Airport Restaurants: A Profitable Investment Opportunity

Running an airport restaurant can be profitable, but it also comes with a unique set of challenges. From the lack of employee parking and strict security measures to the requirement of keeping knives tied to workstations, operating an airport restaurant is a complex endeavour. Despite these difficulties, the high footfall of passengers can lead to increased name recognition and subsequent benefits for the business. This introduction aims to provide an overview of the topic, highlighting the potential rewards and obstacles of investing in airport restaurants.

Business strategy: Security changes after 9/11 meant a shift in business strategy for airport restaurants

Investing in airport restaurants can be profitable, but it is not without its challenges. Security changes after 9/11 meant a shift in business strategy for airport restaurants.

Firstly, airport concourses have become even more desirable places for restaurants to open. Suggested two- or three-hour pre-flight passenger arrivals, flight delays and less food being served on board have benefited airport restaurants, and not just during traditional mealtimes. At the same time, the municipalities responsible for running airports are demanding that the foodservice mix include more local or regional restaurants that are iconic in their towns.

Secondly, airport restaurants need to get creative when creating grill marks, infusing flavour and properly cooking foods. There is no gas allowed in many airport concourses, and all knives must be tied to workstations. This means that restaurants must adapt their cooking methods, for example, a burger shack without a grill or a pizza parlour without a real oven.

Thirdly, vendors supplying restaurants with produce or cooking supplies pay higher insurance premiums to be able to drive onto the airport's loading docks, and deliveries can only be made at night. This means that kitchen triage is not permitted, and restaurants must be well-prepared and well-stocked at all times.

Finally, airport restaurants are often required to remain open when late-night flights are delayed, so that passengers are not left without sustenance. This can result in extra financial burdens for employees, as they may need to take a taxi home instead of public transport. Additionally, prices are often fixed by the airport, preventing vendors from charging more than 10% of the "street price" they would set outside of the airport.

Profitability: Airport restaurants are profitable, but they come with a unique set of challenges

Airport restaurants are profitable, but they come with a unique set of challenges. The business strategy for airport restaurants has changed dramatically since security was tightened in the wake of 9/11. Vendors supplying restaurants with produce or cooking supplies pay higher insurance premiums to be able to drive onto the airport's loading docks, and deliveries can only be made at night. There's also no employee parking at many airports, leaving workers with the difficult decision of paying exorbitant rates each day or taking public transport, which may not be running when their shifts end.

Airport restaurants are also required to keep all knives tied to workstations, and many airport concourses don't offer gas lines to their tenants. This means getting creative with cooking methods, such as grill marks and infusing flavour. Airport restaurants must also remain open when late-night flights are delayed, so passengers are not left without sustenance.

Prices are also fixed at many airports, with vendors prevented from charging more than 10% of the "street price" they would set at stores outside the airport. Despite these challenges, airport restaurants can benefit from increased name recognition, with millions of passengers passing through each year. This can lead to increased footfall at other locations, as customers seek out the full menu.

Overall, while airport restaurants can be profitable, they come with a unique set of challenges that may make them seem nearly impossible to run. However, with careful planning and creativity, these challenges can be overcome.

Staffing: Staff face challenges like no employee parking, late finishes and higher transport costs

Staffing an airport restaurant comes with a unique set of challenges. Firstly, there is often no employee parking available at airports, which can leave workers with the difficult decision of paying high daily rates to park or finding alternative transport. This can result in higher transport costs for employees, especially if they are forced to take taxis home after late finishes, as public transport may not be running.

Another challenge is the requirement for all knives to be tied to workstations. This can make food preparation more difficult and time-consuming, especially in a fast-paced commercial kitchen environment. Additionally, the lack of gas lines in some airport concourses can limit the type of food that can be prepared and served.

The business strategy for airport restaurants has also changed since the tightening of security measures, which can impact staffing requirements and procedures. For example, vendors supplying restaurants with food and cooking supplies pay higher insurance premiums to deliver to airports, and deliveries can only be made at night. This can create additional challenges for staff in terms of inventory management and ensuring that all items on the menu are available.

Despite these challenges, airport restaurants can be profitable ventures due to the high volume of passengers passing through each year. This can also lead to increased name recognition for the restaurant, potentially attracting new customers to other locations outside of the airport.

Food preparation: Airport restaurants have to be creative with food preparation due to restrictions on gas and knives

Running an airport restaurant can be profitable, but it comes with a unique set of challenges. One of the biggest obstacles is food preparation due to restrictions on gas and knives.

Airport concourses often don't offer gas lines to their tenants, which means no grills, smokers, or ovens. This forces airport restaurants to get creative with food preparation. They must find alternative ways to create grill marks, infuse flavour, and properly cook food without the use of gas.

Additionally, knives are required to be tied to workstations, which can be challenging for line cooks who are constantly moving and preparing food. This restriction calls for innovative solutions to food preparation, ensuring the safety of both the cooks and the customers.

To overcome these challenges, airport restaurants may need to invest in specialised equipment and train their staff accordingly. They may also need to carefully plan their menus, offering dishes that can be prepared without the use of gas or knives.

Another challenge is the delivery of supplies. Vendors supplying restaurants with food and cooking supplies pay higher insurance premiums to deliver to airport loading docks, and deliveries can only be made at night. This can lead to last-minute shortages and the need for emergency purchases, impacting the cost of doing business.

Despite these challenges, airport restaurants can be successful and profitable ventures. With high passenger traffic, they benefit from increased name recognition and the potential for new customers. By adapting to the unique constraints of airport operations, these restaurants can thrive in a busy and ever-changing environment.

Suppliers: Suppliers pay higher insurance premiums to deliver to airport restaurants, and deliveries can only be made at night

Airport restaurants can be profitable, but they come with a unique set of challenges. One of the key considerations for suppliers is the higher insurance premiums they must pay to deliver to airport restaurants. This is because vendors supplying proteins, produce, or cooking supplies are required to pay higher rates to be able to drive onto the airport's loading docks. Additionally, deliveries can only be made at night, which can impact the freshness of the products and the availability of certain items. For instance, an airport restaurant may need to send someone to pick up an emergency case of vegetables or pounds of meat to replenish an item on the menu, which can be costly and time-consuming.

Another challenge for suppliers is the security measures in place at airports. With tightened security since September 11, 2001, bringing items through airport security has become increasingly difficult. This includes not only passengers but also restaurant suppliers. For example, a small bottle of saline solution is not permitted through security, which can make it challenging to bring in necessary supplies for the restaurant.

Furthermore, airport restaurants often have restrictions on employee parking, which can result in workers paying high daily rates for parking or relying on public transportation. This can impact the availability of staff, especially for late-night shifts, as city trains and buses may not align with the restaurant's operating hours. As such, employees may need to take expensive taxis home after their shifts, adding an extra financial burden.

Despite these challenges, investing in an airport restaurant can have its benefits. With millions of passengers passing through airports each year, airport restaurants gain increased name recognition. This can lead to additional customers, as some travellers may seek out the restaurant's full menu at their downtown location. Additionally, airport restaurants are often required to keep prices fixed, with vendors prevented from charging more than a certain percentage above "street price". This can help control costs and ensure that prices remain competitive.

Overall, while investing in an airport restaurant comes with a unique set of challenges, including those faced by suppliers, it can also provide opportunities for increased profitability and brand exposure.

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