How to achieve authenticity in local offerings

Commercially, airports will argue that their space is valuable (and it is) and that they need to generate returns on that space. Conversely, the operator’s primary concern on entering or operating in the airport is risk — the risk that their investment (capex and opex) will not yield a return. This fear applies to new starters, successful downtown operators, and traditional and experienced airport master concessionaires alike.

Obviously, any change in the existing model switches the risk/reward profile; by how much is ultimately dependent on the success (or not) of the outlet. But consider the following example. For an outlet generating US$2 million sales per annum, the combined profit pool for that outlet should be c25-35% — 60:40 in favour of the airport. Switching the model whereby the airport halves the concession (say from 20% to 10%) and invests in the infrastructure, but in return receives 50% of the profit for that outlet, yields the exact same profit-pool split.

Significantly contributing towards upfront fitout is a methodology adopted by many major office developers in order to lure desirable restaurateurs or brands. This, in turn, makes their development more desirable to prospective tenants who want the best for their employees.

I’m not suggesting that airport and office businesses have the same commercial drivers. I am suggesting that, in my experience, commercial flexibility has accelerated innovation and change, and this is necessary to promote successful localisation.

Assuming desire and commercial flexibility are in place, here are five recommendations to help promote the localisation agenda.

In our previous article in this series, we posed the challenge for airports to designate specific areas for local talent and invest in building F&B spaces where local operators could trade for a shortened period. Should the venue or concept become successful, they could be given priority for a long-term tenancy. Alternatively, airports could designate certain spaces for the promotion of emerging talent or concepts.

Existing airport operators could find local talent and invite them to their outlets to do a temporary takeover. A local chef could design the menu for a month, a local barista could promote their speciality coffees, and beer taps could be given to a local craft brewery.

At the very least, this breaks down the enigma of what it’s like to operate in an airport — both the pros and cons. At best, leveraging social media, local communities and international travellers alike will want to spend more time in that airport.

Portland International Airport has applied its own twist on the concept of ‘local’ and of showcasing local talent. The city of Portland has a legendary food-cart scene (CNN has declared Portland as home to the world’s best street food). The airport has reflected this via a rotating line-up of local food trucks serving anything from Cuban cuisine to waffles and Asian-Fusion fare.

“We have [food carts] all over our downtown and they offer a real Sense of Place for Portland, so why not bring them to the airport?”, said Portland International Airport Concessions Development Manager Abby Carey of the addition to the F&B offering.

Often ignored in the F&B stakes are opportunities at arrivals. Once passengers complete the (quite often) stressful task of clearing immigration and baggage collection, what is preventing the opportunity for a local cuisine offering to be given to incoming passengers (perhaps free-of-charge), or as part of the welcoming arrival experience that we very often see in smaller/island/holiday-led destinations?

Chicago O’Hare International leveraged the annual Taste of Chicago Music and Food Festival to offer free tastings and promotions, extending the Grant Park experience into the airport. This created a real buzz and feeling of ‘local’, but sadly ceased once the festival was over.

Personally, I love getting involved in a hands-on cooking experience when I visit a new country — it certainly adds to the authenticity of the travel experience and deeply immerses me in the unique flavours of that destination.

For travellers in transit who may have 3-4 hours to spare, what better way to offer a taste of what can be found beyond the airport walls than with an enticing local cooking class? You never know, it may just be enough to inspire them to come back.

It is common sense that airports are more often than not the first and last impressions of the country or city they represent.

I also believe that while food and drink offerings in airports have improved tremendously over the past decade, airports and the travel retail industry as a whole are still fighting a perception of mediocrity and, in most cases, lags behind the experiences that are available outside the airport in the city or country itself.

Gen Y and Gen Z are seeking more experiential elements to dining. They are also becoming more important in terms of purchasing power. However, they are known as a generation that share positive messages (often in the form of images) when it’s warranted and they are also a generation that don’t like to miss out.

If airports and operators can succeed with authentic localisation, the opportunity for upside is likely to be far greater than previously imagined.