Airports merge travel, tourism, and hospitality industries - HMSHost

Spring 2010Making the Traveler’s Day Better ®Airportsmerge travel,tourism, andhospitalityindustriesAs destinations around the globe reach out to business and leisuretravelers with compelling reasons to visit, airports now findthemselves competing on that same playing field.No longer simply a point of departure and arrival, airports havebecome a factored experience in determining travelers’itineraries: “Do I brave the hustle-bustle of the main, municipalairport — offering the most options for flight schedules — orventure out to one of the smaller, more distant fields with lesscongestion, a few less flight choices, and easy parking?”Travelers have other criteria for selecting an airport: “Whichairport is the most inviting and attractive? Where do I want tospend my time before/between/after flights? Where can I getthe most done? Where can I continue to dine and shop the wayI usually do — or take the opportunity to try somethingextraordinary?”Recently, airports have embraced trendier designs and diningand shopping concepts that add to a pleasurable travelexperience. Today, they are moving into ever more-advancedconcessions that reflect their host cities and regions. Theyare becoming indelible parts of the destinations they serve,with branded personalities that customers anticipate as part oftheir trip.We’ve realized that travelers don’t stop being who they are justbecause they’re traveling. They still have personal preferences— and with today’s travel realities, they find themselves withenough dwell time to express and seek out those preferences.Which airports do you prefer? I’d venture to say your choicesaren’t always about a hamburger, a newspaper, and a seatassignment. But more about “where do I want to be?” for anhour or more.At HMSHost, we dedicate ourselves to making the traveler’sday better in new ways that are as surprising as they arerewarding. In this spirit, I invite you to preview our new adcampaign. In the coming year, look for it to feature many of thenew HMSHost food, beverage, and retail offerings and brandsthat are enhancing the terminal experience and appealing totravelers and airport authorities alike. H See our first new ad on page 3.Elie W. Maalouf, President & CEO, HMSHost6905 Rockledge DriveBethesda, MD 20817hmshost.comAn Autogrill Company

"We are proud of all theassociates at HMSHost for whatthey do each day to support theefforts of Children's MiracleNetwork and our 170 hospitals— the funds they raise tosupport sick and injured childrenin their communities,” saidScott Burt, President and CEO,Children's Miracle Network.HMSHost High NotesFunds raised by HMSHost help find cures forthe most difficult childhood conditions.For more than 20 years,HMSHost has supported theefforts of Children’s MiracleNetwork (CMN) to care forand impact the lives of millionsof children. In addition toraising funds through travelerdonations to CMN canistersplaced at HMSHost food andbeverage locations in airportsthroughout the United States,HMSHost sponsors an annualgolf tournament through itsoperations in Phoenix SkyHarbor International Airport.Last year’s 23rd Annual Sky Harbor Invitational Golf Tournament inPhoenix was yet another successful year in the event’s history, bringingthe Tournament’s grand total to over $5 million raised for Children’sMiracle Network’s Phoenix Children’s Hospital and the SouthwestAutism Research and Resource Center. The fundraising effort is a jointpartnership between HMSHost and Marriott International. A total of 20HMSHost associates participated in the tournament with an additional25 providing event support.International SpotlightAcross the Pond…George Best Belfast City Airport in Northern Ireland has just opened anew Departures Lounge that can handle 12,000 passengers per day. AndHMSHost is there to serve them, as part of a ten year, food and beveragecontract awarded to HMSHost Europe.Travelers are now enjoying:Bushmills Bar, delivering legendary Irish hospitality with a selectionof this popular brand’s malt and blended whiskies, as well asinternational wines.Espression by Lavazza, a new café specializing in unique coffee blendsand a savory menu of hot, cold, and sweet dishes.In Tampa, Florida, overthe past 20 years,the Annual HMSHostInvitational Golf Classichas raised a total of$600,000 to benefit AllChildren’s Hospital andthe Cambridge Lab ofThe Annual HMSHost Invitational Golf Classic benefitsthe ALS TherapyAll Children’s Hospital and the Cambridge Lab of theDevelopment Institute.ALS Therapy Development Institute.The Institute is thelargest ALS research lab in the world — a nonprofit biotech whose soleobjective is to defeat Amyotrophic Lateral Sclerosis, commonly calledLou Gehrig’s Disease, a fatal condition that currently afflicts 30,000people in the U.S. alone, and ten timesthat worldwide."For the past six years, Jeff Yablun,Beverly Irwin, and HMSHost’s team atTampa International Airport haveworked unselfishly to raise a whole lot of money for research towardfinding a cure for ALS. On behalf of all of us at ALS TDI and the entireALS community which benefits from our work, thank you for yourdonations, your trust, and your friendship," said Lou Kobbs, SoutheastRegion Director, ALS Therapy Development Institute. HDown Under…The Coffee Club is known for ‘good food, great service, and excellent coffee.’Bushmills’ menu offers traditional