Airport Experience® News - Post-Conference Issue 2025

MAY 2025 / V23 N262

RECAP OF THE 2025 AX CONFERENCE

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YOUR COMPREHENSIVE GUIDE TO AXC2025

OPERATORS EMBRACE LATEST F&B TRENDS

HIGH COSTS, OTHER CHALLENGES CONTINUE FOR CONCESSIONAIRES

PAT MURRAY SHARES STRATEGY FOR SSP AMERICA

LEADING CONCESSIONS CEOS DISCUSS OUTLOOK

KEYNOTE SPEAKER SHARES AI STRATEGIES

AIRPORTS, CONCESSIONAIRES TROUBLESHOOT PARTNERSHIPS

Jerseys on, grills fired up, and voices raised loud. NFL football isn’t just a game— it’s passion, pride, and pure adrenaline. And no one brings the heat like Cincinnati Bengals fans. From viral celebrations to the thunder of “Who Dey” echoing through the streets, this city lives for football. Game Dey at Paycor Stadium? SUNDAYS ARE SACRED

THE JUNGLE Welcome to

IT’S NOT JUST HYPE—IT’S A HEART-POUNDING, ALL-IN EXPERIENCE!

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SSP America has unleashed the roar of the Bengals right inside the Cincinnati/ Northern Kentucky International Airport. The all-new Bengals Bar & Kitchen is where game-day energy meets travel-day cravings. Wall-to-wall TVs? Check. Locally inspired eats? Absolutely. Instagrammable vibes? You better believe it. It’s the ultimate fan fueled pit stop before takeoff. Because in Cincinnati, football never takes a timeout.

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RESTAURATEUR WITH THE HIGHEST REGARD FOR CUSTOMER SERVICE

THE PARTNER OF CHOICE FOR DINING AND RETAIL

BEST OVERALL RETAILER

BEST LOCAL-INSPIRED RESTAURANT - UCCELLO’S RISTORANTE (GRR)

Our success is built on strong partnerships - with our incredible airport partners, dedicated brand collaborators, and the more than 10,000 passionate team members across our Dining and Retail Divisions. That’s why we’re honored to be named Best Overall

Retailer for the 28 th consecutive year, and equally proud to be recognized as the Restaurateur with the Highest Regard for Customer Service and to celebrate Uccello’s Ristorante at GRR for winning Best Local-Inspired Restaurant Concept. These awards reflect the strength of our relationships and the people who bring our mission to life every day.

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14 CEO Perspectives Seven concessions CEOs met with AXN’s Melissa Montes and Carol Ward for an update on the state of the industry. AXC CONFERENCE RECAP 18 Honoring Excellence The 2025 AX Awards recognized top performers in the airport concessions industry. 22 Let Me Tell You A Story… AXC Keynote Speaker Miri Rodriguez shared insights on creating a story for your brand to better engage with your target audience. AI, she says, can be a helpful tool to reaching that story goal. 24 Director Outlook In a panel moderated by ACI-NA’s Kevin Burke, four airport directors shared their insights on evolving the passenger experience. 26 A New Approach? Airport representatives, operators and consultants came together to discuss how concessions leases might be altered to better serve all parties. 30 Terminal Neighbors Lounges are capturing the attention of travelers, and concessions operators are feeling the competition. Can the two find harmony? 32 It’s A Woman’s World The panel discussion at the fifth annual Women In Leadership Breakfast at AXC focused on mentorship, allyship and ensuring a seat at the table.

36 Trends and Innovations Two sessions at AXC 2025 tapped subject matter experts to offer insights on everything from F&B trends to loyalty programs to digital twins and more. 40 It’s All In The Pitch Representatives of four companies eager for a spot in airports pitched their offerings during the Business Pitch Showcase at AXC. 42 Opportunities To Seize The industry is flush with opportunities. In front of a packed session room, twelve airports shared their upcoming opportunities for concessionaires. 46 Ah, Memories… Check out some candid shots from AXC 2025.

4 Letter From The Editor 6 Data Check Travelers expect a brand experience in airports, m1ndset research shows. 8 Latest Buzz Myrtle Beach International Airport is expanding, a response to rapid growth in tourism along South Carolina’s Grand Strand.

51 Advertising Index 52 Before You Take Off

Last year’s Silent Disco at San Francisco International Airport created a spark of joy in the airport’s Harvey Milk Terminal.

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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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With the roar of the crowd and the cut of the ribbon, the Cincinnati Bengals and CVG Airport officially opened a one-of-a-kind dining experience. This restaurant is more than a meal—it’s a celebration of local pride, teamwork, and the hometown flavors of Cincinnati and Northern Kentucky. CELEBRATION PRIDE OF Bengals

We’re thrilled to bring a celebration of Bengals pride to life at CVG. It’s a touchdown for passengers and a great way to showcase our beloved team.

