MAY/JUNE 2020 / V18 N224-225
COVID-19:
Concessionaires Share Recovery Plans | Airport Directors Map A New Way Forward | Food Trends In A New & Changing World A CONVERSATION WITH ACI’S ANGELA GITTENS
Agility. Commitment. Service. You can cover our smiles... but not our service. THANK YOU to our associates currently working in airports who are adapting successfully, staying positive and maintaining their commitment to serve those still traveling, including healthcare workers and others doing their very best for all of us.
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5 Letter from the Publisher 6 Data Check
Health checks and increased technology are two of several changes to air travel predicted by industry executives in a global ICF survey.
14 The Right Direction
North American airports share their thoughts on the effects of the COVID-19 pandemic and what it could mean for the future of air travel.
20 Dining Dilemmas
Restaurant consultants are blunt about the effects the pandemic could have on food trends and the restaurant industry, but offer insight to meet the needs of a changing consumer.
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10 Latest Buzz
30 One-On-One
Angela Gittens, director general of ACI World, discusses the global effects of the coronavirus and where to look for guidance on returning to business.
32 5&Under
Smaller airports have a unique ability to connect directly with members of the community. A few are adding fun to the mix in hopes of expanding traveler loyalty.
Los Angeles International Airport’s Midfield Satellite Concourse is wrapping up construction to be ready for the return in air travel demand.
35 Advertising Index
24 Industry Insights
36 Before You Take Off
Concessionaires weigh in on what measures they’ve taken to prepare for the eventual return of passengers.
The Airport Minority Advisory Council has started a social media campaign to encourage camaraderie and cooperation among airport businesses looking to succeed during and after coronavirus.
JOIN THE CONVERSATION As airport restaurants and retail stores grapple with the COVID-19 crisis, Airport Restaurant and Retail Association (ARRA) members are partnering with airports to forge a path forward and secure the industry’s survival and revival. ARRA is part of the conversation—giving voice to our members’ and sharing valuable insights with decision makers.
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ARRA-AMAC Survival and Revival Call-In Forums Visit the ARRA website for the schedule of the Call-In Forums and other news. www.arra-airports.com
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05 06/2020
FROM THE DESK OF THE PUBLISHER Dear Loyal Subscribers, We know these are trying times for everyone. As we all navigate toward recovery, Airport Experience News wants to be in the (virtual) room and at the (virtual) table with you. We hope you enjoy this digital issue of AXN. In the same way each of you has had to pivot your business, we too have been forced to make changes in light of this pandemic, and as a result will now be publishing digitally. With the changes, we remain committed to bringing you more of the news and insights you need to keep your businesses moving forward. We’ve enhanced our news coverage – on our website and will continue to break news in real time – to ensure you’re getting all the latest in a timely manner. We welcome your input, your ideas and even your criticism as we collectively seek a new way forward. Stay healthy and safe,
Melissa K. Montes Publisher Airport Experience® News
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DATA CHECK
THE CHANGED PASSENGER When Travel Ramps Up Again, The Industry Expects An Altered Customer BY CAROL WARD
How Has COVID-19 Impacted Your Business? 23%
Complete shut-down Severe reduction
49%
(current demand is less than 50% of typical activity)
Partial reduction
15%
(current demand is less than 20-50% of typical activity)
Limited or No change
13% 0%
10%
20%
30%
40%
50%
% of Responses Source: ICF
he vast majority of travel executives expect passenger behavior to change as a result of the COVID19 pandemic, with increased use of remote solutions for work and education, according to a global survey of senior and mid-level executives spanning all parts of the commercial aviation value chain,conducted by consulting firm ICF. The survey, conducted in late March and early April, showed that nearly one-quarter of respondents had experienced a complete shut-down of their businesses due to the crisis, while additionally, nearly half had experienced a severe reduction of activity. About 13 percent of respondents saw limited or no change in activity, but ICF noted that those companies were primarily concentrated in the financial sector.
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The ICF survey showed that respondents expect a slow recovery to pre-crisis levels. One-third expect it to take six to 12 months, while nearly half expect it to take up to two years. These views are comparable to previous – albeit far less impactful – pandemic scenarios (e.g., SARS, H1N1), but notably less than the recovery periods for the September 11 attacks or the 2008 financial crisis, the ICF report noted. For North America in particular, only 8 percent of respondents thought recovery would occur within 6 months. One-quarter of those surveyed believe business will be back to pre-COVID-19 levels of activity within six to 12 months, but the vast majority (61 percent) see recovery taking up to two years.
WE CONTINUE TO BE INSPIRED BY THE TRAVEL INDUSTRY. During these challenging times, we remain highly confident in all the concessionaires and airport service providers. Our industry, is not only resilient, but innovative and visionary. We will adapt and once again deliver the travelers an exceptional experience.
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Partial reduction
15%
(current demand is less than 20-50% of typical activity)
DATA CHECK
Limited or No change
13% 0%
10%
20%
30% % of Responses
Source: ICF
How Long Do You Expect for Passenger Flight Activity to be Severely Reduced (or Stopped Altogether)? 1-2 months
18% 48%
3-4 months 5-6 months
19%
6-12 months
Passenger Behavior/Industry Practices The passenger the industry serves a year from now could be starkly different than the one those in the travel industry built their businesses around. According to the survey, nine out of 10 respondents expect the widespread adoption of video-conferencing solutions for work and education, which would undoubtedly impact the demand for air travel. The implications for business travel, much of which is driven by intracompany meetings, could lead to reduced demand. Respondents were split on other potential impacts to aviation. About half of those surveyed believe the industry will experience reduced demand for conferences and other events that attract large crowds. A similar number expect increased demand for private aviation and, separately, increased preference for nonstop flights. ICF noted that previous industry disruptors, most notably the terrorist attacks of September 11, 2001, led to a multi-billion dollar spend on capital projects and ongoing safety and security costs. The consulting group said COVID19 is expected to have a similar impact on health-related safety and security. Survey respondents agreed, with most saying they expect new measures on the ground, including expanded aircraft cleaning and enhanced passenger health screening. More than half of respondents the industry may see documentation requirements to certify passenger health prior to boarding. More than 90 percent of respondents expect passengers to consider health conditions when traveling, while two-thirds expect some form of country category to be instituted. In some regions, this could have adverse consequences for international travel, ICF noted.
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13%
Over 1 year
2% 0%
10%
20%
30%
40%
50%
% of Responses
Source: ICF
Once Regular Scheduled Flights Resume, How Long Do You Expect to Recover Pre COVID-19 Levels of Business Activity?
Within 6 months
11%
6-12 months
34% 45%
Within 2 years Over 2 years
10% 0%
10%
20%
30%
40%
50%
% of Responses
Source: ICF
Recovery by Region 6%
17%
Once regular scheduled flights resume, how long do you expect to recover pre COVID-19 levels of business activity?
Within 6 months Source: ICF
61%
49%
7%
12%
33%
44%
15%
62%
37% 24%
25%
10%
8%
Europe
North America
6-12 months
44% 22%
Asia
Latin America
Within 2 years
23%
ROW
Over 2 years
OUR EMPLOYEES ARE FAMILY. They are my sisters, brothers, elders, and children. When they were working at the airport, we could see their smiles every day and know they are okay. We look forward to bringing every one of them back. -Donata Russell Ross, Concessions International CEO & President.
LATEST BUZZ
NEW DIGS IN TRYING TIMES LAX’s Midfield Satellite Concourse North Is Nearing Completion, In Preparation For Returning Passenger Traffic BY DAVID WARD
Above: The new Midfield Satellite Concourse at Los Angeles International is designed to allow plenty of natural light and provide views of the airport’s Tom Bradley International Terminal.
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hough the global pandemic continues to severely disrupt commercial aviation and the overall economy, Los Angeles World Airports (LAWA), operators of Los Angeles International Airport (LAX), are opting to focus on a future when air travel returns to something resembling normal. At least that’s the case with the new Midfield Satellite Concourse (MSC) North project at LAX, a project nearing completion that was slated to open in summer 2020. LAX
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officials have declined to say whether the project will remain on schedule or delay due to the COVID-19 crisis. The 750,000-square-foot MSC North will add 12-15 new gates as well as a host of new concessions and other features and will be connected to the Tom Bradley International Terminal at LAX via a pedestrian tunnel. Other LAX terminals will be connected to the new concourse via shuttle bus. There will also be a second tunnel connecting the MSC to the international
“HOPE IS BEING ABLE TO SEE THAT THERE IS LIGHT DESPITE ALL OF THE DARKNESS.” - DESMOND TUTU
LATEST BUZZ
terminal that will be used for utilities and other airport operations. “The MSC will provide a variety of top-notch amenities and a unique experience for our international and domestic travelers,” says LAWA interim CEO Justin Erbacci. “We are deploying innovative technologies such as biometric boarding, digital wayfinding and shopping, and the latest Wi-Fi and 5G cellular service.” LAWA officials say the goal of the $1.6 billion MSC project is to provide a seamless, connected guest experience from home to curb to gate, while also reducing some of the bottlenecks that impacted passengers in the past, especially those connecting from international flight to domestic routes. Along with the MSC, LAWA is also set to open a new baggage system to accommodate the immediate and future need for processing outbound bags. The 85,000-square-foot Baggage Optimization Project will add an 11,000-square-foot tunnel along the north side of the structure as well as a 45,000-square-foot tunnel along the eastern edge that will connect to the LAX existing baggage conveyance systems. When open, LAX says it will be the largest integrated baggage carrier system in the U.S. The new MSC is designed by architecture firms Gensler and Corgan and will feature
a mid-century jet age look that visually fits with the dynamic breaking wave oceanic theme of the Bradley International Terminal’s roof. It will feature a linear collection of curved roof structures studded with clerestory lights, while the spaces within the new concourse are designed to maximize daylighting as well as ease of movement through the waiting and leisure areas, with a special emphasis on maintaining sightlines between these spaces and the departure gates. The visual highlight of the new concourse is an atrium space with a threestory high glass façade that provides a view of the international terminal, thus allowing travelers to quickly orient themselves upon landing.