favorites such as Irish Stew,Shepherd’s Pie, and Fish and Chips — all in an authentic pubdécor that leaves no doubt about “sense of place.”At the Cairns Airport Domestic Terminal in Queensland, Australia,HMSHost recently opened The Coffee Club — the popular brandedfranchise with some 220 stores throughout Australia and New Zealand,yet new to airports. In addition to its extensive menu of exotic coffees, TheCoffee Club offers its signature hearty breakfasts, sandwiches, salads,wraps, pizzas, and dinner entrees. The success of The Coffee Club’sopening in 2009 was a testament to its existing popularity, as well as apreview of its potential as a concourse meeting and dining destination.Cairns Airport Pty Ltd Chief Executive Officer, Stephen Gregg,welcomed the addition of The Coffee Club as the latest outlet inthe airport’s $200 million Domestic Terminal Redevelopment.“I congratulate HMSHost and The Coffee Club on the attractivepresentation of this new venue, which is proving very popular withairport users,” Mr. Gregg said. HCustomerF E E DBAC K >I’ve eaten at the Denver ChopHouse at DENthree times in the past month. I love the food, theenvironment, and mostly the staff. It is a great getawayfor the weary traveler, which I am. (As a professionalspeaker, I have 2.8 million miles with Delta alone.)G.B. KimbleI especially enjoy G.B. who is a delightful waiter. I recommend the restaurant toeveryone I know who is going through Denver. Thank you for making the travelexperience much more tolerable these days. The Denver ChopHouse is the firstbright light I've found since 9/11 made the entire experience challenging.Thank you. Tamara HallCalling all fans on FacebookWe recently launched our FacebookFan Page to communicate “real time”with customers about what HMSHostis doing to make the traveler’s daybetter at airports. We hope thishelps travelers plan purchases aheadof their trip and have a more relaxedexperience. Visit HMSHost onFacebook and become a Fan.2 |

Roundtableon theRunwayGoodtVince ModicaSenior Vice PresidentConcept Portfolio, Supply Chain& StandardsSenior food and beverage experts from HMSHostdiscuss brands, trends, travelers and successfulconcourse operationHow do you go about the process of learning andlaunching a new brand for an airport location?How does HMSHost develop and attract brandnames as a licensed partner for an airport location?Bill CaseyVice PresidentFood & Beverage Concept PortfolioDWDWLDWe take a team of managers to a brand’s streetsiderestaurants to watch and learn. We see how they runtheir kitchens, and learn their plating standards andservice culture. We need to be even more exacting inan airport, where service needs to be very fast butstill precise.For our celebrity chef concepts, we work collaborativelywith these kitchen superstars to bring their menus tolife in airport stores.Isn’t that tricky?We’ve been doing it a long time and we collaboratein an atmosphere of total respect. We have a lot tolearn from each other, and it’s actually a lot of fun.As a chef myself, I get personally involved and loveto find out how they do things.Keep in mind, we never stop tweaking. We have a“menu optimization” process that’s very sophisticated.It helps us keep popular items on the menu while weconstantly replace any that need updating.What are the special challenges of running asuccessful airport restaurant?“Every airport is different. Obviously, we havesmaller spaces than streetside operations whichimpact a lot of areas such as customer seating, foodpreparation, breadth of menu, and storage. So wehave to manage our inventories and deliveries basedon these space constraints. The security process isunique to airports, and drivers must obtain securityclearance to deliver within very specific timeframes.Also, our vendors may need extra insurance todeliver at airports. Our traffic tends to surgedifferently than streetside operations, too. Forinstance, most of our airport restaurants have bigbreakfast segments, and holidays are high volume.We know these patterns and plan accordingly.FSBCBCFSAGMany of us here have long-term relationshipswith top brand decision-makers. We have accessto these managers due to our size, reputation, andexperience.I might pick up the phone, they might call us, or aconsultant might make the connection. In spite ofour size, we’re not interested in just opening thesame brand in lots of airports. We put extensiveresearch into developing the right concept in theright location, and that might be limited to a localor regional presence. We also approach ourexisting brands with ideas for variations on theirstreetside themes.Any examples?For one, we’re working on a Whopper Bar withBurger King, where you can enjoy a beer and aWhopper at the same time.There’s an idea. Which brings up another question:How does a well-known restaurant brand come totrust its airport locations to another operator, withso much at stake?This is actually why HMSHost is the operator ofchoice for so many brands. Our track record withso many restaurants, in so many airports, reassuresour partners that we know how to bring theirconcept to the concourse dynamically andsuccessfully, with all brand values intact.We pride ourselves on our partnerships. We’re alwaysable to work through any challenge before it becomesan issue, with win/win outcomes. Our brandsunderstand that we’re both working towarddeveloping thriving airport locations. Even