Airport Experience® News - Food & Beverage Issue 2025

JULY/AUGUST 2025 / V23 N264

Take Flight

Indiana Icons

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THE EVOLVING LOUNGE – CONCESSIONS DYNAMIC

HEALTHY F&B BRANDS MAKE HEADWAY

ATHLETES LEND STAR POWER TO AIRPORT F&B

POURING RIGHTS EVOLUTION

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This is what a real culinary partnership looks like. SSP America and Huse Culinary have joined forces to bring three legendary Indiana brands to IND: St. Elmo’s Steakhouse, 1933 Lounge, and HC Tavern + Kitchen . More than a co-branded space, this is a shared commitment to bold, scratch-made food and heartfelt hospitality. From handcrafted cocktails to steaks done right, every detail reflects the best of local flavor— served with pride to travelers looking for something truly memorable.

At SSP America, we believe airport restaurants should feel like more than a pit stop. They should feel like a welcome. 1933 Lounge + HC Tavern by St. Elmo’s greets travelers with next-level hospitality, handcrafted cocktails, upscale dishes, and sophisticated design from one of Indiana’s most recognizable restaurant groups. Whether it’s a warm smile, a perfect pour, or the comfort of a familiar meal, hospitality lives in the details. When it’s done right, it turns a ‘pit stop’ into something memorable. Because food matters—but how you’re treated matters more. Takes Off Indiana Hospitality

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by REAL Partnership

Michael Pinner | Executive Chef 1933 Lounge + HC Tavern Airport

Craig Huse | CEO & Co-Owner Huse Culinary

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Now Open @ PSP

Tony Marchese – Local Restaurateur

Chef-Driven. Handcrafted. Seasonally Inspired. Since 2009, TRIO has been a mainstay in the Palm Springs community, known for its vibrant modern design and chef-driven menu featuring fresh, locally-sourced ingredients. Now, founder Tony Marchese and Paradies Lagardère bring that same energy and spirit to Palm Springs International

Airport, offering travelers a taste of this iconic dining experience. Discover the heart of a true Palm Springs classic - now at PSP.

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14 Competition or Collaboration? Airport concessions operators are feeling the pinch as travelers flock to airport lounges. Can the two co-exist – or even collaborate – so that all parties thrive? 24 Better-For-You Brand Growth Healthy F&B brands see big opportunity to meet demands from the traveling public. Airports and concessions operators are taking notice. 30 Star Power Gymnast Simone Biles wowed the world at the 2024 Olympics. Soon, she’ll join the ranks of athletes who are lending their unique star power to airport concessions. 34 Navigating Pouring Rights Strategic beverage partnerships can be a boon to airport coffers. But concessionaires aren’t enthused, saying those deals impinge upon their ability to offer a broad range of beverage options to traveler.

4 Letter From The Editor 6 Latest Buzz

A new terminal at Asheville Regional Airport is nearing completion. The $400 million project expands and upgrades the airport, capturing the feel of the Blue Ridge Mountain community. 10 Director’s Chair Mark VanLoh, CEO of the Jacksonville Aviation Authority, shares the latest from Jacksonville International Airport as the airport expands amidst rising demand. 41 One on One Roel Huinink, president and CEO of JFKIAT, is leading an effort to redefine the customer and employee experience at John F. Kennedy International Airport’s Terminal 4.

44 Industry Insights Hartsfield-Jackson Atlanta International Airport and Corgan architecture and design firm are using a modular construction approach as they expand a concourse at ATL. 47 Advertising Index 48 Before You Take Off Ontario, Canada’s London International Airport will host a two-day, outdoor concert in September called Rock The Runway – a new way to bring arts to the airport.

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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

Jeff Davis Executive Vice President, Retail and Specialty Melissa Montes Vice President/Publisher Carol Ward

Editor-in-Chief Nicole Watson Business Development Manager Sally Kral Contributing Writer Sarah Beling Contributing Writer John Quinnies Contributing Writer Barbara McCarter Senior 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 Senior Digital Marketing Coordinator Samantha Tamberino Marketing Coordinator

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LEGACY,

It all started with a shrimp cocktail—and a big idea. In 2008, SSP America, Huse Culinary, and IND teamed up to open Harry & Izzy’s , knowing travelers wanted more than grab-and-go. They wanted flavor, quality, and a true taste of place, including Huse Culinary’s world-famous St. Elmo Shrimp Cocktail. Now, we’ve raised the bar—and the dining room—again. 1 933 Lounge + HC Tavern by St. Elmo’s delivers the bold dishes, legendary steaks, and elevated cocktails that define Indiana dining. It’s a next-generation experience built on partnership, driven by hospitality, and designed for travelers who expect more—like America’s best shrimp cocktail. Reinvented

