Airport Experience® News - Pre-Conference Issue 2025

FEBRUARY 2025 / V23 N260

EXOTIC AND SPICY 2025 FOOD TRENDS

AX AWARDS FINALISTS IN THE SPOTLIGHT

AIRPORTS EXPAND GREEN CONCESSIONS STRATEGIES

AIRLINES GEAR UP FOR VOLATILE YEAR

Farm-to-Gate Fresh Hailed by Food & Wine magazine as “a game-changer for airport dining that travelers are eager to see in airports nationwide,” Vessel Kitchen at Salt Lake City International Airport redefines airport quick-service restaurants with a “farm-to-gate” ethos that is both accessible and scalable. Elevate to fast, fresh, and flavorful with Vessel Kitchen and Paradies Lagardère.

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18 Food Forecast Restaurant consultants say interesting flavor combinations, exotic and spicy food and experiential elements are all making their ways onto restaurant menus this year. 22 Sustainability Moves Concessions programs are a key part of airport-wide sustainability initiatives, and airports are implementing new strategies for reducing waste, using recyclable materials and reaching other sustainability targets. 28 The 2025 Finalists The AX Team received several hundred nominations for the 2025 AX Awards. These are the ones that were selected for the final round of voting.

4 Letter From The Editor 6 Data Check

Leading airports are increasingly reliant on food and beverage in their concessions programs, while duty free and specialty retail are losing share, data from the AX Fact Book shows. 10 Latest Buzz Fresno Yosemite International Airport’s FATforward multi-year expansion program includes a new terminal wing, expanded security checkpoints and other improvements to serve a growing passenger base. 14 Director’s Chair Ontario International Airport’s Atif Elkadi is guiding the airport through a multi-year growth spurt. Concessions are a heavy focus, with increasing reliance on local brands and an innovative partnership that is upending the concessions model.

36 Airlines Airline performances were all over the map last year. Premium carriers generally fared well due primarily to increased reliance on ancillary revenues. Meanwhile, ultra low cost carriers are struggling due to high overheads. 39 Advertising Index 40 Before You Take Off Two snowplows at Bradley International

Airport carry charming new names, the results of a contest involving area elementary schools.

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AX NEWS FEBRUARY 2025

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 Emma Vail Marketing Coordinator

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FEBRUARY 2025

Dear Readers,

FEBRUARY 2025 / V23 N260

Starting a new year means identifying new trends and, in many cases, acting on them. Food and beverage is always evolving. For this issue, AXN highlights some of the restaurant trends that are driving revenues in restaurants across North America. As they do in other areas of their lives, younger consumers are wanting experiences in dining, along with a broad range of menu choices. This issue of Airport Experience News also looks at the latest efforts from airports to adopt sustainability initiatives within their dining programs. In addition, readers get a preview of the stellar finalists for this year’s Airport Experience Awards. Check out the stand-out operators, concepts and teams in this comprehensive coverage. Looking ahead, the March issue will be our special Conference issue, with articles on the latest industry issues along with a full guide to the 2025 Airport Experience Conference. The AXC agenda is being finalized, sponsors and exhibitors are signing up and the AX Team is on the ground planning a fabulous experience for all. We look forward to seeing you all, March 29-April 1 in Washington DC!

EXOTIC AND SPICY 2025 FOOD TRENDS

AIRPORTS EXPAND GREEN CONCESSIONS STRATEGIES

AX AWARDS FINALISTS IN THE SPOTLIGHT

AIRLINES GEAR UP FOR VOLATILE YEAR

Thanks!

Carol Ward Editor-in-Chief

Airport Experience News carol@airportxnews.com

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AX NEWS FEBRUARY 2025

DATA CHECK

PURCHASING SHIFTS Data Shows Higher F&B And TR Shares, Lower Reliance On Duty Free

BY CAROL WARD

Key Performance Trends: John F. Kennedy International

2023

2019

Sales per Enplanement

Duty Free 23.6%

$22.51

F&B

Duty Free 33.5%

F&B 46.2%

F&B 41.4%

$23.35

Newsstand/TR 20.6%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Newsstand/TR 16.5%

Specialty 8.6%

Specialty 9.7%

2019 Sales E/P

2023 Sales E/P

$698.34 Million

$728.1 Million

Source: AX FactBooks, 2020 and 2024

eading airports in North America show a slightly increased reliance on food and beverage and newsstand/

Generally speaking, those airports with a heavier reliance on duty free sales had lower F&B shares, as a percent of total spending. Over the four years, F&B’s share of total spending increased at all but one of the 10 airports, with Montreal Trudeau International Airport (YUL) as the outlier. YUL’s reliance shifted significantly toward duty free in the four years, with that share growing to 31.7%, from 22.7% for the airport. Duty free’s share of airport concessions sales declined at each of the other nine airports highlighted. Among the bigger declines were a 10 nearly percentage point drop for JFK and a 6.4 percentage point drop at LAX. LGA was the only airport among the 10 to show a drop in newsstand/travel retail’s percentage of total sales. Specialty retail managed to eke out share gains in four of the 10 airports – JFK, Newark Liberty International Airport (EWR), Boston Logan International Airport (BOS) and LGA – but declined in the other six highlighted airports. Each of the 10 airports increased spend per enplaned passenger. :

