concessions refresh program · 2018. 2. 13. · concessions expiration dates. 19. current...
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Indianapolis International AirportOperated by: Indianapolis Airport Authority
Concessions Refresh Program
David ShawDirector of Concessions & Air Service [email protected]
Jason Paltzer Amanda RoystonRetail Operations Coordinator Assistant Retail Operations [email protected] [email protected] 317-556-7264
For the latest information on the Concession Refresh program, please visit https://www.ind.com/business/concessions-refresh-program on a regular basis.
Concessions Refresh Program
Contacts & information
• Indiana’s largest city and the 15th
largest city in the United States.
• Nicknamed the “Hoosier State”
and known for Hoosier Hospitality
• Metropolitan Population > 1.978
million
• Indianapolis’ central location is
ideally suited to capture traffic
from nearby cities
• 3 + million people live within a
two-hour drive of IND
Indianapolis, Indiana
Indy named #1 Convention City in the US (USA Today 2014)
26 Hottest Food Cities of 2016
America’s Most Underrated Cities
Indianapolis is Nationally and Globally Recognized
About Indianapolis International Airport - IND
• 51 Nonstops (as of Jan 2018)
• Most ever in history of IND
• 8.7+ million travelers in 2017 set an
all-time record for passenger traffic
• 3% more travelers in 2017 vs. 2016
• Origination & Destination (O&D)
Airport
• Alaska Airlines began operating at
IND in May 2017
• Southwest Airlines holds largest
market share at 34%
• First ever IND transatlantic flight
announced in Sep of 2017 – Indy
direct to Paris daily starting in
May 2018
• J.D. Power North America Airport Satisfaction Study
Highest in Customer Satisfaction for Medium Airports2010 and 2016
• ACI Airport Service Quality Award
Best Airport in North America2010, 2012, 2013, 2014, 2015 and 2016
• ACI Director General’s Roll of Excellence
• Condé Nast Traveler Readers’ Choice
Best Airport in America2014, 2015, 2016, 2017
• Travel + Leisure World’s Best Awards
Top 10 Best Domestic Airports, 2016 and 2017
• TripAdvisor Travelers’ Choice
Favorite U.S. Airport, 2016
IND – World Class Award Winning Airport
Airport Revenue News
• Best Overall Concession Program: 2009, 2011, 2012, 2013, 2015 and 2017
• Best Customer Service, 2017
IND – World Class Award Winning Airport
USA TODAY
10Best Readers’ Choice Awards
• Best Airport Local/Regional Dining, 2017
Harry & Izzy’s
IND Airline Market Share (as of January 2018)
3%
34%
14%1%
23%
3%
21%
1%
8
9
Terminal/Campus Optimization Program
Guiding Principles for Sense of PlaceAuthenticity
Discovery/SurpriseDelight
• Enhance Customer Experience• Create a Sense of Place• Remain Relevant for Today’s Traveler
Current Concessions Program
• 54 Retail, Food &
Beverage, News &
Convenience and Specialty
Retail locations
• Currently 3 vacancies
• 40 out of 53 locations have
December 31, 2018
expirations
• 65,000+ Square Feet of
concessions space
• 44% Pre-Security locations
vs. 56% Post-Security
locations
Historical Concessions Sales 2013 - 2017
$0
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
2013 2014 2015 2016 2017
Food & Beverage Retail (including Spa) News & Gift
$48,556,519$47,367,812
2.44%
Overall Annual
Growth from
2016 to 2017
$10.47
$11.00 $11.10
$10.81
$11.20 $11.10
$10.00
$10.20
$10.40
$10.60
$10.80
$11.00
$11.20
$11.40
2012 2013 2014 2015 2016 2017
Axi
s Ti
tle
Axis Title
Sales Per Departing Passenger
Historical Sales 2012-2017
$624
$386
$1,305
$2,778
$577
$1,345
$163
$1,260
$1,659
$3,663
$2,344
$933
$1,442
$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000
96th Street Steakburger
Café Patachou
Champps
Chik-Fil-A
Granite City/ Au Bon Pain
Harry & Izzy's
Indianapolis 500 Grill
McDonalds
Starbucks (A)
Starbucks (B)
Starbucks (Civic Plaza)
The Fan Zone
Wolfgang Puck Express
2016 Sales Per Square Feet-Food and Beverage
2016 Sales Per Square Feet-Retail and News & Gift
$157
$476
$1,277
$2,210
$351
$408
$860
$710
$1,125
$423
$438
$- $500 $1,000 $1,500 $2,000 $2,500
Artizan
Travel Mart (Civic Plaza)
CNBC (A)
CNBC (B)
Erwin Pearl
Forever Heather
iStore Boutique
Just Pop In
Natalie's Candy Jar
USA Today (Civic Plaza)
Travel Mart (Civic Plaza)
