Determining the Concept Mix

Scott KilgoConcessions Development Mgr

Port of Portland

Portland International Concessions

• Direct Leasing & Mgmt By Port Staff

• 8 Full Time Employees• 6,500,000 Enplanements • $8.50 Sales Per Enplanement• Over $55,000,000 Total Sales• 60 Tenant Locations

Concourse D & E (1995)

Sense of Place? Open & Inviting? Local Concepts?

Concourse C (2001)

Sense of Place? Open & Inviting? Local Concepts?

So what to do for the north side?

Existing Conditions

• New International Air Service

• Relocating Domestic Service

• All Food Agreements to Expire

• News and Retail Not Expiring

Existing Conditions

• Terminal Finishes Dated and Worn

• Tenant Spaces too Small

• Limited Concept Selection

• Low Revenue Generation

There are many ways to approach determining the concept mix

Our approach for the north generally included…

Plan Your Approach

• Set Initial Goals

• Complete the Analysis

• Make Decisions

• Implementation

Set Initial Goals

• Consistent with overall vision

• Broaden the selection

• Strengthen local concept representation

• Increase revenue level

• Implement ASAP

Completing the Analysis

• Identify possible concession area

• Complete thorough survey

• Develop passenger activity forecast

• Review category trends• On and Off Airport

A little more on our survey…

1000 interviews 40% with frequent PDX flyers (4+ times/year) 88% of interviews with Concourse D/E fliers Quantitatively evaluated:

Restaurant/beverage preferences Qualities that influence restaurant choice Choice to bring food onboard Factors affecting onboard food purchase Demographics and travel habits

more…

Most Appealing Food/Beverage Choices Espresso Sandwich Light breakfast option

Most Important quality in making a purchase Having the type food that the traveler prefers Having enough time

According to the survey, Northwest Airlines passengers should behave similarly to other Concourse D passengers.

If the following types of food/beverage choices were available on this concourse, how likely would you be to buy something there on this visit?

05

101520253035404550 46

Per

cent

Rat

ing

8-10

3027

2119

17 1614 12

1517 17

Survey Summary

Business travelers Prefer the Café with full bar choice They value a quick, affordable purchase Restaurant is close to the gate

Female travelers Prefer smoothie, sandwich and bakery choice Value a quick purchase Proximity to gate and comparable pricing are

also important More likely to bring food on the plane

Completing the Analysis

• Financial Pro Forma • Baseline• Conservative Options• Best Concessions Options

• Draft Leasing Strategy for viable options

Making Decisions

• Review results and balance findings with goals

• Coordinate management approval

So after more than a year of work our plan for the north includes…

Plan for the North

• Increase Coffee to three locations• One through an RFP

• Relocate Burger Concept

• RFP for three different Cafe/Bars (local)

• RFP for single Sandwich, Soup, Salad

• Update Yogurt Concept

• Continue News and Retail

Plan for the North

• Add 4 new food locations• Approx. 5,000 sf of space

• Add 5,300 sf of storage area

• Tie it all together with clear identity or Sense of Place