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travel retail sales to drive concessions revenue while, as a percentage of overall traveler spending, duty free sales have slipped for most airports. Specialty retail also struggled to keep pace with other categories. Airport Experience News used comparisons of concessions data from the 2020 AX FactBook with data from the 2024 AX Fact Book. The books reflect 2019 and 2023 sales data, respectively. Of 10 leading North American airports surveyed by AXN, F&B was the dominant category at each, typically accounting for half or more of total concessions revenue. The exception was John F. Kennedy International Airport (JFK), which generated 46.2% of concessions revenue from F&B, up from 41.4% four years prior. F&B share for the nine other airports ranged from 50.8% at Los Angeles International Airport (LAX) to 68.5% at LaGuardia Airport (LGA).

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AX NEWS FEBRUARY 2025

DATA CHECK

Key Performance Trends: Los Angeles International

2023

2019

Sales per Enplanement

Duty Free 22.1%

$19.52

Duty Free 28.5%

F&B 50.8%

F&B 46.1%

$19.53

Newsstand/TR 20.6% Specialty 6.6%

Newsstand/TR 17.2%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 8.2%

2019 Sales E/P

2023 Sales E/P

$722.98 Million

$835.58 Million

Source: AX FactBooks, 2020 and 2024

Key Performance Trends: San Francisco International

2023

2019

Sales per Enplanement

Duty Free 19.7%

$17.43

Duty Free 22.5%

F&B 56.0%

$19.22

Newsstand/TR 10.4%

F&B 58.3%

Newsstand/TR 9.7%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 11.5%

Specialty 11.8%

2019 Sales E/P

2023 Sales E/P

$480.41 Million

$499.6 Million

:

Source: AX FactBooks, 2020 and 2024

Key Performance Trends: Miami International

2023

2019

Sales per Enplanement

Duty Free 16.4%

Duty Free 20.6%

$17.70

F&B 46.5%

$18.77

Newsstand/TR 11.5%

Newsstand/TR 15.5%

F&B 51.5%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 16.6%

Specialty 21.5%

2019 Sales E/P

2023 Sales E/P

$483.45 Million

$401.63 Million

:

Source: AX FactBooks, 2020 and 2024

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AX NEWS FEBRUARY 2025

DATA CHECK

Key Performance Trends: Newark Liberty International

2023

2019

Sales per Enplanement

Duty Free 11.3%

Duty Free 7.7%

$15.51

Newsstand/TR 23.6%

F&B 60.8%

Newsstand/TR 20.6%

$17.16

F&B 61.1%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 7.3%

Specialty 7.6%

2019 Sales E/P

2023 Sales E/P

$421.46 Million

$360.25 Million

Source: AX FactBooks, 2020 and 2024

Key Performance Trends: Montreal Trudeau International

2023

2019

Sales per Enplanement

Duty Free 22.7%

$16.29

Duty Free 31.7%

F&B 52.1%

F&B 64.7%

$16.78

Newsstand/TR 6.5% Specialty 6.0%

Newsstand/TR 12.5%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 3.6%

2019 Sales E/P

2023 Sales E/P

$177.62 Million

$164.91 Million

:

Source: AX FactBooks, 2020 and 2024

Key Performance Trends: Harry Reid International

2023

2019

Sales per Enplanement

Duty Free 4.4%

Duty Free 5.8%

$14.55

Newsstand/TR 19.2%

Newsstand/TR 19.3%

F&B 61.6%

$16.01

F&B 59.3%

Specialty 14.7%

Specialty 15.7%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

2019 Sales E/P

2023 Sales E/P

$453.42 Million

$367.01 Million

:

Source: AX FactBooks, 2020 and 2024

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AX NEWS FEBRUARY 2025

DATA CHECK

Key Performance Trends: Boston Logan International

2023

2019

Sales per Enplanement

Duty Free 3.8%

Duty Free 9.3%

$13.46

Newsstand/TR 20.8%

Newsstand/TR 23.7%

F&B 63.5%

$15.92

F&B 64.1%

Specialty 8.4%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 6.3%

2019 Sales E/P

2023 Sales E/P

$323.26 Million

$284.73 Million

Source: AX FactBooks, 2020 and 2024

Key Performance Trends: Seattle Tacoma International

2023

2019

Sales per Enplanement

Duty Free 3.8%

Duty Free 6.2%

$12.30

Newsstand/TR 22.5%

Newsstand/TR 23.9%

$15.67

F&B 61.9%

F&B 63.8%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Specialty 8.4%

Specialty 9.4%

2019 Sales E/P

2023 Sales E/P

$397.59 Million

$318.29 Million

:

Source: AX FactBooks, 2020 and 2024

Key Performance Trends: LaGuardia

2023

2019

Sales per Enplanement

Duty Free 0.9%

Duty Free 0.6% Newsstand/TR 18.3%

$12.51

Newsstand/TR 24.1%

$15.14

F&B 68.5%

F&B 64.5%

Specialty 12.7%

Specialty 10.5%

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

2019 Sales E/P

2023 Sales E/P

$244.87 Million

$194.77 Million

:

Source: AX FactBooks, 2020 and 2024

9

AX NEWS FEBRUARY 2025

LATEST BUZZ

FAT FORWARD MOMENTUM Fresno Yosemite International Is Expanding To Meet Growing Demand

BY SARAH BELING

rawing visitors to its cities and nearby national parks, the Central Valley region of California has

– we’ve grown in passenger numbers in that time period, [and since the pandemic] have seen even faster growth, which justifies the need to expand more.” FAT, which surpassed its 2023 numbers with an estimated 2.67 million passengers in 2024, began work on the first phase of the expansion in September 2020 with the construction of a new four-level parking garage. Work on the main terminal expansion, which will add just over 100,000 square feet to the facility, broke ground in May 2023 and is “moving along really well,” says Thompson, who notes that the project is expected to be complete by fall 2025.

Above: A terminal expansion is underway at Fresno Yosemite International Airport as the airport seeks to keep ahead of expanding passenger traffic.

D

long been a destination for adventure seeking travelers. For the team at Fresno Yosemite International Airport (FAT), a pattern of sustained growth across the region meant one thing: it was time to upgrade their facilities. “The projected growth in the Central Valley warrants expansion,” says Henry Thompson, FAT’s director of aviation on the impetus for the airport’s multiyear FATforward expansion project. “The last expansion we underwent was 20 years ago

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AX NEWS FEBRUARY 2025

LATEST BUZZ

Left: Part of the $150 million airport upgrade is a new Federal Inspection Station. International service is growing at FAT, particularly flights to and from Mexico.

international terminal into reality,” adds Brian Mills, senior project manager at Q&D Construction. “The process of designing and constructing to meet the project’s overall goals and the needs of the Fresno Airport has been challenging. However, the City of Fresno Airports Department has been a great partner and Q&D Construction aims to deliver this project on time and under budget.” The philosophy behind the terminal’s expansion design “is a modest exterior design where form follows function, and exterior materials match the existing building,” adds Martin Hahle, principal architect CSHQA. “The real focus is on the interior and passenger experience,” he says. “The interior is bright and open with natural light and a material palette that is reflective of the natural beauty of the local valley and mountain terrain – sense of place is defined by an integrated art program with murals, sculptures, and a terrazzo floor design, inspired by the San Joaquin river that is the life blood of the agricultural community throughout the region.” To make sure the new terminal space expresses the vibrancy of its surrounding region, the teams have partnered with the Fresno Arts Council to showcase a multitude

The expansion will add a new domestic and international terminal concourse; new boarding areas; two additional aircraft parking positions; a new Federal Inspection Station (FIS); an expanded TSA checkpoint screening area as well as a friends and family welcome plaza for international arrivals to the terminal. The $150 million project is funded by a combination of Federal Infrastructure grants including Bipartisan Infrastructure Law funding, Federal Aviation Administration (FAA) grants, Passenger Facility Charges, Measure C grants from the County of Fresno, a Transportation Security Administration (TSA) grant and Airport Revenue Bonds. The team at FAT worked with design firm CSHQA and construction firm Q&D Construction LLC using a progressive design-build method that allowed “for the designer and the general contractor to work together with the airport from the very beginning, to design the terminal to meet our needs,” says Thompson. “[The approach] allowed them to both be connected in the

process from the very beginning.” FAT, CSHQA and Q&D also worked together to implement new sustainability measures across the facility’s new spaces, including energy efficient HVAC systems, water efficient fixtures, solar power and LED lighting, says Thomson, adding that “a lot went into making sure that we met the latest standards for sustainability.” “I was very excited and proud when the City of Fresno entrusted Q&D Construction and CSHQA to turn their vision of a new

Right: Plans call for Hudson to operate both a pre-security Einstein Bros. Bagels/Hudson hybrid store, a post-security Brookstone/Hudson store as well as multiple post-security travel convenience stores.

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AX NEWS FEBRUARY 2025

LATEST BUZZ

Right: Bringing local flair to the airport, SSP America will operate regional brand Ike’s Love & Sandwiches and Fresno pub and brewery Mad Duck Craft Brewing Co., among other concepts.