Larry Krauter Chief Executive Officer Cincinnati/Northern Kentucky International Airport

APRIL/MAY 2025

Dear Valued Readers,

MAY 2025 / V23 N262

We made it! The 2025 Airport Experience Conference is in the books. Our 21 st conference was a huge success, with record numbers of attendees and record numbers of exhibitors in the Experience Hall. Thank you to all who supported us this year! This issue of Airport Experience News allows readers to relive the sessions, Experience Hall events and parties that combined to make this year’s event so memorable. We spotlight award winners, provide coverage of the educational sessions and showcase in images some of the networking that took place over the three days. This issue also contains one of our most important articles of the year. Each year at the AX Conference, we gather leading concessions company CEOs for a private roundtable discussion about the state of the industry. This year’s conversation – edited and printed on the following pages – includes a frank discussion on many of the challenges facing our industry. Looking ahead, the June issue of AXN will focus on the existential challenge facing the ACDBE program. The new presidential administration has signaled its opposition to race- and gender-based programs; thus, the ACDBE program could be the most vulnerable it’s been since its launch 20 years ago. The June issue will also spotlight some of the best ACDBE operators in North America with AXN’s ACDBE of Distinction recognitions.

RECAP OF THE 2025 AX CONFERENCE

YOUR COMPREHENSIVE GUIDE TO AXC2025

OPERATORS EMBRACE LATEST F&B TRENDS

HIGH COSTS, OTHER CHALLENGES CONTINUE FOR CONCESSIONAIRES

PAT MURRAY SHARES STRATEGY FOR SSP AMERICA

LEADING CONCESSIONS CEOS DISCUSS OUTLOOK

KEYNOTE SPEAKER SHARES AI STRATEGIES

AIRPORTS, CONCESSIONAIRES TROUBLESHOOT PARTNERSHIPS

Enjoy!

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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AX NEWS MAY 2025

WE’RE THE REASON THEY ARRIVE EARLY. Award-winning Concepts | Exclusive Products Seamless Checkout | Loyalty Program Perks

To learn how we can help you transform the travel experience, contact brian.quinn@avolta.net.

Why Experiential Retail in Travel Retail? OVERALL TRAVEL EXPERIENCE

DATA CHECK EXPERIENTIAL DEMAND Travelers Expect A Brand Experience In Airports, Research Shows m1nd-set’s research underlines the critical role that experiences play in travel retail, as they can signi cantly impact consumer behavior, satisfaction, and purchasing decisions. On top, experiential retail is likely to affect the whole travel experience, thus involving any stakeholder in the industry: of global travelers consider the shopping experience at airports to be an important factor in their overall travel experience 84% of global travelers reported that their overall airport experience is signi cantly in uenced by the retail options 65%

BY CAROL WARD

Why Experiential Retail in Travel Retail? PLANNING LEVEL OF PURCHASE

15%

Planned to purchase the exact product

SPECIFIC PLANNERS

30%

Planned to purchase a speci c brand

13%

Planned speci c but changed my mind

2%

70%

21%

Planned without any speci c idea

make the nal decision in-store and are therefore highly in uenceable by experiential retail. +

UNDECIDED PLANNERS In uenceable with attractive and compelling in-store elements

42%

21%

Planned with some idea in mind

Gen Z ( 80% ), Middle East & Africa ( 74% ) and Europe ( 73% )

IMPULSE BUYERS

28%

xperiential retail offerings can be a catalyst to increasing footfall and purchasing rates in

towards exploring and trying to find new things,” he said, noting that shopping due to price advantage has slipped behind the experiential impact. The data shows that the price advantage that drove duty free shopping in the past has shrunk as consumers can access deals in various other ways. Instead, travelers are showing increasing willingness to browse to discover items to purchase. They want inviting and attractive retail offerings and they’re looking for the latest new products. In fact, data indicates that more than two thirds of travelers (70%) make the final purchase decision in-store, and are therefore highly influenceable by experiential retail.

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airport retail, new data from Switzerland based travel retail research firm m1nd set . In fact, the firm’s research shows that the in-store experience is now the number-one driver to purchase, eclipsing the price advantage that once drove purchasing. Peter Mohn, owner and CEO of m1nd set, presented the findings at the recent 2025 Summit of the Americas travel retail show held by the International Association of Airport and Duty Free Stores. “Browsing and other factors have increased – we can actually see a trend

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DATA CHECK

58% of travelers are willing to spend more if they encounter a unique shopping experience during their trip

63% of DF shoppers prefer to spend their money on experiences rather than material items

63% of DF shoppers prefer to spend their money on experiences rather than material items

58% of travelers are w more if they enc unique shopping during their trip

SALES GROWTH spend their money on experiences rather than material items 63% of DF shoppers prefer to

65% DF shoppers who engage with brands through experiential retail are likely to spend up to 44% more than those who do not

57% of travellers would be willing to pay a premium for a better customer experience

57% of travellers would be willing to pay a premium for a better customer experience

SALES GROWTH

57% of travellers would be willing to pay a premium for a better customer experience

44% of DF shoppers admitted that a good shopping environment positively in uences their buying decisions