Concessions Plans The gates in the new concourse will be grouped together to create the look of “neighborhoods” that evoke the many different areas that make up the city of Los Angeles. Each “neighborhood” will feature retail kiosks, cafes and passenger service amenities such as powered work counters, play areas and conversation pods. Passengers in the MSC will also have the ability to pre-order food and shop online from all LAX concessionaires by
viewing products and menus for numerous restaurants and retail stores through the airport’s digital marketplace at the flyLAX. com website. LAWA has delayed announcing the 25 brands that will be part of a robust concessions program that includes 44,000 square feet of shopping and dining options. The building also includes 60,000 square feet of space for additional airline clubs, including a common-use lounge where any guest may purchase a day pass. “Other amenities include two nursing rooms, a service-animal relief area, and children’s play areas integrated into the passenger gate seating areas, as well as performance and display space for the LAX Art Program,” says Erbacci. The concourse will have terrazzo floors, carpet and ceiling panels, digital displays and glass partitions. The project also includes an addition to the international terminal that will house the elevators and escalators needed to reach the tunnel to the MSC. Along with the actual concourse, the project also features several new airfield additions, including a new ramp control tower, which will direct airline traffic on the apron while also providing visibility of the two taxiways that are obstructed from view by the Federal Aviation Administration (FAA) Air Traffic Control Tower.
Left: The gates of the new concourse at LAX will be grouped together to form “neighborhoods” that evoke the many distinctive urban areas of Los Angeles.
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LATEST BUZZ
Overall, the MSC will have more than 1.5 million square feet of new aircraft apron and taxiways/taxi lanes, as well as new underground utility improvements. The MSC North is just the first part of the satellite terminal project. Already, design work has begun on the southern section of the concourse, that will add an additional 150,000 square feet of new space, including eight additional gates that can accommodate mid-sized aircraft such as Boeing 737 and the Airbus A320. That project is currently set to open in 2023.
Pandemic Considerations The pandemic has raised some questions as to how the new concourse can be reconfigured, at least temporarily, to avoid putting too many people into pre-flight holding areas or allow more space between seats in the lounge areas or at the tables in the concourse restaurants. But William Swelbar, chief industry strategist for Washington, D.C. area-
based Delta Airport Consultants, says the concourse should eventually be used at close to full capacity, even in the post-pandemic commercial aviation environment. Before the pandemic, “LAX was breaking at the seams,” Swelbar says. “Often markets that could support service to LAX found the lack of infrastructure stood in the way.” It’s unclear whether all the demand seen at LAX in January and February of this year will return in the next three years, but Swelbar says the new concourse could help LAX attract new routes and carriers. “There might be an ULCC (Ultra Low-Cost Carrier) that might want to enter,” he says. “Typically, to create proper scale, an airline needs roughly 50 operations. That was not possible for a newer entrant yesterday but might be tomorrow. Finally, with the A220 (Airbus single-aisle aircraft) coming online, it will prove to be the right size airplane for markets that can support service.”
Above: The main hall of the new satellite concourse at LAX will feature areas for relaxing and seating with airline clubs, concessions and other amenities only a few steps away.
Swelbar says that LAX should be among the domestic airports where demand will recover first. “LAX has proven to be an important strategic point domestically and internationally for many carriers,” he says. “I believe that traffic will not fall as it has in the past. Coastal airport real estate is limited and thus an important strategic asset. Also, given that California is on the right side of the pandemic curve today, markets in California just might get a head start on service starting while other geographies take more time to recover.”
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Airport Directors Chart Course After Unprecedented Hit To Operations BY ANDREW TELLIJOHN AND CAROL WARD
Plans have long been in place across North America to guide airports on how to handle infectious disease outbreaks. They’ve occasionally been called into action, such as when the global travel industry was grappling with the impact of the severe acute respiratory syndrome (SARS) outbreak in the early 2000s, or the H1N1 “swine flu” pandemic of 2009 or the 2012 Middle East respiratory syndrome (MERS). But however comprehensive those plans are, it’s unlikely they fully anticipated the spread and impact of the COVID19 pandemic that has upended airport operations and driven passenger traffic down to near-negligible levels. “Who plans for a pandemic that completely cripples your passenger business?” asks Candace McGraw, CEO at Cincinnati/Northern Kentucky International Airport (CVG). Chellie Cameron, CEO of Philadelphia International Airport (PHL) says her airport’s plan is “serving us very well.” But she acknowledges a shortfall. “Any airport director – if they’re being honest with you – would say you do your best job planning and it helps get you 75 percent of the way there,” Cameron says. “Every
situation is different, every crisis is different. As we go through this crisis, we’ll be sure to incorporate lessons learned and things we would want to have in place for next time.” The Port of Oakland completed a rewrite of its infectious disease plan in 2015. With a few cases on the west coast starting to trickle in around January of this year, the operations team at Oakland International Airport (OAK) and others convened to refamiliarize itself with the plan. “We always come away with areas of our plan that could be improved upon,” says Bryant Francis, director of aviation at OAK, adding that as it turned out, “It was well timed.” From a continuity of operations perspective – guidelines the airport should follow in the event of an epidemic or pandemic – the plan was useful. Airport operations have continued quite efficiently, Francis says, with most staff working from home. That said, the plan did not fully address the near-complete shutdown of air travel that went along with the COVID-19 outbreak. “The airport is still sitting here wondering when we will start to recover,” Francis says. “None of which is under our control.”
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Chellie Cameron, CEO of Philadelphia International Airport, is assessing what the travel experience will look like post-pandemic.
Francis says 15 airport staff members began meeting weekly in late April to prepare for that eventuality. “We’ve launched a resiliency task force to be prepared for the eventual recovery however and whenever that begins to occur,” he says. Calgary International Airport (YYC) also took quick action, according to Chief Financial Officer Rob Palmer. “We had a very well-defined pandemic plan and it was executed early on, even before a lot of the emergency measures were put in place,” he says. But the plan didn’t anticipate the scope of the carnage of passenger demand. “Since the airport was transferred from the government [in the 1990s] we’ve only seen a decline in passengers twice,” Palmer notes. “9/11 was the first one – that was a 4 percent drop in traffic. In the global financial crisis we saw a 2.5 percent drop. With COVID-19 we’re probably north of a 60 percent drop. This is truly, truly unprecedented.” Scott Brockman, president and CEO at Memphis International Airport (MEM) doesn’t think anyone could have seen this coming. MEM is moving forward with critical projects, such as its Concourse B Modernization that will right-size the airport in its post-Delta Air Lines era, but it has put many non-critical projects and master plan updates on hold indefinitely.
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Oakland International Airport has a team of 15 staff members charged with preparing the airport for a return in passenger traffic post COVID-19, according to Bryant Francis, director of aviation.
A comprehensive pandemic plan we executed early at Calgary International Airport, but it did not anticipate the multiweek decimation of traffic, says Chief Financial Officer Rob Palmer.
The airport did have a crisis plan in place that has provided a good framework for addressing the challenge and, Brockman says, it will be amended to address future possibilities. “I do not believe any airport (or entity for that matter) could have foreseen an impact such as we are experiencing in order to have a plan to deal with it,” he adds.