though anairport concept might call for some new thinkingcompared with the brand’s streetside stores, we alwayswork collaboratively so everyone’s on the same page.Linda DunnVice PresidentSupply Chain & AnalysisDave WidmerSenior DirectorFood & Beverage, Culinary StandardsAtousa GhoreichiSenior Director of MarketingNorth AmericaVMHow many brands does HMSHost currentlyrepresent? Which have been with you the longest,and which are the newest?We have about 200 food and beverage brands in ourportfolio now. Burger King and Pizza Hut wereamong the first. The newest brands include ourone-of-a-kind local and regional concepts, and ourcelebrity chef restaurants.SBHow do you manage quality control?We have made quality assurance everyone’sresponsibility, not just a department. Traveling hasa way of making people tense. That, coupled withthe high volumes of customers our restaurants serve,has the potential of magnifying any kind of problem.So we have specific quality assurance guidelines forevery aspect of our business — inventory control, thekitchen, for servers, and so on. By giving everyonein our company their own quality assurance agenda,we actually simplify the daunting food complianceregulations into a more manageable process.Obviously, compliance is crucial — but in the end,quality control is about customer satisfaction.(next page)Frank SickelsmithSenior DirectorAdult Beverage & Concept DevelopmentSheila BlissDirectorQuality Assurance

Roundtable continuedDenver ChopHouseDenver International AirportDWSheila makes sure we see all customer comments thatpertain to our specific areas. We respond quickly toeach customer email, usually within 24 hours if notimmediately.expressing more interest in understandingingredients, nutritional content, and the healthbenefits of their food; I believe that trend willcontinue.”Stone Rose Bar & GrillJFK International AirportWolfgang Puck ExpressIndianapolis International AirportVMDWAlso, we have a pretty evolved “mystery shopper”program. And don’t forget, executives who work forour branded partners themselves travel a lot. Theylove to “pop in” to our airport locations just to checkout how things are going. At any time, our folksmight be serving the president of the restaurantrepresented by the logo on the server’s uniform!We’re always on our toes.Going forward in airport food concessions, what doyou see as the next big thing?Specialization will continue to evolve. Today’stravelers want more than the basics of fast food,newspapers, and coffee — which we already offer.They have individual preferences, and they expectour airport restaurants to accommodate them.They choose their meals based on lifestyle, so they’realways drawn to a specific ethnic category, or anorganic restaurant, or a brand known for itssustainable practices, and so on. These are thechoices they make streetside, and they won’tcompromise just because they’re in an airport.Today’s travelers are more mobile than ever. Manyhave been around the world and have developed ataste for regional recipes and international flavors.Why shouldn’t they be able to find those dishes inairports as well? Our new, one-of-a-kind restaurantconcepts, inspired by our celebrity master chefs,bring exotic menus to life that satisfy everydemographic. Just because customers are on thego is no reason to limit their food choices.AGFSSBTechnology will play a big role. Our digital menuboards are just the beginning. We already havekiosks in place that let travelers order their meals andpay at computer stations — then pick up their to-goorders at the counter. Lots of customers tell us theyprefer this kind of service option — no lines. Acoming tech wave we’re focusing on is a cell phoneapp that lets travelers do all that from their cars, orthe jetway.We need to stay nimble and resourceful. As otherconcessionaires learn from our initiatives, we need tostay a step ahead with our concept introductions andinnovations. This means bringing in more local andregional restaurants — intact with all their streetsidecharm — yet managed to deliver profits in thevolume-intense whirlwind of airport concessions.Four of you have been with HMSHost for 20 yearsor more. Isn’t that unusual in today’s businessenvironment?Absolutely. But we haven’t always had the samepositions or areas of responsibility. We’ve all seenlots of different departments and specializations atHMSHost. And that’s all good. Since there are somany moving parts in the airport concessionsbusiness, it helps things run smoothly when eachof us understands the entire process.Thanks, folks — I see what you mean, Sheila, about“a lot of moving parts” to the travel concessionsindustry.LD“Today’s traveler knows more about food — andnutritional content — than ever before. Customersrely on the labels on our pre-packaged items. Severallocal governments have passed new regulationsaround nutritional disclosure. Customers areSBTrue — but don’t forget HMSHost has been inthe business for 100 plus years. We’ve learned afew things! HGladstone’s SeafoodLos Angeles International AirportStarbucks CoffeeNorfolk International Airport“Specialization will continue to evolve.Today’s travelers want more than thebasics of fast food, newspapers, andcoffee … they expect our airportrestaurants to accommodate them.They choose their meals based onlifestyle, so they’re always drawn to aspecific ethnic category, or an organicrestaurant, or a brand known for itssustainable practices.”— Vince ModicaHMSHost F&B Concepts, Marketing, Supply Chain and Standards Group