44% of DF shoppers admitted that a good shopping environment positively in uences their buying decisions

brands providing a superior customer experience registered an increase in revenue by up to 15%

44% of DF shoppers admitted that a good shopping environment positively in uences their buying decisions

brands providing a supe customer experience reg increase in revenue by u 15%

Why Experiential Retail in Travel Retail? OVERALL TRAVEL EXPERIENCE m1nd-set’s research underlines the critical role that experiences play in travel retail, as they can signi cantly impact consumer behavior, satisfaction, and purchasing decisions. On top, experiential retail is likely to affect the whole travel experience, thus involving any stakeholder in the industry:

Why Experiential Retail in Travel Retail? OVERALL TRAVEL EXPERIENCE m1nd-set’s research underlines the critical role that experiences play in travel retail, as they can signi cantly impact consumer behavior, satisfaction, and purchasing decisions. On top, experiential retail is likely to affect the whole travel experience, thus involving any stakeholder in the industry:

“There is a clear correlation in how the satisfaction of experiential retail impacts the consumer behavior satisfaction and the actual purchase decisions,” Mohn said. “More than eight out of nine [respondents] said that the shopping experience at the airport is an important factor for the overall travel experience, and that is very important because if the overall travel experience is positive, they will then also spend more time at [the store] the future. And two out of three say that the overall airport experience is significantly influenced by the retail options.” Younger consumers tend to embrace experiential retail more than their older counterparts, the data shows. Middle aged travelers sit right in the middle in both average footfall (40%) and average conversion (64%), and of those middle of global travelers consider the shopping experience at airports to be an important factor in their overall travel experience 84%

aged travelers who do spend, the average outlay is $135, the m1nd-set data shows. Millennials had higher footfall levels and similar conversion rates, and a near-equal spend at $130. Gen Z consumers ranked lower on all fronts. Mohn said the younger generation – Millennials and Gen Z – prioritize experience over material goods. “They want to have an experience, they want to be inspired, they want to have something unique when they go to the airports, and they hate it when they have the feeling that the shops at the airports are all the same,” he said. “It has an impact on the customer loyalty because experiential retail fosters a stronger emotional bond with the brands and with the shopping. If this also creates more loyalty to the brands they will again be more likely to buy again. of global travelers reported that their overall airport experience is signi cantly in uenced by the retail options 65% Why Experiential Retail in Travel Retail? OVERALL TRAVEL EXPERIENCE m1nd-set’s research underlines the critical role that experiences play in travel retail, as they can signi cantly impact consumer behavior, satisfaction, and purchasing decisions. On top, experiential retail is likely to affect the whole travel experience, thus involving any stakeholder in the industry: of global travelers consider the shopping experience at airports to be an important factor in their overall travel experience 84%

84%

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of global travelers consider the shopping experience at airports to be an important factor in their overall travel experience

Why Experiential Retail in Travel Retail? PLANNING LEVEL OF PURCHASE of global travelers reported that their overall airport experience is signi cantly in uenced by the retail options 65%

Why Experiential Retail in Travel Retail? PLANNING LEVEL OF PURCHASE

15%

Planned to purchase the exact product

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SPECIFIC PLANNERS

30%

Planned to purchase a speci c brand

13%

LATEST BUZZ

BEACH-BOUND INFLUX Myrtle Beach International Is Expanding To Meet Visitor Demand

BY SARAH BELING

acationers, rejoice! Traveling to and from Myrtle Beach, South Carolina, will soon be even easier

adding approximately 50,000 square feet to the existing terminal space. The new Concourse A facility will feature six new gates, upgraded restrooms with a mother’s room and adult changing facilities to better accommodate caregivers and travelers with special needs, new flooring, enhanced signage and a refreshed lineup of concessions throughout the terminal. The expansion comes amidst MYR’s ever-increasing passenger traffic, says Judi Olmstread, MYR’s director of airports. “The impetus to expand Concourse A at MYR stemmed from the significant and

Above: The new Concourse A facility at Myrtle Beach International Airport will feature six new gates, enhanced concessions and other upgrades.

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thanks to the Concourse A expansion project at Myrtle Beach International Airport (MYR). The $98 million expansion – funded with $12.4 million from the Federal Aviation Administration (FAA), $14.9 million from the state of South Carolina, $48.9 from Passenger Facility Charges (PFC) and $21.8 million from airport cash reserves – broke ground in June 2024 and is scheduled to open in December 2025,

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Shining Bright Congratulations to the Delaware North team at Minneapolis-St. Paul International Airport, led by General Manager Pia McDonough, which was honored as the 2025 Best Local Management Team at the Airport Experience News (AXN) awards.

We hope guests enjoyed our casino-themed opening night kickoff party and thank AXN for a memorable conference.

We’ll see you next year in Nashville!