Uncertainty Reigns Airport executives are scrambling to react to the unprecedented downturn, and none have a clear understanding about what comes next. There are various scenarios laid out by airport professionals and other travel executives, ranging from the optimistic approach of recovery within the current calendar year to predictions of suppressed travel for three years or more. Much depends on what is out of the control of industry executives; namely, how COVID-19 evolves and how governments respond. By the end of April, passenger traffic across the country was down by around 95 percent, a situation described by Rhonda Hamm-Niebruegge, director at St. Louis Lambert International Airport (STL) as “eerie.” “We’re busy internally because we’re working through the budget and what are we going to do with vendors and calls
Scott Brockman, president and CEO at Memphis International Airport is moving forward on its Concourse B modernization, but some other projects are on hold.
every day and people screaming, so it’s busy,” she says. “But you walk out in the terminal and I’ve never had such an eerie feeling like this. It’s very strange.” And it happened overnight. Traffic was good in 2020 through the first two weeks of March. Then numbers started falling “off the charts.” STL is planning for a “dismal” May and, as staff monitor traffic counts daily, Niebruegge says nowadays “we’d get excited if we went up 100 passengers.” PHL’s Cameron paints a slightly more optimistic near-term picture. “We are starting to see some load factors in the month of May, and especially in June, inch up,” she said in late April. “These are projected load factors for flights that are on the schedule.” Longer term, how and when the passengers come back remains anyone’s guess. Mark VanLoh, president and CEO of the Jacksonville Aviation Authority, is pessimistic. Coming off of a record year, VanLoh started 2020 planning to break ground mid-year on a new concourse. That’s now on hold, likely for several years. His airport has been among the fastest growing in the country, but that’s stalled now. “My view of semi-normal is three to five years from now,” he says. “I’m just not counting on this coming back that quickly. We know capacity isn’t going to
SETTING THE NEW BAR
Crippling Effects Of COVID-19 On Airports Eclipse 9/11, Great Recession BY ANDREW TELLIJOHN
Rhonda HammNiebruegge, director at St. Louis Lambert International Airport, expects leisure travel to bounce back more quickly than business travel.
Expansion plans at Jacksonville International Airport have been put on hold as a result of the sharp downturn in passenger traffic, according to Mark VanLoh, president and CEO of the Jacksonville Aviation Authority.
be the same. And how are they going to seat people on an airplane to make them feel comfortable to fly again? It’s still a lot of unknowns. … I hope I’m wrong.” Palmer has a similar vision. “We don’t see traffic coming back to anywhere near where it was in 2019 for probably three -plus years,” he says. YYC has decided to defer about C$50 million (US$39.6m) in expansion projects. “We’re really taking a step back and looking at our longer term program. What does that look like as a result of COVID-19?” While many predict that business travel will recover more slowly than leisure travel, VanLoh is skeptical that Zoom and other virtual meeting sites will replace the personal touch that requires faceto-face meetings. “I can remember when the fax machine came out and people said that would destroy FedEx. The same thing with video conferencing. It was going to destroy the conferences we go to. It hasn’t. You still need that personal touch.” VanLoh predicts leisure travel will suffer for the near-term future, with families opting to drive rather than fly to vacation destinations. HammNiebruegge disagrees. Businesses, she says, cut travel budgets quickly when financials warrant. But young, healthy adults who are used to getting away on a whim will leap at the opportunity to jump on a halfempty airplane for a weekend at the beach or the mountains. “I look at my own kids,” Hamm-Niebruegge says. “They’re all in their 30s and they love weekend trips. They’re those types of individuals who say, ‘where can we go this weekend, let’s find a cheap fare.’ They can’t wait to get on an airplane.”
As the first cases of COVID-19 appeared in the U.S. and companies were just starting to limit and ground non-essential travel, airport and concessions officials wondered how the effects would compare with other incidents that affected the industry, such as Sept. 11, 2001 attacks that grounded air traffic for several days. As it turns out, the coronavirus has crushed the travel industry unlike any previous event. The decline in travel has hit rock bottom - it’s nearly impossible to fall much further - and no one knows how long the downturn will last. Angela Gittens, director general of Airports Council International – World, says a more apt comparison to where the U.S. and the rest of the world is at right now might be World War II. “They were on rations, at least in North America,” she says. “Their husbands were overseas, they didn’t know if their husbands were going to live or not, they didn’t know how long it was going to last. They didn’t know what the outcome was going to be. There was nothing to say your side was going to win. In some ways it’s more like that.” Rhonda Hamm-Niebruegge, director at Lambert St. Louis International Airport (STL), was at Trans World Airlines in 1996 when Flight 800 exploded and crashed into the Atlantic Ocean off New York, an event she considers the most devastating and directly affecting disaster she’s faced in her career. She also was at STL when a 2011 tornado closed the airport for two days, then ramped back up to full throttle over the course of a few days. “We were very prepared to handle a disaster plan operationally,” she says. “We knew how to get things reopened. The public was anxious to fly back then.” Hamm-Neibruegge says the COVID-19 attack is significantly different in that there’s no indicator of when traffic will start to return to the airport. But she’s confident that when that happens it’ll be seamless.“We know it’s not going to be this dire forever,” she says. It took Jacksonville International Airport (JAX) five years to fully recover from traffic declines associated with 9/11 and the great recession, says Mark VanLoh, president and CEO. Coming off of a record year in 2019, he’s predicting at his airport a threeto-five-year recovery from the coronavirus this time around, as well. With 9/11, the industry shut down briefly immediately after planes were used as weapons. The full recovery took several years, but at least airports opened up and began flying again within a few days, VanLoh says. Right now, nobody seems to have any idea when the recovery period will start. “This just keeps going on and on and on,” he says. “Nobody can tell us when the all clear will be.” And when it does, adds Lew Bleiweis, executive director of Asheville Regional Airport (AVL), it’s not just a matter of people getting on airplanes when they open up again. There are going to be system-wide concerns among travelers relating to the cleanliness of facilities, their proximity to people, the level of impact COVID-19 had on their city of destination and more. “This is more a totality in effect,” he says. “None of us have ever experienced anything like this before. I hope we never experience anything like this again.”
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Lew Bleiweis, executive director at Asheville Regional Airport, says the airport will take advantage traffic downturn to get a new terminal project underway with minimal disruption.
Recently added space could be fortuitous at Minneapolis-St. Paul International Airport, not to accommodate more passengers but to enforce social distancing, says Brian Ryks, executive director and CEO of the Metropolitan Airports Commission.
Prepping For The Future If there is an upside to the downturn, it would probably be for airports attempting to complete complex capital projects that now will have relatively empty terminals and roadways to contend with in the nearterm. Lew Bleiweis, executive director at Asheville Regional Airport (AVL) does not want the passenger slowdown to continue for long, but his airport is probably in a better situation for handling the COVID-related slowdown than most of his counterparts in the industry. Traffic numbers in recent years had grown significantly, leaving the airport’s infrastructure well over capacity. AVL had already met its fiscal goals for the year before COVID-19 hit, and the airport’s board several years ago insisted on setting up a six-month reserve that has been maintained through the years. So, the airport will move forward with plans to design and build a new terminal. The groundbreaking may be moved back a few months from the planned late 2021 kickoff, but not by much. “It really puts us either equal to or in front of the eight ball rather than playing from behind it,” he says. “It gives us time to catch up, gives us time to plan properly while our passenger numbers are down.” Some associated projects, including improving water and sewer infrastructure
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Salt Lake City International Airport officials are reassessing timing of the planned Phase 2 of the airport’s new terminal, looking for flexibility due to uncertainty about how passenger demand will evolve, according to Bill Wyatt, executive director.
– a project that will take place on the roadway to the existing terminal – are going to be much easier to complete with traffic down, Bleiweis says. “We a nticipated a nightma re experience with traffic and travelers going through, reducing our drive lanes in front of the terminal by half, he says. “With the lack of traffic right now, we’re able to move through that project pretty easily and it’s not disrupting a lot of our travelers.” Salt Lake City International Airport (SLC) is pushing forward to open Phase 1 of its new terminal in September. “We’re just too close to do anything else,” says Bill Wyatt, executive director. Phase 2, however, is up for discussion. “The bidding environment is so much more attractive today than it was even three months ago, simply because a lot of projects around the region and around the country are on hold. So that’s one factor,” Wyatt notes. “The other is, can we create for ourselves greater flexibility going forward so that if business begins to return sharply, are we ready for that? And if it is much slower than people are anticipating, can we create some off-ramps for ourselves in terms of the full expansion?”
Altering the Experience When the impact of the virus lessens and passengers start to return, they’re
likely to see a few changes in how airports process and interact with passengers. Brian Ryks, executive director and CEO of the Metropolitan Airports Commission, which manages Minneapolis-St. Paul International Airport, is continuing on with most capital projects that were slated for 2020. MSP is in the midst of a $1.6 billion capital investment program that includes a remodel and expansion of the ticketing level of Terminal 1. The project adds about 100,000 square feet to the existing facility. As designed pre-pandemic, the expanded terminal would be able to accommodate 55 million passengers annually, up from last year’s nearly 40 million passengers. MSP isn’t likely to see those passenger levels for quite some time, Ryks acknowledges, but the space may be needed nevertheless. “Moving forward, social distancing will obviously be a big piece of the new normal,” he says. “It’s good that we’re adding the square footage. It may not be for the passenger volume but it will be for new social distancing and spacing. When you look at it from that standpoint, I think it’s still a good investment.” Ryks predicts that social distancing abilities and general cleanliness will be key to winning passengers back. “It’s a focus on reduced personal interaction, from ticketing, baggage check, the TSA security process and the processes at the gate to board aircraft,” he says. PHL is also taking a proactive approach. “We’re doing a lot of thinking here about what the travel experience looks like when people start to come back,” Cameron says. “We’re looking at everything from putting the physical distancing decals on the floors at all of our concessions and throughout the terminal, to working through what kinds of protocols have to be in place for employees. “I think at the end of the day people are going to want their airport and airline experience to be fast, to be contactless,” she continues. “We’re going to need to be able to project loudly – whether it’s in words or in deeds or in feelings - that this is a safe environment for people to be in and do business in.”
