AUS Concessions Programming — original pdf

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AUS Concessions Programming MBE/WBE ADVISORY COMMITTEE May 12, 2026 John A. Gallo, USAP, C.M., ACE Deputy Chief Officer – Commercial Development Agenda ● Concession Program Overview ● Concourse B Program Vision ● Leasing Approach & Solicitation Information ● Questions & Answers Concession Program Overview Concession Program Overview ● Existing concession program summary ● Future concession program goals ● Passenger growth and enplanement forecasts ● Future concession plans, and concepts 4 Existing Concessions Program 2025 Performance Category Sales/Enplanement 1,754,212 Tacos 469,956 Beers 300,206 Smoothies and Juices 91,320 Glasses of Wine 94,249 lbs. Salt Lick Brisket 1,000+ Live Music Performances a year Food Service Convenience Retail Specialty Retail Total Food Service & Retail 2024: $10.28 2025: $10.76 2024: $3.06 2025: $3.01 2024: $1.39 2025: $1.38 2024: $14.73 2025: $15.15 • Food service and retail concession sales per enplanement increased by three percent between 2024 and 2025 • Generally, AUS Airport’s sales per enplanement are above the averages among comparable airport concession programs AUS is the 4th Fastest Growing Airports among U.S. Large & Medium Hub Airports 50% 47% AUS 39% % Change in Seats: Q4 2025 v. Q4 2019 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% 6 41%40%39% 33% 28%28% 26%26%26% 22% 19%18%18% 15%14%14%13%12%12%11%11%10%10%10% 9% 9% 9% 8% 8% 8% 7% 6% 5% 5% 5% 5% 5% 4% 3% 3% 2% 2% 2% 2% 1% U.S. Avg. 5% -1%-2%-2%-2%-2% -4%-4%-4%-5%-5%-6%-7% -9%-9%-10%-10% -14% A N B I A M S H C S U A I B P U J S I O B T N O X H P F R O N E D O C M U D R D N I A M O W S R X A J W F D S A L A N S T A S N A S H A I C L S F U B A P T A G L K F J L N H A C D D A I T I P C N A F M S . g v A H M C Q B A I C M L A D T L C R W E E L C G V C U O H D R O L T S Y S M A E S L L F L D B L T A I W B S O B X D P R U B . . S U -34% -39% W D M O F S W T D P S M L H P G G O E K M X A L C J S K A O AUS – Passenger Profile Age 16-24 25-34 35-44 45-54 55-64 65-74 9% 22% 17% 18% 17% 12% 75 & over 4% Return Trips (Past 12 Months) 1-2 3-5 6-10 11-20 21 or more 38% 35% 17% 6% 4% 42% 57% Female Male 1% Other Source: ACI-NA Survey 2025 Concession Program Goals and Target Concepts “To design a concession program that will provide passengers with an authentic food, beverage, and travel experience that draws flavor from our diverse community to drive an original experience.” MASTER PLAN GOALS Modernize the Program Enhance Customer Experience Maximize Non-Aeronautical Revenue Support Funding for AUS Growth Note: inclusion of brands as sample concepts do not constitute an endorsement Casual Dining Fast Casual Quick Service Bar w/ Food Local Concepts Gourmet Market Gourmet Coffee Specialty Retail Snacks News & Travel Essentials Automated Retail Passenger Services Program Vision Passenger Journey • A majority of departing passengers will process through the new A/D Hall • Passengers entering through the A/D Hall will pass through Central Concourse A, flowing east, west, or to the tunnel to Concourse B • As passengers arrive in Concourse B, they will take the escalators to the North Marketplace – the main marketplace for the concourse • From this vibrant hub, passenger flows split east and west • A portion CCB passengers will be connecting flights within CCB-West, where they will encounter convenient food service and retail options 2042 Passenger Forecast: 25 million enplanements Target Allocation: Concourse A – 44% Concourse B – 56% Concourse B Zones WEST SUB-NODE WEST MARKET EAST SUB-NODE NORTH MARKETPLACE Information presented is subject to change Concourse B, North Marketplace AUDIENCE CONCEPTS North Marketplace • Originating and connecting passengers • The main marketplace for Concourse B Food Hall FOOD SERVICE • Destination Restaurant • Gourmet Market • • Gourmet Coffee • • • Destination Bar Interactive Bar with Food Fast Casual Restaurants 32,020 5,930 Incl. 37,950 RETAIL • • • Travel Essentials Targeted Specialty Retail Local Concepts/Products Planned Concession Space (sq. ft.) Food Service Retail Stage Total Information presented is subject to change Distinctive Elements Sidewalk Seating Signs Lighting Railings Note: inclusion of brands as sample concepts do not constitute an endorsement Concourse B, East Sub-Node AUDIENCE CONCEPTS • Originating passengers who have already passed through Central Concourse A FOOD SERVICE • Gourmet Coffee • Bars with Food • Quick Service Concepts VENDING East Sub-Node Planned Concession Space (sq. ft.) Food Service Vending Total 7,930 130 8,060 Information presented is subject to change Concourse B, West Market AUDIENCE CONCEPTS West Market • Departures include approx. 