Concessions Refresh Program · 2018. 2. 13. · Concessions Expiration Dates. 19. Current Concessions Space Allocation Imbalance. Concession SPACE. ... • “The merchandise selection

Indianapolis International AirportOperated by: Indianapolis Airport Authority

Concessions Refresh Program

David ShawDirector of Concessions & Air Service [email protected]

Jason Paltzer Amanda RoystonRetail Operations Coordinator Assistant Retail Operations [email protected] [email protected] 317-556-7264

For the latest information on the Concession Refresh program, please visit https://www.ind.com/business/concessions-refresh-program on a regular basis.

Concessions Refresh Program

Contacts & information

• Indiana’s largest city and the 15th

largest city in the United States.

• Nicknamed the “Hoosier State”

and known for Hoosier Hospitality

• Metropolitan Population > 1.978

million

• Indianapolis’ central location is

ideally suited to capture traffic

from nearby cities

• 3 + million people live within a

two-hour drive of IND

Indianapolis, Indiana

Indy named #1 Convention City in the US (USA Today 2014)

26 Hottest Food Cities of 2016

America’s Most Underrated Cities

Indianapolis is Nationally and Globally Recognized

About Indianapolis International Airport - IND

• 51 Nonstops (as of Jan 2018)

• Most ever in history of IND

• 8.7+ million travelers in 2017 set an

all-time record for passenger traffic

• 3% more travelers in 2017 vs. 2016

• Origination & Destination (O&D)

Airport

• Alaska Airlines began operating at

IND in May 2017

• Southwest Airlines holds largest

market share at 34%

• First ever IND transatlantic flight

announced in Sep of 2017 – Indy

direct to Paris daily starting in

May 2018

• J.D. Power North America Airport Satisfaction Study

Highest in Customer Satisfaction for Medium Airports2010 and 2016

• ACI Airport Service Quality Award

Best Airport in North America2010, 2012, 2013, 2014, 2015 and 2016

• ACI Director General’s Roll of Excellence

• Condé Nast Traveler Readers’ Choice

Best Airport in America2014, 2015, 2016, 2017

• Travel + Leisure World’s Best Awards

Top 10 Best Domestic Airports, 2016 and 2017

• TripAdvisor Travelers’ Choice

Favorite U.S. Airport, 2016

IND – World Class Award Winning Airport

Airport Revenue News

• Best Overall Concession Program: 2009, 2011, 2012, 2013, 2015 and 2017

• Best Customer Service, 2017

IND – World Class Award Winning Airport

USA TODAY

10Best Readers’ Choice Awards

• Best Airport Local/Regional Dining, 2017

Harry & Izzy’s

IND Airline Market Share (as of January 2018)

3%

34%

14%1%

23%

3%

21%

1%

8

9

Terminal/Campus Optimization Program

Guiding Principles for Sense of PlaceAuthenticity

Discovery/SurpriseDelight

• Enhance Customer Experience• Create a Sense of Place• Remain Relevant for Today’s Traveler

Current Concessions Program

• 54 Retail, Food &

Beverage, News &

Convenience and Specialty

Retail locations

• Currently 3 vacancies

• 40 out of 53 locations have

December 31, 2018

expirations

• 65,000+ Square Feet of

concessions space

• 44% Pre-Security locations

vs. 56% Post-Security

locations

Historical Concessions Sales 2013 - 2017

$0

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

$60,000,000

2013 2014 2015 2016 2017

Food & Beverage Retail (including Spa) News & Gift

$48,556,519$47,367,812

2.44%

Overall Annual

Growth from

2016 to 2017

$10.47

$11.00 $11.10

$10.81

$11.20 $11.10

$10.00

$10.20

$10.40

$10.60

$10.80

$11.00

$11.20

$11.40

2012 2013 2014 2015 2016 2017

Axi

s Ti

tle

Axis Title

Sales Per Departing Passenger

Historical Sales 2012-2017

$624

$386

$1,305

$2,778

$577

$1,345

$163

$1,260

$1,659

$3,663

$2,344

$933

$1,442

$- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000

96th Street Steakburger

Café Patachou

Champps

Chik-Fil-A

Granite City/ Au Bon Pain

Harry & Izzy's

Indianapolis 500 Grill

McDonalds

Starbucks (A)

Starbucks (B)

Starbucks (Civic Plaza)

The Fan Zone

Wolfgang Puck Express

2016 Sales Per Square Feet-Food and Beverage

2016 Sales Per Square Feet-Retail and News & Gift

$157

$476

$1,277

$2,210

$351

$408

$860

$710

$1,125

$423

$438

$- $500 $1,000 $1,500 $2,000 $2,500

Artizan

Travel Mart (Civic Plaza)

CNBC (A)

CNBC (B)

Erwin Pearl

Forever Heather

iStore Boutique

Just Pop In

Natalie's Candy Jar

USA Today (Civic Plaza)

Travel Mart (Civic Plaza)

Percent Alcohol Sales

(only locations permitted to serve alcohol)