A MESSAGE FROM
TEAM AXN Like all of you, we are devastated by what is happening in the world, and specifically to this industry we all love. It’s difficult to believe that we were so recently together, discussing innovation, best practices and celebrating the best in our industry. We believe that, in time, the vibrancy showcased at the AX Conference will once again come to the forefront. As the industry rebuilds, AXN will be beside you, chronicling the challenges and highlighting your achievements. To keep up with breaking industry news, visit: airportxnews.com For the the latest on how airports are partnering with concessionaires through the crisis, visit: airportxnews.com/airportactions STAY CONNECTED Follow us on social media @airportxnews
We are here for you. We will get through this.
How Will COVID-19 Shape The Future Of Restaurants? BY SALLY KRAL
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There’s no question that COVID-19 and the subsequent mandated restaurant and bar closures have already done irreparable damage to the U.S. food and beverage industry – and consultants don’t mince words when discussing it. “To be perfectly direct, the industry has been cratered,” says Anne Haerle, who specializes in concept development and culinary consulting for Synergy Restaurant Consultants. “What was rocking and rolling just a matter of weeks ago is now basically shutdown – it’s a ghost town,” she said in April. And as a situation that no one has faced before, there are many unknowns. “It’s really unprecedented; this new reality happened so quickly and is still so new that it will be a while before we truly understand the full impacts,” says Mike Kostyo, trendologist at Datassential. Maeve Webster, president of Menu Matters, has seen estimates that approximately 75 percent of those operators that have temporarily closed due to mandated shutdowns won’t be able to reopen. “And at this point, we’ll likely see additional closures as those restaurants that have tried to stay open in a limited service format hit either financial blocks or mounting concerns about employee safety.” Airports, of course, face many of the same challenges encountered by “street” restaurants, and a few more besides. For restaurants in all environments, the pandemic has kicked off what’s sure to be tumultuous economic landscape for the foreseeable future. “We were already in a stall for almost two years, so when COVID-19 hit in January, it amplified and accelerated trends that were already moving in a certain direction,” says Suzy Badaracco, president of Culinary Tides, Inc. “A lot of economists were already predicting a recession for this year and into 2021, COVID-19 just pushed us off the cliff into it.”
The pandemic coupled with a negative economic landscape has consumers seeking out comfort foods, a trend that could continue into recovery, according to Mike Kostyo, trendologist at Datassential.
Anne Haerle of Synergy Restaurant Consultants suggests restaurateurs make operational tweaks that they’ve otherwise put off and find ways to make their businesses more efficient for the new future we’re facing.
Comfort And Control As consumers are dealing with both the emotional strain of the pandemic and the economic struggle of the impending recession, they’re drawn to comfort food. “We surveyed consumers on the types of food they want most during this time and the top three answers were pizza, burgers and sandwiches, and meatfocused entrees,” Datassential’s Kostyo says. “I think that will change somewhat as people are at home longer and feel more sedentary; after the shock and fear wears off a little, they’ll seek out healthier options to some degree.” Badaracco notes that during economic hardship consumers tend to go in one of two extreme directions: either abandon dieting and only seek out comforting, familiar, even indulgent foods that are easy on the palate, or gravitate toward extreme health diets because it gives them a sense of control over their lives. “The problem with some of those diets is that they’re expensive, so that might hinder consumers trying to go in that direction,” she adds. Webster of Menu Matters points out that foods that make certain health claims will do well because of consumers’ heightened worries surrounding their wellbeing. “We’ll see the functional foods category growth accelerate with a focus on products that help stress, sleep, mood and immunity, for obvious reasons.” Badaracco also predicts that three major trends that were initially predicted for the rest of this year and into 2021 will be reversed because of COVID-19. The first is the lower or no alcohol drinking trend. “A lot of us are drinking alcohol – especially Baby Boomers, Gen Xers and older millennials – because it’s comforting,” she says. “And within alcohol there’s going to be a shift in what we’re drinking. Hard seltzers will hold their ground, and beer and wine, which were suffering at the hands of hard seltzer sales, will come roaring back because they’re a single ingredient, they’re
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Maeve Webster, president of Menu Matters, notes that restaurant operators of all kinds need to make their cleaning and foodhandling practices clear and consumer-facing.
easy to obtain, and they last on the shelf.” She adds that complicated, multi-ingredient cocktails won’t be popular during this time, but simple drinks like the Gin and Tonic, which can be easily replicated at home, will drive sales of certain spirits. The second trend Badaracco sees reversing is faux meats. “They were already heading south because research showed that only meat eaters were eating them, and just out of curiosity. But now we’ll see them returning to meat.” Lastly, Badaracco predicts that the current crisis will have a negative impact on sustainability. “When economics tank, consumers abandon sustainability. They absolutely will not put their dollars into organic or anything else that’s going to cost them something extra. The good news is that this is temporary because the desire is still there; it’s the money that’s the problem.” Then there’s how restaurants operate – especially how much of their business is devoted to delivery and takeout – that may be permanently affected by the pandemic. “We’d already seen an explosion in the growth of delivery before this happened, but now huge numbers of consumers across demographics who had never previously ordered delivery from restaurants or retailers have done so in the past few weeks,” Kostyo says. “As soon as restrictions are lifted and consumers feel safe being in public together, we’ll see them excited to be in restaurants and bars again, but their familiarity and comfort level with ordering food isn’t going to go away, so I think we’ll see delivery options grow even more after this is over.”
Communication Is Key It seems frankly impossible to say with any certainty when this crisis will subside, but one thing is clear: the damage will linger, and operators should be prepared for that.
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“Once COVID-19 calms down we’re going to have this residual fear that’s not going to go away immediately,” Badaracco says. “For months, consumers are going to have a heightened sense of food safety and they’re going to want to know what steps a restaurant is taking to insure people can eat there again.” According to Datassential’s recent surveys, for the first time ever, food safety and cleanliness trumps taste when consumers choose where to eat. “Continually showing customers how you’re keeping their food safe and your food handling practices should be the new norm in the future,” Kostyo says. While airport restaurants are facing a longer recovery curve due to travel restrictions, consultants still turn to similar advice. “The same issues apply about sanitation, safety and patron confidence,” says Webster of Menu Matters. “Cleaning practices will have to be significantly ratcheted up and very patronforward.” She points out that operators may need to take a hard look at the increased use of technologies like iPad ordering and payment due to consumers’ heightened worries about touching high-traffic surfaces. “Airports are spaces where lots of people gather from all over the world and are packed very closely together for long periods of time, so anything that an operator can do to take away some of that fear and unknown will be helpful,” Kostyo says. “Use tamperproof stickers to close packaging, switch out self-serve salad bars and the like for options mediated by a server, include more packaged retail products, and visibly clean and wipe down public surfaces constantly.” And communication shouldn’t stop at safe food handling and cleanliness – it should also address consumers’ financial and emotional concerns and offer them real solutions. Many restaurants have already been stepping up to the plate in this regard. “One of the silver linings of this situation is seeing how
Suzy Badaracco, president of Culinary Tides, Inc., stresses that bailout money alone won’t save restaurants. Those operators that can adapt their business models and practices most quickly to the new reality will be the most successful in the end, she says.
creative people in the food and beverage industry have become to stay connected to their customer base,” says Haerle of Synergy Restaurant Consultants. “We’ve seen restaurants putting together meal kits for those who want to make some of the restaurant’s dishes at home and the chef records mini cooking lessons for them. It’s a way to keep their brand going and visible and keep some people working without a complete shutdown.” Kostyo has also been impressed with how restaurants are reaching out to consumers. “In many ways, the people behind the brands, restaurants and companies are connecting with consumers now more than ever before,” he says. “We see chefs offering classes on social media, sommeliers and wineries doing online wine tastings, restaurants packing up meals for those in need and really stepping up as parts of the community. People will remember that.” On a broader level, restaurants need to find ways to emotionally align with consumers in their messaging, Badaracco says. “Consumers don’t need a restaurant to be the hero in their lives – the consumer is making themselves their own hero by partaking in your product, not the other way around. What they need is for restaurants to be their guide to make the best decisions for themselves, especially in this time of selfcare. And that’s an important distinction that goes a long way to overcoming that fear in consumers and gaining their trust.”