DelawareNorth.com | A Global Leader in Hospitality and Entertainment

2025 Delaware North

LATEST BUZZ

On top of that,” she adds, “the HVAC and lighting systems will be upgraded to more energy-efficient models, making the whole space more sustainable compared to existing systems.” While the initial project planning began in 2019, “like many infrastructure projects across the country, it was delayed due to the impacts of the Covid-19 pandemic,” adds Olmstead. “However, the pause gave us a valuable opportunity to reassess and refine the project to better align with evolving passenger needs, particularly in response to the region’s rapid population growth and the steady rise in annual visitation.” New Concessions Options The latest influx of visitors to MYR will soon be able to enjoy the airport’s new dining and retail options, adds director of airport development, Breck Dunne. “As part of the terminal expansion, we’re excited to introduce a variety of new retail and concession concepts designed to elevate the travel experience at MYR,” says Dunne. “One of the standout additions is Pizza Hyena, a local favorite known for its wood

sustained growth in passenger traffic we’ve experienced over the past decade,” says Olmstead, noting that MYR, which saw a record-breaking 3.8 million passengers in 2024, has seen consistent growth since the COVID-19 pandemic. “As more airlines added routes and increased flight frequencies, it became clear that we needed additional gate capacity and amenities to maintain a high level of service and comfort for our travelers,” she adds. “This expansion is about staying ahead of demand, enhancing the passenger experience and supporting the continued economic growth of the Grand Strand region.” The new concourse, which is being designed by Gresham Smith and built by joint operators JE Dunn Construction and South Carolina-based Southside Constructors , will also showcase several new sustainability features, says Olmstead. “For example, we’re using auto-dimming glass, also known as smart or dynamic glass. This glass adjusts its shading depending on the amount of sunlight, helping to keep the concourse at a comfortable temperature. By doing this, it reduces the need for cooling, which in turn cuts down on energy use.

Above: Myrtle Beach International Airport is undergoing a $98 million expansion to accommodate strong growth in passenger traffic.

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LATEST BUZZ

fired pizzas and laid-back, beachy vibe that perfectly captures the spirit of Myrtle Beach.” The new restaurant founded by Myrtle Beach entrepreneur Nate Anderson will be operated by longtime MYR concessionaire MSE Branded Foods , which currently manages the airport’s Nacho Hippo, Chick fil-A, Pavilion Bar and Grill, Subway, Cinnabon, Caribou Coffee, Steak n Shake, Aviators Cafe and Boardwalk Cafe. “We have been operating our concepts at MYR since 2004. As tenants at MYR, we have been consistently collaborating with the airport’s leadership throughout its ongoing expansion,” says Boris Minkov, regional director of operations for MSE Branded Foods of their longtime relationship with the airport. Minkov adds that MSE Branded Foods “likes supporting local brands and businesses when we can and we believe it’s best to keep the money in the local community.” The team was drawn to Pizza Hyena’s “unique style and food choices,” adds Minkov, noting that they believe the restaurant’s “delicious and distinctive” menu of wood-fired pies will appeal to all travelers at MYR. On the retail front, visitors will soon be able to shop at Shoreline Supply by Hudson, a store that draws inspiration from Myrtle Beach’s place along the Grand Strand coastline. It will offer local souvenirs, snacks and beverages, travel and convenience necessities, electronics and magazines in a convenient self-checkout format.

“Myrtle Beach is a premier destination for millions of visitors a year,” says Jordi Martin-Consuegra, chief operating officer for Hudson parent company Avolta , North America, of their decision to open Shoreline Supply by Hudson at MYR. “For those traveling to MYR, Shoreline Supply will both offer them a sense of place through local products and help ensure they can purchase the travel essentials they need quickly so they can be on their way to enjoy all that the region has to offer.” The team at MYR believes that in addition to improving amenities for visitors, the Concourse A expansion project will also enrich the region’s economy, says Olmstead. “The Concourse A expansion represents a major investment in our region’s

Above: The new Shoreline Supply from Hudson draws inspiration from Myrtle Beach’s place along the Grand Strand coastline.

future. During construction, it’s creating hundreds of jobs for local contractors, engineers, and tradespeople, delivering a meaningful boost to the local economy. Once complete, the expanded concourse will support long-term job growth at MYR and help attract additional air service, which fuels both tourism and business travel,” she says. “In turn, that drives airport revenue and stimulates broader economic activity across the Grand Strand, benefiting hotels, restaurants, and local businesses. It’s also worth noting that MYR already contributes approximately $3 billion in annual economic impact to the state of South Carolina, and this project will only strengthen that contribution.” And as the project climbs toward its opening day, “we’re looking forward to welcoming travelers into a more spacious, comfortable and modern terminal, one that truly reflects the energy and hospitality of the Myrtle Beach area,” adds Olmstead. “From increased gate capacity and upgraded amenities to expanded seating and abundant natural light, every detail has been thoughtfully designed with the passenger in mind. It’s incredibly rewarding to see this vision come to life and to offer an airport experience that matches the excitement of arriving in the Grand Strand.”

Below: Local brand Pizza Hyena will make its airport debut when the new concourse opens, courtesy of MSE Branded Foods.