JULY/AUGUST 2025

Dear Readers,

JULY/AUGUST 2025 / V23 N264

Welcome to the July/August issue of Airport Experience News. It’s been great seeing some of you at various industry conferences this summer, connecting with longtime friends and meeting new professionals in the airport industry. As we close out the summer conference “season,” the AX Team is already focusing on the 2026 Airport Experience Conference. In mid-June, the AX Team met at the Gaylord Opryland Convention Center in Nashville, the site of our 2026 event. There we began laying the groundwork for the 22 nd annual conference! We welcome input from our industry partners and look forward to working with you in the coming months as the AX Conference agenda and events are finalized. On to this issue. While AXN covers airport F&B trends in virtually every issue, each year we designate one issue for expanded coverage of the sector. This is that issue! The great news is that airport bars and restaurants are flourishing, with a broad range of new openings and unique concepts adding vibrancy in a high-demand period. Check out our coverage of the shifting dynamics between airport F&B and common-use lounges. The astonishing growth of lounges in recent years has negatively impacted airport bars and restaurants, many industry professionals say. Now, the two “sides” are seeking closer collaboration so they can co-exist and thrive in the future. This issue also contains a spotlight on the sports celebrity-based restaurants that have strong appeal, especially in an athlete’s home city; a look at the latest in pouring rights in airports and a round-up of some of the many healthy brands looking to make inroads in airports.

THE EVOLVING LOUNGE – CONCESSIONS DYNAMIC

HEALTHY F&B BRANDS MAKE HEADWAY

ATHLETES LEND STAR POWER TO AIRPORT F&B

POURING RIGHTS EVOLUTION

Happy Reading,

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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ARRIVE EARLY. WE’RE THE REASON THEY We Create and Operate Over Half of America’s Top 10 Airport Restaurants

To learn how HMSHost can help you create award-winning dining experiences, contact Derryl Benton at derryl.benton@hmshost.com.

LATEST BUZZ

BLUE RIDGE BEACON AVL’s New Terminal To Bring Local Feel, Products

BY SARAH BELING

hose passing through Asheville Regional Airport (AVL) can now enjoy a state-of-the-art facility. The

call for the demolition of the airport’s legacy terminal, construction of a new Air Traffic Control tower and a new South Concourse with five gates, baggage claim facilities, administrative offices, front curb canopy and rental car check-in center by mid-2028. The impetus for overhauling AVL’s facilities stemmed from its continuous passenger growth, says airport president and CEO Lew Bleiweis. AVL, which has seen as many as 2.25 million annual passengers in 2023 (2024 was on track to exceed 2023’s numbers but was curtailed by September 2024’s devastating Hurricane Helene, says Bleiweis) expects to exceed their record breaking year by fall 2025.

Above: Asheville Regional Airport is building a new terminal. The first phase, consisting of a new North Concourse, new ticket lobby and TSA screening checkpoint, opens this summer.

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Western North Carolina airport opened a new terminal in late June, part of its comprehensive AVLForward project. The $400 million undertaking – funded by government bonds, federal and state grants (entitlement and discretionary) as well as airport operating funds from passengers using airport services, airlines, rental car companies, advertisers and other tenants of the airport – broke ground in 2023. The new terminal features a brand-new ticket lobby, new North Concourse and TSA screening checkpoint, both opening this summer. Further plans

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LATEST BUZZ

“In 2017, we were experiencing significant growth and began a terminal study. In 2018, our consultant advised us that, based on our growth, we could not merely add on to the terminal; instead, we needed to build a new terminal,” says Bleiweis. “Then, just one year later in 2019, we experienced an astounding 43% increase in annual passengers, which included more and larger aircrafts, more cars in our parking lots and definitely many more people in our terminal,” said Bleiweis, adding that the AVL team “have been planning the new terminal to meet this moment, and also to take us into the future.” AVLForward’s upgrades will create anfacility that’s 150% larger than the current airport, adds Bleiweis, giving passengers 326,914 square feet to enjoy 12 new gates; floor-to-ceiling windows with views of the nearby airfield and Blue Ridge Mountains; a modern concessions plaza between the North and South Concourses with new dining and retail offerings; a stage that will feature pop-up events and live performances from local artists; new restrooms with smart technology and family restrooms with adult changing tables; two lactation suites; rotating public art both in gallery-grade art cases and large-scale commissioned works as well as “aesthetic design touches that reflect the natural beauty of the Western North Carolina region,” designed by architectural firm Gresham Smith , says Bleiweis. Design Details Locally focused design features include “river patterns in the terrazzo flooring, curved and lighted ceilings reflective of the more than 500 waterfalls in our mountains, and a living wall in baggage claim that will literally bring the lush, green forest floor landscape inside the terminal,” adds Bleiweis. “Passengers will also experience stacked stone walls, ‘tree’ inspired columns, and magnificent views that bring the stunning outside – inside.” The guiding vision for the facility’s interiors, adds Bleiweis, “was to design a welcoming airport passenger terminal humbly rooted in the area’s natural beauty,” adding that “Gresham Smith guided our team through a collaborative design process in which we gathered meaningful input from key stakeholders at the airport and in our region.” “The design of the new terminal expansion reflects the spirit of western North Carolina, guided by our overall design essence: a modern gateway humbly rooted in timeless natural beauty,” says Gresham Smith

principal Brad Sucher. “Unveiling stunning design elements that span breathtaking views of the Blue Ridge Mountains, this new terminal creates an authentic and welcoming atmosphere for travelers,” with “intuitive wayfinding elements integrated into the ceiling and floors that seamlessly guide passengers through the space, ensuring a smooth journey from check-in to boarding.”