Time For Action This current crisis poses an opportunity for restaurants of all types to take a breath, look at their businesses, and find ways to streamline and improve their operations for the new future that all are facing. “We’ve been telling our clients that now is the time to start doing those operational tweaks to things like food costs, labor models and systems for takeout and delivery,” Haerle says. “Even though it’s very difficult right now, it’s the perfect opportunity to think about how you can make your business leaner and more efficient so that when people are ready to eat out again you can capture that marketplace and have a real competitive advantage.” Jay Bandy, president of Goliath Consulting Group, agrees that this isn’t a time for stagnancy. “Restaurants need to be willing to innovate, as the industry is going to evolve over the next 18 months even more than it has in the last couple of years,” he says. “Develop a business plan to address the situation we’re in and how to transition back to full sales in the next eight to ten weeks and take advantage of federal
Jay Bandy, president of Goliath Consulting Group, urges restaurant operators to take advantage of federal and local programs offering financial relief to cover expenses and pay employees.
and local programs offering financial relief to help cover expenses and pay employees.” These types of financial assistance packages are vital, Bandy adds. “Federal and state intervention with loans and other support is the biggest single factor in a lower rate of restaurant closures.” Many consultants agree it will take substantial financial support from the government for the food and beverage industry to survive this crisis. “We’ve already seen that the restaurant industry is strong and creative in the face of this pandemic: It will come back in some form,” Kostyo says. “But if we want it to come back strong and healthy, there will have to be government assistance and intervention on a massive, massive scale.” As Haerle points out, food and beverage is difficult enough to survive in as is. “We’re talking about an industry where a 10 percent profit is considered really great – in most businesses, that would be unacceptable. So, the industry really needs some intelligent and supported solutions to help them get through this now, and moving forward, I think there have to be some real changes in how the government supports restaurants as an institution.” While Badaracco concurs that financial assistance will be needed, she believes that the money may not go very far without restaurants also adapting to our new reality. “The restaurants that are going to survive this are those that can most quickly adapt to new service standards, formats and food preferences, and those that are able to effectively communicate with the consumer,” she says. “That’s where the noise is right now, and a company that’s going to last is one that understands that they have to be focused on all of those things at the same time. It’s ultimately their own behavior that will save them, not how much money they get.”
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INDUSTRY INSIGHTS
THE PATH TO RECOVERY Select Concessionaires Offer Insights Into Plans
Travel is expected to begin a slow rebuild after the devastation of the COVID-19 pandemic. What first steps have you taken toward preparing for an eventual turnaround and, presumably, a change in traveler expectations?Â
Joe Thornton
Chief Operating Officer and Executive Vice President, HMSHost
While many reminisce about the warm ambiance and buzzy hum of favorite restaurants during these unprecedented times, we recognize that passenger confidence has been shaken. Because of that, the wellbeing of HMSHost guests and our associates is our singular focus. We have implemented measures in our restaurants to safeguard our teams and passengers throughout airports and motorways. We follow strict public health guidelines in our restaurant operations and have put additional procedures in place to exceed guidance from the CDC, states and local authorities. HMSHost has established personal protective equipment (PPE) and other safety procedures and protocols to help decrease the possible transmission of COVID-19 in our restaurants. This includes gloves, face coverings, handwashing at a minimum of every 30 minutes, physical distancing, enhanced cleaning and sanitation procedures, wellness checks and health and safety training. HMSHost’s supply chain has worked tirelessly to procure PPE, sanitation and support items from face masks and thermometers to extra hand sanitizer for our locations. Most importantly, our operations teams continue to train and reinforce infection control guidelines to our associates through pre-shift meetings and posted communications.
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Stephanie Havard
Executive Vice President of Restaurant Development, HMSHost
Our team at HMSHost is working to transform our restaurants in several meaningful ways, including informative signage, plexiglass barriers, floor decals for physical distancing and traffic flow, seating area modifications, and contactless transactions. With the many changes being made, travelers will feel safe and secure when visiting our restaurants. Restaurants will feature streamlined digital menus and enhanced to-go areas to facilitate meals on the fly. To help maintain physical distance, takeaway service will be contactless, with associates placing orders on counters for guests to pick up. Self-order/pay kiosks at our quick-serve restaurants will be modified to allow touchless transactions. Where allowed by local governance, guests will be able to enjoy safe sit-down dining experiences, seated at every other table to maintain appropriate distancing. Customers will be able to place orders and complete payment using their own mobile devices to scan QR codes, streamlining service and guaranteeing a contactless experience. Dining experiences will certainly be different, yet our commitment to serving up great food and hospitality will be as strong as ever. As a company, we will be doing everything possible to care for the safety and wellbeing of our guests and associates. Smiling behind their masks, our associates will continue to hold up our promise of delivering exceptional dining experiences for all.
INDUSTRY INSIGHTS
Roger Fordyce
Chief Executive Officer, Hudson
Above: Airport restaurant and retail shops, like this Hudson concept, are making changes to address concerns of returning travelers.
Michael Levine
Chief Executive Officer, Tastes on the Fly
Tastes on the Fly is compiling best practices from various segments of the travel, hospitality and service industries to integrate into our advance planning for the eventual return of a sustainable level of enplanements. We are adapting our operations to meet the demands of social distancing with primary focus on safety for our team members and travelers: rigorous and visible hygiene, revised packaging and displays, reformatted menus with emphasis on to-go offers, and implementation of digital options including selforder, self-pay and contactless pay points. While travelers may initially be reluctant to take risks, we believe they will respond to perceptible signs of clean and safe operations that evoke confidence, leading to patronage.
Over the past month and a half, we’ve seen an unprecedented disruption to travel as a result of COVID-19, reversing a decades-long aviation boom that brought cultural and economic prosperity to the world. While we don’t yet know the long-term effects of this disruption, leaders of the travel business will need to come together to transform the industry and find balance between customer experience and safety to adapt to the new landscape. The health and safety of our team members and customers has been our number one priority during this pandemic crisis – and so we’ve implemented extensive measures to ensure that everyone feels safe and at ease during their shopping experiences. This includes providing enhanced PPE for our teams, implementing social distancing signage, floor decals and stanchions, and rolling out “stay safe stations” stocked with disposable face masks, cleaning wipes, and hand sanitizers for purchase. Additionally, to adapt to a heightened need for a contactless environment, we’ve enhanced tap-to-pay capabilities in all stores, added self-scanning capabilities, and are actively pursuing a greater digital presence in our stores, including expanding our self-checkout capabilities. As the Traveler’s Best Friend, Hudson’s focus has always been on anticipating travelers’ needs and delivering world-class service, and as we navigate this COVID-19 situation and prepare for rebuilding efforts, that commitment remains unwavering. While we’ve temporarily shuttered many of our stores to reflect lower PAX counts, we’ve also kept most of our North American operations open to continue serving those still traveling and working in airports. We’ve also cross-merchandised product from our specialty stores to ensure travelers still have access to the local and iconic brands they’re looking for. With most of our operations remaining open, we are well positioned to slowly reopen additional stores and recall our staff from furlough as passengers return. We look forward to continuing to adapt to any new regulations and requirements necessary to ensure a safe and comfortable shopping environment as we welcome travelers back to the airports. From a business perspective, we’ve also taken the necessary financial measures to ensure our business remains healthy during this significant business downturn, including working with our landlord partners to better align our expenses with revenue levels. We’ve seen how resilient the travel industry is before, and I have no doubt we’ll come back stronger – so until then, uniting together means standing apart. We’ll see you again soon.
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INDUSTRY INSIGHTS
Travel is expected to begin a slow rebuild after the devastation of the COVID-19 pandemic. What first steps have you taken toward preparing for an eventual turnaround and, presumably, a change in traveler expectations? Gregg Paradies
President and CEO, Paradies Lagardère
COVID-19 has indeed devastated our company but we are diligently preparing for a return to a “new normal.” Without knowing how travelers or spending will resume, we are planning a responsible and sustainable approach to ramping up our businesses. Internally, we organized this response around a three-pronged framework we refer to as “ride-out, reset and relaunch.” Our first step is to make sure we can ride out the current crisis because we’re far from being out of the woods. This includes supporting stores and restaurants still open as “essential services” while carefully managing payroll and other expenses. We need to do everything possible to stabilize our cash position under these extreme circumstances if we want to exist when traffic returns. That’s why it’s absolutely necessary to receive MAG abatement – not deferral – from our airport partners. We truly appreciate the many that have already provided such relief, which we acknowledge as a sign of true partnership. Next, our “reset” phase focuses on adapting day-to-day activities and business arrangements to this new reality. As part of Lagardère Travel Retail’s global network, we’ve learned key takeaways from our fellow divisions, such as China, that are farther advanced in their COVID-19 experiences. Our priority in this phase is traveler and employee safety. Our various divisions have worked tirelessly on adjustments to our dining and retail operations. From cleaning and sanitation procedures and in-location communications, to updated social interaction practices, new products or offerings, and payment options that meet evolving consumer demands, we will be ready to comfortably and safely serve our customers and guests when they return. We are also taking a close look at our overall network and brand portfolio as it is very likely that operations we began this year with will no longer make sense moving forward, especially knowing that it will take several years to return to pre-COVID-19 traffic levels. Finally, we need relaunch our business in a responsible manner. As traffic returns slowly, the essential stores and restaurants – travel essentials in retail and QSR in dining – we reopen should be done in staggered phases that parallel enplanement levels. Customer conversion rates are expected to be lower than normal even as travelers return, either because of consumer attitudes, disposable income or just lack of dwell time from new airport procedures. Taking a responsible approach to our relaunch efforts will position us for success in the long run.
