with expected completion in the first quarter of 2024, will add eight new gates, for a total of 22, along with new amenities to serve the traveling public. The total cost is expected to be about $110 million.

Above: Gerald R. Ford International Airport in

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Grand Rapids, Michigan is undertaking a massive $500 million capital project that will prepare the airport for the next decade of growth.

than $500 million to take its facilities to the next level. The project, currently underway, is one of the largest capital expansion projects in the U.S. for a small hub airport. “Prior to 2019, we were literally busting at the seams in terms of growth and in terms of our ability to handle all of the passengers,” says Torrance Richardson, president and CEO of the Gerald R. Ford International Airport Authority, noting that growth has resumed post-pandemic. “The amount of growth in our region was really driving the need for us to move forward with some of these significant capital expansion programs.”

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L ATES T BUZ Z

• Relocation of the air traffic control tower, at a cost of $70 million, that will allow for expansion of the terminal building, parking garage and other assets. • A new federal inspection station to accommodate international passengers and cargo, at a cost of about $27 million. • A modern checked baggage inspection system to streamline TSA screening operations. The project, at about $150 million, is expected to start next year. • A new consolidated rent-a-car facility, at a cost of about $150 million, with construction expected to begin this spring. Many of the projects are in the design phase and will be moving into construction in the next year or two. But the Concourse A expansion is currently underway. “It’s basically tripling the size of our concourse as it stands today,” says Richardson. The expanded Concourse A, which will both lengthen and widen the facility, will address some of the crowding that has occurred due to overall passenger growth

and shifts in airline activities that have resulted in crowded gate areas. “The current gate hold areas are not large enough,” notes Richardson. “We have transitioned from an airport that had a lot of small turbo prop operations into one that is all jets, larger jets and those continue to increase in size. We don’t have the gate area for the passengers to congregate and get ready for the flights because these were built for 30- to 50-seat airplanes.” Ambiance and Amenities Along with the expanded gates will come a new array of concessions sprinkled throughout a more welcoming concourse. “It will be nice and open to allow daylight in, and will be bright and much more functional,” Richardson says. “There will be lots of different seating configurations - traditional seating, high top seating, cubicle-type seating. We’ll offer various combinations so that the guests can find what they like or what works best for them.” One of the amenities Richardson is most enthused about is a new common use lounge that will be built on the second floor of the concourse. “It’s going to be really neat because it’s on top of the facility

with a beautiful view of the airfield,” he says. “People can see what’s going on with the airplanes at the gates and have that visual contact that a lot of people like when they’re at the airport and they’re waiting for their flight.” Airport Dimensions has been selected to build out and operate the new lounge, which is expected to open a few months after the main concourse area. Like so many airports these days, GRR is seeking a sense of place in the new Concourse A expansion design. The design will start with evoking the trees and lakes that are prevalent in western Michigan and will transition into a cityscape feel that captures the essence of Grand Rapids. “We’re really looking at the whole journey for the passenger,” Richardson says. “We want them to feel like they are arriving in West Michigan and they’re experiencing the various parts of West Michigan as they transition through the terminal.” Paradies Lagardère will provide both food and beverage and retail options in the expanded Concourse A. Richardson says that while concepts aren’t finalized, the food and beverage program is expected to tap into some local operators to enhance the “sense of place” that the airport is seeking.

Below: A $110 million concourse expansion will provide more room and new amenities for Gerald R. Ford International Airport’s growing passenger base.

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L ATES T BUZ Z

had to say no to maintenance and repair overhaul activities, and to people wanting to build a hangar on the airport just because of the issues with the tower.” The addition of an inline baggage system with update antiquated baggage handling systems at the airport, increasing efficiencies and speeding up passenger throughputs. And outside the terminal, the new CONRAC facility will free up much needed space in the parking garage. The various projects will be completed over the next three years or so and will position GRR for more growth, but not too much more. “This buys us at least the next 10 years of growth and expansion that we continue to see in West Michigan,” Richardson says. “We’re trying to stay one step ahead of that, making sure that we’re able to deliver on these capital programs in a timely fashion so that we aren’t having any challenges of not being able to accommodate our passengers or not accommodate airline growth. “We’re excited – this is going to give us an opportunity to grow air service,” he continues. “Right now, we have every gate in use by our airlines. This is that next expansion for us, our next opportunity.”

