Backup — original pdf

Backup

Concession Briefing December 8, 2020 Mookie Patel, Chief Business & Finance Officer AUS Economic Impact 1 AUS Economic Impact • AUS is its own enterprise department, generating revenue through airline passengers, parking activity, ground rents, concession fees, and more • AUS revenue relies on aviation activity, passenger traffic, and financial health of airlines • In response to significant passenger decline, measures to mitigate financial losses include: • Reduced operating expenses to get to “survival budget” • Only utilizing contracts that are mission critical 2 AUS Concessions Overview “Provide passengers with an authentic food, beverage, and travel retail experience that draws flavor from our diverse community to drive an original experience.” AUS Concession Map 4 Concession Facts • Total SF = 56,892 • Retail Vs. Food and Beverage • 41,341 SF of Food/Beverage • SF per Enplanement = 0.005 • 15,551 SF of Retail • SF per Enplanement = 0.002 5 HMS Host • ACDBE Partner: D.C. Garrett Group, LLC • Venues • Parkside​ • 24 Diner​ • Jugo​ • Sushi-a-Go-Go​ • Hardie's Fresh Foods • Austin Beer Drop​ • Zocalo Cafe​ • Noble Sandwich Co.​ • Starbucks (Concourse Level)​ • Starbucks (Baggage Level) 6 Delaware North • ACDBE Partners: M. Scott Roberts, Love Nance, Juan Portillo and Robena Jackson • Venues • Hippies & Hops • Tacodeli • Briggo Coffee Kiosk • Haymaker • Saxon Pub • Earl Campbell's Tacos • Jo's Coffee • Salt Lick BBQ • JetSet Market • Austin Warehouse & Tyler’s • Book People • 5th and Congress • Amy’s Ice Cream 7 Paradies Lagardere • ACDBE Partners: Rosalind M. Oliphant/Folktales Book Company, Marc A. Rodriguez, Prevost Consulting Group • Venues • 2nd Bar & Kitchen • Austin Article • Barton Springs (East, West, Express) • Departure Lounge • CNBC • Brighton Collectibles • Berry Austin • Mad Greens • Ruta Maya Coffee • Salvation Pizza • Scoreboard • Thundercloud Subs • Vino Volo 8 AUS Concessions Awards • Airport Experience News • Airport with the Best Customer • Airport with the Best Program Service Design • 2018 • 2019 • 2020 • Salt Lick BBQ: Best Local- Inspired Store • Airport with the Best Program Design • USA Today Reader’s Choice • AUS Vino Volo – Best Airport Bar/Restaurant & Wait Staff, 2017 9 AUS Ecosystem AUS Badged Employees 6,177 badged AUS employees Total employees Concession employees 10 • 30,000 to 8,000 daily PAX – 74% reduction • 6,000 to 4,700 badged employees – 21% reduction Concession employees comprise about 11% of those • According to a 2018 TxDOT study, AUS employs 74,000 direct and indirect jobs Concessionaire Relief Efforts • Provided $8.6 million dollars in rent abatement • Waiving administrative fees through the end of the year • Created opportunities for concessionaires to collaborate with Small & Minority Business Resources Department, the Economic Development Department, and the Law Department to assist with: • Payroll Protection Program • Financial assistance programs as part of the CARES Act • Employee Retention Credit • SBA Loans 11 Performance – HMS Host Gross Sales • Lease Term: 10 Years • 12/5/2019 – 12/5/2029 (2nd Contract Year) • FY2020: 7,001 SF = $3,214,022.08 • Total Sales per SF= $459.08 • Total Sales per Enplanement= $0.68 • COVID Impact (7 mos., April’20 – Oct’20): 3,107 SF = $995,406.46 • Sales per SF= $320.38 • Sales per Enplanement= $0.89 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- 7,001 sf FY2020 3,107 sf April '20 - Oct '20 F&B 12 Performance – Delaware North Gross Sales • Lease Terms: 10 Years • Three Separate Agreements • • • 12/2/2017 – 11/30/2027 (3rd Contract Year) 5/1/2018 – 4/30/2028 (2nd Contract Year) 5/1/2018 – 4/30/2028 (2nd Contract Year) • FY2019: 30,979 SF = $61,590,091.77 Sales per SF = $1,988.12 Sales per Enplanement = $7.28 • 22,170 SF of Food/Beverage = $46,268,967.40 • Sales per SF= $2,087.01 • Sales per Enplanement= $5.47 • 8,809 SF of Retail = $15,321,124.37 • Sales per SF= $1,739.26 • Sales per Enplanement= $1.81 • COVID Impact (7 mos., April ‘20 – Oct ‘20): 23,258 SF = $7,517,759.98 Sales per SF = $323.23 Sales per Enplanement = $6.74 $50,000,000.00 $45,000,000.00 $40,000,000.00 $35,000,000.00 $30,000,000.00 $25,000,000.00 $20,000,000.00 $15,000,000.00 $10,000,000.00 $5,000,000.00 $- • 16,831 SF of Food/Beverage = $4,809,729.88 • Sales per SF= $285.77 • Sales per Enplanement= $4.31 • 6,427 SF of Retail = $2,708,030.10 • Sales per SF= $421.35 • Sales per Enplanement= $2.43 13 22,170 sf 8,809 sf FY2019 16,831 sf 6,427 sf April '20 - Oct '20 F&B Retail Performance – Paradies Lagardere Gross Sales • Lease Term: 10 Years • Two Separate Agreements • • 12/1/2017 – 11/30/2027 (3rd Contract Year) 12/12/2019 – 12/11/2029 (2nd Contract Year) • FY2019: 14,355 SF = $29,574,410.41 Sales per SF = $2,060.22 Sales per Enplanement = $3.49 • 7,613 SF of Food/Beverage = $16,126,835.60 • Sales per SF= $2,118.33 • Sales per Enplanement= $1.91 • 6,742 SF of Retail = $13,447,574.81 • Sales per SF= $1,994.60 • Sales per Enplanement= $1.59 • COVID Impact (7 mos., April’20 – Oct’20): 6,994 SF = $2,150,960.86 Sales per SF = $307.54 Sales per Enplanement = $1.93 • 3,959 SF of Food/Beverage = $540,923.88 • Sales per SF= $136.63 • Sales per Enplanement= $0.48 • 3,035 SF of Retail = $1,610,036.98 • Sales per SF= $530.49 • Sales per Enplanement= $1.44 14 $18,000,000.00 $16,000,000.00 $14,000,000.00 $12,000,000.00 $10,000,000.00 $8,000,000.00 $6,000,000.00 $4,000,000.00 $2,000,000.00 $- 7,613 sf 6,742 sf 2019 3,959 sf 3,035 sf April'20 - Oct'20 F&B Retail Concession Closures • Majority of locations were closed in April, when passengers were down 96.6% YOY • AUS partnered with concessionaires to allow store closures based on passenger traffic and other operational considerations • Ability to close locations on a case-by-case basis • Individual locations began reopening in May, some fluctuating with passenger traffic increases or decreases 15 Current Operations -Closed (Sushi-a-Go-Go, Austin BeerDrop, Hardies Fresh Foods, Zocalo, Noble Sandwich) • Starbucks – Baggage Level CLOSURES • Host • Parkside • Jugo • Austin City Kitchen • DNC • Cafe Medici • Toy Joy/Yummy Joy • Hammer Made • Peached Tortilla • Hat Creek Burgers • East Side Pies • Flyrite Chicken • Einstein Bros. Bagels • 5th & Congress • IVini 16 • Paradies Lagardere • Salvation Pizza • Hut’s Hamburgers • Brighton Collectibles • Barton Springs WEST • Ruta Maya Coffee/Thundercloud • Scoreboard • Mad Greens • Berry Austin • Barton Springs Express • EJE Duty Free • CNBC Current Operations -Open OPERATIONAL • Host • Starbucks – Checkpoint 1 • 24 Diner • Paradies Lagardere • Barton Springs/Ruta Maya Coffee – East • 2nd Bar & Kitchen • Departure Lounge • Austin Article • Fara Café • Fara Sky Bar 17 • DNC • Austin Chronicle • Briggo Coffee • Juiceland • Market/Coffee Station • Hippies & Hops • Saxon Pub • Earl Campbell’s • Jo’s Coffee • Austin Warehouse & Tyler’s • Book People • Amy’s Ice Cream • Salt Lick BBQ • Tacodeli • Jetset Market • Haymaker • Annie’s Café • Z-Cafe Marketing Support • Robust marketing campaign • Paid social media advertising • Branding campaign throughout AUS, to include signage, vinyl wraps, and more • Ability to view options and order directly through website 18 A Taste of Koko Partnership 19 Questions? 20