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Peter Amaro, Jr.
Founder and Chief Executive Officer, Master ConcessionAir
It is going to be a whole new world in our industry. The challenge will be understanding and preparing for the travelers’ expectations quickly and efficiently. Will they feel comfortable entering your concessions space, or simply expect a seamless experience, whereupon they place an order from their smartphone and have the item handed off to them as they wiz past you to their flight? As you analyze this further and break it down between retail and food and beverage, the thought becomes even more evident that it will be a whole new experience which will redefine customer interaction. From an F&B perspective we are researching all forms of reducing the need for traveler touchpoints. I’m of the opinion that the first phase will require minimal interaction between the concessionaire and the traveler. This leads me to make every effort to retool all of our locations to offer a menu, receive an order and transact payment, all by smartphone or tablet. The next challenge is reviewing your menu, so that you’re able to deliver a quality product; and the product holding, ensuring proper packaging so that cold food is cold and hot food is hot. Simultaneously, we must prepare for proper social distancing within our restaurants and bars. If the traveler would like to be seated for their experience, what do we need to do to make them comfortable? Perhaps simply maintaining the social distancing six-foot separation? Or will travelers require a barrier, meaning a glass or plexiglass pane between tables or bar seating? As everyone is aware this greatly reduces seating capacity and therefore revenues, which is an additional challenge I feel will be around for quite some time. As to the retail experience, this may be the straw that broke the camel’s back. In my opinion, specialty retail will have severe challenges for quite some time, one of them being just simply getting a customer to feel comfortable enough to enter the store. We will probably need to maintain a maximum capacity, which means if travelers need to wait, will they? Perhaps a solution could be handing the customer a surgical mask and disposable gloves before entering, so they can feel comfortable moving about and picking up an item for inspection before their purchase. But another concern is personal protective equipment inventory availability, which is going to be mandatory for our associates to be able to work in a safe environment. All in all, my guess is that retail will need to restructure their offerings and gear them even more towards convenience items. After 25 years in this industry, I am highly confident in all the concessionaires and airport service providers. Our industry, it is not only resilient, but innovative and visionary, we will adapt and eventually deliver the customer experience, except the experience will have a new definition.
INDUSTRY INSIGHTS
Jamie Obletz
President, Travel, Delaware North
As a global hospitality company operating across several categories – airports, sports and entertainment venues, national and state parks, casinos and street-side restaurants – Delaware North has a diverse perspective, and it has truly helped in forming our business-resumption planning. In our airport and travel hub business, we are focused on three key areas: enhanced health and safety protocols; technologydriven contactless ordering and payment solutions; and service style and fulfillment changes. To promote health and safety, we are launching Safe Travels | Commitment to Care, a comprehensive program that was designed to help keep travelers and employees safe and slow the spread of COVID-19. As part of that initiative, we’ve reengineered our operating procedures to minimize contact risk and bolstered hygiene protocols to exceed best-practice guidelines of the U.S. Centers for Disease Control and Prevention (CDC). Our facilities undergo rigorous ongoing deep-cleaning and disinfection. Among the protocols, we are providing reusable and disposable face masks to employees, encouraging frequent employee handwashing and hand sanitizing, and planning to conduct health screening for employees when they report to work. We are providing instructions and frequent directions to all locations
Roderick McOwan
Chief Development Officer, Marshall Retail Group
From the Marshall Retail Group perspective, we remain positive about the robustness of the travel industry in general, and the travel retail sector specifically. Although we have not hitherto seen a crisis on such a widespread global scale, the thirst and need to travel remains part of our intrinsic desire for human contact and adventure, therefore our industry outlook long-term has to be positive. “Short term pain, for long term gain.” We believe that all stakeholders are suffering short term – across airlines, airports, ACDBE and brand partners – and that all concession operators, as well as all those who provide essential services to our industry, and most of all our furloughed and non-furloughed team members, have all been negatively impacted. Every facet of the business has to be re-evaluated from all commercial angles, whether that be revised lease modeling through alternate rent structures and associated operating costs, lease term discussions, et cetera. However, operators should also be looking at their portfolio of concepts and menu/merchandising offers to determine what is the
for proper sanitization of high-touch areas such as time clocks, point-of-sale equipment and self-order kiosks. Plexiglass dividers will provide protection where necessary, and social-distancing signage and floor clings have been installed throughout facilities. Of course, we will continue to send any employee home who mentions or displays a symptom of any illness, and COVID-19 educational posters are now featured in employee areas. We are leveraging technology to expand on the contactless solutions that we already had in place at many locations. These include the ability to accept mobile wallet payment solutions such as Apple Pay and Google Pay. To complement mobile capabilities already in place at most locations, we are developing additional contactless orderings solutions, including virtual kiosks and mobile menus. We will also extend pay-at-table functionality to avoid credit card handling, and receipts will only be printed upon request. The service style and fulfilment changes we have made include removal of self-serve options such as fountain beverage stations where shields cannot be installed and flatware and condiment stations in favor of individually portioned items. We’ll no longer feature marketing materials from tables and are introducing takeout-only delivery where required and necessary. We’re also changing seating and configuration of space to promote social distancing. We think these initiatives will provide our traveling guests and employees with confidence and peace of mind while they are in our facilities, and we look forward to serving them.
“Collectively, we truly must instill confidence for [passengers] in every part of their journey….” new “right-fit” in a specific location, all with the end consumer, the passenger, being kept top of mind. The passenger must simply be put at ease. Collectively, we truly must instill confidence for them in every part of their journey from start to finish (and back again). We must also strike a balance between short-term, temporary fixes and long-term solutions, whether that is in airport structure, passenger flow, concession design or customer services that are now provided as the “new norm,” and we must communicate this really well as an industry. That will then set the level of expectation, and more importantly help manage perception, which is the passenger’s own reality. Now we should all begin the collective work required to restart and rebuild the industry. Although there has been, and will be for the foreseeable future, a real cost across the whole industry, we would urge all parties to maintain a positive long-term outlook.
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Carlos Bernal
Chief Executive Officer, Areas USA
Areas has been working intensely from the start of the pandemic, considering all of the multiple challenges affecting our company and our industry. Our main concern and focus has been and continues to be the health and safety of our associates, our guests and our business partners. Clearly, the financial impact of this pandemic is unprecedented and has had a devasting effect on our business and the travel hospitality industry. We have brainstormed, debated and developed more scenarios, “what-if” analysis and back to business strategies than I thought were possible. Quite frankly, they change by the day and are honestly a guesstimate at best. No one really knows when we get back to a normal state. We’ve adopted the “new normal” for all of these assumptions. Our primary new normal is focused on preparing our reopening plans and working with all of our landlords, business partners and local authorities to get our restaurants and retail shops ready to open in the safest way possible. Our team has been diligently working on procedures, protocols and new solutions that adapt the F&B and travel retail business to the “new normal” and to our “new customer.” The years to come will be a period of significant learning of this “new customer” – its priorities, its values and needs. What
we do know right now is that we are diligently preparing. The new customer wants to know that they are safe and that above all else, we are doing everything that we can as a company to ensure that the safety and health of our people and our customers is of the highest priority. As a company we have always maintained the highest level of food safety standards, but this is different. This is taking all of those high standards and taking them to the next level. This new normal isn’t just about ensuring that the hot food is hot and the cold food is cold. This is about making structural changes to every process involved with cleaning, sanitation, hygiene and safety. It involves standard operating procedures that are detailed, measurable and non-negotiable. It involves developing a sterilization process for every single customer and associate touchpoint. It involves regulating the seating capacity, spacing the queuing of our guests and of our associates and their work areas. It involves our supply chain, our handling and storage of product and our payment processes. It involves establishing an honest two-way dialogue with our guests to reassure them we’re doing the right things and listening to what they are asking for. It involves more things that are still to be identified and rationalized. In these uncertain times one thing is certain, Areas is up to the challenge and is working tirelessly to be ready to be of service to our guests.