Looking Ahead Beyond the Concourse A expansion, the relocation of the air traffic control tower is top of mind for Richardson because the current structure impedes growth. The airport’s current tower is the oldest in operation at a top 75 airport, and is located on top of the terminal building. “It’s only a hundred feet high, which means we have limited ability to grow in the core area of our terminal,” says Richardson. “We can’t build a parking garage. We’ve had to say no to hotel development. We’ve

Above: Gerald R. Ford International Airport has seen airlines transition to larger jets, putting the squeeze on gate hold areas. Below: A new consolidated rent-a-car facility will move rental cars out of the airport’s parking garage, freeing up much-needed space.

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DIRECTOR’S CHAIR

SUNPORT REIMAGINED ABQ’s McCurley Shares Details Of Airport Modernization Now Underway

BY C AROL WARD

WARD: You’ve been director of Albuquerque International Sunport for a little under a year, although I know you served as deputy director prior to that. Can you share your overarching goals for the airport? MCCURLEY: The three areas [I’m focused on} are ai r service development, commercial development and the passenger experience at the airport. WARD: What air service development goals do you have? MCCURLEY: The airlines restructured their routes due to COVID and we were one of the airports that were affected, although not as drastically as some. We had gotten up to about 26 direct and we dropped down to about 20, and now we’re back up to 23. The market is slowly returning for us. On the international side, back in 2018 and 2019, efforts were made to get an international flight into the Mexico market. We’re going to be looking at the international, targeting Mexico City or one of the vacation sites like Cancun or Puerto Vallarto. In terms of passenger traffic, we are steadily coming back. Right now, we’re about 8% to 12% down, depending on the month, below the 2019 numbers. We’re seeing good numbers on the load factors, and we’re hoping that as the airlines start getting the f light attendant and pilot shortages sorted out we’ll see a return of those additional flights.

Above: Richard McCurley, aviation director, Albuquerque International Sunport

ditor’s Note: Late last year, Albuquerque International Sunport (ABQ) launched its

E

“Dream of Flight” renovation project that will enhance and modernize the passenger exper ience at the airport. Overseeing the effort is Aviation Director Richard McCurley, who joined ABQ in 2020 as deputy director and was named director in 2022. AXN’s Carol Ward spoke with McCurley about the scope of the project currently underway, and his overall goals for the airport.

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DIREC TOR’ S CHA IR

WARD: I know you have some terminal upgrades underway with the Dream of Flight project. Can you give me the scope and timeline of that project? MCCURLEY: When I took over, the project was at just the initial start. It’s broken into three components. There is the concessions component, the TSA checkpoint component, and the infrastructure component [mainly back of the house

mechanical upgrades], all part of the program we’re calling Dream of Flight: Sunport Reimagined. We’re undertaking a concessions rebuild and also relocating the security checkpoint. TSA has added some more queuing capacity, but [we’re also looking at] building out an additional one to two lanes. Longer term we’re moving toward a centralized baggage inspection station. We originally

looked at it back in 2020, but with COVID we put it on hold, and we’ll probably pick that back up in 2025. WARD: What are your plans specifically for the concessions program? MCCURLEY: We’re reimagining the whole concessions area of the airport. Right now, we have a pass-by program, where the passengers pass by concessions [as they walk to their gates]. We’re going to more of a hybrid, where [there will be a core concessions area just after security], then more as you continue onto your gates. We’ll be going from 14 to 16 food and beverage locations. Once passengers go through the TSA checkpoint, they’ll go into an area that will have most of our concessions. We’ll have seating in that area enhance the experience.

Above, Right: Albuquerque

International Sunport lost momentum during the pandemic but is pushing hard for new routes and carriers to serve the New Mexico market.

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DIREC TOR’ S CHA IR

Left: Concessions at Albuquerque International Sunport are being expanded as part of an overall airport upgrade. RFPs for concessions will be released this year. Below: Albuquerque International Sunport’s design features brick flooring and Southwest and Native American influences to evoke a sense of place.