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AX NEWS MAY 2025

MCO celebrates with AXC on an exciting 2025 event

ORLANDO INTERNATIONAL AIRPORT Airport with the Highest Regard for Customer Service

TRACY CONNER HARRIS Vice President of Concessions 2025 Property Manager of the Year

FlyMCO.com

CEO PERSPECTIVES Leaders Of Seven Concessions Operators Offer Industry Outlook

BY MELISSA MONTES AND CAROL WARD

Editor’s Note: About midway through the 2025 Airport Experience Conference, behind closed doors, seven CEOs from leading airport concessions companies joined AXN’s Carol Ward and Melissa K. Montes for a roundtable discussion. The goal was to provide a forum for these industry leaders to discuss some of the biggest challenges they face as they strive to provide an extraordinary experience to the traveling public. Some of the issues raised this year – high labor and build-out costs, shrinking margins, the growing power of unions – are familiar territory. Others - notably the unpredictability of the current administration and the potential impact of levied and threatened tariffs - are new challenges that each company must navigate going forward. Participating in the conversation were Carlos Bernal, CEO of Areas USA ; Steve Johnson, president and CEO, North America, Avolta ; Toby Keir, CEO of WH Smith North America ; Pat Murray, CEO, SSP America ; Gregg Paradies, president and CEO of Paradies Lagardère ; Scott Socha, group president for Parks and Resorts, Travel and Australia at Delaware North ; and Jeff Yablun, CEO, OTG Management . The following is an edited version of the conversation.

MONTES: It’s been five years since the pandemic. How have your businesses materially changed in that time and how do they compare to 2019? JOHNSON: Today enplanements are up roughly 4%, 5% over what they were in 2019. It’s not dramatic - we should be 15% higher than that. If you look at all the investments we made during that period, they’re not paying [revenue returns] as well as they should be. But I would say overall that business is relatively healthy. There are some real pressures on the business, whether it be labor, whether it be cost of goods…. Coming into ‘25, we felt pretty good. This was going to be the first truly stabilized year where enplanements were more predictable, airlines were becoming more predictable. Then we elected Trump and that became a different piece of the puzzle that we didn’t expect, whether it be the tariffs, whether it be Canadian traffic down 70% because they [aren’t inclined to visit the U.S]. European traffic is projected to be down 5% to 7% over last year. These things are real and are affecting us today. I think the last three months have shown us that we’re not sure where we’re going to hit in 2025. The tariffs are going to affect this in different ways. Right now, with the food business, we’re talking about 70 - 80 basis points of cost and for the retail business, it could be as much as 300 basis points of cost because of what we’re importing. Those are real costs that I don’t think any of us expected back in October and November. PARADIES: 2019 seems like a lifetime ago. From my perspective, the industry has probably rebounded stronger. Collaboration

(left-right) Gregg Paradies president and CEO, Paradies Lagardère; Jeff Yablun, CEO, OTG Management; Scott Socha, group president for Parks and Resorts, Travel and Australia at Delaware North; Pat Murray, CEO, SSP America; Melissa K. Montes, vice president and publisher, Airport Experience News; Toby Keir, CEO of WH Smith North America; Steve Johnson, president and CEO North America, Avolta; Carlos Bernal, CEO of Areas USA.

and more sharing of information - there’s still a big opportunity there. We’re more customer-focused, more traveler-focused. There’s been a lot of new leadership running airports, and they’re more sophisticated, which is good for industry and is good for us. The [concessions] model is evolving. The cost structure has increased significantly. I think there’s been a bit of a reality check in our industry as to what’s a good business opportunity and what’s not. There’s more discipline. We’ve all

had meetings where [airports and consultants] are listening much more to what the needs of operators are, in order to build a better program more collaboratively and do more upfront work to have a better process. 2019 was record year for many of our companies including us, and last year was a record year for many of our companies, including us, but 2025 is a different. This was supposed to be the year of normalcy. Normalcy is not what this administration is about.

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We’ve all had meetings where [airports and consultants] are listening much more to what the needs of operators are, in order to build a better program more collaboratively. – Gregg Paradies, president and CEO of Paradies Lagardère

YABLUN: We’re seeing some elasticity of demand. People are trading down from full-serve to quick-serve to markets. There seems to be real sensitivity to pricing. Our honeymoon appears to be over. SOCHA: On the consumer side a lot of friction has been taken on the system. You can grab something and pay and get out without interacting with anybody, which is I think great for the industry. In terms of her transaction spend, if you consider the amount of time you don’t have on a connecting flight, that takes away from your ability to spend, even with taking friction out of the marketplace. I don’t have any numbers on airline clubs, but what my eyeballs tell me is airline clubs have expanded tremendously, which certainly hurts us. Then there’s the issue of pricing. [Airports] don’t need to monitor pricing. We’re professionals. They can take much more administrative friction out of the system if they just let us operate our businesses. JOHNSON: It’s not just airline [lounges], it’s all the credit card-[affiliated spaces]. In some cases they’re building for 600-700 person capacities. We’re paying a high premium for airport real estate and airports are introducing competitors that are taking up massive amounts of square footage and taking thousands of people out of our journey. It hits retail, it hits food, and there’s been no discussion on how that affects our business. WARD: Shifting to labor challenges, I know escalating wages and increased union demands have been challenging in recent years. Can you provide an update on the latest developments? BERNAL: Our biggest single cost issue has [involved] labor – the unions, the living wage ordinances, the benefits. That’s really been the biggest pain point, because of not being able to increase pricing or use other mechanisms to be able to offset those costs. MURRAY: In the last 18 months or so, we’ve seen wages recast in major cities. What gets printed in the newspaper is what the living

