2019 RFP Opportunities. CHILLY EWING Airport Director. Concessions Management

Transcription

1 Concessions Management 2019 RFP Opportunities CHILLY EWING Airport Director Concessions Management

2 2 VISION AND MISSION Vision To be a global leader in concessions excellence Mission To provide an industry-leading concessions program that optimizes revenues and delights passengers through an outstanding level of quality, selection, convenience and fair value

3 3 ATL BY THE NUMBERS $1 billion+ total concessions revenue consecutive years as the world s most efficient airport 4 Years in a row voted Best Airport Dining 364 food, beverage and retail locations 2,500+ flights per day multibillion-dollar capital improvement program 64 concessions operators & rental car companies years as the world s busiest passenger 20consecutive airport 107 million+ passengers in 2018

4 4 PASSENGER DEMOGRAPHICS 58% female 42% male % between years old 57% connecting 43% O&D 65% fly 1-5 trips per year 30% arrive 2+ hours 54% arrive 1-2 hours before departure

5 5 UPCOMING OPPORTUNITIES Rental Car Center Hybrid Food Trucks Concourse B Restaurants Concourse E Food & Beverage Retail 2019 Common- Use Lounge Smoking Room Conversions City of Atlanta website: atlantaga.gov

6 CONCOURSE B RESTAURANTS AND CONCOURSE E FOOD AND BEVERAGE 6 Atlanta is home to some of the best restaurants in the U.S. It is only fitting that one of the largest eateries in the world showcases the city s premiere culinary market through its offerings.

7 7 RETAIL 2019 Retail 2019 is a unique opportunity to showcase Atlanta as a world-class destination, while providing revenue for the City of Atlanta and a dynamic business environment for local businesses and global retailers.

8 Concessions F&B RFP Draft Overview DEMETRIA WIDEMAN BUSINESS DEVELOPMENT Concessions Management

9 PROGRAM OVERVIEW 9 16 existing spaces on Concourses B and E $49.8 million in sales revenue in 2018 $8.1 million in rent in new space on Concourse B, 1 space previously designated as retail $60 million targeted gross revenues projected

10 SCHEDULE 10 Industry Day Spaces/ Packages/ Specs Updated From Industry Day Feedback RFP Issued Pre-proposal Conference Proposals Due Packages Awarded Leases Fully Executed March 12, 2019 Spring 2019 Spring 2019 Spring 2019 Summer 2019 Summer/ Fall 2019 Winter 2019 / 2020

11 INITIAL SPECIFICATION RECOMMENDATIONS 11 TERM MINIMUM QUALIFICATION MINIMUM INVESTMENT RENT STRUCTURE PRICING FINANCIAL OFFER 10 years with 3-year City option Varies by package $350 per sq. ft., Reinvestment by end of fifth $150 per sq. ft. (if not completed, renewal will not occur) Minimum MAG (minimum annual guarantee) and % rent Street plus 10% Minimum / maximum MAG and percentage rent requested

12 12 F&B CATAGORIES Bar w/ Food Bar w/ Snacks Café Bar Casual Dining w/ Bar Fine Dining Gourmet Market Local or National Brand Casual Dining Local or National Brand Dessert (No Pretzels) National Brand Gourmet Coffee QS Local or National Brand Healthy/Salad QS National Fast Pizza QS National Ethnic QS Local or National Mexican QS National Burger

13 13 PACKAGE OVERVIEW 1 Food Court PACKAGE 2 Restaurant PACKAGES 2 SINGLE STORE QSR PACKAGES Win limit of one package

14 14 Concourse B Restaurants 2 Locations 8,164 Sf. B Spine (Center), B10 Local/National Brand Café / Bar w/ Food

15 B-10 2,996 sf. Bar w/ Food New Space 15

16 B Spine (Center) 5,167 sf. Local/National Brand Café Currently Café Intermezzo / Buckhead Books 16

17 17 Concourse E Package 1 Single Store 1 Location 746 Sf. Quick-Service Restaurant Healthy Option

18 E Spine (Center) 764 sf. QS Healthy/Salad Currently Nature s Table 18

19 19 Concourse E Package 2 Single Store 1 Location 680 Sq. Ft. Quick-Service Restaurant National Fast Pizza

