Airport Experience® News - Conference Issue 2024

the local profile makes sense. Roughly 50 percent or more of our passengers are people who live in the marketplace and know the local brand names.” Zachrisson says the successful proposers for the authority’s RFP were those who offered local brands that represented “the cream of the crop,” while the limited number of national concepts awarded were also the very best and surefire favorites: McDonald’s and Chick-fil-A. “A strong sense of place is a continuous pursuit by airports and is usually a visible presence in RFPs,” Bisset notes. “What we’re seeing more and more is the interest in authentic local. Airports aren’t just looking for a store or restaurant with a creative localized name but actual concepts or products originated from local businesses and purveyors. “Examples from Paradies Lagardère include Smoke Shack, the award-winning San Antonio barbecue brand that we operate in San Antonio International Airport (SAT) or our growing partnership at Charlotte Douglas International Airport (CLT) with 704 Shop, a premium streetwear retail brand founded by three former University of North Carolina at Charlotte college roommates who promote their hometown pride,” Bisset continues. “With their origins rooted in the communities surrounding their respective airports, these brands deliver extreme authenticity.” Considerations And Challenges SSP America’s Murray points out that when it comes to the concessions balance in a given airport, there are a lot of stakeholders in the decision-making process and a lot of competing interests. “And it’s not purely a commercial decision,”

he says. “If it was solely based on what would generate the highest sales, that’s not a fair gauge of what a concessions program actually should be doing. There are always going to be airports that want entry-level price points from a national fast food chain—it really depends on what your priority list is. But a national fast food chain is a whole different business model than what we do. “Our company is built on local brands,” Murray continues. “Today I think the only brand in our portfolio that has more than one location with us is one of the coffee brands, with everything else being localized, upper end casual dining operators. It’s what we believe in, and I think it’s better for an airport and as a passenger. Without denigrating anyone, there are certain national brands that are just dated now, whereas something that’s unique and differentiated is more likely to draw people in.” As celebrated as local brands are in today’s airports, Areas USA’s Mendola warns against the trap of bringing in local brands simply for the sake of bringing in local brands. “If a local market doesn’t have the strongest barbecue, for example, a national brand would likely give our guests a better experience and the guest experience is the heart of everything we do,” he explains. “On the other side of the coin, there are some absolutely incredible food markets that warrant consideration of a far more locally driven program.” Delaware North’s Waldron says that the real challenge lies in navigating the advantages offered by both national and local players, noting that “national brands bring consistency and marketing prowess, while local businesses add a sense of place and diversity.” Paradies Lagardère’s Bisset also points out the various considerations that

Above: As celebrated as local brands are in today’s airports, national brands will always have a place in the concessions mix. Travelers like the comfort and familiarity of these concepts and concessionaires appreciate the elevated support structure for training and equipment. (Firehouse Subs at JAX, operated by HMSHost; Urth Caffe & Bar at LAX, operated by Areas; and Whataburger at SAT, operated by Paradies Lagardère, pictured).

airports tend to have a wider balance of local and national brands due to the size of their concessions programs. “With more spaces to fill, the need to deliver variety can allow for that balance on a greater level.” For its latest RFP, the San Diego County Regional Airport Authority clearly articulated that it sought a concessions balance, “perhaps as much as 50/50 in food and beverage specifically,” according to Deanna Zachrisson, director of revenue generation and partnership development. “However, we did receive more local concept proposals than national in the responses,” she says. “As a heavy ‘origin and destination’ airport, a greater tip toward

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AX NEWS MARCH 2024