CONCESSIONS PROGRAM DOING BUSINESS AT THE AIRPORT 3/2/17 Airport - - PowerPoint PPT Presentation

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CONCESSIONS PROGRAM DOING BUSINESS AT THE AIRPORT 3/2/17 Airport - - PowerPoint PPT Presentation

Dec 17, 2023 327 likes •1.25k views

CONCESSIONS PROGRAM DOING BUSINESS AT THE AIRPORT 3/2/17 Airport Contacts Airport Contacts Brad Wolfe Mike Rawson Raymond Christy Commercial Manager Business Development Mgr. Sr. Planner ACDBE Coordinator 801-575-2949 801-575-2894

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CONCESSIONS PROGRAM – DOING BUSINESS AT THE AIRPORT

3/2/17

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Airport Contacts

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Airport Contacts

Brad Wolfe Mike Rawson Raymond Christy Commercial Manager Business Development Mgr.

  • Sr. Planner – ACDBE Coordinator

801-575-2949 801-575-2894 801-575-2945 brad.wolfe@slcgov.com mike.rawson@slcgov.com raymond.christy@slcgov.com

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Introductions

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Agenda

  • Understanding the Airport
  • Doing Business at the Airport –What You Need to Know
  • Tenant Design Standards
  • ACDBE Program
  • Overview of Terminal Redevelopment Program
  • Timeframes
  • Future/Anticipated Concession Opportunities and

Business Arrangements

  • The RFP Process
  • Wrap Up - Questions
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Understanding the Airport

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Passengers (CY2016)

Domestic 22,397,638 International 759,807 Total Passengers 23,157,445

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Passengers at SLC International

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5,000,000 10,000,000 15,000,000 20,000,000 25,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Total Passengers

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Passenger Numbers by Month 2013-16

Passengers

1,450,000 1,550,000 1,650,000 1,750,000 1,850,000 1,950,000 2,050,000 2,150,000 2,250,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 2016 PAX 2015 PAX 2014 PAX 2013 PAX

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Passengers / Sales Comparison 2013-16

Passengers Concession Sales

$5,500,000 $6,000,000 $6,500,000 $7,000,000 $7,500,000 $8,000,000 $8,500,000 $9,000,000 $9,500,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 2016 Gross Sales 2015 Gross Sales 2014 Gross Sales 2013 Gross Sales 1,450,000 1,550,000 1,650,000 1,750,000 1,850,000 1,950,000 2,050,000 2,150,000 2,250,000 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 2016 PAX 2015 PAX 2014 PAX 2013 PAX

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Timing of Flights

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5 10 15 20 25 30 35 40 45 50

0000 to 0059 0100 to 0159 0200 to 0259 0300 to 0359 0400 to 0459 0500 to 0559 0600 to 0659 0700 to 0759 0800 to 0859 0900 to 0959 1000 to 1059 1100 to 1159 1200 to 1259 1300 to 1359 1400 to 1499 1500 to 1599 1600 to 1659 1700 to 1759 1800 to 1859 1900 to 1959 2000 t0 2059 2100 to 2159 2200 to 2259 2300 to 2359

Departures by Hour

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Airport Contacts

“Banks” create customer service and staffing

  • pportunities

and challenges.

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Sales (CY2016)

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Sales

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Food & Beverage Annual Sales (CY2016)

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Retail Annual Sales (CY2016)

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Doing Business at the Airport – What You Need to Know

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Hours of Operation

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Staffing Requirements – Employee Badging

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Staff Transportation and Parking

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Staffing Requirements

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Staffing Requirements

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TSA and Security

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Product Deliveries

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Product Deliveries

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Insurance Requirements

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Cash / Payment Management

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Lease Terms (To Be Determined)

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Liquor Licenses

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Other Costs and Factors

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Construction Costs

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Cat Cora’s Kitchen – Concourse B

1,263 sf $1,196/sf

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Market Street Grill –Terminal Two

4,401 sf

$568/sf

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Kiehl’s – Concourse D

208 sf $508/sf

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RMCF – Concourse D

133 sf $810/sf

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No Boundaries Terminal Two

2,713 sf $335/sf

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In Addition…

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One Last Note on Building…

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Rent

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Rent Illustration

For example: 1,200 square foot retail concept Minimum Annual Guarantee (1st year) of $200,000 Percentage of Gross Sales is 14%

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Rent Illustration

For example: Gross Sales for the Year is $2,000,000 14% of $2,000,000 is $280,000 $280,000 is greater than the MAG of $200,000 Rent for that year would be $280,000

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Rent Illustration

For example: Gross Sales for the Year is $1,000,000 14% of $1,000,000 is $140,000 $140,000 is less than the MAG of $200,000 Rent for that year would be $200,000

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Pricing

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Tenant Design Standards

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Tenant Design Standards

The Salt Lake City Department of Airports and its Tenants are responsible for the first impression of most visitors. This first glimpse of the Intermountain Area and Salt Lake City is an opportunity to showcase local and regional themes, natural features, resources and history through high quality, durable, and sustainable products and materials. The Tenant Design Standards (TDS) have been developed to assist tenants by providing a set of minimum design guidelines to ensure that each project is attractive, well designed, and consistent with the overall design goals of the Airport. Tenants and their design teams must become familiar with the intent, scope and detailed requirements of the Airport Tenant Design Standards and Design Criteria before the design process can begin.