Sucher notes that AVL’s “thoughtfully designed, column-free concourse provides an airy and open environment, allowing natural light to flood the terminal, enhancing the overall travel experience,” not only meeting “the growing demands of air travel,” but also celebrating “the unique character of western North Carolina.”

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LATEST BUZZ

The new terminal space seeks not only to celebrate the region’s character, but to preserve it through sustainability measures, adds Bleiweis, noting that the AVLForward project employs electrochromic glass to manage utilities across the facility. “The newly designed concourse, which primarily faces west, features large windows that offer stunning views of the surrounding mountains,” explains Bleiweis. “However, the direct glare from the setting sun can become a significant nuisance for travelers and can heat the building significantly, creating a need for significant utility use. “To mitigate this issue, the concourse is equipped with electrochromic glazing, a technology that reduces glare and minimizes heat gain through the windows,” he continues. “This innovative solution not only enhances comfort for passengers but also allows for a reduction in the size of the HVAC system, all while maintaining the glass façade on the western side, preserving the aesthetic appeal and mountain views.”

breweries (Fonta Flora, French Broad Brewing; Oskar Blues, Sierra Nevada, Asheville Brewing company and Wicked Weed breweries), a range of local confection and food products, local souvenir and gift stores and more. With so many new places to shop, dine and imbibe, Bleiweis and team believe that the new AVL will have a major impact on the region’s economy. “At present, AVL contributes nearly $4 billion in economic impact to the region annually, including supporting nearly 23,000 jobs (directly and indirectly) in the region,” he says. “This economic impact has increased significantly during the past few years, and we expect this trend to continue. The new airport terminal will support the current and future growth, and we expect

Local Focus For F&B, Retail Travelers will also be able to relish in new food, beverage and shopping options in AVL’s terminal spaces, says Bleiweis, noting that Paradies Lagardère will manage the airport’s dining and retail concepts. The first phase, set to open in summer 2025, will include locally driven souvenir boutique ​ The Goods@AVL; an outpost of national sandwich brand Jimmy John’s and a new location of popular made-to-order health focused Tropical Smoothie Cafe. The second phase will include the market-style Appalachian Exchange, a retail store offering regional goods; local coffee roaster Smoky Grounds; a new location of the popular gastropub Beercode Kitchen and Bar; a new outpost of well-known wine, craft cocktail and all-day eatery Vino Volo as well as two pre-security vending machines offering fresh grab-and-go snacks as well as Costa Coffee. ​ Paradies Lagardère will also partner with and showcase a number of products from local businesses from Buncombe, Jackson and Henderson counties, including several

Below: The new, seven-gate North Concourse opened in June, while an additional five gates in the South Concourse will come on stream by 2028.

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LATEST BUZZ

more air service both from incumbent carriers and new entrants, especially when the terminal is completed.” And as each phase of the AVLForward project glides forward, Bleiweis and the AVL team look forward to showing visitors what makes the area worth visiting. “Our region deserves this stunning, spacious and welcoming gateway to and from our beloved Western North Carolina,” says Bleiweis. “The legacy terminal, opened in 1961, helped open our doors to and from the world at that time, a significant project led by visionary leaders in our region. Now, 64 years later (and about 2 million more travelers per year), our vision is building on what our predecessors imagined. “We are excited to open our new doors that will be the gateway to and from one of the most vibrant, beautiful and desirable places in America,” Bleiweis continues. “The architecture is incredibly thoughtful and relevant to us. The space is designed for our travelers, visitors and employees – for functionality, and also to reflect who we are. This first phase is amazing, and it is only half of what’s to come – and we are so proud to welcome one and all.”

Above, Left: National brands like Jimmy John’s and Tropical Smoothie Café will join a range of local brands in the new AVL concessions program. Retail will also be robust with local options. Paradies Lagardère will operate both F&B and retail in the new terminal.