of works by local artists through sculptures, mosaics, and gallery walls displayed throughout the terminal. “The local culture, people, and regional landmarks are captured in the art program and enrich the travel experience,” adds Hahle. New Offerings Travelers won’t just have the opportunity to feast their eyes on new art. There will be plenty of new concessions and retail concepts to enjoy in FAT’s new space, too, adds Thompson. Concessionaire Hudson will operate both a pre-security Einstein Bros. Bagels/Hudson hybrid store, a post security Brookstone/Hudson store as well as multiple post-security travel convenience stores. “These new stores will transform the retail experience at FAT, offering travelers enhanced options to make their journey more exciting, engaging, and rewarding,” says Jordi Martin-Consuegra, chief operating officer of Hudson parent company Avolta North America. He notes that Hudson’s newest stores will also feature self-checkout and mobile POS systems as well as exclusive benefits for Club Avolta loyalty program members. “Our hybrid stores will be the first of their kind at FAT and each will boast an assortment of travel and convenience necessities alongside a curated collection of souvenirs and products from local makers that celebrate Fresno, bringing a sense of place to the airport,” adds Martin-Consuegra. Thompson notes the terminal’s stores will include merchandise from Fresno State University and crafts from local artisans. SSP America will operate four of the new terminal’s concessions concepts, including an outpost of California-based Peet’s Coffee; regional brand Ike’s Love & Sandwiches, Fresno pub and brewery Mad Duck Craft

a position for this opportunity in the airport – and ultimately landed it with Los Amigos,” Thompson says. FATforward’s impact on the region won’t stop at its passenger offerings, either. Thompson and the team at FAT anticipate that the project will create more than 600 jobs throughout construction, as well as permanent full-time positions when the new space opens. “The new facility is going to provide us the ability to continue to grow our offerings here. It’s going to allow us to operate more efficiently than we are today in handling the volume of traffic that we have today and into the future,” says Thompson, citing the airport’s popular routes to and from Las Vegas, Dallas, Atlanta, Chicago and Guadalajara, Mexico. Increasing FAT’s capacity and adding new routes will only continue to accelerate its current traffic trajectory. “Fresno is a strong market – our limitation has been our capacity,” Thompson says. Expanding FAT’s facilities “is definitely going to elevate our travel experience for customers – the ease of getting through the airport, more space and comfort, and definitely more offerings,” he continues. “We’re upgrading those offerings in a way that we haven’t seen here in 20 years, and bringing in all of those things that are really expected in the travel experience today.”

Brewing Co., and a new location of Fresno based Los Amigos Mexican eatery. “Our mission is to enhance the airport experience by providing authentic culinary encounters and bringing a true taste of place to every airport we serve,” says SSP America’s vice president of business development Nicholas Schaefer, adding that the concessionaire is “thrilled to collaborate with the airport team on this project.” Putting together FAT’s culinary landscape was “a very carefully crafted process,” says Thompson, citing the team’s philosophy in selecting the Los Amigos concept as an example of their dedication to bringing the spirit of Fresno to travelers. “We wanted to make sure that we had a local Mexican concept, but we didn’t want your typical Mexican concept — we wanted more authentic, more traditional Mexican fare that would be well-received by our international passengers in particular, but also by our overall community. “We partnered with the Fresno Area Hispanic Foundation who are very connected with the community – we literally went out and tested a bunch of concepts throughout the city to identify those that best met our needs, and then we narrowed that down to a small number to identify whether or not they were in

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AX NEWS FEBRUARY 2025

PGA Championship Valhalla Golf Club

MTV Video Music Awards | UBS Arena

MLB London Series | London Stadium

The Eras Tour Melbourne Cricket Ground

NBA Championship | TD Garden

Formula 1 Las Vegas Grand Prix

MLB All-Star Game | Globe Life Field

World-class events deserve world-class hospitality. Delaware North is proud to create the world’s best experiences. From unforgettable victories to future triumphs, our teams are there to bring the magic to life.

A Global Leader in Hospitality and Entertainment | DelawareNorth.com

Contact April Bivens ABivens@delawarenorth.com or Jason Rickoff JRickoff@delawarenorth.com

©2025 Delaware North

DIRECTOR’S CHAIR

INLAND EMPIRE ALTERNATIVE ONT Gains Traction In Hyper-Competitive Southern California Market

BY CAROL WARD

ditor’s Note: Atif Elkadi is a 15-year airport industry veteran who currently serves as the CEO for Ontario International Airport (ONT). Elkadi joined ONT in November 2017, one year after the airport – formerly managed by Los Angeles World Airports – was returned to local ownership. ONT’s growth trajectory has been extraordinary, from 2.25 million enplanements in 2017 to 3.2 million in 2023, and more growth projected for 2024. With growth has come innovation as ONT seeks to provide an easy alternative to the behemoth LAX, which lies 55 miles to the west. AXN’s Carol Ward spoke with Elkadi about the airport’s ongoing growth and evolution. E