WARD: Who are your concessions providers now, and will they stay the same? MCCURL E Y: For F&B it ’s Fresquez Concessions , a local company. For retail we have Hudson , Stellar Partners and El Mercado . Those contracts will continue until July of 2024, then we have the opportunity to extend on a month to-month basis as we do this terminal renovation. We have two RFPs with for concessions packages that’ll be going out soon. Our RFP for food and beverage will go out in mid-March of this year, followed by retail probably around mid-July. As we move toward the RFP, one of the big components is the balance between the national products and local flavor. When the public comes here to New Mexico, they want to taste the food [that is local or regional]. And so, we’re balancing that in the airport to have the local flavors, but also offering some of the national brands. When somebody comes to this airport we want to offer a sense of place. We are focused on providing that – keeping the heritage furniture, the aesthetics of the airport, to know that when you come here, you’re in New Mexico. We have that Southwest culture, the Native American influence. In addition to the concessions, were upgrading our restrooms and looking at touchless and other options. We’re looking

at [services for] the hearing impaired. We’re also upgrading our electrical power connections, adding about 50% more [charging ports] in the seating areas. WARD: Are there any other developments you’d like to share? MCCURLEY: We have a total renovation of all our boarding bridges, which is about a $20 million project. Also, as part of the push for international service we’re going to be looking at developing a two-gate facility here at the airport. We’ll

be looking to kick off the schematic and design, probably in May, June or July of 24. Our focus is on getting those new destinations in here. We’ll continue to work with airlines and to champion why Albuquerque is the place to be, both as a vacation destination but also for business. The big [player in the market] is Netflix. They do a lot of production, they’re building more studios – they’re becoming one of the giants here. We will look to partner up with them to enhance what we can offer.

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Despite Challenges, Industry Cautiously Optimistic Into 2023

BY ANDREW TELL I JOHN

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It’s not exactly a “one step forward, two steps back” sort of scenario in the airport concessions sector; in fact, flip-flopping that well-worn phrase may be a more apt description. Passenger counts continue to rise in the U.S., reaching or exceeding 2019 numbers at many airports, but inflation is significant and could still lead to a recession. Supply chains seem to be smoothing out but building costs have risen dramatically. Finding labor has gotten a bit easier for both airports and concessionaires, but companies generally still need more employees and the costs associated with paying and retaining them remain up significantly. And despite reasons for optimism, as 2023 commences, operators still must pay down significant debt loads accumulated while waiting out COVID-19. There’s a lot of cautious optimismheading into the new year but also a realization that many things could still go wrong to make an already difficult recovery even harder.

“I think we all kind of have a new attitude, like, let’s prepare for the worst, hope for the best,” says Sarah Imberman, owner of Sarah’s Foods. “There’s so much erratic activity that one minute you think ‘OK, we’ve gotten over this’ and then something else happens. I think we all just want to be a little more conservative.” Supply Chain Struggles One post-pandemic challenge that has settled, at least a bit, is the supply chain. The general consensus among a range of industry players is that things are not yet back to normal, especially for anyone with larger equipment needs. But with respect to the day-to-day acquisition of products, it has normalized considerably. “Food is much better,” says Kevin Westlye, president of High Flying Foods. “Liquor, beer and wine are much better. Compostables are still a major problem and a lot of us prefer to use all compostables.”

Opposite Page, Above: Food and alcohol has gotten easier to source for High Flying Foods, but compostables are still a challenge. The company has diversified its supply chain where possible and increased inventory.

There also are airports that require them. Though many have become more flexible in enforcement during shortages, Westlye says High Flying Foods also has tried to diversify its supply chain to deal with that and other areas of concern. “Where before the pandemic, before the supply chain problem, we may have trusted one purveyor to provide us with our compostables, now we probably have three purveyors for that supply,” he says. High Flying Foods has also increased inventory, now keeping up to five times or more product on hand than in the past. “There has been a major management behavior change to address the change in the marketplace,” Westlye says. Roddy McOwan, chief development officer at Marshall Retail Group/InMotion Entertainment , says a mix of factors