Percent Alcohol Sales
(only locations permitted to serve alcohol)
Location Type% Alcohol
Sales
2017 Alcohol
SalesLocation
Harry & Izzy's Full-Service 35% $1.36 millionConcourse A
Champps Full-Service 41% $1.6 millionConcourse B
Indy 500 Grill Full Service 28% $240,000 Pre-security
Vinea Wine Bar Bar 90% $391,000 Pre-Security
Granite City Full-Service 31% $555,000 Concourse A
Fan Zone Bar 92% $683,000 Concourse B
Café Patachou Full Service 7% $60,000 Pre-Security
Wolfgang Puck Full Service 28% $921,000 Concourse B
2017 Sales by Location
96th Street Steakburger $ 487,370
Auntie Anne's $ 383,262
Café Patachou $ 853,977
Camden Food Company $ 691,448
Champps $ 3,965,165
Chik-Fil-A $ 2,311,459
Copper Moon Coffee (A) $ 357,098
Copper Moon Coffee (B) $ 857,300
Freshens $ 124,679
Granite City/ Au Bon Pain $ 1,772,559
Green Leaf & Bananas $ 586,122
Harry & Izzy's $ 3,913,712
Hub Convenience $ 247,696Indianapolis 500 Grill $ 848,223
King David Dogs $ 927,736
McDonalds $ 1,822,964
Nature's Table $ 728,729
Qdoba $ 1,032,590
Shapiro's $ 1,759,487
Starbucks (A) $ 1,272,487
Starbucks (B) $ 1,831,358
Starbucks (Civic Plaza) $ 1,171,862
The Fan Zone $ 746,788
Vinea $ 436,607
Wolfgang Puck Express $ 3,225,615
Artizan $ 156,808
Brickyard Authentics $ 399,457
Broad Ripple Books & Gifts $ 1,719,477
Brooks Brothers $ 473,634
Brookstone $ 417,509
Travel Mart (Civic Plaza) $ 825,618
CNBC (A) $ 1,740,599
CNBC (B) $ 1,658,825
Cultural Crossroads $ 193,307
Enroute Spa (A Kiosk) $ 150,250
Enroute Spa (B Kiosk) $ 435,190
Erwin Pearl $ 220,087
Forever Heather $ 171,174
Hoosier Marketplace $ 902,408
Indiana Marketplace $ 787,887
iStore Boutique $ 973,430
Just Pop In (Cart) $ 120,346
Just Pop In $ 501,697
Lids Locker Room $ 454,840
Natalie's Candy Jar $ 1,023,097
Relay (A Kiosk) $ 560,665
Relay (B) $ 852,382
South Bend Chocolate $ 252,065
USA Today (Civic Plaza) $ 858,065
Vera Bradley $ 351,408
Concessions Expiration Dates
19
Current Concessions Space Allocation Imbalance
Concession SPACE
44% 56%
Pre-Security Post-Security
Concession SALES
28%
72%
Post-Security Pre-Security
2017 Quality Service Monitor (QSM) Report
• “The merchandise selection in Concourse A is perceived to be far greater than the selection available in Concourse B”
• “Variety of menu offerings and restaurant selection are moderate”
• “More food and beverage selections needed throughout the Airport”
• “Increase food options after the security checkpoints”
• “Retail selection does not appeal to all generations – need to be relevant”
• “Passengers appear to find the airport’s jewelry and clothing selection dismal”
What are our passengers saying?
20
Future Space Planning - Concessions
21
Current
44% 56%
Proposed
Pre-Security Post-Security
30%
70%
Post-Security Pre-Security
Concourse A
Concourse B
Civic Plaza
Proposed Future Concessions Programming
• 50 News & Convenience, Specialty Retail and Food & Beverage Concessions Spaces
• 62,000+ Square Feet of Concessions Space
• 30% of Concessions space is Pre-Security, 70% is Post-Security
22
Future Concessions Vision
• Integrate sense of place
• Enhance local economic impact
• Strengthen customer experience
• Down Size Pre-Security Concessions Offerings✓ Sales Data Shows Civic Plaza is over-concessioned
✓ Eliminate Concession Square Footage In Civic Plaza
27%
73%
2017 Sales Distribution
Pre-Security Post-Security
44%56%
2017 Concessions Square Footage
Allocation
Pre-Security Post-Security
Future Concessions Vision
• Improve Concessions Offerings in Post-Security✓ Provide Offerings that Exceed Customer Want & Industry Standards
✓ Implement Local “Sense of Place” Concepts
• Concessions Space Planning✓ Optimum Exposure for Concessions Categories
✓ Develop Construction Phasing Plan with Concessions Partners
• Community Outreach and Networking Sessions✓ Engage Local Businesses with Future Airport Opportunities
✓ Issue “Requests for Proposals” with IAA Objectives
Future Concessions/Business Opportunity
• Food & Beverage Concessionaires
➢ Local and National Brands
• Retail and News & Gift Concessionaires
➢ Local and National Brands
• Local and Prime Operators
• ACDBE Opportunities
• Good and Services Suppliers
➢ General Construction
➢ Marketing