20 E Spine (Center) 680 sq. ft. QS National Fast Pizza Currently Qdoba 20

21 21 Concourse E Package 3 Restaurants 4 Locations 10,211 Sf. Full-Service Restaurants with Bars Fine Dining w/ Bar, 2 Casual Dining w/ Bar, 1 Café w/ Bar + Gourmet Market

22 E-28 2,630 sf. Café w/ Bar and Gourmet Market Currently Blue Moon Lounge 22

23 E-8 1,835 sf. Café w/ Bar Currently Sojourner s Lounge 23

24 24 E Spine (Center) 3,305 sf. Fine Dining w/ Bar Currently One Flew South

25 E Spine (Center) 4,090 sf. Casual Dining w/ Bar Currently TGI Friday s 25

26 26 Concourse E Package 4 Food Court 8 Locations 16,329 Sf. 6 QSRs, 1 Bar, 1 Food Court Seating Concourse E Spine (Center) Bar, Dessert, Ethnic, Burgers, Mexican, Coffee/Bakery, Open

27 Coffee Bakery 816 sf. (Currently Caribou/Nathans) QS Ethnic 867 sf. (Currently Panda Express) QS Open 898 sf. (Currently Arby s) QS Mexican 759 sf. (Currently Villa Pizza) QS Hamburger 1,052 sf. (Currently McDonald s) Local or National Dessert (no pretzels) 385 sf. (Currently Freshens) Bar w/ snacks 967 sf. (Currently Piano Bar) Food Court Seating 9,268 sf. 27

28 Concessions Retail 2019 RFP Draft Overview PAT ARMES BUSINESS DEVELOPMENT Concessions Management

29 PROGRAM OVERVIEW existing spaces on Concourses T through D and the Domestic atrium $104.4 million in sales revenue in 2018 $18 million in rent in 2018 (17.1% of sales) Program last built out in $109 million gross sales revenues projected

30 SCHEDULE 30 Industry Day Spaces/ Packages/ Specs Updated From Industry Day Feedback RFP Issued Pre-proposal Conference Proposals Due Packages Awarded Leases Fully Executed March 12, 2019 May 2019 Summer 2019 Summer 2019 Fall 2019 Winter 2019 Winter/Spring 2020

31 31 STRATEGIC PLAN Concession neighborhoods, concession destinations and complementary concepts Design, branding and store awareness Locally themed boutique elements Mix local, news and branded retail Address health trends through menu offerings Improve signage Mandate glass security gates

32 INITIAL SPECIFICATION RECOMMENDATIONS 32 TERM MINIMUM QUALIFICATION MINIMUM INVESTMENT RENT STRUCTURE PRICING FINANCIAL OFFER PROPOSAL FORMAT 7 years with 3-year City option 3 years related retail experience in the last 5 years $350 per sq. ft., reinvestment by end of fifth $150 per sq. ft. (if not completed, renewal will be in jeopardy) Greater of MAG (minimum annual guarantee) and % rent Street plus 10% Minimum / maximum MAG and percentage rent requested Page limits for most categories in the proposals

33 33 RETAIL CATAGORIES Accessories Bookstore Branded Accessories Branded Apparel Branded Beauty Products Branded Retail (Open) or National/Intl. Specialty Retail (Open) Candy/ Confections Convenience Market or Market Georgia Sense of Place / Local Gourmet Market Innovative Retail Lifestyle Concept National Brand Sunglasses National/Intl Specialty Retail (open)

34 34 RETAIL CATAGORIES CONTINUED News and Gifts Newsstand Newsstand w/ Coffee and Books Retail Vending (Open) Specialty Retail (Open) National Brand Luxury Retail (open) Tech Retail Travel Accessories Gift Shop

35 35 PACKAGE OVERVIEW 3 Large PACKAGES 3 Medium PACKAGES 2 Small PACKAGES (2 locations each) Win limit of one package

36 36 Package 1 Large Package 19 Locations 16,142 Sq. Ft. Concourses A and T 4 News & Gift, 3 Electronics, 3 Apparel/Accessories, 1 Health & Beauty, 2 Open Concepts, 6 Speciality Retail (local boutique, convenience market, book store, candy/ confections)

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39 39 Package 2 Large Package 20 Locations 15,790 Sq. Ft. Concourses B and Domestic Atrium 5 News & Gifts, 3 Electronics, 3 Apparel/Accessories, 4 Open Concepts, 5 Specialty Retail (local sense of place, markets, candy/confections)