affecting supply chain are still inconsistent. Import lead times have increased and vary significantly, turnaround time on vessels at docks can be between a week and 10 days, factories in China are still in flux due to COVID and vendors are less willing to negotiate on price. However, he adds, port congestion has mostly subsided, available stock and production turnaround has improved and ocean freight container costs have declined. Paradies Lagardère has worked hard with its associates to improve the anticipation of needs, the ordering of supplies early and reengineering the approach the company takes to various products. The company committed last year to a multi-pronged approach, says Chief Financial Officer John Jamison, that includes sourcing comparable products

when certain items aren’t available, better anticipation of needs and trends, adjusting the timing and size of inventory and the shifting of supply sources from import to domestic, where possible. “The challenges with supply chain aren’t as significant or as widespread as they were a year ago, but certainly still exist,” says Jamison, adding the company is thankful for the efforts of its front-line workers. “These efforts have helped manage the challenges with supply chain and we are pleased with the progress.” Paula Lopez, director of supply chain and merchandise at Areas USA , says logistics have improved considerably over 2022. That’s not to say it’s perfect – there always will be supply chain challenges, she says – but the issues now are more of the normal variety. “We still have orders that are delivered two days after the scheduled delivery date,” she says. “But we are seeing those less and less. Now we are in a moment where we are able to go back to our distributors and put more of a target on what we are expecting. So, in that sense, on the distribution side, I think we are getting a little bit more control.” That’s important, Lopez says, because while Areas and others used more vendors over the last couple years to best ensure they got the necessary product, it’s harder to do that in airports with security badging necessities. So, the company uses local vendors for some products but a main one where possible. “We try to consolidate as much as we can, but there are certain categories, …like fresh bakery goods. If it’s good quality, I’d rather use the local vendor, a small vendor for that,” she says. The supply chain is going to be a daily factor in airport operations, particularly for those undergoing major projects that require heavy equipment, says Andy Weddig, executive director of the Airport Restaurant & Retail Association. The impact on concessions, Weddig says, is less on day-to-day operating and more on “Am I going to be able to open my location at the new facility on time?” At one location, he heard from a member,

Left: Sarah Imberman, owner of this Sarah’s Candies store at Midway International Airport, is “hoping for the best” heading into 2023 but also preparing for the worst.

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there was a three-to-four-month timeline for companies to complete construction. But when one of the companies started planning it out, it was going to take four to six months to get the crane necessary to place the rooftop. “That’s the kind of thing that is going to be disruptive and that’s what’s working its way through now,” he says. That’s significant for all operators, but particularly for smaller ones going against larger players. Greg Plummer, CEO of Concord Collective , opened eight restaurants last year at Los Angeles International Airport (LAX) . Some of those were being redeveloped following its acquisition of contracts from SSP America. He was hearing from construction companies that costs were up as much as 60% due to inf lation and a lack of necessary labor. “One thing we consistently see is the cost of construction going up here,” he says. “But we also see things are really delayed as a result of you only have so many people and the bandwidth to be able to accommodate you is not always there.”

Labor Still Laborious Overall, Lopez from Areas agrees with others. Sales are up. Traffic numbers have been good, although inflation has raised concerns that could fall off at some point. “We have the travelers, we have the sales, we are focusing more on how can we save,” she says. One area where that isn’t possible right now is on wages, Lopez says, adding that those costs have increased by around 40% compared with a few years ago. Coupled with pricing caps at many airports, labor costs make for a big challenge. “We cannot increase our prices like the street restaurants can do at any time,” she says. Labor costs are a significant – but also legitimate – issue for companies operating at LAX, especially given the high price of living, adds Plummer. He’s trying to create a culture focused on retention through providing opportunities for advancement and making people proud to work for his company, which operates 13 locations. He’s competing with many large prime operators with more resources.

Above: Paradies Lagardère dealt with supply chain challenges by better anticipating its needs earlier, adjusting the timing and size of inventories and shifting sourcing from import to domestic where possible.