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Tenant Design Standards

The Purpose of the Tenant Design Standards is to:

  • Enhance the passenger experience while ensuring a safe and convenient facility is available for all

users

  • Maintain the overall design characteristics and goals of the Airport
  • Ensure that a Tenant’s facility design takes advantage of every available option to optimize the

potential of the space

  • Evoke a sense of personality along with a positive image that captures the customer’s attention
  • Promote a unified environment in which tenants can incorporate consistent, creative and

harmonious design elements while maintaining their own identity

  • Encourage site design that compliments the surrounding area and creates a positive passenger

experience

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Tenant Design Standards

Except for routine maintenance on tenant installed equipment, Airport approval is required any time a tenant desires to perform interior or exterior modifications and/or construction on Airport property.

  • Preliminary Design Review
  • Design Development Review (30% Submittal)
  • Design Review Committee (DRC) Review
  • Construction Document Review (100% Submittal)
  • Tenant Improvement Application
  • Salt Lake City Building Services Permitting Process
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Tenant Design Standards

A copy of DRAFT Tenant Design Standards can be found at http://bit.ly/2mfuYa4 A final version will be available when the RFP is published.

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ACDBE Program

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ACDBE Introduction

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Airport Concessions DBE Presentation

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Airport Concessions DBE Presentation

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Airport Concessions DBE Presentation

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Airport Concessions DBE Presentation

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Overview of Terminal Redevelopment Program

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Terminal Redevelopment Overview

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Salt Lake City’s Terminal Redevelopment Program

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The need for The New SLC: Aging Facilities

Concourse D 31 years Concourse C 37 years Concourse B 54 years Concourse E 19 years Concourse A 54 years International Terminal 19 years Terminal 2 37 years Terminal 1 54 years Parking Garage 24 years Central Plant 54 years

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Terminal Redevelopment Program – Airfield Challenges

Operational Constraints:

  • Congestion in pockets between concourses
  • Lack of gate flexibility (only 55 gates with jet bridges)
  • No loading bridges in Concourse E
  • Limited international gate capacity (3 gates)
  • Fueling System misaligned
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Terminal Redevelopment Program – Service Level Challenges

Operational Constraints:

  • Undersized hold rooms
  • Inadequate restroom capacity
  • Undersized concessions
  • Limited baggage claim capacity
  • “Meeter Greeter” congestion
  • TSA screening checkpoint congestion
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SLC Terminal Redevelopment Downtown Overlay

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  • Terminal / South

Concourse West, Gateway Center,

  • Parking Garage
  • Central Utility Plant
  • Elevated Roadway and

TRAX realignment

  • First Phase of the New

North Concourse

Completed by 2020

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Completed by 2023

  • South Concourse East
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New Facilities New Concessions Opportunities

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Timeframes

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Timeframes

Public Meetings 2017 Request for Proposals 2018 Review and Selection 2018 – 2019 Design and Build 2019 – 2020 New Facilities Open Fall of 2020 (Phase One)

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Transition

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Future/Anticipated Concession Opportunities and Business Arrangements

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= Concession Space

2020 2020 2023 2023

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Possible Business Arrangements

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Packaged Leases vs. Individual Leases

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Package of Locations

Illustration: Package of 8 store locations under a single lease

= Concession Space = Packaged Spaces

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Package of Locations

Prime Operator

  • Large firm capable of populating multiple

concepts and locations

  • May create opportunities for small businesses,

locals and ACDBE participation through subtenant arrangements, licensing agreements, franchises and/or joint venture partnerships

= Concession Space = Packaged Spaces

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Direct Lease

= Concession Space

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Direct Lease

Illustration: Direct Lease

  • Owner/operator is entirely

responsible contractually and financially

= Directly Leased

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Upcoming Opportunities

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Upcoming Opportunities

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Who Determines What Concepts Go Where?

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= Concession Space

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Who Determines What Concepts Go Where?

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The Request for Proposal (RFP) Process

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Request for Proposals (RFP)

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Request for Proposals (RFP)

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Request for Proposals (RFP)

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Request for Proposals (RFP)

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Wrap Up – Questions

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Conclusion