wage ordinance is, but that doesn’t begin to capture what the actual CBA (collective bargaining agreement) is capturing. There is some metric of the hourly wage that’s above the living wage ordinance, and then there are all the benefits that are piled on top of that. In the benefits, there are lots of things that that didn’t exist previously that are now a part of the deals (such as training funds, legal funds, pensions, etc). BERNAL: The living wage ordinances that come up in these major cities, they target the airports specifically, which is really kind of mind boggling. How can you target one specific business within the city? I don’t how we stop it from happening, but it’s happening. YABLUN: Half of our business is in New York City. All our collective bargaining agreements are in negotiation at the same time. They’re asking for the sun, moon and the stars above. It’s all politically driven and it’s very difficult to deal with, obviously. Some of them have been dragging on for a long time because you can’t sign up for it. You just can’t. That’s a big, big challenge for us. BERNAL: Another interesting part of that, at least for me, is you almost have a gun to your head. To do business in the airports, you have to sign up for the labor peace agreement. It takes away any negotiation, any leverage that you may have to negotiate a fair deal with a union, because you’re forced by the city or whichever entity is driving that process. Then they control pricing on top of that. We have to pay what the union wants, but [the airport is] not going to give you any pricing to offset that cost. MURRAY: I think somebody could listen to this conversation and think we’re only talking about wage rates or benefits. There’s a whole other bucket that has to do with the work rules that have radically changed. [In one case], one of the negotiating points was the right to “no-call, no-show” for 20 shifts a year. What that means to us on a Friday afternoon is we might have 200 employees

[Airports] don’t need to monitor pricing. We’re professionals. They can take much more administrative friction out of the system if they just let us operate our businesses. – Scott Socha, group president for Parks and Resorts, Travel and Australia at Delaware North

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AX NEWS MAY 2025

Half of our business is in New York City. All our collective bargaining agreements are in negotiation at the same time. They’re asking for the sun, moon and the stars above. – Jeff Yablun, CEO, OTG Management

[scheduled] but 50 aren’t there. The cascading and negative effect on us is that we’re not supplying service. Obviously, the unions in our sector do a good job of service workers assembling the votes. We’re not going to change those things, but we need to change how the airport responds to and adapts to what is a working condition that we have. WARD: Shifting gears, the sheer number of RFPs out for bid continues to be overwhelming. What percentage are your companies bidding on? PARADIES: About 40%. It’s hard to compare but I would say it’s triple, or maybe double, what we would have passed on before. We’re all more disciplined. Deals that were borderline four or five years ago, we probably aren’t bidding on today. Obviously

that’s a risk because you may not see that contract for 15 or 20 years. MURRAY: I think it also involves the amount of money in the marketplace, particularly with whatever happens with the U.S. economy. Our [parent] companies are going to react to that. I think we will see airports that don’t have enough responses to RFPs because there actually isn’t enough capital to build all those restaurants. KEIR: There have been RFPs where no one has bid, and I think that’s a clear enough message to the industry and that particular airport. JOHNSON: Even if there are only one or two bids, something’s wrong. In this industry the good RFPs get six, seven companies bidding. We know [opportunities] work and which ones don’t. The problem is a lot of the less sophisticated companies don’t know that. They’re going to bid and they’re going to get in trouble. Right now, there are six companies [for sale] in our industry. Why? Because they can’t do what they promised to do. WARD: I wanted to turn to the new presidential administration. Statements and policies have turned off some international travelers. Are you feeling it yet in terms of broad-based reduction in travel? JOHNSON: The first three months of the year were flat, which is a disaster from a growth standpoint. Traffic is 1% off, where traditionally it would be up 3%-4%. I think that Trump [mentioning Canada potentially becoming] the 51st state has prompted Canadians not to come. European traffic is down 5% to 7%. SOCHA: If I look at forward bookings on the [national] park side, we’re relatively flat compared to last year, but a lot of that can be drive traffic. The first 100 days [of the Trump Administration] has been erratic. I think we’re all trying to see where it actually level sets. But the Americans and consumers pretty resilient, right? They are still going to keep traveling. I don’t see that changing. They may spend less, but I still believe they’re going to be traveling.

