Concession Program for the New Terminal at Kansas City International Airport Bringing the S pirit of Kansas City to the Airport 8/ 3/ 2019
The concession program is being planned and developed j ointly by KCAD and outside consultants Pat Klein –Airport Director Dave Long – Deputy Director Justin Meyer – Deputy Director Assisted by Alan Gluck – ICF , Airport Concession Management Planner Carrie S tapleton – Phillips-West Communications, President (local outreach) 2 8/ 3/ 2019
Today’s Presentation Introductions and Welcome Concession program vision and goals The Timeline What are concessions? Why does the concession program matter? Certification How to participate in the concession program About the big national firms 3 8/ 3/ 2019
KCAD proposes this vision for the airport's concession program A CONCES S ION PROGRAM THAT IS CUS TOMER-CENTRIC, PROVIDING A S ENS E OF PLACE, WHICH ENGAGES US EFUL TECHNOLOGY AND INTEGRATES A TRUE S PIRIT OF KANS AS CITY . 4 8/ 3/ 2019
KCAD used the vision to develop eight goals for concession program Opportunities for real local participation through a variety of means 1. No limits on how local operators participate in the concession program 2. Competition between concession locations 3. Prices for concession products must be reasonable 4. The concession program should be regionally inspired 5. The highest levels of customer service must be offered 6. The concession program should make use of cutting edge, useful technology 7. The concession program should be unique 8. 5 8/ 3/ 2019
Concession Timeline KCAD is starting early to allow consultation with the City Council on important issues, time to carefully consider proposals and time for the vendors to properly plan and execute their visions Allows time to do things right, without time pressure Nat ional S t ore Out reach S olicit at ion S elect ion development , Nat ional/ Local S t ore Terminal (2/ 19) Issued Process planning, Meet & Greet Const ruct ion Opening Complet ed permit t ing, Local (Lat e 2019 – (early 2023) (Lat e 2019) (2022) et c. Out reach early 2020) (12/ 2020) (7/ 19) (2021) 6 8/ 3/ 2019
A couple of notes about today We are here to talk about the concession program only The development of the concession program is overseen by the Kansas City Aviation Department (KCAD), a department of the City of Kansas City Their primary mission is to provide a convenient, well-functioning terminal building that facilitates transportation and connects to the National Airways S ystem Edgemoor is not involved in this effort The M/ WDBE goal does not apply to the concession solicitation Because of F AA rules, only ACDBE goals apply to this solicitation 7 8/ 3/ 2019
How local firms can be involved in the New Terminal concession program Operate concessions individually as a tenant or subtenant Joint venture With larger operator Multiple smaller firms working together S upplier of merchandise “ Made of KC” More about S uppliers of food products this later! S upplier of services S tore design S tore construction 8 8/ 3/ 2019
Food S ervice Concessions 9 8/ 3/ 2019
Retail Concessions 10 8/ 3/ 2019
S ervices Concessions 11 8/ 3/ 2019
Why is the concession program important? We all know the building will be beautiful But it is the concessions that make the airport truly “ Kansas City” The concession program will make an important statement by representing the best of the City and the region in brand, product and design National brands will be encouraged to make their locations unique through design and use of locally produced merchandise and ingredients, as well as local partners and operators
Airport Concession Disadvantaged Business Enterprise (ACDBE) Program The ACDBE program Federally-mandated program Create opportunities for business owners who have historically been under- represented in airport concession programs Goals are set by each airport Based on the number of operators who are “ ready, willing, and able” to operate an airport concession ACDBE goal for this proj ect is 16% Local M/ W/ DBE certification does not apply to concession operations, nor does it automatically qualify you as an ACDBE 13 8/ 3/ 2019
Requirements to be certified as an ACDBE Firm is 51% or more owned and controlled by one or more members of one of the ethnic or other groups described in 49CFR S ubpart D §26.67(a) which are presumed (rebuttably) to be socially or economically disadvantaged S omeone is not a member of one of those groups, but who can prove they are socially or economically disadvantaged can also qualify as an ACDBE Firm owners are U.S . citizens or lawfully admitted permanent residents Firm does not exceed $52.47 million average annual gross receipts over the preceding three years (some exceptions apply) Personal net worth of less than $1.32 million 14 8/ 3/ 2019
Airport Concession Disadvantaged Business Enterprise (ACDBE) Certification Need to be certified in your home state For Missouri, kcmo.gov/ humanrelat ions/ mwdbe-slbe-affirmat ive-act ion/ Application available online or from us For Kansas, kansascommerce.gov and search for “ ACDBE” Applications available online or from us For all other states, please search online for “ ACDBE” and your city or state or airport name If you are not in Kansas or Missouri and cannot find your state’s information, contact Alan Gluck ( alan.gluck@ icf .com ) for assistance There is no cost to apply for ACDBE certification Links to all Kansas and Missouri forms can be found on the flykci.com/concessions website 15 8/ 3/ 2019
Operating at an airport has both upsides and downsides Advantages of operating in an airport Market generally has above average income Travelers often have time on their hands S hopping and dining are entertainment A proven market that wants to shop/ dine However, there are certainly some disadvantages Operations up to 18 hours per day, 7 days per week, 365 days per year S ecurity requirements Construction of concession units at other airports tend to run between $700 - $1,000 per square foot or more 16 8/ 3/ 2019
Operating a concession as a sub-lessee with a larger national firm One (or more) large concession firm(s) will be involved in the concession program in one way or another KCAD has not yet determined how the concession program will be managed There may be opportunities to team with these firms to operate a concession location Each vendor will have to negotiate its own deal with the larger firm This would give an operator the chance to manage his/ her own business within the airport, with the support of the firm with which it has a contract 17 8/ 3/ 2019
Joint ventures are a way to pool resources while still having a say in the business The most common form of j oint venture is when a local firm partners with a national firm Generally, the national firm is the maj ority partner, although that is subj ect to your negotiations Agreement must specifically set out the rights and responsibilities of each j oint venturer Each j oint venturer must contribute the same percentage of capital as it has ownership share Each j oint venturer must complete its separate and distinct statement of work with its own employees for it to count as a j oint venture Each j oint venturer must have the same level of control over the organization as it has ownership share Joint venture agreements will be strongly scrutinized if they are submitted to ensure that they follow the Federal Joint Venture guidance If you don’ t really want to be involved in the day-to-day operation, consider licensing your concept 18 8/ 3/ 2019
Joint ventures are a way to pool resources while still having a say in the business A second form of j oint venture would be an association of multiple smaller firms put together for the purpose of obtaining an airport contract For example, a local developer could team with multiple local food service and retail operators and a local source of capital in a j oint venture to be overseen by the developer with management participation by the other members Would allow multiple firms to participate, bringing the best of many local operators A very good way to bring sense of place and a true taste of Kansas City to the program May combine multiple local and national brands Agreement will have to lay out governance S trongly urge any companies interested in this to contact a lawyer 19 8/ 3/ 2019
S o, I don’ t operate a store or restaurant – how do I participate? S uppliers are an important way of being part of the KCI concession program S uppliers of goods, supplies and merchandise are very important and can be certified as ACDBE’s These materials are very important to the airport in establishing the “ sense of place” We will encourage all airport concessionaires to use products grown, processed and produced within the Kansas City region We intend that this program will be “ MADE OF KANS AS CITY” 20 8/ 3/ 2019
Recommend
More recommend