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42 42 Package 3 Large Package 17 Locations 15,257 Sq. Ft. Concourses C and D 4 News & Gifts, 2 Electronics, 3 Apparel / Accessories, 2 Open Concepts, 6 Speciality Retail (Local Boutique, Markets, Candy/Confections)

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45 45 Package 4 Medium Package 4 Locations 5,982 Sq. Ft. Concourses A and T Two News, One Electronic and One Specialty Retail Open

46 Package #4 Package #4

47 Package #4 Package #4

48 48 Package 5 Medium Package 8 Locations 5,360 Sq. Ft. Concourses B and D Three News & Gifts, One Specialty Retail Open and Four Specialty Retail (Sense of Place, Travel Accessories, Gift Shop, Candy/Confections)

49 Package #5 Package #5 Package #5

50 Package #5 Package #5 Package #5 Package #5 Package #5

51 51 Package 6 Medium Package 9 Locations 1,615 Sq. Ft. Concourses A and D 3 Retail Innovation Spaces, 6 Vending Locations

52 Package #6

53 Retail Vending #6 Package #6

54 Retail Vending #6

55 55 Package 7 Small Package 2 Locations 1,728 Sq. Ft. Concourse A 1 News & Convenience, 1 Specialty Retail

56 Package #7

57 57 Package 8 Small Package 2 Locations 1,062 Sq. Ft. Concourse C 1 Candy/Confection & 1 Specialty Retail

58 Package #8 Package #8

59 Concessions Management 2019 RFP Recap PAUL BROWN Assistant General Manager Commercial Development

60 GATE USAGE 60 CONCOURSE T CONCOURSE A CONCOURSE B CONCOURSE C CONCOURSE D CONCOURSE E T-North: 4 gates used by American/ 5 gates by United T-South: Delta primarily for hourly flights to business destinations: New York, Philadelphia etc. Average daily flights: 100 All 29 gates used by Delta Average daily flights: 190 All 32 gates used by Delta Average daily flights: gates used by Delta 18 gates used by Southwest Average daily flights: gates used by Delta Connection Airlines (Endeavor, ExpressJet and Skywest) 14 on D- North and 18 on D- South American, Frontier, Spirit, Alaska and JetBlue usage Average daily flights: total gates International and domestic use Delta and other international carriers Average daily flights: 108

61 RENT STRUCTURE CONCOURSE B RESTAURANTS 61 MAG Range $2.2-$2.6M Percentage Rent 18% -21.3% Min. Requirements $3.5M

62 62 RENT STRUCTURE CONCOURSE E F&B PACKAGE 1 Single Store Healthy Option PACKAGE 2 Single Store Pizza PACKAGE 3 Restaurants Full Service PACKAGE 4 Food Court QSRs MAG Range $550- $650K MAG Range $318- $380K MAG Range $2.6- $3.0M MAG Range $2.4- $2.9M Percentage Rent 18% % Percentage Rent 17% % Percentage Rent 18% % Percentage Rent 15% - 18% Min Requirements $1.6M Min Requirements $800M Min Requirements $7M Min Requirements $8M

63 63 RENT STRUCTURE RETAIL (LARGE) PACKAGE 1 MAG Range $3.5-$4.2M % Rent Range 15% - 18% Min. Requirements $10M PACKAGE 2 MAG Range $3.7-$4.4M % Rent Range 16% - 19% Min. Requirements $10M PACKAGE 3 MAG Range $3.3-$3.9M % Rent Range 16% - 19% Min. Requirements $9M

64 64 RENT STRUCTURE RETAIL (MEDIUM) PACKAGE 4 MAG Range $1.1-$1.3M % Rent Range 14% - 17% Min. Requirements $3.5M PACKAGE 5 MAG Range $1.8-$2.1M % Rent Range 18% - 22% Min. Requirements $4M PACKAGE 6 MAG Range $630-$750K % Rent Range 18% - 22% Min. Requirements $2M

65 65 RENT STRUCTURE RETAIL (SMALL) PACKAGE 7 MAG Range $450-$530K % Rent Range 18% - 21% Min. Requirements $750K PACKAGE 8 MAG Range $360-$430K % Rent Range 18% - 21% Min. Requirements $750K