WARD: What about tariffs? Are you feeling the impact yet on the price of the goods you purchase? KEIR: Some things you can manage if you are a large sourcing operation and you can shift things around over time. I think the message we probably all give is [about flexibility]. When Target or Best Buy [are hit with tariffs], they’ll change prices. In our industry, some contracts tell us to come back in a year [to request a price change]. If we sign a deal that is wrong because we’ve got the rent wrong, that’s on us. But if the big inputs are very different – like tariffs or labor changes to a significant level – I ask for flexibility. I ask for airports to understand the impact that we are going through and to help. There have been RFPs where no one has bid, and I think that’s a clear enough message to the industry and that particular airport. – Toby Keir, CEO of WH Smith North America

I think we will see airports that don’t have enough responses to RFPs because there actually isn’t enough capital to build all those restaurants. – Pat Murray, CEO, SSP America

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AX NEWS MAY 2025

I think that there’s going to be a bit of a revolution in our business. I’m looking forward to [seeing] what AI (artificial intelligence) brings us, [focusing on] understanding our customers and being able to customize something for the customer. – Steve Johnson, president and CEO, North America, Avolta

MONTES: The Trump administration has also targeted DE&I programs. How do each of you view the role of diversity within your organizations in terms of leadership and representation and your supplier partnerships? PARADIES: It’s no different for us [than before]. [Diversity, equity and inclusion] is who we are and how we do business. It’s helped our company become much better and will continue to help our company get better. MURRAY: I’d like to answer in a different way. [The threat to DEI programs] is using public policy to somehow villainize what should be a natural thing for us to do. KEIR: For us it’s just doubling down on what inputs we can do to make a difference. [The administration’s stance] it doesn’t change any of that. [We focus on] what can we do to make sure it’s a level playing field organization. JOHNSON: What you call it ESG or DEI or corporate responsibility, it’s all the same to me. It’s what you do as an organization for the communities you operate in. It’s very simple. No matter where you’re born, your sexual orientation or race, what language you speak first, there’s a home for you in this industry. I think that that’s what makes this industry so vibrant. BERNAL: The restaurant industry was built on DEI. That’s where we came from. That’s our workforce. That’s how people go from being a dishwasher to being a president or VP or CEO. I don’t see that ever changing. MONTES: Looking forward to the next few years, what are you thinking about? What changes do you anticipate in our industry? JOHNSON: I think that there’s going to be a bit of a revolution in our business. I’m looking forward to [seeing] what AI (artificial intelligence) brings us, [focusing on] understanding our customers and being able to customize something for the customer. We’re putting a lot of energy and time into our loyalty program – we’re going to know who customer is and how they act, therefore be able to customize their experience. That’s exciting for all of

us because we’re going to take the friction out of the process, not just for the consumer but also for our employees, because they’re going to know what’s coming at them. I think that can change how we do business. YABLUN: We already get a lot of data. It’s doing something with it [that’s challenging]. We need to turn it into some type of customization and add AI to dig deeper. We’ve got to make the offer compelling enough for them to buy something while they’re en-route and make it special. For that we need more data. We have an email, we have a phone number, we have a little bit of information. We have to delve deeper, but right now we don’t do much with what we have. MURRAY: We’ve got to find other revenue sources. The P&L has too much pressure on it, and when you combined it with the capital it costs to build the places we run out of turf. We’re not delivering financial goals to an airport so we need to find some other way to make ourselves valuable. KEIR: There are some exciting changes there from a customer or passenger point of view. In five or 10 years, with the capital deployment across U.S. airports, the experience of passengers – whether it’s good or bad for us – will be better. In 10 years we’ll be selling to another generation, and a lot of that generation weren’t shop in physical stores. It comes back the fact that we have to be flexible. The model will have to change. Revenue sources must continue to morph, but we’re all retailers and restaurant operators and entrepreneurs and we are used to spinning quickly on the dime. All we ask is that people support us, and if there are quite laborious rules out there, they need to be looked at. BERNAL: I’m taking a glass-half-full approach. There are 8-9 billion people on the planet and more of those people are traveling. Their lifestyles are improving around the world. Longer term this still going to be a good industry to be in and grow in. We’ve got this little blip, but I look at it and remember we survived Covid when

The restaurant industry was built on DEI. That’s where we came from. That’s our workforce. That’s how people go from being a dishwasher to being a president or VP or CEO. – Carlos Bernal, CEO of Areas USA PARADIES: Long term, we’re all bullish on this industry. We’re all investing hundreds of millions of dollars. Every one of our companies is doubling down or tripling down on North America. I think the story here is, yes, there are short-term challenges. Yes, we need to understand them better, more collaboratively. Covid helped us get the ball moving, and maybe we took a few steps back, but maybe good things come out of tough situations. We all got better, stronger because we had to. Covid accelerated a lot of change, and what we’re going through now will probably accelerate things as well. we were all slashing and burning, literally. We’re not doing that today.