32 percent of AUS enplanements • Many connecting passengers, some with limited dwell time Planned Concession Space (sq. ft.) Food Service Retail Stage Total 10,840 7,430 Incl. 18,270 FOOD SERVICE • Fast Casual Restaurant • Gourmet Market with Bar • Casual Dining Restaurant • Gourmet Coffee RETAIL • News and Bookstore SERVICE • Passenger Experience/Wellness Information presented is subject to change Concourse B, West Sub-Node AUDIENCE CONCEPTS West Sub-Node FOOD SERVICE • Gourmet Coffee • Bars with Food • Quick Service Concepts RETAIL • Travel Essentials VENDING • Originating passengers who have already passed through Central Concourse A and the Concourse B North Market • Connecting passengers with limited dwell time Planned Concession Space (sq. ft.) Food Service Retail Vending Total 8,310 1,800 130 10,240 Information presented is subject to change Concourse B, Small Business Kiosk Program AUDIENCE Planned Concession Space (sq. ft.) CONCEPTS • Originating and connecting passengers on Concourse B • Local Specialty Retail Small Business Retail Total 904 904 Information presented is subject to change Leasing Approach & Solicitation Information Leasing Approach & Solicitation Information • Preliminary schedule • Opportunities for involvement; non-exclusive agreements • Anticipated key lease terms • Pricing policy • Concession operations standards highlights • Logistics • Rent structure • Solicitation process overview 19 Preliminary schedule RFCP Issued Summer 2026 Pre- Proposal Conference Proposals Due Agreement Signed Design & Permitting Construction Period New Concessions Open Fall 2026 Fall/Winter 2026 Spring 2027 Summer 2027-2029 Summer 2029 - Early 2030 Early 2030 Information presented is subject to change Opportunities for Involvement Choose your entry point Non-Exclusive participation — multiple roles possible! Prime Concessionaire Sub-concessionaire Joint Venture Partner Supporting Roles o Brand Partner o Vendor/Supplier o Designer o Contractor Information presented is subject to change Opportunities for Participation Joint Venture Partner (JV) • Shares responsibility for the concessions operated based on your percentage of ownership (e.g., company A has a ten percent share in the JV, so they are responsible for ten percent of the capital investment, expenses, and revenue/loss) • Has one or more key roles to fill, such as managing HR, hiring general managers, overseeing certain operations, etc. • Typically sits on the management committee/board of the JV, participating in the overall management and decision-making process Subconcessionaire (Sub) • Responsible for all financial, administrative, management, capital investment, and operational components of their concession unit(s) • Rent is reported and paid through the prime concessionaire Information presented is subject to change Opportunities for Participation Franchisor/Licensor • A business licenses or franchises their concept/brand to a prime concessionaire to operate • The franchisor/licensor earns a negotiated percentage of gross sales • The franchisor/licensor is involved up front regarding product selections/menu, and then participates in ongoing oversight of the operations, ensuring consistency with brand’s quality, service standards, etc. Product Vendor • A business establishes an agreement with a prime concessionaire to supply their products for the prime to sell at their concession(s) at the Airport • Business must be able to scale up to meet the demands of the airport market Small Business Direct Operation • A business pursues a short-term opportunity through the small business program Information presented is subject to change Anticipated Key Lease Terms ● Minimum initial investment: A minimum capital investment per square foot will be established in the RFCP ● Minimum midterm refurbishment requirement: Concessionaires will be obligated to invest 15% of their initial investment in leasehold improvements by the mid-point in their lease term ● Minimum hours of operation: Minimum hours will be set by Austin Aviation based on flight schedules ● Consolidated Receiving and Distribution Center (CRDC): Concessionaires will be obligated to participate in and pay their share of the CRDC fees for the logistics services provided, including receiving and distribution of deliveries ● Marketing fund contribution of 0.5% of gross receipts ● Pricing policy – Street plus 10% Information presented is subject to change Pricing Policy: Street Plus 10% • Street Plus 10%: Concessionaires may charge the same prices or prices that are up to ten percent (10%) above the average price for the same or similar products sold in comparable off-airport locations o The City’s Pricing Policy applies to all