Presented by: Randy Goodman General Manager Concessions -Houston Airports
December 3, 2012
Meeting Host and Presenting Sponsor
Houston is One of the Fastest Growing Regions in the United States
Meeting Host and Presenting Sponsor
Greater Houston Growth Trends
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Houston Forecasted Growth in Population - 78.4 % by 2035Houston Forecasted Growth in Employment - 60.5% by 2035
Houston's Population Growth Rate of 2.46% is HigherThan The National Average of 0.97%
Houston AirportsWe exist to connect people, business, cultures and economies of
the world to Houston.
• George Bush Intercontinental Airport 40 million passengers annually
• William P. Hobby Airport 10 million passengers annually
Current Concessions Program• IAH Food & Beverage - 50 locations; annual sales over $72M • IAH Retail – 35 locations; annual sales over $25M• IAH News – 15 locations; annual sales over $18M• IAH Duty Free – 5 locations; annual sales over $9M• IAH Services – annual sales over $4M
• HOU Food & Beverage – 11 locations; annual sales over $28M• HOU Retail – 2 locations; annual sales over $1M• HOU News – 5 locations; annual sales over $10M• IAH Services – annual sales over $800,000
*FY 12 Sales - IAH does not include Terminal E
Best New Food & Beverage Concept (The Real Food Company) – ARN
Best New Food & Beverage Concept (Urban Crave) – ACI
Among the ten best airport bars in the world (Le Grand Comptoir) – AOL Travel
Best Food-Led Café Bar/Restaurant (Le Grand Comptoir) – FAB
Requirements for Future ConcessionsConcessions Master Plan (in process):• Existing concession program analysis (sales, revenue, and
space data performance standards)• Determine the Customer Base/Demographics/Wants • National and Local Market Analysis• Airport Industry Trend Review• Consumer Flow and Passenger Projections• Demand Analysis• Concession Plan and Strategy for the Future • Concession Business Terms• Phasing and Integration Plan
Concession Selection ProcessNew concessions are awarded through a competitive process (RFP). Key criteria that are considered in the selection process include:• Experience & Qualifications• Financial Capability• ACDBE Participation• Concept & Theme• Design & Quality of Improvements• Management, Operations & Marketing Plans• Fees to City: Review from a concessionaire’s perspective to ensure that the
program is feasible and that the business terms present a “win-win” scenario for both the City and the concessionaire
• Customer Service Program
Quality Concessions Monitoring Program• Mystery Shopper Program
Third party unbiased traveler’s view of interaction with the concession’s associates and the front of the house experience
Each customer connect point is shopped every month Shopper’s report is a recap of the traveler’s experience
• Concessions Quality Assurance & Observation Program In-house program for a deeper operational and compliance viewpoint
with focus the on Total Operation; Quality Assurance and Physical Plant Safety
An observation report is completed once a quarter on every location Observation reports facilitate improving the traveler’s experience
Challenges/Requirements/Opportunities Local management: Need local managers with a desire and
compassion for the food/beverage or retail business – Not the head cashier or bartender with the most seniority
Design & Permitting delaysWhat’s Behind Door Number 1? Physical Infrastructure Employee Parking ($60 - $70 average monthly rate)Badging Process ($50 new; $35 renew; 2-4 week process)Hours of Operations (standard)Market Basket/Street Pricing New Flight Schedules & Changing Passenger Flow
Thank You