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DIRECTOR’S CHAIR

PLAYING CATCH-UP Jacksonville International’s New Concourse Expected To Ease Crowding In High-Demand Environment

BY CAROL WARD

ditor’s Note: Jacksonville International Airport (JAX) is expanding. After putting the project – called JAX Beyond – on hold during the pandemic, the airport is now well on its way to project completion, with a new Concourse B, a new parking garage and other improvements slated for completion by the end of 2026. The Concourse B project will add six new gates to the existing terminal’s 20 gate configuration. This summer, JAX is releasing RFPs for three concessions packages, encompassing a total of approximately 16,000 square feet of new restaurant and retail spaces. Mark VanLoh has been at the helm of JAX since 2019, serving as CEO. He met up with AXN’s Carol Ward at the American Association of Airport Executives conference in Atlanta in June. VanLoh, along with JAX Director of Business Development Paul Gerrety, shared their vision for the redeveloped and expanded JAX. E

WARD: I know JAX has a lot going on. Before we dig in, can you give me a state of play for the airport? VANLOH: Well, like most Florida airports, when Covid hit our traffic exploded. We’re still all trying to catch up with capacity issues – everything from roadways coming into the terminal, to the parking, to concessions to gate space, to apron space, you name it. [In terms of passengers], last year we had the most passengers in our history. This year we’re leveling off and going down just a little bit. The international traffic is down, especially Canadian traffic. We are feeling the pain. WARD: When did you launch the JAX Beyond capital program? VANLOH: Actually, we started design on our new terminal before Covid but we pulled the plug. We came to a dead stop. Of course, I’d love to go back in time and keep going [with construction]. We’d be in the terminal by now. But we stopped everything, and then the [presidential] administration changed and we had to redo our environmental [report], which took another year. We were a little surprised. We also started a six story parking garage that’s under construction currently. Both projects will be in tandem and will be completed in December of next year.

WARD: Can you give me a bit of flavor on the new facilities underway? VANLOH: The new concourse has been sorely needed for many years just because of parking aircraft. Like everybody else, we have banks of flight. With that first flight in the morning, it’s a parking lot out there and the gate space has been constrained. With this new addition we’ll have six new gates and five of those gates are going to be taken by American Airlines . We’re building an expanded club upstairs at the mezzanine level, and Delta Air Lines is building a bigger and better Crown Room also – it’s probably triple the size of what they have currently. The project gives us the amenities for passengers, more food and beverage options and more parking spaces for airplanes. WARD: As you were envisioning the new concourse, were you looking to be innovative with technology or customer service or something else? What were your conversations centered around as you devised this plan? VANLOH: We were in such a rush to get this completed because of the demand on our existing facility that we really just wanted to mirror what we have. We’ll let the concessionaires do the technology bit. And we have a brand new checkpoint with facial recognition and everything you need

Above: Mark VanLoh, CEO, Jacksonville Aviation Authority

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DIRECTOR’S CHAIR

to have going forward. Some of the things I’m hearing about here (at the AAAE convention) – such as AI technology – is going to be interesting. I can’t wait to see it but I don’t want to be the first one. We are in Florida and the population that comes to Florida is a little older. I don’t want to test it out until I know it’s been proven elsewhere. I want to make sure that the average customer can figure it out on their own. WARD: For your new concessions, have you gone out with RFPs yet? VANLOH: We’ve been holding back, waiting and waiting and waiting (as of June 9). I’m glad everybody has been so patient with us because we wanted to wait for the terminal to be under roof before we put the package out. [In recent years] we’ve had two operators, one for food and beverage ( HMSHost ) and one for news and gift ( Paradies Lagardère ). There are so many different and innovative ideas out there for doing package deals – we’ve been watching those. GERRETY: We’ll get the first package – the quick-serve food and beverage package – out this month (June). Then right on the heels of that, there will be another two packages. One will be retail, then the

following one will have a couple of sit-down dining options. So, three packages total, all going out in the next three months. WARD: For the quick-serve F&B, will that be a food court? GERRETY: [The restaurants] will be next to each other in one zone, in what we call food hall atrium. There are a lot of efficiencies…with back-of-the-house connections. It’s a really cool space to do some interesting concepts.

Above: Jacksonville International Airport put its expansion project on hold during Covid. Now it’s full steam ahead with a new concourse and new parking garage to keep up with demand.

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DIRECTOR’S CHAIR

Left, below: HMSHost has the contract for F&B at JAX. An RFP for additional concessions for the new concourse will be released soon.