Michael Svagdis CEO, SSP America
As many of us departed the AXN Conference in Denver just two months ago, none of us could have predicted where we’d be today. Life has changed in big ways: near total loss of passengers and shuttered restaurants – and small ways: we’re exhausted from working around the clock and worrying about the future; we miss our communities and some of us are still trying to figure out Zoom. At SSP America, our challenges aren’t unlike those of our competitors. The biggest crisis we’ve ever faced has decimated our businesses. It’s also given us the opportunity to look hard at our business model, take stock of our strengths and weaknesses and build our professional relationships. We believe every aspect of our business will be impacted by virus for the long-term. The entire traveler experience will be altered as expectations regarding safety come to the forefront of
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“From how travelers line up to order, review a menu, the options on that menu to payment – everything is up for change.” restaurant operations. From how travelers line up to order, review a menu, the options on that menu to payment – everything is up for change. In spite of the tremendous impact of the virus and despite the shock of the virus’ impact, I’ve never felt more optimistic about our future. Our SSP America team is a close-knit group, and while our work may not be rocket science, it’s an essential part of the travel experience. And, I know for sure one important thing hasn’t changed – at SSP America we’re still the food travel experts who have a passion for a “taste of place.”
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ONE-ON-ONE
WINDING DOWN
Retiring Angela Gittens Offers Insights On COVID-19, Other Industry Issues BY ANDREW TELLIJOHN
ditor’s Note: Angela Gittens has seen the airport industry evolve significantly over the last three decades, both at the director and deputy director levels at Miami International Airport (MIA), Hartsfield-Jackson Atlanta International Airport (ATL) and San Francisco International Airport (SFO), and also as a consultant with HNTB Corp. She saw the deregulation of the airline industry and the following evolution that pushed airports to transform into massive businesses with the responsibility for providing excellent customer service to travelers. She’s seen airports and airlines navigate the difficulties of 9/11, the great recession and several pandemics, including COVID-19, the virus currently ravaging travel. Gittens, who will retire from her current role as director general at Airports Council International (ACI) World at the end of June, spoke with AXN’s Andrew Tellijohn about those issues and other challenges facing airports. TELLIJOHN: COVID-19 has been disastrous for airports and their business partners. Are you seeing any prospects for recovery? GITTENS: It’s the health side that has to get this started. If the airport side of the house is as uncoordinated as cities and states have been in this, and if they come out of this in the same uncoordinated way, that would be terrible for aviation. It’s all about pivoting. If the passenger doesn’t know how it will work - if they go to an airport in a country, will they be let in, will they be able to get back and who has the information - then there is a problem. That’s what we’re starting to work on now from the airport perspective.
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Angela Gittens will retire from her current role as director general at Airports Council International (ACI) World at the end of June after three decades working in the industry.
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We’re trying to plot out what we need to come back, then work with others in industry to push the regulators – in my case [the International Civil Aviation Organization] – to use their influence to try to get some coordinated action. It starts on the health side, it starts with the [World Health Organization], the [Centers for Disease Control], and the international health authorities as to what the criteria might be to start the transition into recovering. TELLIJOHN: How much talking among airports themselves, and among airports and the vital organizations, is taking place right now? GITTENS: Airports are very much talking to each other. We’re talking to the airports and talking to airlines, the industry associations, ICAO. We had an extraordinary ICAO council meeting – the first time the council has met virtually – and they heard briefings from leadership along with the industry. But the people who could shut down travel, those are the people who need to talk to each other. So, the industry said to ICAO that it needs to use its influence to get these countries together. It’s not just for aviation. Aviation is the most affected by the lack of coordination, but the countries aren’t thinking about aviation necessarily. They are thinking of the health of their own population. They’re looking very insular right now. It’s understandable. Just like in a war you’re looking to avoid the bomb, but at some point, you have to pick your head up and look at how this is all going to unravel. It’s not an easy question and it’s
ONE-ON-ONE
not an easy answer because you have to rely on what the health people tell you. You have to go through that – I don’t think we can wait until there are no more cases on the planet. TELLIJOHN: As people discuss the “new normal” that might grow from this, do you have any thoughts on what that might look like? GITTENS: Aviation has to develop engagement with health authorities. We know this - it’s in all policies at ACI. I think this pandemic shows the importance, because this is not going to be the last thing that happens. In fact, this particular thing may happen again. I think there will be a new normal. There used to be a requirement...that would require a vaccination certificate. It could be we start having something like a health passport, or it could be something on your passport that denotes that you’ve been vaccinated for this or that or says that you don’t have this or that, again, beyond this particular virus Now that this is a generation that has seen what can happen, I think that there will be much more interest in public health, I think it’s been somewhat neglected in many countries, including the U.S., because it’s not a ‘here and now,’ it’s an ‘in the future’ and a ‘maybe,’ - you know, not, not likely to happen. But when it does happen, now you can see how devastating it is. TELLIJOHN: Getting beyond COVID-19, the industry has other long-term issues. Succession planning and staffing have become challenges. Do you have any advice for the industry? GITTENS: Be more visible as airport management to the younger people so they understand there’s a career there. The nice thing about airport management is that it’s like a city. Almost every occupation that you’d find in the city you would find at the airport. When I got into the airport field, I didn’t know there was such a thing as airport management. I was recruited into it. We need to go into the schools so that the kids know and their parents know that there are a
multiplicity of careers in airports. The advantage airports have is they are part of a community. They can be members of the chambers of commerce. They can have career days. Be very visible in the community. Have an internship program where high school students and those coming back from college can come work for minimum wage. Get them young so they know what’s there. TELLIJOHN: How can the industry keep diversity in mind while doing this planning? GITTENS: Go after the girls. Make sure they know they have opportunities. You’re not going to make it ignoring half of the world’s population. I think the U.S. is in good shape, better shape than most other countries in terms of women. There’s a way to go on the minority side. But as airports, go after both. Go into the areas where there is a black community, an Asian community, whatever community in your area that may not think they have opportunities. Focus on youth, but also on neighborhood business communities for local restaurants with that sense of place. That’s been a trend that’s very much liked by passengers. Go into those ethnic communities and bring them into the airport. TELLIJOHN: What was the best advice you got entering the industry and what do you pass along to folks entering now? GITTENS: My big mentor in the airport field was Lou Turpin, director of SFO. He was really the one that saw that the business was going to change. The business changes every three to five years. So, as much as you want to do the job you’re doing now, always think about where things might be going, because there will always be opportunities for people who can manage things and who can be in the next place. I always tell women and minorities that change or crisis is what gives you an opportunity, because there’s less of a concern of your gender or color when they’re having trouble. If you can step in and show that you can help get through this, you’ll have that opportunity.
Aviation has to develop engagement with health authorities. I think this pandemic shows the importance, because this is not going to be the last thing that happens. In fact, this particular thing may happen again. – Angela Gittens
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CULTIVATING CAMARADERIE Regional Airports Engage With Passengers Through Unique, Interactive Events BY SALLY KRAL
Above: Dane County Regional Airport recently hosted a “Flight of Lights” drive-through light display to entertain members of the community while adhering to social distancing guidelines.
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andated stay-at-home orders across most U.S. states have meant that family-friendly activities have been limited to whatever parents can come up with inside their own homes. Aiming to alleviate some of this burden, Dane County Regional Airport (MSN) opened its first annual “Flight of Lights” drive-through light display along its International Lane on April 18, with plans to run through May 10. Six different themed light displays are featured in the show, including tributes to first responders and medical professionals; Wisconsin sports; animals and nature; tropical and nautical; and popular airport non-stop destinations. Running every evening, the “Flight of Lights” is a free event that was already scheduled for later in the year, but officials decided to move the start date up to bring some family-friendly fun to area residents
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during this difficult time. Since the event is drive-through, it follows all necessary social distancing rules to keep the community safe. For smaller regional airports, which rely on strong support from area residents, hosting events and programs that engage directly with their local communities is a priority. Over the years, these airports have found creative ways to form connections with passengers in their regions. “We’ve created several programs with local nonprofits and other government entities to position ourselves as a good community partner, which is critical to the success of a regional airport like ours,” says Leslie Fella, director of marketing and air service for Evansville Regional Airport (EVV). Indeed, community-focused events go a long way in building an airport’s reputation among local residents. “Our special programs and events continue to
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Above, Left: Evansville Regional Airport began hosting its annual aviationthemed STEM summer camp in 2016 to better engage with local children and families and encourage careers in aviation.
elevate our position in the region—many residents, media and corporate partners are quick to point to our airport as a source of pride for the entire region,” says Michelle Fleming, communications manager for Greenville-Spartanburg International A ir port (GSP). “We believe our community outreach has contributed to GSP’s growth in terms of passenger activity and recognition by long-time residents and newcomers alike by generating a sense of partnership among residents, businesses and visitors in our region.”