Location Type% Alcohol

Sales

2017 Alcohol

SalesLocation

Harry & Izzy's Full-Service 35% $1.36 millionConcourse A

Champps Full-Service 41% $1.6 millionConcourse B

Indy 500 Grill Full Service 28% $240,000 Pre-security

Vinea Wine Bar Bar 90% $391,000 Pre-Security

Granite City Full-Service 31% $555,000 Concourse A

Fan Zone Bar 92% $683,000 Concourse B

Café Patachou Full Service 7% $60,000 Pre-Security

Wolfgang Puck Full Service 28% $921,000 Concourse B

2017 Sales by Location

96th Street Steakburger $ 487,370

Auntie Anne's $ 383,262

Café Patachou $ 853,977

Camden Food Company $ 691,448

Champps $ 3,965,165

Chik-Fil-A $ 2,311,459

Copper Moon Coffee (A) $ 357,098

Copper Moon Coffee (B) $ 857,300

Freshens $ 124,679

Granite City/ Au Bon Pain $ 1,772,559

Green Leaf & Bananas $ 586,122

Harry & Izzy's $ 3,913,712

Hub Convenience $ 247,696Indianapolis 500 Grill $ 848,223

King David Dogs $ 927,736

McDonalds $ 1,822,964

Nature's Table $ 728,729

Qdoba $ 1,032,590

Shapiro's $ 1,759,487

Starbucks (A) $ 1,272,487

Starbucks (B) $ 1,831,358

Starbucks (Civic Plaza) $ 1,171,862

The Fan Zone $ 746,788

Vinea $ 436,607

Wolfgang Puck Express $ 3,225,615

Artizan $ 156,808

Brickyard Authentics $ 399,457

Broad Ripple Books & Gifts $ 1,719,477

Brooks Brothers $ 473,634

Brookstone $ 417,509

Travel Mart (Civic Plaza) $ 825,618

CNBC (A) $ 1,740,599

CNBC (B) $ 1,658,825

Cultural Crossroads $ 193,307

Enroute Spa (A Kiosk) $ 150,250

Enroute Spa (B Kiosk) $ 435,190

Erwin Pearl $ 220,087

Forever Heather $ 171,174

Hoosier Marketplace $ 902,408

Indiana Marketplace $ 787,887

iStore Boutique $ 973,430

Just Pop In (Cart) $ 120,346

Just Pop In $ 501,697

Lids Locker Room $ 454,840

Natalie's Candy Jar $ 1,023,097

Relay (A Kiosk) $ 560,665

Relay (B) $ 852,382

South Bend Chocolate $ 252,065

USA Today (Civic Plaza) $ 858,065

Vera Bradley $ 351,408

Concessions Expiration Dates

19

Current Concessions Space Allocation Imbalance

Concession SPACE

44% 56%

Pre-Security Post-Security

Concession SALES

28%

72%

Post-Security Pre-Security

2017 Quality Service Monitor (QSM) Report

• “The merchandise selection in Concourse A is perceived to be far greater than the selection available in Concourse B”

• “Variety of menu offerings and restaurant selection are moderate”

• “More food and beverage selections needed throughout the Airport”

• “Increase food options after the security checkpoints”

• “Retail selection does not appeal to all generations – need to be relevant”

• “Passengers appear to find the airport’s jewelry and clothing selection dismal”

What are our passengers saying?

20

Future Space Planning - Concessions

21

Current

44% 56%

Proposed

Pre-Security Post-Security

30%

70%

Post-Security Pre-Security

Concourse A

Concourse B

Civic Plaza

Proposed Future Concessions Programming

• 50 News & Convenience, Specialty Retail and Food & Beverage Concessions Spaces

• 62,000+ Square Feet of Concessions Space

• 30% of Concessions space is Pre-Security, 70% is Post-Security

22

Future Concessions Vision

• Integrate sense of place

• Enhance local economic impact

• Strengthen customer experience

• Down Size Pre-Security Concessions Offerings✓ Sales Data Shows Civic Plaza is over-concessioned

✓ Eliminate Concession Square Footage In Civic Plaza

27%

73%

2017 Sales Distribution

Pre-Security Post-Security

44%56%

2017 Concessions Square Footage

Allocation

Pre-Security Post-Security

Future Concessions Vision

• Improve Concessions Offerings in Post-Security✓ Provide Offerings that Exceed Customer Want & Industry Standards

✓ Implement Local “Sense of Place” Concepts

• Concessions Space Planning✓ Optimum Exposure for Concessions Categories

✓ Develop Construction Phasing Plan with Concessions Partners

• Community Outreach and Networking Sessions✓ Engage Local Businesses with Future Airport Opportunities

✓ Issue “Requests for Proposals” with IAA Objectives

Future Concessions/Business Opportunity

• Food & Beverage Concessionaires

➢ Local and National Brands

• Retail and News & Gift Concessionaires

➢ Local and National Brands

• Local and Prime Operators

• ACDBE Opportunities

• Good and Services Suppliers

➢ General Construction

➢ Marketing