WARD: You’ve been at the helm of Ontario International Airport (ONT) for three years, and at the airport since 2017, so you’ve been a first-hand witness to the transformation. Can you share a bit about the airport’s trajectory since the Ontario International Airport Authority took over airport ownership from Los Angeles World Airports? ELKADI: Since our return to local ownership, which was November 1st, 2016, ONT has been one of the industry’s great success stories, due to the vision of our Board of Commissioners and the hard work of our staff. We’ve really created an environment and an airport experience that is unlike any other in Southern California. We call it “SoCal. So Easy. Where comfort meets convenience.” It’s something our entire organization embraces. For 2024, we’re forecasting our passenger volume at a little over 7 million, which is up 75% since the return to local ownership. We’ve added flights to Taiwan, Hawaii, New York, Nashville, Atlanta, and we see even more expansion in in the next two years. We’ve also focused on emphasizing with our existing airline partners [the need] to

add more frequency on existing routes, and we’ve seen a lot of success behind that. We’ve invested millions of dollars in creating an experience that really puts the customer first, with easy access in our spacious terminals and the effort we put into our dining and shopping options that generally enhance the overall journey. It’s very different from if you had come through this airport 15 years ago. Another part that’s been very important to us is our partnership with U.S. Customs and Border Protection. We opened a global entry enrollment center. We’ve also added simplified arrivals to expedite our screening of incoming international travelers, and in October, we were designated by CBP as a landing rights airport, which will help us increase our international flight offerings. Domestically, we’re working with TSA on a big project starting in the middle of February, adding security screening lanes. Moving forward, we continue expansion into new markets as we meet the needs of our region, which is growing rapidly. We saw [an acceleration of] that growth during the Covid period where so many people

Above: Atif Elkadi, CEO, Ontario International Airport

14

AX NEWS FEBRUARY 2025

DIRECTOR’S CHAIR

Left: Local brand Brewery X operates at ONT under a unique 50-50 partnership with the airport.

Tampa Bay. Over the next 25 to 30 years, we’re expecting to grow by over a million people. We fully anticipate building on the passenger growth we’ve experienced. We also have plenty of capacity. Also, our airport is top ten in cargo, and that tells a very big story. We’re at the center of one of the world’s largest supply chain networks, which continues to bring in new jobs and new business opportunities.

started to move east (out of Los Angeles). We’ve been able to benefit from that a great deal. WARD: Are you expecting further growth or was that a post-Covid bump that you expect to level out? ELKADI: We expect to continue to see growth. The Inland Empire is now the 12 th -largest metropolitan area in the U.S., so that’s larger than the San Francisco Bay area, larger than San Diego, Denver and

WARD: Of the traffic growth, how much of it is coming from LAX, do you believe? ELKADI: We’re getting some from LAX, but I would say we’re just recapturing what is rightfully within our catchment area. WARD: You mentioned capacity. Are your current facilities are adequate to handle growth for the foreseeable future? ELKADI: Yes, but our board is very committed to continuing to invest in our facilities to meet the needs of the region. We’ve also got tremendous support from our elected leadership and regulatory partners in [Washington] D.C. and in Sacramento. With their support we recently completed a $90 million runway rehab program and we’re about to embark on the expansion of our security screening areas. We’ve also added parking capacity and we’re looking at ways to increase transit access into and out of the airport. WARD: Focusing on in-terminal developments, how are the concessions performing? ELKADI: In 2023 we entered into a great partnership with SSP North America , which resulted in a number of new food and beverage concepts. SSP manages Urban Crave Tap, Pizza Vino and Mi Casa

Left: Ontario International Airport’s passenger traffic growth has been strong. In 2024 the airport expected to serve more than 7 million people.

15

AX NEWS FEBRUARY 2025

DIRECTOR’S CHAIR

Above: The California ScienCenter offers an immersive video experience, offering a relaxing respite from the airport terminal bustle.

Above: Mi Casa is one of a handful of restaurants operated by SSP America under a contract signed in 2023. Left: Hudson, which holds the retail contract at ONT, recently updated its stores.

WARD: Are there other passenger amenities on your radar – things you don’t currently have but you think could enhance the passenger experience? ELKADI: We see an opportunity to partner with more local companies to bring an even greater sense of place to our terminals, and with our focus on strategic planning and creative partnerships, [we can offer] new dining options tailored to [traveler] needs. We have a very unique partnership with the California Science Center. We created a space featuring a very large video wall. They created a 30-minute video from their very large aquarium. It’s a great sensory experience. It’s very relaxing. very calming, and those are the kinds of things that we’re constantly looking at doing to make a difference. WARD: Is the museum a revenue generator ELKADI: No. Right now it’s just open to the public. It was one of those things where it was potentially going to be a revenue generator. We opened and were just amazed at the level of foot traffic it received and how people started complimenting [the offering]. We’ve kept it that way for now, and we’ll see how we can continue to evolve.

Cantina, while Einstein Bros, Dunkin’ Donuts, Subway and Chick-fil-A are individual operators. Another great success story has been our unique partnership with Brewery X. It’s one of Southern California’s largest locally owned breweries, and it started as an advertising collaboration that evolved into a true business partnership. This is a 50-50 partnership. We paid for 50% of the capital they paid for the other 50%. We got the brewery built and now we share the revenue with the brewery.

WARD: Would you consider that model for other concession spaces as well? ELKADI: Our board has been very committed to letting us be innovative. For the right opportunity, we would absolutely consider it. Brewery X has been a great partner and it’s been a great journey with them. WARD: Who operates your retail concessions? ELKADI: We re-signed with Avolta and the Hudson brand. They have remodeled all of their retail stores at the airport They’re great partners and we’re very happy with them.

