Roberta Aguirre
Opening an airport is a complex and challenging endeavour that requires significant capital, bureaucratic navigation, and adherence to various safety and regulatory standards. While it may be possible for an individual or organization to establish an airport, it is not a simple task. Several factors come into play, including the acquisition of suitable land, obtaining the necessary permits and licenses, constructing the airport infrastructure, and coordinating with aviation authorities to ensure compliance with airspace regulations and safety protocols. The process can be lengthy and demanding, involving extensive planning, financial resources, and expertise in aviation and infrastructure development.
| Characteristics | Values |
|---|---|
| Opening a business at an airport | Requires submitting a formal proposal to the Airport Commission and undergoing a monthslong vetting process |
| Operating hours | 365 days a year |
| Staffing and logistics | Requires dedicated staff to manage inventory and payroll |
| Customer base | Hundreds of thousands of potential customers, including captive audiences during flight delays |
| Challenges | Bureaucracy, long commutes from the parking lot, unpredictable sales due to external factors like bird crashes |
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What You'll Learn
Opening a business at an airport
To open a business at an airport, you will need to partner with one of these concessionaires. The process of securing a lease can be demanding and time-consuming, involving a lot of paperwork and sometimes a panel interview. You will need to submit a formal proposal to the Airport Commission and be prepared for a lengthy vetting process. It is also important to consider the unique challenges of operating a business in an airport, such as long operating hours, staffing and logistical issues, and security procedures.
However, there are also significant benefits to opening a business at an airport. Airports offer exposure to a large number of potential customers, including a captive audience of passengers facing flight delays. This can result in quick returns and increased brand awareness. Additionally, programs like the Department of Transportation's Airport Concession Disadvantaged Business Enterprise (ACDBE) program can provide support for minorities and women entering the aviation industry.
When negotiating a lease, it is crucial to consider your space needs, including storage requirements, and to understand the procedures for deliveries and employee access. You should also be aware that product offerings may be restricted due to security concerns. Overall, while opening a business at an airport can be challenging, the potential rewards in terms of customer reach and brand visibility can make it a worthwhile endeavor.
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Navigating airport bureaucracy
While it may be possible for anyone to open a business in an airport, it is certainly not a straightforward process. Ramon Lo, publisher of Airport Revenue News, an industry magazine, says, "You can't just come in off the street and say, 'Hey, I want to try my hand at selling in the airport." There are several bureaucratic hoops to jump through, and it can be a complicated process.
Firstly, consider the practicalities of operating a business in an airport. The hours of operation are 365 days a year, so there are no weekends or holidays. Staffing and logistics can be challenging, and you must be prepared for unpredictable events, such as a flock of birds crashing into a plane, which could affect sales.
Secondly, to open a business in an airport, you will need to submit a formal proposal to the Airport Commission and be prepared for a lengthy vetting process. This can take months and may involve partnering with a concessionaire, one of the big management companies that lease airport storefronts.
It is also important to be aware of the potential benefits of operating a business in an airport. With hundreds of thousands of people passing through every day, there is a vast potential customer base. Delayed flights can also provide a captive audience, resulting in quick returns.
For those with a lack of national prominence, like Keith Montoya, a partner in Steve's Snappin' Dogs, a popular hot dog spot in Denver, navigating the airport business world can be challenging. Montoya used the Department of Transportation's Disadvantaged Business Enterprise Program to help him get started.
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Staffing and logistical challenges
While opening a business at an airport can be a lucrative opportunity, it comes with a unique set of staffing and logistical challenges. Firstly, airport businesses need to be operational 365 days a year, including weekends and holidays. This means that business owners must be prepared to manage staffing during peak travel seasons and find employees willing to work on days when most other businesses are closed.
Additionally, the hours of operation at airports can be demanding. Unlike traditional street-side businesses, airport stores often experience high foot traffic during early mornings, late nights, and odd hours. This can be challenging for staffing, especially if the business owner is initially running the store alone or with a small team. In the case of Mr. Montoya, a partner in Steve's Snappin' Dogs at Denver International Airport, he started by running the business alone before hiring additional staff to help with inventory management and payroll.
Another challenge is the lengthy and bureaucratic process of securing a lease at an airport. Potential renters must submit a formal proposal to the Airport Commission and undergo a monthslong vetting process. This adds complexity and delays to the process of opening a business at an airport compared to other locations. Furthermore, airport businesses may be subject to unpredictable events, such as flight delays or cancellations, which can impact sales and staffing needs.
To address these challenges, it is crucial to conduct thorough research and be patient during the process of establishing an airport business. Partnering with concessionaires or management companies that lease airport storefronts can also provide valuable support and increase the chances of success in this unique business environment.
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Renting from the Airport Commission
Firstly, it can be difficult to even get into the airport. Ramon Lo, publisher of Airport Revenue News, states that "you can't just come in off the street and say, 'Hey, I want to try my hand at selling in the airport'". Potential renters must submit a formal proposal to the Airport Commission and are subject to a lengthy vetting process. This can include providing verification of personal information such as a home phone number, address, and proof of insurance coverage.
Another challenge is the operational hours. Unlike regular shops, airport outlets must be open 365 days a year, including weekends and holidays. This can create staffing and logistical challenges, as well as impact sales. For instance, sales may be affected by external factors such as bird strikes on planes.
Despite these challenges, renting from the Airport Commission can be a worthwhile investment, providing exposure to thousands of potential customers and quick returns. However, it is important to carefully consider the unique set of codes and requirements before committing to ensure a successful venture.
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Partnering with a concessionaire
Opening a business at an airport can be challenging. One of the challenges is the long commute from the parking lot to the storefront, which can deter potential customers. Another challenge is the operational hours, as airport shops need to be open 365 days a year, including weekends and holidays. Additionally, there might be a lengthy vetting process, as potential renters must submit a formal proposal to the Airport Commission.
One way to overcome these challenges is to partner with a concessionaire, a management company that leases airport storefronts. Concessionaires can provide support and guidance in navigating the complex world of airport operations. They often have established relationships with airport authorities and can help streamline the process of setting up a business.
For example, Colin Breen, the owner of Four Green Fields, partnered with a concessionaire to open an offshoot of his local Irish pub at Tampa International Airport. By leveraging the resources and expertise of a concessionaire, he was able to secure a prime location and tap into the high volume of passenger traffic at the airport.
Additionally, concessionaires can bring fresh ideas and innovative approaches to enhance the guest experience. For instance, Concessions International (CI) focuses on creating vibrant and innovative concepts tailored to the local market. They also prioritize sustainability and environmental responsibility in their operations. By partnering with a concessionaire like CI, businesses can benefit from their industry knowledge, operational support, and commitment to delivering excellence.
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Frequently asked questions
No, it is not easy for just anybody to open an airport. However, small businesses can open shops at airports.
There are several challenges, including staffing and logistical challenges, long hours, and a monthslong vetting process.
Thousands of people pass by every day, so there is a lot of money to be made. If there's a flight delay, you've got a captive audience.
Keith Montoya, a partner in Steve's Snappin' Dogs, opened a shop at Denver International Airport. The business is an offshoot of a popular Denver hot dog spot.
It can be expensive. For example, Michael Lindsay, the owner of elizabethW, paid more than $5,000 for a one-year lease on a pop-up shop at San Francisco International Airport.
