The how-tos are challenging, but the sales make it rewarding
By Ellen Weaver Hartman, APR, Fellow PRSA
What restaurant owner wouldn’t love to have thousands – if not millions – of hungry people walking by their restaurant with no place to go and time on their hands? That pretty much describes an airport restaurant.
However, there are many challenges to opening and running an airport restaurant, according to Pierre Panos, who, in 2014, brought Fresh to Order to Hartsfield-Jackson Atlanta International Airport, the busiest airport in the United States, and, most of the time, the world.
“We opened at Hartsfield for brand exposure. We were in the busiest airport and on the busiest concourse in the prime space – at the top of the escalator,” he says. “Airports give you outstanding global exposure and fantastic sales.”
Hmmm. Sounds like there’s a catch. Actually, there are many – a large percentage of which never come up when opening a restaurant elsewhere.
Select a Concessionaire Partner
“First off, you have to decide whether to operate on your own or go with an existing airport concessionaire,” he says. Panos interviewed four companies and learned that it is “almost impossible to participate in the RFP and bidding process to win the bid, do the planning and construction, not to mention the hiring and opening, without the help and expertise of an experienced airport concessionaire.”
Every RFP at each airport is different. Larger airports tend to break up their packages to allow for more companies the opportunity to be in the airport. “For larger packages, Prime Concessionaires are required to have a certain percentage of ACDBE (Airport Concession Disadvantaged Business Enterprise) participation, which is usually between 25% and 35%.”
Part of the reason for the partnership is that they are known and trusted by airport and municipal officials, which eliminates a long learning curve and often removes any political barriers. “These concessionaires know what the airports are looking for. They also know the application RFP process. They know the traveling guests and what they want in a food operation,” Panos says.
“Airports have evolved over the years, and most airports now want a sense of place, which has translated to more local brands,” says LeMonica Hakeem, president of Conekt Hospitality, a consulting firm that helps guide restaurant operators through the business development process, including the selection of an airport concessionaire or the RFP, and the opening and operation process.
Panos chose Concessions International, which is well entrenched in the Atlanta community and serves more than 30 national, regional and proprietary brands at nearly 40 locations in eight airports. In Atlanta, they have nine establishments, including Shake Shack, Proof of the Pudding, Bobby’s Burger Palace, Paschal’s Restaurant and SweetWater Brewing Company.
The concessionaire handles “everything,” Panos says. “You just give them ideas, they follow the rules like when you can build and what materials you can use, in return for a percentage of sales.”
It’s a Different Restaurant
Obviously, an airport presents a number of challenges. The menu must be redesigned for a two-minute cooking time, three minutes tops, compared to a streetside restaurant where the average is 10 minutes (at Fresh to Order, the turnaround time is six to seven minutes). Panos cut the menu by 30 percent to make it more profitable and execute orders in less than three minutes.
Fresh to Order’s airport location menu features its most popular quick items, including a selection of gourmet entrées, sandwiches, salads and soups, all freshly prepared on-premise. The design of the 575-square-foot restaurant incorporates recognizable prototype Fresh To Order DESIGN elements, which were adapted for the brand’s first opening in a non-traditional venue.
Prices oftentimes are dictated by the concessionaire or airport, which might put a strain on the restauranteur since rents are generally higher than normal and so is the cost of doing business in the airport. Another example of the trickle-down effect of airport costs is that many vendors pay higher insurance premiums for the convenience of driving onto the airport’s loading docks, and deliveries are usually scheduled in the morning or at night.
“The worst thing is that you can’t have a true brand experience,” Panos says. “The interior look and feel may not resemble the brand’s street-side locations, and you must work with your partner to ensure that the overall feel and execution of the restaurant is within the brand’s guidelines. You really don’t have control over who is running that store, which is why it’s so important to go with a good concessionnaire.”
Airport Peculiarities
We’re willing to bet the farm that most restaurants – if not all – do not tether their knives to the workstations. But at an airport location, they do. Many airports don’t offer gas lines, causing chefs to come up with alternatives to grill a burger or make a pizza without a fire-burning oven.
The issue of security brings about several challenges. If a manager is running low on supplies, normally he or she sends an employee to the store for an emergency run. Not so easy at an airport, especially if they need a liquid item like soap or soda.
Some airports have a third party that will deliver your goods to the airport. In Atlanta for example, vendors deliver straight to your location, but it has to be early in the morning (so you need someone there to receive) and the vendor has to be badged to deliver to the airport. A lot of smaller vendors (especially produce) can’t afford to get badged due to the liability coverage they need.
Airports/TSA require all new hires to be fingerprinted for security clearance. This is a requirement for all concessionaires to comply. In addition, all employees must take an online learning course, which is charged to the restaurant.
Another big issue is the hours, as “regular” restaurants have closing times. Not so at an airport. An airport restaurant opens at least an hour before the first flight and 30 minutes after the last departing flight. However, it must remain open until the last scheduled flight comes in, which means a delayed plane could arrive later at night or even in the early morning. Not only is it taxing on the employee who must work unexpected long shifts, but it also upsets the employee’s personal life, including dealing with school runs, babysitters and getting proper sleep.
Is It Worth It?
As Panos says, by partnering with an operating company that is well entrenched in the airport and community, most of the headaches of opening an airport restaurant are eliminated. Then, like any other restaurant, it’s a question of quality food, a well-trained staff, and excellent operations.
“The best thing is the sales and brand awareness,” he adds. “It’s the best.”
Ellen Weaver Hartman, APR, Fellow PRSA, is the CEO of Hartman Public Relations, a full-service public relations and crisis management agency specializing in the foodservice industry and crisis management. She is active in the Women’s Foodservice Forum, Les Dames d ’Escoffier International and serves on the board of the Georgia State University School of Hospitality. She earned her APR accreditation from the Public Relations Society of America and is a member of PRSA’s Fellow program for senior accomplished professionals.