concessionaires and is intended to promote high customer service and support a reasonable financial return • “Street Price” – the price charged for an equivalent item at comparable business locations in the Austin-Round Rock-San Marcos Metropolitan Statistical Area (“Austin MSA”) o To determine fair, reasonable, and comparable prices, Concessionaires must conduct a price comparison and submit prices for approval • Merchandise with a pre-printed price affixed by the publisher or distributor must sell for the suggested retail price as marked • Units selling beverages must include an option for a $2.00 bottle of water (minimum 16 ounces) • All product prices, including those for alcoholic beverages, must be displayed; alcohol menu must include pour sizes Information presented is subject to change Concession Operations Standards • Hours of Operation o Each concession must be open for business seven (7) days per week, three hundred and sixty-five (365)( days per year. The minimum hours of operation are: - Opening Time: At least one hour before the first departure in the concourse in which the concession is located - Closing Time: No earlier than the time of the last departure in the concourse in which the concession is located o Store hours must be extended to accommodate: - Flight Delays: Concessions shall remain open offering all goods and services as required by the contract in the impacted concourse and until delayed flights depart the gate area. If the flight(s) is delayed over two hours, Concessionaire may close but must first inform the airline and have an announcement made to passengers regarding the closure. - Emergencies: Concessions shall remain open and provide all goods and services as required by the contract as instructed by Austin Aviation. • Customer Service o Concessionaires must submit a Customer Service Training Program to Austin Aviation • Airport Security o All concession employees must pass a background check to obtain an Airport identification badge o All airside employees must pass through the security checkpoint Information presented is subject to change Logistics • Deliveries and Distribution: All deliveries must be received at and processed through the CRDC (Centralized Receiving and Distribution Center) and concessionaires will be charged for their proportionate share of the costs of the operation. Concessionaire is not allowed to make direct terminal deliveries or transport inventory through security checkpoints. • Current CRDC Hours of Operation: o Monday – Saturday, 4:00 a.m. to 2:30 p.m. o Sunday – 4:00 a.m. to 10:30 a.m. • Concessionaire is responsible for transporting inventory among concession locations and storage space within the airport terminal at such times and by such routes as directed by Austin Aviation. • Waste Management: Concessionaires must use designated locations, containers, and transport routes for trash, waste, and refuse removal and disposal. Austin Aviation’s third-party service provider will pick up and dispose of used cooking oil. • Office and Storage Space: A limited amount of storage space will be provided for most concession packages. Concessionaires may lease additional storage or office space at the Airport at the rental rates set by Austin Aviation. Space is subject to availability and the approval of Austin Aviation. Information presented is subject to change Rent Structure Concessionaire will pay to the City the greater of the following on a monthly basis: ● Minimum Annual Guaranteed Concession Fee (MAGCF): Minimum amount of rent that will be paid annually ○ MAGCF will be set by the City for the First Full Calendar Year of the Lease Agreement Concessionaire must pay one-twelfth of the MAGCF on the first of each month ○ ● Percentage Rent: Rent based on a percentage of Gross Receipts ○ ○ ○ ○ Percentage Rent will be proposed Proposers may propose a tiered rent structure that increases with sales volume The City expects reasonable offers and is under no obligation to accept the highest financial offer proposed A higher percentage rent must be paid on alcoholic beverages than on food and non-alcoholic beverages Information presented is subject to change Solicitation Process Overview • The Airport follows the City of Austin Rules and Policies governing the release, management, and award of revenue contracts • Concession leases are presented to the Airport Advisory Commission and the City Council for approval • Concession leases are not binding until approved by the City Council and executed by the CEO • Proposals must include all units in a package to be considered responsive • All correspondence with the City, including Proposals, become public property and are subject to the Texas Open Records Act • The City will not disclose any part of a Proposal prior to award recommendation Information presented is subject to change Small Business Kiosk Program Opportunity ● Initial program includes eight (8) kiosks (approx. 