“We want to put our best foot forward so that we can take advantage of whatever the situation is,” Plummer says. “If we have more passengers, great. But if we have the same level of passengers, we still need to do our job. And that’s what I’m trying to get our team wrapped around.” Labor costs and, specifically, the recruitment of new workers pushed Marshall Retail Group/InMotion to add staff dedicated solely to recruiting, McOwan says. Hiring has levelized, he says, at least in that companies aren’t having to pay candidates solely to come interview. And a recession could drive more people into the available workforce, he adds. The new team of recruitment staff are looking at finding places in new ways, such as through social media channels. Realizing the changes in the market, MRG is trying

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to maximize its ability to be attractive. The company is reviewing its benefits and, as it opens new locations, is also willing to pay a bit more to get people on board earlier. “We’re going out early to get people rather than just-in-time hiring,” McOwan says. “There’s obviously a cost of doing that, but I think it’s helpful. You have to take a little bit of a longer-term view.” Weddig notes that for ARRA’s member concessionaires, employment overall has stabilized but not to the point where anyone feels they are fully staf fed. “Everybody has fewer employees than they did in 2019,” he says. “Everybody still thinks they need about 10 percent or more employees to get where they would feel comfortable with their staffing.” Rising Costs Rising costs aren’t only felt in wages. The cost of many ingredients have risen due to inf lationary pressures, and concessionaires have had difficulty passing those costs onto consumes due to airport pricing requirements. Imberman says she has seen at least a few airports either doing away with street plus-10% (or similar) policies or at least easing up to the point where operators can more readily present evidence of comparable price hikes on the street.

Imberman notes, for example, that one of her airport clients understands the need to be f lexible, and has suggested price increases outside the normal cycle of review are now acceptable. “I think that could be the wave of the future in terms of airports trusting the concessionaires to price fairly and, that way, when things are changing and prices are increasing, you know you’ll be OK,” Imberman says. Rising costs of both labor and buildouts are also on the radar at Paradies Lagardère, where the need to be creative and strategic with budgets “may directly or indirectly impact other projects,” Jamison says. “With the return of travel, there is also the return of the development of airports through terminal expansions or upgrades, so many opportunities for new concession programs across North America are forthcoming,” he says. “We must balance those great opportunities with these rising costs to ensure we continue to exceed the expectations of our airport partners and the travelers we serve.”

Continued Collaboration Several industry executives spoke optimi stical ly about the growing collaboration between airport, airline and concessionaire representatives, which started during the pandemic and has, thus far, carried through early recovery. Imberman has been part of calls where leaders of several food and beverage companies have talked through solutions and best practices, a practice she hopes will continue. “I think that’s been a refreshing aspect, where we’re going to come together to try to figure out solutions moving forward,” she says. The collaboration isn’t universal, says industry consultant Stu Holcombe, who owns Travel Retail Partners. He still sees some airports that have not realized or understood that costs are increasing while terms have not changed. Couple that with the increase in passengers opting to visit third-party or airline lounges, and it creates an atmosphere where some of the brands he represents are becoming more selective about where they want to locate. “Br and s lea r ned t hat hav i ng unproductive stores, regardless of where, is a burden,” he says. “Especially during major pandemics or national disasters.” That said, Holcombe adds, other airports are working with operators for solutions. And, some brands like the new traveler demographics – more leisure and fewer pure business travelers. “I have clients that are eager to secure leases due to the type of consumer that is traveling through airports today,” he says. While the year ahead is likely fraught with ups and downs from these and other new challenges, concessionaires are trying to remain optimistic.Westlye, for example, notes the devastation the pandemic wrought and the new awareness that exists because of it. “The business is very different,” he says. “It’s much harder to find employees. I think we always appreciated the employees, but we appreciate them even more now. And I think, as an industry, a lot of relationships have developed around trying to figure out what to do strategically.” “I think we have to be grateful for the recovery and keep in perspective that the challenges today are a little more workable than before,” Westlye continues. “The whole industry basically shut down and here we are, back close to where we were.”

Below: Traffic is generally up considerably at airports, helping aid recovery after pandemic related struggles. Supply chain, labor shortages and build-out costs, however, continue to provide challenges.