WARD: Many airports have taken a local focus in the past several years. Are you doing that as well? GERRETY: It has been for us – we’ve done a lot of local and I feel like we’ve got a good local presence. I think a healthy balance is appropriate for these quick-serve spaces. It would be nice to see some national brands to kind of balance and round out the program. For the fine dining, I don’t really know yet. We’re going to be seeking interest. We want to make sure we don’t cannibalize or compete with other concepts. WARD: And all three RFPS will be out by the fall? GERRETY: Probably. We’d like to take them to our board for approval by the end of the year and then allow the concessionaire to get in and start designing and developing that space, running on parallel tracks with us while we’re building out the [concourse]. WARD: Have you had, or are you anticipating, disruption to your current operations? VANLOH: We did have to close a little food area hall where the new concourse is going right through. We’ve had to move some options around for travelers, but we’ve given them plenty of options on the other concourses GERRETY: We’ve been really lenient with the concessionaire, allowing them to place popups in front and expand their offerings because we’d rather have something than nothing. WARD: What else is happening at Jacksonville? VANLOH: We’ve got three other airports we’re dealing with so it’s always something. At our other airport, the former Navy Air Base, we

just completed the Boeing campus a couple of years ago and they’re already expanding. We have another announcement coming up on a new manufacturing tenant. People are moving to Florida and companies are moving to Florida, especially to take advantage of the taxes, and then we’ll see where the tariffs go. WARD: What’s the latest with the spaceport? VANLOH: There are a lot of things happening down at Cape Canaveral [with actual launches]. In terms of what’s happening at Cecil, we brought in a company called Hermeus. They are testing and building a hypersonic engine for the military. And they’ve already fired it up and tested it, and it will eventually be on aircraft that we fly in,

getting us to London in three hours. So that’s all happening at the Spaceport. And then we also have all the local colleges, Emory Riddle, University of Florida, Florida State University – theirr students are bringing rocket engines that they built to test at the space center. It’s so much fun to watch these students putting together this rocket and then firing it up and celebrating. In the future, we may not have the rockets that take off like those at Cape Canaveral, but we will have the parts and assemblies in the clean rooms and the experiments that are being assembled in Jacksonville and then sent down to be put on a rocket to the moon or Mars or somewhere else. So we will be part of it.

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LIVING IN HARMONY?

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Collaboration May Be Key To Lounges And Concessions Co-Existing In The Airport

BY SALLY KRAL

The airport has changed quite dramatically over the past several decades, and the evolution of airport lounges is a prime example of this. “When we first entered the market in 1998, with my father Mr. Song Hoi See founding the world’s first independent lounge, airports were primarily seen as transport hubs and lounges were very exclusive. Over our nearly 30 years in business, we’ve witnessed a significant evolution: airport lounges are now a must have for travelers across all classes, whether you fly economy, business, or first,” says Jonathan Song, chief commercial officer at Plaza Premium Group (PPG), which operates more than 450 lounges worldwide. Airport Dimensions currently operates 84 airport lounges across the globe and the company has seen steady year-over year growth, according to Nancy Knipp, president of the Americas.

Above: Nancy Knipp, president of the Americas for Airport Dimensions, says her company’s research shows that lounge guests are among the airport’s highest-value customers, spending an average of $137 in the airport, which is spending that she claims extends across food and beverage, retail and services throughout the airport.

“What’s driving this expansion isn’t just increased travel demand – though that’s certainly a factor – but a fundamental shift in how airports view the lounge experience,” Knipp says. “It’s moved from being a nice amenity to an essential component of the modern travel ecosystem.” Song points out that lounges themselves have expanded their offerings and amenities substantially. “They’re evolving to offer more than just comfort, incorporating wellness, dining, entertainment and even retail experiences,” he says. That reality troubles many concessionaires. At this year’s Airport Experience Conference, during the panel discussion, “The Impact of Lounges on Airport Concessions,” Richard Schneider, chief development officer for Areas USA , raised concerns about how lounges can negatively affect concessions sales.

Above: Jonathan Song, CCO at Plaza Premium Group, hopes that lounge operators and concessionaires can team up on cross-promotions and other collaborative efforts to help drive revenue for both, as well as provide a better experience for the passenger.

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Above, Right: Lounge operator Plaza Premium Group has evolved over the years to meet passenger demand, offering such expanded amenities as dining, art exhibitions, in-lounge bars, massage services and more.

“I was lucky enough to build a wine bar in Ottawa, right under the Maple Leaf Club and let me tell you, that was the worst performing wine bar I’ve ever built, because when you have free wine upstairs, you’re surely not going to stop down and pay for it,” he said. “As concessionaires, we understand that lounges are an important part of the guest experience for airline partners, for airport partners and for credit card partners; however, we ask to make sure that everyone understands the impact that the lounges have on us. I mean, Delta and United have started doing grab and go programs at their lounges – that impacts concessionaires at every level, retail and food and beverage.” “Lounges initially were a respite away from the main terminal to be able to take a phone call to grab a drink, but they’ve gotten much, much more elaborate,” Schneider continued. “And that’s what concerns me most – I don’t think those consumers are spending much time outside of the lounge and the gate.” So the question is, how can airports continue to offer the lounge experiences that passengers have come to expect in a way that’s mutually beneficial to all parties involved, including the airport, the passenger, the lounge operator and the concessionaire? Industry professionals believe that a more collaborative approach is the way forward.