Local Love Fella draws attention to two initiatives that EVV created that have proven particularly successful in engaging with the local community: The first, Second Saturday Stories, is a partnership with
the local library system, Evansville Vanderburgh Public Library, to host an in-terminal monthly story time program. “This event has been extremely successful with repeat and new families attending each month,” Fella notes. “Low-cost programs of this nature help gain a lot of traction and can be implemented at airports of all sizes.” EVV also began hosting an annual aviation-themed STEM summer camp in 2016 in partnership with Tri-State Aero, Inc. and the Children’s Museum of Evansville. The week-long camp featured integrated aviation-based curriculum and activities for 50 area students, and was so successful that a second week was added for the camp in 2017 due to overwhelming interest and registrations. “Our aviation-themed STEM camp fared very well in the annual Airport Council
International-North America (ACINA) Marketing and Communications Awards, winning first place in the special events category and tying for second place in the community education and outreach category,” Fella adds. GSP hosts several community-focused events throughout the year, including its Wings for All program, which offers an airport “rehearsal” for passengers with special needs to become more confident travelers, and Honor Flights, which is a partnership with a local non-profit that gives World War II and Korean War veterans the opportunity to fly from GSP to visit Washington, D.C. and tour national monuments and memorials. The airport also hosts a student concert series every holiday season. “Performers range from elementary to high school bands, choirs and orchestras,” Fleming says. “For many of the young musicians it’s their first time performing in public, creating a special connection to GSP.” Last fall, the airport held a special event to honor the Clemson University football team. “The weekend before the National Championship game more than 1,000 Clemson Tigers fans flew from GSP to New Orleans, and GSP staff feted the fans with a ‘terminal tailgate,’ complete with live radio broadcasts, prize giveaways, a photobooth, cornhole games and tasty treats in the team’s signature orange and white,” Fleming says. “We wanted to support the team that had united the region and share in the excitement of the playoff season. A few passengers shared that they chose to fly out of GSP over other airports specifically because of this special celebration.” Asheville Regional Airport (AVL) similarly hosts a Wings for Autism program and Honor Flights, as well as several other events throughout the year, including pop-up concerts featuring local musicians, an annual student artwork showcase, passenger appreciation pop-up events, and Paws for Passengers, where therapy pets and their handlers interact with passengers. The Paws for Passengers program also hosts a “Smooches from Pooches” kissing booth each year on Valentine’s Day. “The airport is a cornerstone organization that touches nearly every person in some way in our region,” says Tina Kinsey, director of marketing, PR and air service development for the Greater Asheville Regional Airport Authority. “We believe
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Above: At Greenville-Spartanburg International Airport, events that engage directly with the local community have proven very successful. Every holiday season, the airport hosts a concert series featuring bands, choirs and orchestras from area schools, and this past fall the airport supported the Clemson University football team with a tailgate event leading up to the National Championship game.
that community outreach is our obligation as a good corporate citizen and productive member of our vibrant area – plus, it’s important for us to foster a meaningful relationship with the people who reside in our region.”
Real-Time Results Top Left, Above: For smaller regional airports that rely on strong local support, community-focused events help encourage pride and loyalty among area residents. Asheville Regional Airport hosts many different events and programs each year to engage with passengers, including Wings for Autism, pop-up concerts featuring local musicians, and Paws for Passengers, where therapy pets and their handlers interact with passengers.
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Airport-hosted community engagement events have proven very successful at improving passenger satisfaction and loyalty. “We’ve seen strong passenger satisfaction ratings in the past few years, coinciding with the implementation of many of our airport programs,” Kinsey says. “We’ve also experienced significant growth in local passenger traffic in the past few years, with an astounding 43 percent growth in 2019. We know that our engagement efforts are part of that success story.” Kinsey adds that AVL’s passenger appreciation pop-up events, which includes partnering with local businesses
who offer goodies to travelers, have been particularly effective. “Beyond the hour or two that we’re engaging with a few hundred passengers in the terminal, we create engaging videos of each of these events that we post on our social media channels. The engagement rates on these videos have been incredible and contribute greatly to a positive perception of our airport in the community.” At GSP, Fleming notes that passengers are quick to express their appreciation for the airport’s community events and post about them on social media. “Our most effective events focus on passenger experience first, meeting their needs in a way that’s memorable and goes beyond their expectations for an airport of our size,” she adds. “From new service gate parties, customer appreciation days and providing free airport parking for attendees at many of our sponsored events, we find initiatives that allow us to personally interact with customers are the most successful.”
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ARRA - Airport Restaurant & Retail Association..........................................arra-airports.com.......................................................................................3 Airport Experience News..............................................................................airportxnews.com...............................................................................19, 29 Concessions International, LLC................................................................... busdevl@cintl.com.......................................................................................9 Delaware North...........................................................................................delawarenorth.com............................................................Inside Back Cover HMSHost...............................................................................................................hmshost.com..................................................................................... 11 Master Concession Air LLC............................................................................mca-airports.com.......................................................................................7 Paradies Lagardère................................................................................paradieslagardere.com........................................................... Inside Front Cover SSP America.......................................................................................... foodtravelexperts.com.......................................................................Back Cover Tastes on the Fly.......................................................................... h.pham@tastesonthefly.com.......................................................................................4 URW Airports LLC........................................................................................... urwairports.com.......................................................................................1
July/August 2020, Volume 18, Issue 226 & 227 Circumstances for airports and concessionaires are changing rapidly. From new lease standards to design changes to technology, the travel environment promises to be far different than that to which we were accustomed just a few months ago. Airport Experience News will monitor the latest developments and trends as travel begins to rebuild, and will continue to keep its advertisers abreast of our actions as we plan for the next issue.
Place Your Ad Today! Space deadline: July 6, 2020 Artwork deadline: July 10, 2020 Contact the Business Development Department for advertising opportunities: phone: 561.257.1026 fax: 561.228.0882 email: bizdev@airportxnews.com
NOTE: Editorial subject to change
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BEFORE YOU TAKE OFF
SAVED BY THE HASHTAG AMAC Targets Lawmakers In Social Media Campaign BY SHAFER ROSS
he impact the COVID-19 outbreak has had on demand for travel is no secret, and this stall in business is felt in every facet of the airport experience. From restaurateurs to retailers, spas to lounges, airport concessionaires are worried their voices aren’t being heard by figures in government currently deciding where to allocate financial relief. The Airport Minority Advisory Council (AMAC) heard these concerns from its members and took to social media to unite the industry with a new campaign, one that they hope will #SaveTheTravelExperience. “STTE is led by a team of volunteers who work in the airport industry, specifically in concessions,” says Shahara AndersonDavis, manager of communications and events for AMAC. “The mission is to develop a viral campaign designed to influence lawmakers working on COVID19 relief packages to specifically include airport-related businesses in legislation.” So far, Congress’ CARES Act has awarded billions to U.S. airports in order to help with debts and continue some level of operations, but the wording of the bill
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did not specify any obligation by airports to help support their tenants during this dearth of travelers. While the Federal Aviation Administration (FAA) did advise airports to consider their business partners’ changed circumstances when considering renegotiating contracts, it was a far from satisfactory response to the airport concessionaires, many of whom are unsure how much longer they can weather the decline in business. “Congress, federal and local government agencies are weighing decisions which could make or break our businesses. Now is the time to be empowered, speak up and give voice to the impact of this pandemic on your businesses and employees,” says Anderson-Davis. “A strong, unified voice is the best opportunity we have in saving the travel experience amid the impact COVID19 is having on the aviation industry.” This belief is what inspired the social media campaign. Joined by an array of industry voices, from prime concessionaires to ACDBEs to entire airport admin teams, the movement seems to be resonating with many. “In addition to the legislative request, #SavetheTravelExperience is also a campaign to take a moment to remember how much we love this work - and why it’s worth fighting for - regarding the aviation industry,” Anderson-Davis says. She also invites continued engagement and participation in the campaign, noting that AMAC will continue to use #SaveTheTravelExperience to urge Congress to keep the airport concessions industry in mind as time goes on and the coronavirus situation continues to be monitored and updated. “Airport concessionaires, airport small business owners, aviation professionals or those who want to bring awareness to this cause can help and join the campaign’s movement,” she says.
Delaware North’s Safe Travels | Commitment to Care is a comprehensive program to help keep our employees and guests safe and slow the spread of COVID-19. We’ve reengineered our operating procedures to minimize contact risk and bolstered hygiene protocols to exceed best-practice guidelines of the U.S. Centers for Disease Control and Prevention (CDC). Our facilities undergo rigorous ongoing deep-cleaning and disinfection.
We have developed a new set of standards and procedures that include: • Ensuring our operating standards uphold current social distancing guidelines as directed by local and state regulators and in compliance with the CDC. • Enhanced cleaning and sanitization protocols, including hourly and as-needed for all high-touch surfaces. • Contactless ordering from personal mobile devices available at most locations. • All points of sale accepting touchless mobile wallet payment options such as Apple Pay and Google Pay.
Our employees: • Take a health check when they report to work. • Wash and sanitize their hands when they report to work and are required to continue doing so frequently throughout the shift. • Wear masks while on duty. • Undergo a comprehensive Safe Travels Training Program.
We’re ready to travel safely together.
© 2020 Delaware North
Passion for Safety & a Taste of Place
As the world went into hibernation due to COVID-19, the SSP America team went to work. From our homes across North America we mobilized a task force to prepare for the “new normal.” From enhanced safety protocols to a contactless guest experience, SSP America will be ready for takeoff when the passengers return. And, while much has changed in the last few months, one thing hasn’t. We’re still the food travel experts who have a passion for a ‘taste of place.’