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Robotic Services Continue To Grow In The Airport

BY SALLY KRAL

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In 2016, San Jose International Airport (SJC) became the first U.S. airport to offer robots when it introduced three customer service robots designed to engage with travelers. With their avatar-friendly faces, the robots could even audibly introduce themselves by their names, Norma, Amelia and Piper. Shortly after that, in early 2017, SJC debuted the iPal Playground, the first interactive play space featuring iPal humanoid social robots designed to sing, dance and talk with children. But both programs are no longer running at SJC. “The robots were a big hit, but like other programs we’ve tested and tried they were never intended to be a permanent program at SJC,” notes Jill Stone, marketing manager for the airport. Then in late 2019 SJC tried out Cafe X, a robotic coffee bar. “When it launched, passengers and employees alike truly enjoyed interacting with it, but unfortunately, the business wasn’t able to obtain a permit that allowed them to be autonomous in Santa Clara County, which meant requiring staff on site,” Stone says. Due to this, Cafe X had to close at SJC but Stone notes that the airport hopes the robotic coffee bar might be able to return in the future. “One drawback of being the first to try new stuff is that new stuff isn’t always ready for prime time, be it the technology, the regulatory environment or other factors,” Stone says. “We don’t view these as failures—it’s just the cost of doing business when you’re willing to be the first to try new things. As we move forward, we’ll continue to look for new opportunities.” Indeed, implementing new technology innovations comes with certain risks, but in this day and age it usually pays off— which is why airports continue to invest in a tech-driven future, from AI-powered concierge services to delivery robots to automated food and beverage kiosks and more.

Above: In June 2022 Dallas Fort Worth International Airport began testing Iris, a first-of-its-kind AI-powered digital concierge developed in partnership with IBM and Soul Machines. Iris is still in the testing phase, but the airport hopes to expand her body of knowledge and presence beyond the current two fixed kiosks into several more locations. Contactless Is King

Most recently, XWELL , formerly the XpresSpa Group, announced in November its partnership with robot manicure provider Clockwork to introduce the Clockwork MiNiCURE—a fully autonomous robot that couples artificial intelligence with 3D camera technology to paint nails safely, quickly and accurately without human intervention—in select XpresSpa U.S. airport locations. Beginning in the first quarter of 2023, XWELL will launch up to five Clockwork MiNiCURE robots across the company’s portfolio of 28 spa locations during an initial three-month period, with the intent to deploy as many as 25 units across the business. In June 2022 Dallas Fort Worth International Airport (DFW) began testing Iris, a first-of-its-kind AI-powered digital concierge developed in partnership with IBM and Soul Machines . In Terminal D the airport also tested an interactive wayfinding robot from LG called CLOi and a food delivery robot. “We want to ensure the airport is as accessible as possible 24/7 for those seeking information while navigating our terminals, and, yes, we’re seeing demand for more interactive services that deliver information quickly and efficiently,” says SeanMcIntyre, senior innovation implementation consultant for DFW. “Digital humans provide that life-like experience by reading the emotions of the customer and then

It’s no secret that tech advancements were well underway in the airport space pre-pandemic and that COVID-19 really kicked things into high gear. The first wave of airport robotic services post March 2020 included cleaning robots. That April Cincinnati/Northern Kentucky International Airport (CVG) deployed Avidbots Neo floor-scrubbing robots to autonomously clean floors throughout its airport terminal on a continuous basis; in May Pittsburgh International Airport (PIT) implemented autonomous cleaning robots with ultraviolet light technology; in July Tampa International Airport (TPA) employed robot software to sanitize handrails on escalators; and in September San Antonio International Airport (SAT) claimed to be the first airport in the world to employ the Xenex LightStrike robot, the only ultraviolet room disinfection technology proven to deactivate the virus that causes COVID-19, to name a few. In addition to visible cleaning practices, contactless experiences became extremely important during the pandemic, and this is where robotic services fit nicely. Add to this the pandemic-induced labor shortage and robotics again are more relevant than ever and their use in airports has ramped up considerably since the early days of the pandemic.

Left: Blendid offers robotic smoothie kiosks that are accessible 24/7 without the need for full-time staff. While it doesn’t have an airport location yet, co-founder and CEO Vipin Jain expects to obtain one soon as food automation continues to rapidly expand, noting that the food robotics market is projected to top $4 billion by 2026.

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