16

AX NEWS FEBRUARY 2025

Leasing Opportunities to Grow Your Business

Terminal 1: 9 Terminal 2: 49 58 GATES

Capital One Landing in Collaboration with José Andrés Group

Lucky Buns

Food & Beverage: 48 News & Gifts: 12 Retail: 21 81 CONCESSIONS Enplanements: 13 million (Record-breaking) 26 MILLION ANNUAL PASSENGERS

American Express Centurion Lounge

Concourse E

Comfort Seating in National Hall and Hold Rooms

P.F. Chang’s

Concessions Square Footage: 121,784

Future construction will provide additional new concessions opportunities Terminal 1 Redevelopment:

Coming Later

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F&B Industry Experts Advise That Delighting And Exciting Consumers Will Be Key In 2025

BY SALLY KRAL

Identifying what consumers want and need in their food choices is a constantly moving target. Each year, new items and new flavors grab attention, but identifying which have staying power – and ultimately which should be added to restaurant menus – is not straightforward. When addressing what will be trending in the following year in the food and beverage industry, Menu Matters

starts by looking at consumer needs, says vice president Mike Kostyo. “How are consumers feeling as they head into 2025? What do they need and want?” he asks. “So instead of everyone putting yuzu or ube on their menus and calling it a day, it becomes about picking and choosing the ingredients and dishes that fit your brand and that solve a consumer need.”

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India and the Middle East but now appears in Latin, Caribbean and Mexican cuisine and in jam for burgers and in milkshakes.” Cuisine-wise, Korean continues to dominate, according to Small. “Korean fried chicken, gochujang sauces and kimchi-infused dishes are gaining traction,” he says. “Beyond Korean, cuisines like Filipino, Malaysian and Hawaiian are growing in popularity, with ingredients like calamansi, ube and furikake.” When Menu Matters looked at menus from more than 100 innovative restaurants across the country in search of common themes, the most prevalent was what Kostyo calls “the evolution of popular cuisines.” “Next-level Mexican flavors are everywhere—we’ve gone from Taj í n and birria to finding nopales on so many menus, pepitas as a go-to crunchy topper at so many venues, and options like achiote, requeson cheese, epazote, atole and tlayudas are keeping things interesting,” Kostyo says. “Flavors are getting more complex, with less of a focus on the super-hot peppers like ghost peppers and more interest in options like Jimmy Nardellos and morita chiles. Asian-inspired options are also evolving, with flavors and dishes like Japanese and Korean sweet potatoes, curry in beverages, calamansi, pani puri and betel leaves appearing on menus.”

Above: Katie Belflower, manager of menu research and insights at Technomic, expects to see spicy flavors, including spicy global sauces and condiments, become even more common on menus this year as well as unique and interesting takes on specific regional dishes.

Above: Mike Kostyo, vice president of Menu Matters, notes that in 2025 consumers are going to be looking for new trends and ideas on menus and that operators will need to innovate to keep them interested and give them a reason to dine out.

Each year Menu Matters develops a “consumer need state” for the coming year based on internal research and survey data. “Our overall consumer need state for 2025 is, ‘Give me something new.’ Last year it was, ‘Take care of the consumer,’ because consumers kept telling us they were anxious and tired, yet they weren’t seeing the hospitality from the food industry that they wanted. This year when we asked consumers how they are feeling as we head into 2025, more consumers said they were ‘hopeful’ than any other emotion. But that means they are looking for things to look forward to.” Kostyo adds that nearly 90 percent of consumers surveyed by Menu Matters said they want to see new trends and ideas on menus in 2025. “The industry really needs to focus on innovation to excite consumers and give them a reason to go to restaurants,” he says. Indeed, whether with unexpected and interesting flavor combinations or experiential elements, keeping consumers engaged and interested will be the key to success in 2025 and beyond. Bold Flavors, Global Influence Katie Belflower, manager of menu research and insights at Technomic , expects to see spicy flavors become even more common on menus – and in new and interesting ways. “We’ve seen ghost pepper become increasingly prevalent on

menus, and less common peppers such as Fresno, morita and goat horn peppers may follow that lead,” she says. “I also expect to see spicy global sauces and condiments increasingly appear on menus on the heels of options such as harissa, gochujang and sriracha. Potential growers include Middle Eastern shatta, which is a jalapeño-herb hot sauce, and Thai nam prik, which is a spicy sauce typically made with fresh or dry chilies, garlic, shallots, lime juice and often some kind of fish or shrimp paste.” Suzy Badaracco, president of Culinary Tides, Inc. , notes that “complex heat” that combines different peppers will be on trend in 2025, as well as fusions of different flavors, including “swicy” (sweet and spicy), “swoky” (sweet and smoky) and “swalty” (sweet and salty). Dean Small, managing partner of Synergy Restaurant Consultants , also calls attention to spicy and sweet combinations. “Hot honey, gochujang caramel and spicy tamarind are becoming flavor profiles that excite consumers,” he says, adding that global street food-inspired fusion items are also trending up. “Items like birria taco ravioli and Japanese onigiri with non-traditional fillings are becoming mainstream as consumers seek new and flavorful options.” Echoing this, Badaracco points to trending fusion items like tikka masala hot wings and sashimi tostadas. “Also, single global flavors are moving across borders, like with tamarind, which comes from Africa,

Above: Dean Small, managing partner of Synergy Restaurant Consultants, foresees the continued growth of functional beverages, including drinks infused with adaptogens, CBD, nootropics, or vitamin-rich supplements, and probiotic beverages like kombucha.

