
Airports are bustling hubs of human activity, with millions of people passing through them every day. It is no surprise that restaurants want a piece of the action, and for many chains, an airport location can be the highest-grossing outlet in their entire operation. But how are these restaurants chosen? Airports are aware that they are the last places a traveller will experience in a country, so they take advantage by offering restaurants that celebrate local cuisine. The process of opening an airport restaurant is challenging, with high costs, tight spaces, and long, detailed proposals. However, the potential for huge sales makes it rewarding.
Characteristics | Values |
---|---|
Customer base | Thousands, if not millions, of hungry people with time to kill |
Exposure | Hartsfield-Jackson Atlanta International Airport, the busiest airport in the US, can be a cash machine for restaurant chains |
Operating hours | Must be open 365 days a year, often with extended hours to serve delayed passengers |
Space constraints | Smaller kitchens and limited storage space, requiring quick service and menu cuts |
Insurance | Higher insurance premiums for the convenience of driving onto the airport's loading docks |
Brand experience | May need to adapt the interior look and feel to fit within brand guidelines |
Menu | Must offer food that people want to eat in an airport, with quick service |
Competition | A lengthy proposal process with many competitors |
Pricing | Prices are often dictated by the concessionaire or airport, with higher rents and business costs |
What You'll Learn
Brand exposure and expansion
Airports are central hubs of people and transportation, with millions of travellers passing through them each year. For restaurant owners, this presents an opportunity to showcase their brand to a wide audience. Opening a restaurant in an airport can be a strategic move to gain brand exposure and expand the business.
For example, in 2014, Fresh to Order opened a restaurant in Hartsfield-Jackson Atlanta International Airport, the busiest airport in the United States and the world. This move was specifically aimed at increasing brand exposure, and it has proven successful, with the airport location becoming the highest-grossing outlet for the chain. Similarly, Cat Cora's Kitchen in San Francisco has expanded into multiple airports due to its popularity.
Opening a restaurant in an airport, however, comes with unique challenges. Restaurants must adapt their concepts and menus to fit the airport setting. This includes considering the limited space available and the need for quick service, as customers are often in a hurry to catch their flights. As Pierre Panos, owner of Fresh to Order, noted, it can be difficult to create a "true brand experience" in an airport setting due to these constraints.
Additionally, operating an airport restaurant can be costly. Rents and business costs are typically higher than in traditional locations, and vendors may also face higher insurance premiums. Despite these challenges, the potential for brand exposure and expansion in an airport setting remains attractive to many restaurant chains. By partnering with companies that specialize in airport concessions, such as HMSHost, restaurants can expand their reach and tap into the unique opportunities that airports offer.
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Adapting the brand
Firstly, space constraints in airport restaurants are a significant challenge. Kitchens in airport eateries are often half the size of regular restaurant kitchens, as noted by sources. This necessitates modifications to the menu, eliminating items that require excessive preparation space or time. For instance, Fresh to Order's airport location adapted by offering a selection of its most popular quick items, including gourmet entrées, sandwiches, salads, and soups, all freshly prepared on-site.
Secondly, the brand experience and design must be adapted to align with the airport context. The interior look and feel of an airport restaurant may differ from its street-side locations, requiring collaboration with partners to ensure adherence to brand guidelines while accommodating the limitations of the space. This includes considerations regarding the overall execution and ambiance of the restaurant.
Additionally, the target audience in an airport setting is distinct from that of a typical restaurant. Airport diners are often in a hurry, requiring quick service to catch their flights. This influences menu choices, favouring items that can be consumed quickly and conveniently. It also impacts the service style, with some airport restaurants offering prompt table service or innovative payment options, such as QR code tabletop payments, to enhance the efficiency of the dining experience.
Furthermore, the operational requirements of an airport restaurant differ significantly. Many airport restaurants must operate 365 days a year, with extended hours to accommodate late-night travellers. This consistent demand can translate into substantial sales, making airport locations lucrative for restaurant brands. However, it also imposes staffing and supply chain challenges, with deliveries typically scheduled for mornings or nights.
Lastly, the menu and concept must align with the needs and preferences of airport diners. While airports provide access to a vast captive audience, the offerings must be tailored to the setting. For example, dishes that are messy or cumbersome to eat, like picking apart a lobster, may not be ideal for travellers. Instead, restaurants should opt for items that travellers would find appealing and practical in an airport environment.
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Costs and profits
Operating a restaurant in an airport comes with a unique set of costs and potential profits. While airport restaurants can be lucrative, they also present several financial challenges that operators must navigate.
