Airport Experience® News - Retail & Amenities Issue 2023

Opposite: Fraport USA’s LaunchPad program, now in its sixth year, gives small and minority-owned businesses a foothold in the airport through mentorship and the opportunity to operate a kiosk. Pictured are the 2023 program participants at Baltimore/ Washington International Thurgood Marshall Airport (BWI).

Right: Retail hopefuls at Seattle Tacoma International Airport (local brand Glass Eye Studio pictured) participate in a “Shark Tank”-style panel that allows airport officials to select the most promising brands.

receive a formal reception welcoming them to airport operations. “We invite representatives from the region to participate,” says Trent, “and it’s meant to recognize the achievement of the business owners. It’s quite a big step to get into this airport world.” For many LaunchPad participants, the program has been an important stepping stone in their entrepreneurial journey, says Trenk. “We have success stories where we have seen a participant of the LaunchPad come to expand their operations.” One of our first LaunchPad operators, Cynthia Rumph of Fashion Spa House, has opened a full store at BWI. Trenk believes that the public benefits from a more diverse and locally-centered airport retail portfolio, too. “It’s a good opportunity to give travelers an opportunity to shop and buy something from local, small and minority-operated businesses, and really discover what the region has to offer,” she says. Local Opportunity For some operators, customized kiosk retail agreements provide a curated business plan that meets brands where they are. At Seattle-Tacoma International Airport (SEA), small businesses are matched with different lease terms and sales revenue agreements, says Khalia Moore, senior manager of dining and retail. “We don’t want to lock [new businesses] into long term contracts because sometimes you may

business kiosks. “It’s fantastic for the airport, because they get to have that ‘sense of place’, and for businesses, who get to try out what it’s like to be in airport retail, which is quite different from street retail,” she adds. Steine also notes that the lingering effects of COVID-19 staffing challenges have made smaller retail operations more manageable on a logistical basis. “COVID hit that staffing market in a different way,” she says, “and for airports in particular, it can be hard to get enough retail staff. That said, there are ways — through having multiple, smaller-staffed carts—that can be placed together to create more of a ‘feature’ element in terminals.” For airports and brands working with post-shutdown, razor-thin margins, shorter term and more flexible retail agreements can benefit both parties financially, Steine adds. “Doing these smaller concepts lets airports bring in brands that they may not be sure will take to the system or have enough sales,” she says. “To have that opportunity and test it — you can’t beat that trial, and it’s a protection mechanism as well. There’s nothing worse than bringing on a concept that’s not good for the airport. [Kiosk programs] also allow for a business plan where they’re able to change products and sometimes concepts for different concourses or demographics.” Lowering The Barrier It’s a system that has worked wonders for the concessions and retail operations team at Fraport USA who, for the past six years, have

fostered a mentorship program known as the LaunchPad to partner with small andminority operated businesses at both Baltimore/ Washington International Thurgood Marshall Airport (BWI) and Cleveland Hopkins International Airport (CLE) . “We all know that business at the airport has barriers for newcomers,” says Sabine Trenk, CEO of Fraport USA. “Through the LaunchPad program, I believe that we are lowering these barriers of entry for small business owners and we are helping them simplify and streamline the sometimes complex processes.” “For in-line retail, we are usually talking lease terms of 10-plus years, so to help our partners recover their investment, we look at a lease term of 12 months,” says Trenk of the LaunchPad program. “This provides the opportunity for both sides to see if the concept will really work and will appeal to the passenger, while giving them a very low-risk, low-investment opportunity to kickstart their business.” Fraport begins its LaunchPad process by conducting recruitment and outreach to local brands, providing them with background and logistics on what it means to operate in an airport environment and what kind of resources are required, says Trenk. After an RFP selection process, participating businesses receive formal training and continuous support from Fraport “to take the right steps and measures setting up their business,” she says. The program culminates in a “Business Shower,” in which LaunchPad partners

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