Essential Amenity There’s no denying that demand for lounges among travelers, particularly frequent and Millennial ones, is very high right now. “The demand surge we’re seeing is really remarkable: Our Airport Experience 2025 study revealed that 94 percent of U.S. lounge users now consider access essential to their travel experience, and the commitment level is striking, with 43 percent of travelers noting that they would switch loyalty programs entirely to maintain lounge access and 37 percent would change credit cards. That represents

a fundamental shift in consumer behavior and priorities,” Knipp says. “From an airport perspective, we’re seeing this reflected in their procurement strategies. RFPs today aren’t just focused on lounge quantity. They’re emphasizing experience, operational excellence, strategic integration with the broader airport ecosystem and authentic localization.” This year alone, Philadelphia International Airport (PHL) has welcomed more than 40,000 square feet of new lounge space across three units – the Chase Sapphire Lounge by The Club in Terminal D/E and the American Airlines

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Reach out for more information about our latest openings and exciting new opportunities.

Flagship and Admirals Club lounges in Terminal A-West – bringing the airport’s total number of lounges to 12, according to Kate Sullivan, PHL’s chief commercial officer. “For a bustling airport like PHL, being able to activate new spaces that attract business partners and passengers allows us to maximize our terminal real estate and improve our guests’ experience,” Sullivan says. “Also, for our airport, which exists in a region where passengers may choose from flying into or out of a few different airports, being able to provide truly special lounges may play a role in what airport regional passengers select.” Song points out that the shift to such strong demand for airport lounges today is due to several factors. “It’s partly due to changes in the airport business model, where non-aeronautical revenue has become a critical source of income – with many routes and airports available, becoming a key global or transit hub requires exceptional airport hospitality, and lounges play an instrumental role in

this,” he says. “And then it’s also because passenger expectations have evolved so much and they’re more experience-driven than ever. At PPG, we’ve evolved as well, offering more features that cater to different types of travelers beyond just dining and free Wi-Fi. Some of our lounges feature art exhibitions, in-lounge bars, massage services and more to meet the different needs and demands of passengers.” Concessionaire Concerns While Andrew Weddig, executive director of the Airport Restaurant & Retail Association (ARRA), notes that there isn’t any independent hard data available on whether lounges directly impact concessions Right, Below: Airport Dimensions currently operates 84 airport lounges across the globe (The Club at San Francisco International Airport shown) and the company has seen steady year-over year growth thanks to growing demand among passengers and airports.

sales, it stands to reason – especially as lounges continue to expand their offerings and amenities – that this is the case. “Intuitively, the rapid growth in number and evolution of lounges must negatively affect concessions,” he says. “Passengers are spending time in lounges, they’re spending time in queues to get into lounges. It just makes sense that this is time passengers are not patronizing concessions. “Consider Rich Schneider’s observation during the AXC lounge panel that Areas’ worst-performing wine bar is in Ottawa, underneath a lounge,” Weddig continues. “Consider my own observation of a dozen or so passengers milling about the entrance to the Sapphire Lounge at Ronald Reagan Washington National Airport (DCA) waiting for their number to come up in the electronic queue. These are airports with good dining and shopping options, yet passengers are opting to wait for a lounge rather than opt for a concession. I infer there must be cannibalization.” Like Schneider, David Bisset, chief development officer for Paradies Lagardère , has his own anecdotal evidence. “We’ve seen that the introduction of a new lounge in close proximity to our dining units can

lead to a measurable decline in sales,” he says. “For example, one of our restaurants located near a newly opened American Express Centurion Lounge in the third quarter of 2024 experienced an 18.5-percent drop in sales.” Bisset adds that the negative impacts are especially felt when lounges offer similar

Above: This year alone, Philadelphia International Airport has welcomed more than 40,000 square feet of new lounge space across three units, bringing the airport’s total number of lounges to 12.

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not be a factor because those high-spend lounge users were unlikely to visit typical airport concessions anyway. “Those high-end demographics that are drawn to the Centurion Lounge were never much of concessions food and beverage buyers at airports – they weren’t going into the Chili’s or the TGI Friday’s or the proprietary brands,” he says. “They just weren’t ever using those kinds of restaurants so that when the Centurion Lounge got installed, there wasn’t a degradation of sales as a result in that particular zone.” But Freibrun does recognize that “the jury is really out” on lounges’ impact on concessions considering the lack of independent data. On the lounge panel at AXC, Schneider remarked that he hopes to see more research conducted on this topic, noting that having hard data may help with finding solutions. “Because we do have to figure out a way to work collaboratively together on this,” he said. Synergistic Solutions Despite their concerns, concessionaires do believe that their businesses can co-exist with lounges, provided some important steps are taken. “It requires intentional planning and collaboration,” Bisset says, and he proposes several solutions: “Incorporate lounges into RFP planning to allow concessionaires to appropriately model rental yield and forecast performance; explore hybrid models where existing food and beverage operators manage or support lounge services; and ensure lounges contribute comparable total rent, both fixed and percentage rents, to that of food and beverage units, reflecting their full commercial impact on the terminal environment.” Indeed, lounges and concessions are part of the same passenger amenity ecosystem, ARRA’s Weddig points out. “That is, lounges – especially third-party lounges – effectively act as concessions and should be considered as part of the overall program when planning programs and RFPs,” he explains. “Lounges and concessions should not be programmed in their respective vacuums; they need to be considered together in order to maintain economic