One of the primary costs associated with airport restaurants is the rent, which tends to be higher than that of traditional venues. This, coupled with the generally higher cost of doing business in an airport, can strain restaurateurs' finances. Additionally, vendors often pay higher insurance premiums for the convenience of accessing the airport's loading docks, and deliveries are typically restricted to early morning or late at night, impacting operational efficiency.
Airport restaurants also face the challenge of limited space. Kitchens are often half the size of those in regular restaurants, yet they must handle a high volume of customers who are usually in a hurry, requiring quick service. This may result in menu cuts or adaptations, ensuring dishes can be prepared and served promptly.
Despite these costs and challenges, airport restaurants can be highly profitable. Thousands of potential customers pass by daily, and for many restaurant chains, an airport location can become the highest-grossing outlet. The Hartsfield-Jackson Atlanta International Airport, for example, is known for its lucrative restaurant opportunities.
To maximize profits, airport restaurants must adapt to the unique demands of their clientele. This includes offering quick, convenient, and on-trend dining options that appeal to travellers. Additionally, brand exposure and the opportunity to reach a diverse range of customers drive many restaurants to expand into airport locations.
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Convenience and speed
When it comes to choosing restaurants for airports, convenience and speed are paramount. Airports are bustling hubs, with thousands of travellers passing through daily, often with little time to spare before their flights. This presents a unique opportunity for restaurateurs, who can tap into a vast customer base with varying needs and preferences.
Convenience is key for airport diners, who are often in a hurry and require quick, efficient service. To cater to this, airport restaurants typically offer a streamlined menu with popular, quick items that can be freshly prepared and served promptly. These may include gourmet entrées, sandwiches, salads, and soups—dishes that are easy to eat on the go or within a limited time frame.
The design and layout of airport restaurants also prioritize convenience. Due to space constraints, kitchens are often smaller, and menus may need to be adapted to accommodate this. For example, a restaurant may opt for a more concise menu or eliminate certain items that are impractical for an airport setting. The dining area may also be more compact, with efficient use of space to maximize seating capacity.
Speed is of the essence in an airport setting. Customers expect quick service, and restaurants must be able to deliver meals promptly without sacrificing quality. This can be a challenge, especially with a high volume of customers, but it also presents an opportunity for restaurants to showcase their efficiency and provide a positive dining experience, even within the fast-paced airport environment.
To further enhance speed and convenience, some airport restaurants offer innovative payment options, such as QR code scanning for tabletop payments, and delivery services that allow travellers to order from anywhere in the airport and have their meals delivered directly to their gate or lounge.
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Politics and paperwork
Given the challenges of operating in an airport, it is not surprising that proposals often involve team efforts. They may include a large firm specialising in airport concessions, a smaller firm to meet minority contracting requirements, and a well-known chain that lends its brand power through franchising or licensing. The involvement of multiple parties adds complexity to the process and requires careful coordination to ensure everyone's interests are aligned.
Airport restaurants also face unique operational challenges. They must often operate 365 days a year and accommodate delayed travellers, requiring extended opening hours. The confined spaces in airports mean that kitchens are typically half the size of regular restaurants, despite serving twice the number of customers. This constraint impacts menu design and service speed, demanding modifications to the restaurant's regular offerings.
Additionally, the cost of doing business in an airport is generally higher. Rents tend to be more expensive, and vendors may incur higher insurance premiums for the convenience of accessing the airport's loading docks. These costs can strain restaurateurs, influencing the pricing of their menu items. Despite the challenges, the potential rewards are significant. Airport restaurants benefit from high foot traffic and can become cash machines for their brands, as seen with the success of Fresh to Order at Hartsfield-Jackson Atlanta International Airport.
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Frequently asked questions
Airports are central hubs of people and transportation, with thousands, if not millions, of hungry people with time to kill, making them attractive to restaurant owners.
Airports often have higher rents and operational costs than regular restaurants. Restaurants in airports must also operate 365 days a year and adapt their menus to cater to people in a hurry, with limited kitchen space and storage.
Restaurants must adapt their brand to the airport while staying true to their image. This may involve simplifying their menus and ensuring their concept doesn't require lots of space.
The high volume of people travelling through airports means that airport locations can become the highest-grossing outlets for restaurant chains. However, the increased footfall may be offset by higher insurance premiums and the cost of doing business in an airport.
Airports often request lengthy proposals from restaurants detailing the name, concept, menu, and design of the eatery. Proposals are often submitted by teams of firms, including large firms that specialise in airport concessions and smaller firms that can fulfil minority contracting requirements.