113 sq. ft. each) in Concourse B o Kiosks are being designed to accommodate a variety of products (rendering shown is an example only – not the actual design) ● Concept: Specialty Retail o Gift Items o Jewelry o Accessories o Stationery o Small Home Goods and Décor o Toys and Games o Personal Care Items o Pre-Packaged Sweet and Savory Snacks / Local Specialty Foods  Examples: honey, jam, sauces, dried fruit and nuts, candy, confections, popcorn, baked goods, etc. Sign image: UnSplash; kiosk renderings are representations for presentation purposes only Business Terms Term Length ● Minimum of 12 months Rent ● Percentage of gross sales or set Minimum Annual Guaranteed Concession Fee (MAGCF), whichever is higher ● Tiered rent based on sales volume may be proposed Airport Operations ● Target Hours of Operation: 7:00 a.m. to 9:00 p.m. (14 hours per day), 365 days per year ● Businesses are responsible for managing their own security badging, staffing, and deliveries Information presented is subject to change Capital and Operating Expenses ● Small businesses are required to: o Provide their own point-of-sale (POS) system and signage o Provide their own staff o Cover the cost of goods sold o Provide the required business and liability insurance o Coordinate and cover the expenses associated with airside deliveries o Rent additional storage, if needed Procurement: Minimum Qualifications ● Applicants need to prove that they own, operate, and control their proposed business by providing: o A valid business license o References (including at least two credit references) o Copy of an existing lease or title documents o Financial statements (balance sheet and income statement or personal/business income tax returns for prior two years) ● Applicants need to prove that they have the experience required to operate at the Airport by providing: o Evidence of a sales volume meeting or exceeding $100,000 annually for a minimum of two consecutive years in the last three years ● Evidence of prior experience meeting the minimum qualifications must be presented in the application, including: o Location(s) (type and physical address) and square footage per location o Photographs of location (interior and exterior) and landlord contact information  If the business operates entirely online, verification of the domain history (at least two years in operation) and website registration data is required for the past three years of operation; must provide working phone number o Annual sales, transactions, and rent paid per location (if applicable) Information presented is subject to change Procurement: Solicitation Process ● An application must be submitted that includes the following information: ● Business and ownership information ● Proposed kiosk concept and name ● Summary of business and or professional experience ● Merchandise list with prices ● Pro forma for the lease term showing estimated sales and expenses ● Customer service plan (including return policies and procedures and point-of-sale operating system) ● Financial statements and tax returns for the past two years ● Marketing strategy ● Four professional references (including two credit references) ● Certificate of authorization to do business in Texas ● If awarded, applicants must be able to provide a Certificate of General Liability Insurance in the amount set by Austin Aviation; a bond, letter of credit, or cash security deposit equal to three months of rent; and prove their ability to contract with delivery services for airside deliveries Information presented is subject to change Procurement: Timeline ● Initial Application Process o Application Process Initiated: Summer/Fall 2027 o Applications Due: 60-90 days after application process is initiated o Application Evaluation: May include an interview, site visit, and question & answer process o Small Business Kiosk Operator Orientation o Kiosks Open: Date will coincide with the opening of Concourse B in 2030 ● Subsequent applications will be reviewed on a rolling basis and awarded based on kiosk availability Information presented is subject to change Next Steps Next Steps Upcoming milestones RFCP Issued Summer Proposals Due Fall/Winter 2026 Pre-proposal Conference Fall 37 Next Steps How to stay informed ● Find concession opportunities at the airport website: https://www.FlyAustin.com/concession-opportunities ● Email AUS.CommercialManagement@FlyAustin.com with any questions regarding today’s event ● Keep up-to-date with the Journey With AUS by using the QR code Questions & Answers Thank You!