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and indulgence and explore less obvious versions of health, through things like functional ingredients.” Small of Synergy Restaurant Consultants sees a lot of potential with functional beverages. “Drinks infused with adaptogens, CBD or nootropics, like ashwagandha and lion’s mane, are appealing to health conscious consumers as an alternative to alcohol. And functional mushrooms in general are trending as additives or an alternative to coffee,” he says. “There are a lot of wellness-conscious consumers of all ages that are driving the interest in these healthy beverages that boost energy levels, lower stress, and even improve digestive health and sharpen mental cognition. When you look at the juice bars that have popped up around the country you see they’re getting more into vitamin-rich supplements, from ginseng to ginkgo biloba to vitamin C, that improve immunity and well being.” He also notes that probiotic beverages that improve digestive and gut health, such as kombucha, are increasingly popular. Badaracco of Culinary Tides points out that today’s consumers have plenty on their minds when it comes to health and wellness. “There’s cognitive function, which encompasses stress, sleep, anxiety and depression due to inflation, global conflict, and other stressors, and their field of vision now includes obesity, digestion, performance and aging concerns,” she says. “The interaction of food and function allows consumers to feel in control of their health.

Health Considerations When Menu Matters asked consumers what their goals are for 2025, being healthier was the top answer, Kostyo notes, and, indeed, health concerns and specific dietary preferences will continue to factor into food and beverage trends in 2025. “There’s a lot of fragmentation in the health space, though,” Kostyo adds. “When we asked consumers about a range of foods and whether they considered them unhealthy, they chose ‘ultraprocessed’ foods as the single most unhealthy option, so there are certainly many consumers who are looking for those more clean-label options. Yet you also have a lot of younger consumers who love crazy candies and snack foods that are clearly processed. Restaurant operators need to know their audience to determine the best health and dietary options they should showcase.” Colleen Von Hoene, associate principal at Paslay Group , expects to see continued growth and variety of healthier choices on menus, including options for vegetarian, vegan, low-sugar and gluten-free diets. “We see more restaurants with menu choices that meet dietary requirements, and clear identification of those options on their websites and menus,” she says. “In addition, the market for non-alcoholic beverage options continues to grow with mocktails, non-alcoholic ‘spirits’ and high quality non-alcoholic beer, such as those from Athletic Brewing Company.” Technomic’s Belflower also sees demand growing for low- and no-alcohol options on menus as the “sober-curious” lifestyle continues to pick up steam. “This is indicative of a larger trend we’re calling ‘stealth health’ – these are healthy items and ingredients that maybe aren’t as obvious as those more traditional healthy options, or items that have those elements of both wellness and indulgence,” she explains. “This has become even more relevant in recent years as ideas about health and wellness have really evolved overall. Restaurant operators will need to work to strike that balance between health Left: Suzy Badaracco, president of Culinary Tides, Inc., notes that fusions will be on trend in 2025, including the combination of different flavors, such as “swicy” (sweet and spicy), “swoky” (sweet and smoky) and “swalty” (sweet and salty), as well as the fusion of different global flavors and cuisines.

Above: Jay Bandy, president of Goliath Consulting Group, expects fast-casual brands like Cava and Chipotle to continue doing well in 2025, while casual dining brands are more likely to have a difficult year. Meanwhile, he predicts QSRs will see moderate sales increases and fine dining venues that focus “holistically on the experience” will hang on.

Belflower believes that the next natural progression of global flavors becoming more and more prevalent on menus is a focus on specific regional flavors and dishes. “Expect new takes on regional classics, including plant-based burnt ends and collard greens dip or gourmet versions of regional favorites, such as elevated spoonbread, frybread and boiled peanuts,” she says. Jay Bandy, president of Goliath Consulting Group , also notes this trend. “Very specific cuisines are emerging, like Roman cuisine – I was just at Mother Wolf in Las Vegas, where that is the focus,” he says. “And I think Mexican cuisine will continue to become more regional, focusing on Oaxaca and Baja to name a couple.”

Above: Colleen Von Hoene, associate principal at Paslay Group, expects to see continued growth and variety of healthier choices on menus, and more operators clearly identifying which items on their menus meet certain dietary requirements, such as vegetarian, vegan, low-sugar and gluten-free options.