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CELEBRATING EXCELLENCE IN AIRPORT CONCESSIONS The AX Awards Gala Recognized The Industry’s Best

BY CAROL WARD

Some of the industry’s best airport concessions teams, concessions operators, concepts and brands were recognized April 1 at the annual Airport Experience Awards Gala. The event capped the 2025 Airport Experience Conference, held March 28 – April 1 in Washington DC. Nearly 450 industry executives gathered for the top-tier event, beginning with a cocktail hour sponsored by Crews Hospitality . AXN Vice President and Publisher Melissa K. Montes welcomed the crowd by recapping some of the highlights of the conference, adding, “At AXN, we are honored to serve as a platform for these critical conversations – amplifying your voices, addressing the challenges that keep you up at night, celebrating your achievements, and helping to shape the path forward. Together, we will continue to drive this industry toward to a thriving and dynamic future.” Montes also welcomed Larissa Dubose, senior director of Vino Volo , a Paradies Lagardère company and wine sponsor for the event, to the stage for a toast to start the evening.

Above: AXN Vice President and Publisher Melissa K. Montes welcomes the crowd of 450 people to the annual AX Awards Gala.

Left: AXN’s Melissa K. Montes and Larissa Dubose, senior director of Vino Volo, lead a toast to kick off the Gala evening.

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The 2025 Airport Experience Awards recognize excellence in airport concessions throughout North America. The awards process started in September 2024, when industry stakeholders submitted hundreds of nominations spotlighting some of the most dynamic and successful concepts, operators and teams in the industry. The AX Team culled the nominations to a list of finalists in each category, Then, the AX Awards Committee – comprised of 12 airport representatives and 12 concessions/brand representatives – cast their votes to designate a winner in each category, and those winners with celebrated during the AX Awards Gala. The event also spotlighted AXN’s previously announced 2024 Airport Directors of the Year, and the 2025 Property Manager of the Year. There was also special recognition of Pat Banducci, senior business advisor and former chief commercial officer, SSP America, whose longtime service in the industry was acknowledged with the Industry Impact Award. Below is a list of winners in each awards category, in the order in which they were announced. Best Bar Experience – Medium/Small Airports: Big Rig Kitchen & Brewery by SSP America at Ottawa International Airport Best Bar Experience – Large Airports: Embarque Whiskey Grill by Bambuza Hospitality at Seattle Tacoma International Airport Airport With The Best Program Design: Los Angeles International Terminal 3 DE&I TrailBlazer Andrea Albo of Denver International Airport

Best Passenger Service Gameway Best Lounge Experience The Club SFO by Airport Dimensions at San Francisco International Airport Best ACDBE Operator – Food & Beverage: Phase Next Hospitality Best ACDBE Operator – Retail or Services: Amy Billings Airport With The Best Overall Concessions Program: Dallas Fort Worth International Airport

Above: Pat Banducci, senior business advisor and former chief commercial officer for SSP America, was honored with the AX Industry Impact Award due to his 30-plus years of service in the industry. Banducci (center) is flanked by Pat Murray of SSP America (left) and Melissa K. Montes of AXN (right). Above: The Bambuza Hospitality team took home the award for Best Bar Experience at a large airport for the company’s Embarque Whiskey Grill at SEA. Pictured are Katherine Lam (front center), flanked by Erik Ward (left) and Daniel Nguyen (right), with Melissa K. Montes behind.

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Best Local Management Team: Delaware North Team at Minneapolis-St. Paul International Airport Best Casual Dining Concept – Medium/Small Airports: Greenleaf Kitchen & Cocktails by Mission Yogurt at John Wayne Airport Best Casual Dining Concept – Large Airports: Lucky Buns by The Grove at Ronald Reagan Washington National Airport Best Quick-Serve Restaurant Concept – Medium/Small Airports: Velvet Taco by LaTrelle’s Management Corporation at William P. Hobby Airport Best Quick-Serve Restaurant Concept – Large Airports: Fat Sal’s/Yakumi by Crews Hospitality at Los Angeles International Airport Best Overall Retailer – Small Operators: Love From USA Group

Best Overall Retailer – Large Operators: Paradies Lagardère Best Sustainability Initiative In Airports: John Wayne Airport – Edible Food Donation Program Best Overall Restaurateur – Small Operators: High Flying Foods Best Overall Restaurateur – Large Operators: HMSHost Airport With The Best Community Engagement Initiative: Denver International Airport, for Business Development Training Academy Restaurateur With The Highest Regard For Customer Service – Small Operators: High Flying Foods

Below: Hartsfield-Jackson Atlanta International Airport was voted as the Airport with the Best Commercial Team. Pictured (center l-r) are Antonio Elliott, Scott Knight and Tyronia Smith, all of ATL. The team is flanked by Melissa K. Montes (left) and presenter Carlos Bernal of Areas USA (right).

Above: Velvet Taco by LaTrelle’s Management Corporation was recognized as the best quick-serve restaurant concept in the medium/small airport category. Pictured (left to right) are Cramer James, Chris James, Kenneth James and Cameron James.

Above: Orlando International secured the trophy for the Airport with the Highest Regard for Customer Service. Pictured center are Kate Webb and Tracy Conner Harris of the Greater Orlando Aviation Authority, flanked by presenter Atousa Ghoreichi of HMSHost (left) and Melissa K. Montes (right).

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AX NEWS MAY 2025