Airport Experience® News - Retail & Amenities Issue 2023

Concessionaires Are Seeking Relief On Price Restrictions To Help Drive Profitability

Despite the aviation industry continuing to rebound from the lows of the pandemic, concessions operators are still hurting, due largely to both labor and product costs skyrocketing.

BY SALLY KRAL At the 2023 ACI Business of Airports conference, Nick Crews, CEO and managing partner of Crews Companies , presented during the “Pivoting Best Practices in Concessions” panel on the current challenges operators are experiencing, as well as possible solutions. “Depending on location, concept and item, we’re seeing anywhere from 5 percent to 10 percent product cost increases—add to this the 15 percent to 30 percent wage increases for hourly associates, which then requires wage increases for supervisors and managers to keep the pay scale balance, and it’s making a huge impact on our profit and loss,” he said. PRESSURE A X N E W S R E T A I L & A M E N I T I E S I S S U E 2 0 2 3 23