"D/FW board approves plan featuring area concessionaires"

Saturday, November 20, 2004

Dallas-area airport board approves plan featuring area concessionaires
The Dallas (TX) Morning News


Travelers through Dallas/Fort Worth International Airport will be able to
taste La Duni's famous cuatro leches cake, browse football paraphernalia in
the Dallas Cowboys Pro Shop and relax in a Cool River Cafe bar when the
international terminal opens in July.

The well-known local businesses are among 49 new food and retail operations
expected to bring in more than $86 million in annual sales at Terminal D in
a concession program approved Friday by D/FW's board.

"These concessionaires offer a global and Texas flair that will make a
first, lasting and positive impression of our region for millions of
international visitors," said board chairman Max Wells, a Dallas banker.

In the next few days, airport officials will negotiate five- and 10-year
leases with the concessionaires so they can get to work on building
storefronts that must be ready in time for the terminal's opening in 2005.

"Now the fun begins," said Patrick J. Gleason, who heads D/FW's concessions
program. As the board meeting concluded, Mr. Gleason could barely finish a
sentence without being interrupted by concession awardees stopping by.

"We've got 10 days to get that lease done," he called out to one, before
turning to talk to another.

Diversity Planning for concessions at the 2 million-square-foot Terminal D
has been under way for three years. And airport officials have worked to
maximize retail opportunities and to attract a diverse group of operators,
many of which are local. Of the concessions awarded Friday, 77 percent went
to operations with at least some local ownership.

And 62 percent of the gross sales are expected to come from minority- or
women-owned businesses. Twenty-five percent of concession units were awarded
to operators that are new to D/FW.

Built for shopping Airport officials and concessionaires said Friday that
the design of Terminal D will better accommodate shopping -- and
significantly increase sales per passenger.

"It was designed for sales," said an elated Gilbert Aranza, who was awarded
space for two restaurants and a sports bar and had traces of lipstick on his
cheeks from congratulators.

Mr. Aranza heads Dallas-based Star Concessions Ltd., D/FW's largest
operator, with 28 units in the four existing terminals. His company also
operates concessions at Dallas Love Field.

On average, each passenger through D/FW spends $5.43. But in Terminal D,
that figure is expected to be more like $8 or $9 per passenger, Mr. Gleason
said.

Sales from terminal restaurants, bars and shops have grown increasingly
important during the last few years as airports try to bolster their balance
sheets with more non-aviation revenue and offset costs to their airline
tenants.

At D/FW, revenue from terminal concessions is second only to parking in
terms of money that doesn't come from the airlines.

"It was a rude awakening for some airports to see how quickly their traffic
could drop during the last few years," said Pauline Armbrust, publisher of
Airline Revenue News. "Airports can't rely on airlines to provide them as
much revenue anymore."

D/FW ranks 45th out of 50 of the nation's top airports for sales per
passenger in the latest survey by the trade magazine, based in Palm Beach
Gardens, Fla. The top-rated airport, Pittsburgh International Airport,
brings in sales of more than $10 per passenger.

Space for an additional 10 retail stores and one more restaurant at Terminal
D is still up for grabs.

Airport officials said they plan to first offer those to bidders who didn't
win leases on Friday, rather than start a new proposal process.


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