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“Restaurant operators need to position themselves as the guide, not the hero,” she continues. “They are guiding the consumer to a healthy solution and consumers will be the hero in their own lives by patronizing their restaurant.” Value Matters Robert Byrne, senior director of consumer research for Technomic, believes that 2025 will find consumers ready to spend at restaurants, but not as often as they may like to. “Lower grocery prices will have a muted effect, as cheaper at-home options may increase household discretionary spending budgets; however, menu prices will not be coming down. We will see a slower rate of menu inflation, but not enough to allow diners to increase their restaurant frequency,” he says. “As a result, they will continue practicing ‘impact spending,’ where the restaurant occasion is a splurge and diners will be happy to spend for the food and experience they want, just not as often as they want. Consumers are always looking for value, but price wars are proving ineffective and brands who do not discount – for example, Texas Roadhouse – are doing very well,” Byrne continues. “Consumers want what they want, and they are all too happy to pay a bit more, wait a bit longer, and be a bit more inconvenienced for the food and experience they crave. This means that value will be more of a what-you-get than a what-you-pay consideration.”

Kostyo of Menu Matters finds the current U.S. restaurant landscape to be a bit perplexing. “It’s in such an unusual place right now: Limited-service restaurants had been doing better compared to full-service options, but many brands have seen traffic declines while they’re all in a price war with each other. Fast-casuals have done comparatively better because they’ve been able to stay out of the price wars to some extent and grab traffic from consumers who are trading down from more expensive full-service restaurants. Full service restaurants continue to perform poorly overall, though many fine dining operators have been protected because the luxury market is still doing well. The real story is how many occasions have moved to supermarkets and at-home occasions. This year consumers told us they’re experimenting more at home than they are at restaurants, which is a huge change.” But, Kostyo adds, there are bright spots in every dining segment and those who are performing best are those with a clear value proposition. “A lot of consumers today say dining out just isn’t worth it, so brands that focus on making sure their food, value and service scores are high are doing well,” he says. “And it’s not always about cost: The Chili’s $10.99 lunch deal is more than twice as expensive as the McDonald’s $5 meal, but consumers think the value is there. I think the story will continue to be that particular brands are the real standouts.” Kevin Schimpf, director of industry research for Technomic, forecasts that the fast casual segment will post the strongest sales growth overall for 2024, echoing 2023 results. “It’s worth mentioning that much of the sales growth in the fast-casual segment is being generated by players that have become increasingly similar to QSRs,” Schimpf says. “Chipotle is a great example of this with their ongoing drive-thru development and emphasis on digital ordering,” he says “So the best answer as to which dining segment will perform best in 2025 might be limited-service restaurants overall. Players like Chick-fil-A, Chipotle, Raising Cane’s, Wingstop, Jersey Mike’s, Culver’s and Dutch Bros Coffee are the best examples of big players continually seeing double-digit sales growth.” Paslay Group’s Von Hoene, notes that fast, made-to-order restaurant options remain strong. “Consumers like having fresh and healthy food quickly prepared to their own tastes and dietary preferences, such as at Cava, Chopt and Chipotle,” she says. “We could see other cuisines emerge using this service model.”

Above: Kevin Schimpf, director of industry research for Technomic, forecasts that limited-service restaurants will perform best in 2025, including such big names as Chick-fil-A, Chipotle, Raising Cane’s, Wingstop, Jersey Mike’s, Culver’s and Dutch Bros Coffee.

Goliath Consulting Group’s Bandy notes that Cava, in particular, is “crushing it” right now and is expected to continue to see success in 2025, along with Chipotle. “Casual dining is going to have a difficult 2025 – Chili’s has figured it out but many chains are lagging; QSR has turned back to value and will continue this trend into 2025 and see moderate sales increases; and fine dining is hanging on when the restaurant focuses holistically on the experience.” Bandy adds that quality of food and service still leads the charge. “Experiences added on top of this makes the difference. Karaoke, duck pin bowling, darts – they all help restaurants stand out.” Synergy’s Small also signals experiential dining as an important differentiator. “Unique in-venue experiences – for example, immersive decor, interactive elements, digital experiences – are a growing draw for diners seeking more than just food.” And what is clear to Kostyo is that diners are increasingly seeking more than just food. “One of the most interesting things that has come out of our research recently is how important multisensory experiences are for consumers,” he says. “When we asked consumers which senses they prioritize when making a food decision, taste came out on top with 69 percent of consumers choosing it, but scent and aroma wasn’t far behind at 61 percent. And while sound was in last place, in follow-up questions about sensory experiences, sound-related options like sizzling fajitas and listening bars rose to the top of what consumers wanted. “Operators have a real chance to stand out from the types of meals consumers are having and making at home if they would focus on multisensory experiences,” he continues. “How can you play with the aroma of an operation or dish, how can you add crunch to a drink, how can you get consumers playing with their food and being a little more hands on?”

Above: Robert Byrne, senior director of consumer research for Technomic, believes that 2025 will find consumers ready to spend at restaurants, but not as often as they may like to since menu prices aren’t going to decline. Instead, he predicts consumers will splurge on the occasional meal out, willing to pay more for what they deem to be more valuable.

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