Concessions Program Overview Scott Kilgo 2005
-
Upload
scottkilgo -
Category
Documents
-
view
312 -
download
2
description
Transcript of Concessions Program Overview Scott Kilgo 2005
![Page 1: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/1.jpg)
PDX Concessions Program Update
Scott Kilgo
![Page 2: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/2.jpg)
Outline
• Concessions overview• Why our program is
different• Tenants and selection• Our customers• Future developments
![Page 3: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/3.jpg)
Concessions Overview• Growing success for more than 16 years
• Program vision – Broad mix of quality local products– High quality store design and merchandising standards– Provide a great customer experience– Pricing that is the same as other locations– NW theme throughout the program
• Experience mirrors best in our region
• Nationally recognized as an industry leader and innovator
![Page 4: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/4.jpg)
Concessions Overview
• 60 stores, restaurants, news stands
• Local concepts are an advantage
• 60% of our stores and restaurants are local concepts
• Full service bank, Hair salon and other passenger services
• Balance between before and after security
• Locations open 365 days a year
• Many are open 16 hours a day
• 40,000 customers each day
![Page 5: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/5.jpg)
Concessions Overview
• Just over 13.5M passengers last year
• Exceeded $56M in sales last year
• $8M in revenue to reduce airline costs
• Sales levels stand out when compared to other airport or mall programs – $8.45 per boarded passenger; or – $1,200 per square foot
![Page 6: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/6.jpg)
Why is our program different?
![Page 7: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/7.jpg)
Direct Leasing vs. Master Concessionaire•Direct leasing
– Leasing with individual tenants. – Portland
•60 locations with almost 30 different tenants. •Results in higher sales; $8.45 per boarding passenger
•Master Concessionaire– Lease major portions of the program to a single or few
tenants. – Seattle
•Few tenants with most of 70 locations.•Results are lower sales; $6.02 per boarding passenger
![Page 8: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/8.jpg)
Proactive Operations
Direct relationship with tenants Proactive training with
management staff Working with our tenants
every day Monthly Manager Meetings Mystery Shop and Dine
Program Associate of the Month
Contest
![Page 9: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/9.jpg)
Marketing and Themed Events Program 3 major events 4 special events Entertainment Activities Special Product Offerings Coordinated Sales and
Specials
![Page 10: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/10.jpg)
Our Tenants and Selection
![Page 11: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/11.jpg)
Coffee and Pastries• Coffee People, Starbucks and
Marsee Baking
• $6.3M in sales last year
• 40 % of passengers buy coffee every time they are at PDX
![Page 12: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/12.jpg)
Sit Down Dining • Gustav’s, Capers Cafe,
Sandoval’s Margarita Bar
• Rose City Café and Stanford’s
• Before security locations
• $12.6 in sales last year
• Significant increase this year
• Demand Continues to grow
![Page 13: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/13.jpg)
Food Counter Service• Pizza Schmizza, Good Dog,
Sandoval’s Fresh Mexican, Riverfront Café
• Panda Express, Wendy’s
• $9.3M last year
• Demand Continues to grow
![Page 14: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/14.jpg)
Magazines and Newspapers• Your Northwest Travel Mart
and Hudson News• $6M in magazine and paper
sales
• Travel Mart innovation from PDX
![Page 15: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/15.jpg)
Products from our region• Made In Oregon, Oregon
Pendleton and Your North West Travel Mart
• Broad selection of quality products
• $6M in sales last year
![Page 16: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/16.jpg)
New and Used Books
• Powell’s Books, Travel Mart and Hudson
• $3.9M in sales last year
• 10% books at Powell’s used or discounted
![Page 17: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/17.jpg)
Clothing, Footwear and Accessories• Nike and Norm Thompson
• $2.9M in sales last year
• Norm Thompson at PDX
![Page 18: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/18.jpg)
Arts and Crafts Gallery• Real Mother Goose Gallery
• Glass, jewelry, ceramics, fine wood, furniture and clothing
• Show case for Local artisans
![Page 19: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/19.jpg)
Blackboard Chickensby Chicken Coup
![Page 20: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/20.jpg)
Passenger Services•Full service bank
•RelaxStation Salon
•Free WiFi
•Service Centers with desks
![Page 21: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/21.jpg)
Who are our typical customers?
![Page 22: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/22.jpg)
We know our customers better than any other airport
How we know our customers•Conductive regular surveys for years•Listen to our tenants that have the most interaction; and
•Watch sales by day at all 60 locations
Why this is important•Make better decisions•Generates higher sales from happy customers
I would like to introduce our three typical customers…
![Page 23: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/23.jpg)
Ms. Jane Traveler
– Flies 4 times a year
– Spends 90 minutes in terminal
– Strong preference for local concepts
– Prefers sandwich and bakery concepts
– Values a quick purchase
– Pricing is important
– More likely than men to shop retail, particularly pre-security
![Page 24: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/24.jpg)
Mr. John Traveler
– Flies 4 times a year
– Spends 90 minutes in terminal
– Strong preference for local concepts
– Quick affordable purchase
– Likely to use the free WiFi
– Will purchase food or beverage, especially at sit-down restaurants
![Page 25: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/25.jpg)
Ms. Judy Meeter
– Parks in the garage
– Is usually accompanied in terminal
– Spend less than 60 minutes in terminal
– Strong preference for local concepts
– Makes a purchase
– Appreciates things to do in terminal
– Looks for the pre-security stores
![Page 26: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/26.jpg)
Looking to the future
![Page 27: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/27.jpg)
Our Approach to the future– Continue Vision
– Direct leasing and proactive operations methods
– Great current and prospective tenants
– Listen to customers and tenants to make the best decisions
– Make changes over the next 3 years to minimize disruption
– Balance of working with existing and new tenants
![Page 28: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/28.jpg)
Improvements Opportunities
– Older terminal areas after security need to be updated
– Some dated food concepts need to be replaced
– Need additional food and retail locations to meet customer needs after security
– Revisit some operational procedures
![Page 29: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/29.jpg)
During the next three years– Refurbish three older terminal
areas
– Work with current tenants to make some concept improvement at 12 location
– Complete a solicitation process to select some exciting new food concepts
• 4 Sit down cafés with bar service
• 3 Coffee locations• 1 bakery concept• 1 Gourmet Pizza concept• 1 Sandwich, soup and
salad concept
![Page 30: Concessions Program Overview Scott Kilgo 2005](https://reader038.fdocuments.us/reader038/viewer/2022103018/55866bb5d8b42a2a518b4730/html5/thumbnails/30.jpg)
Questions