FAB 2024
The evolving status of food & beverage in a world of converging channels
Avolta Managing Director Southeast Asia and Oceania David Mackay addressed the changing world of food & beverage against the backdrop of the channel’s convergence with retail, lounges and other services.
Having stepped in for Avolta Chief Executive Officer Northern, Central and Eastern Europe Walter Seib, who could not attend for personal reasons, Mackay outlined how Avolta has been “demonstrating the value of combining F&B and retail to elevate our offering for travellers” since the business combination with Autogrill last year.
Avolta Managing Director SE Asia and Oceania David Mackay gave his insights to Martin Moodie on the dynamics behind food & beverage growth at airports
Offering an encouraging view of the outlook for travel dining worldwide, Mackay noted: “Data shows spend per passenger in F&B is growing more in percentage terms than spend per passenger in retail. We see this across the regions, especially where we have multiple pillars. It’s not only the spend per head that is increasing in F&B, it’s also the amount of floor space dedicated to F&B across airports, just as we see in shopping malls downtown.
“The presence of food & beverage supports engagement and builds customer loyalty. It attracts shoppers to retail destinations, increases their time spent in-store and boosts overall spending, resulting in sales growth.
“In some developments today we see 35% to 37% of commercial space devoted to F&B. Back when it was lower at 20-25%, the allocation of that space was typically in second-rate locations, or on mezzanines, on second or third floors, at the back of commercial zones, or frankly, simply hidden. That has changed dramatically in the last ten to 15 years.
“F&B is also a bridge to driving retail sales and we also know that travellers are extremely interested in F&B, especially in the case of the Gen Y and Gen Z traveller.”
Mackay highlighted the Avolta Destination 2027 strategy, launched amid the integration of Dufry and Autogrill, and its principles. A key target, he noted, is to harness the group’s capabilities in travel retail, convenience and F&B to pioneer hybrid concepts, creating a more holistic end-to-end interaction with the customer.
Mackay cited examples of this in action in contracts that span duty free, speciality retail and dining at Bali International Airport, Belgrade Airport and Kempegowda International Airport Bengaluru.
He also encouraged new types of partnership to advance the industry and its reputation.
“The current model of partnership models is pretty stale. The focus on the short term, on the minimum annual guarantee and concession fees restrict innovation and investment.
“To foster sustained growth, we need to do things differently. Let’s consider long-term partnerships that give us time to test and experiment together with the airport.
“With the right collaborations and innovation, through hybrid concepts, we can create environments that the traveller wants to spend more time and money in.”
David Mackay: "Data shows spend per passenger in F&B is growing more in percentage terms than spend per passenger in retail"
FAB eZine
August 2024
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