viability for concessionaires, as well as a high-quality offer to passengers.” Weddig adds that it’s especially harmful to concessions when lounges are opened during lease terms without mitigation. “Allowances need to be made during the planning,” he says. “Perhaps [airports should plan] fewer concessions outlets in recognition that lounges are peeling off a portion of passengers and leaving a smaller customer base for food and beverage and retail operators; perhaps lower rent expectations in recognition of the smaller customer base meaning lower sales potential; perhaps a different merchandising mix to account for passenger profiles of lounge patrons.” Freibrun believes it’s perfectly reasonable for airports to seek opportunities to add lounges at the same time as they’re adding other concessions locations. “Airports understand there are so many pressures on food and beverage operators these days to turn a profit, and they’re listening – I really think they are,” he says. “I can tell you that we as a consultancy are listening. We understand the pressures of labor, wages, royalty fees, the significant capital investment costs that seem to be ever increasing. You have to pay attention to those factors or one day we’ll have fewer concessionaires to help deliver an important experience for airports.”

Above: Andrew Weddig, executive director of the Airport Restaurant & Retail Association, notes that there is strong anecdotal evidence supporting his assertion that lounge operations cannibalize sales from concessions. While he believes lounges and concessions can co-exist, it will require the airport making certain allowances in the planning process to mitigate risks for concessionaires.

services to traditional concessions. “Given the substantial capital investment and high rent obligations involved with concession financial models, lounges offering extensive complimentary amenities can distort the market if not carefully managed, potentially rendering nearby concessions units financially unviable,” he says. Song believes the reality is a bit more nuanced. “Lounge users are typically high value travelers who actually spend more across airport services,” he claims. Knipp shares this view. “Our research shows that lounge guests are among the airport’s highest-value customers,” she says. They spend an average of $137 in the airport, nearly double that of non-lounge users. This spending extends across food and beverage, retail and services throughout the airport. “What’s particularly revealing is the time allocation: lounge guests spend only about 9 percent of their airport dwell time in the actual lounge, while dedicating 15 percent of their time to concession areas,” Knipp continues. “Lounges are actually amplifying the overall airport economy by attracting and cultivating high-spend travelers.” Stephen Freibrun, senior principal at ICF , speculates that cannibalization may

Above: David Bisset, chief development officer for Paradies Lagardère, says that when new lounges are opened near existing food and beverage locations, the negative impact on concessions sales can be significant.

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reward system. With various products accessible at different destinations, it entices members to explore new locations and unlock additional advantages across airports worldwide.” Song adds that this platform can support nearby concessions by offering exclusive discounts and joint promotions. “We also offer brand activation zones for our partners,” he adds. “For example, lounges can feature local products or exclusive retail experiences where passengers can experience the products in our lounges and then purchase them at the shops of our travel retail partners.” Like Airport Dimensions’ platform, PPG’s also allows lounge guests to order from airport restaurants or shops directly to their lounge seat. “We envision a future where the lines between lounge and concession blur – in the best way possible,” Knipp says. “Through technology and intentional design, lounges will serve as amplifiers of the broader airport experience. Imagine a traveler enjoying spa services, dining from their favorite local chef or discovering exclusive retail partnerships, all within or through the lounge experience. Collaboration, not competition, will define the next era of airport commercial success.” Song, too, believes the future holds “more transformative alliances” among airport stakeholders. “Major global players are collaborating more in enhancing operational efficiencies; they’re also expanding the airport marketplace into a vibrant hub where retail, food and beverage offerings, and hospitality experiences converge,” he says. “This dynamic approach not only fosters sustainable growth within the aviation sector but also diversifies non-aeronautical revenue streams, which are crucial for financial stability.” “Like I always say, it’s the same passenger that we all serve,” Song continues. “I believe that in the industry value chain, everyone has a role to play in enhancing the passenger experience – it’s a shared ecosystem. It’s important to work in collaboration, for the passengers and for the aviation industry.”

Right: Stephen Freibrun, senior principal at ICF, suggests airports should take concessionaires’ concerns into consideration and coordinate the opening of new lounges along with other concessions during the RFP process.

