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Presented by: Randy Goodman General Manager Concessions -Houston Airports

Meeting Host and Presenting Sponsor. Presented by: Randy Goodman General Manager Concessions -Houston Airports. December 3, 2012. Houston is One of the Fastest Growing Regions in the United States. Meeting Host and Presenting Sponsor. Houston Airports.

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Presented by: Randy Goodman General Manager Concessions -Houston Airports

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  1. Meeting Host andPresenting Sponsor Presented by: Randy Goodman General Manager Concessions -Houston Airports December 3, 2012

  2. Houston is One of the Fastest Growing Regions in the United States Meeting Host andPresenting Sponsor

  3. Houston Airports We 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

  4. 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

  5. Best New Food & Beverage Concept (The Real Food Company) – ARN • Among the ten best airport bars in the world (Le Grand Comptoir) – AOL Travel • Best Food-Led Café Bar/Restaurant • (Le Grand Comptoir) – FAB • Best New Food & Beverage Concept (Urban Crave) – ACI

  6. Requirements for Future Concessions Concessions 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

  7. Concession Selection Process New 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

  8. 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

  9. 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 delays • What’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

  10. Thank You

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