Freibrun also offers a solution that echoes Bisset’s hybrid approach tactic: “Existing concessionaires can provide food service to lounges as an additional revenue source, so if an airport does add in a lounge in the middle of a concessionaire’s agreement, there could be teaming opportunities that can offset that,” he says. Sullivan remarks on one such successful arrangement at PHL: “One of the partnerships we’re most excited about is between the Chase Sapphire Lounge by The Club and Middle Child. Middle Child is a Philly-favorite sandwich shop that offers some of their sandwiches for order at the Chase Sapphire Lounge,” she says. “There’s also a Middle Child location under construction in Terminal D, only a concourse away from the lounge. Passengers can sample their sandwiches at the lounge and will soon be able to order from a more extensive Middle Child menu in the terminals.” Sullivan adds that she hopes to see solutions like this grow, as they also support the passenger experience. “As our lounge operators introduce more technology into the airport experience, we’re hopeful that lounge visitors will be able to curate their own menu, being able to enjoy the food and drinks at the lounge of their choice, while ordering from Chickie’s & Pete’s or Sabrina’s Cafe for their children or another family member.”

This is something Airport Dimensions has been working on. In 2020, the group introduced its Connecta digital platform and this year it launched an enhanced version called Connecta+. “Connecta+ is a comprehensive digital platform through which travelers can order from concession partners directly to their lounge location, discover retail opportunities across the airport and engage with services through a unified interface,” Knipp says. “This approach creates multiple value streams: passengers enjoy enhanced convenience and choice, lounges become service amplifiers rather than isolated spaces and concessionaires gain direct access to our high-value customer segment through new channels.” Also in 2020, PPG launched its own digital platform, Smart Traveller, which currently has more than one million members across the globe, according to Song. “With Smart Traveller, users can enjoy a dynamic and digitally-driven experience in a single platform, from lounge admission to earning points from our network of brands, affiliate lounges, airport service networks, travel partners and lifestyle brands, redeeming rewards and enjoying many member-exclusive benefits and perks,” he says. “The Smart Traveller marketplace offers a curated collection of more than 1,000 travel and lifestyle items that can be redeemed through the point

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Left: Farmer’s Fridge, the salad and freshly prepared food brand known for its 24/7 vending machines, has expanded its footprint to 32 airports.

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Health-Focused Brands Make Headway In Airports

BY SARAH BELING

As airports continue to expand their concessions offerings, one consistent customer demand rings clear: a need for additional healthy food and beverage options. Traveler requests for a more diverse palate of wellness-focused foods have opened a myriad of opportunities for both new and veteran brands to make their mark in the airport sector, with some companies choosing to make the leap into airport concessions for the first time. And as health-focused brands look to make their debut in the airport space, many are likely hoping to follow in the footsteps of established companies like Farmer’s Fridge , the salad and freshly prepared food brand known for its 24/7 vending machines offering travelers grab-and-go options beyond the usual processed fare. Director of Sales Mike Saletta says that Farmer’s Fridge – which currently operates vending machines housing healthy fare in convenient to-go jars in more than 32 airports – “continues to receive notes from passengers praising us and thanking us for giving them options.” The brand, which has even recently launched a limited-edition partnership with Delta Air Lines to offer Farmer’s Fridge products on select flights from Los Angeles International Airport (LAX), continues to grow as healthy travel options become more and more popular, adds Saletta. “We’ve had organic outreach from airports looking for our concept,” adding that the brand installs and adjusts their menus to coincide with regional flavor profiles and customer feedback. “We curate menu items based on the feedback we receive,” says Saletta. “Some regions may be more inclined for protein and chicken, and [prefer] different flavor profiles for the South versus the East, versus the West.”

Right, below: Smoodi, a self-serve smart blender, has partnered with Paradies Lagardère and will be in five airports next year.

Other veteran brands like California based SAMBAZON Açaí Bowls have continued to expand due to their ability to quickly install and operate their concepts in flexible footprints. “I think the reason we’ve been able to launch is that our footprint is in line with non-traditional spaces – our first franchise was built like an airport,” says Ryan Black, CEO and co-founder president. He notes that SAMBAZON has quickly grown to operate in six airports with four more locations currently under construction. The response from travelers visiting their airport franchises has been “tremendous,” adds Black, adding that he believes the secret to successfully carving out a corner of the airport market is a focus on quality product, “consistency, the ability to scale and profitability.”

There are also newcomers to the açai bowl airport market, including Everbowl , an airport hopeful already well-established in college campuses, casinos and stadiums. “Our founder Jeff Fenster was at a conference called Aspire. There was a woman in the crowd who deals with airports who approached him and said that this is a segment that is not fulfilled in airports,” says Hailey Coffman, manager of special operations for the brand. “That’s how we were able to get the opportunity to meet more players in this industry and get a better understanding of the industry overall. “We are a fast and eager brand with nearly 100 locations across 28 states, mainly franchises,” adds Coffman. “We open a new store approximately every 13 days — so we’re very hungry, and we’re excited to get into airports.”

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