From page 1Look for the new HMSHost ad campaign in upcoming trade publications.In this three-page version, the first page (left) recalls a time when airporttravelers were more impressed with the sights and sounds happeningoutside on the tarmac than with concourse concessions. Turning the page(below), a two-page layout reveals some of the many ways HMSHost ismaking the traveler’s day better with “indoor” attractions.Carrabba’s Italian Grill ®, Tampa International AirportOnce, an airport’s major attractionswere outside the terminal.An Autogrill CompanyNot so today.As a worldwide leader in the travel concessions industry, HMSHost is transforming airports withdynamic new concourse amenities. No wonder so many travelers wish they could linger just alittle longer. For more information, contact busdev@hmshost.com, visit www.hmshost.com or findus on Facebook.Introducing the Airport Newsstand 2.0In the rapidly changing landscape of airport retail concessions, perhapsno concept has evolved more than the airport newsstand. HMSHost,through rigorous research into traveler needs, and after extensivedesign exploration, has developed a new generation of technologicallyadvanced newsstands that elevate the “magazine and sundry store”into an essential and dynamic destination for today’s discerningairport passengers.As you might expect, these concepts don’t much resemble thenewsstands of yesteryear. At Twin Cities News Connection atMinneapolis–St.Paul International Airport, for example, travelers areinstantly drawn to the LCD “ticker tape” that runs around the walls ofthe store, providing real-time information and headline news. Flatscreen monitors, positioned throughout the store, feature direct feedsfrom national sources such as CNN, MSNBC Headline News, and TheWeather Channel. In addition, HMSHost’s custom Travelers InformationNetwork keeps travelers informed on special local and regional events,airport retail promotions, and much more.program gives newsstand shoppers afree seventh magazine for every sixpurchased. Buy Before You Fly is aprogram that reminds travelers to pickup their in-flight snacks and readingmaterials before boarding. Postcards isa shop-within-a-shop offering craftedgifts, premium treats, and regionalsouvenirs.Joan Ryzner, HMSHost’s Senior Vice President, Retail Operations,says, “The newsstand is the single planned retail stop in everytraveler’s day. Whether they want a magazine, a bottleof water, or they want to catch up on today’s breaking stories,our new generation of newsstands is the stop they always make.”Even in smaller newsstand spaces,such as Global News Express atHartsfield–Jackson Atlanta InternationalAirport, HMSHost combines digitaldisplays with a comprehensiveselection of local, regional, and national publications — all presented incontemporary environments that look and feel like the local culturesthey represent.Another distinctive trend has been to abandon the “cookie cutter” designapproach to the newsstand. At HMSHost’s exclusive Sunset Newslocation at Mineta San José International Airport and Southern LivingNews at Hartsfield–Jackson Atlanta International Airport, customersexperience store environments that immediately reflect area lifestyles.Popular regional magazines, appropriate foreign language newspapers,and books by regional authors are displayed with top 20 bestsellers.These stores give travelers a true “sense of place” and lend a dash of localpersonality to their respective airports.Today’s newsstands are designed for visual appeal and engineered forshopping efficiency. HMSHost has employed sophisticated traffic flowresearch to create store layouts that establishseparate “hurried” and “dweller” zones.Here, the magazine and newspaper section issegregated from the snacks and sundries, asis the gift section. The resulting floorplans allow wide open aisles for leisurelyshopping — without forcing the hurriednewspaper buyers to bump luggage with thegift browsers.Special promotional programs have beendeveloped to generate impulse sales andrepeat purchases. HMSHost’s MagazinePlusFor decades, the airport newsstand was a place to grab a newspaper anda candy bar while running to your gate. While this purpose may neverbecome obsolete, the newest newsstands serve a much broader range ofcustomer needs, offering a destination for shopping, staying connected,browsing, making lifestyle purchases, and choosing from an array ofhealthy snacks.The ultimate objective is to elevate “the corner newsstand” to an airportdestination that welcomes travelers with unique, inviting environments,and keeps them informed during extended dwell times and dynamicallyengaged for purchase opportunities.The new wave of HMSHost’s airportnewsstands includes branded stores FOXNews Channel and CNN Newsstand;proprietary stores News Connection,Landmark News, Bayfront News and NewsCentral, among others; and a growing listof publication-partnered stores, such asOakland Tribune News, Southern LivingNews and Sunset News.Never has one airport concession hadso many ways to make the traveler’sday better. H| 3

TransportastingsChef Lorena Garcia lights up Bacardi Mojito BarTravelers at Miami International Airport will soon be treated to a celebration of Caribbean flavors— right in the South Terminal. The Bacardi Mojito Bar brings a festive selection of specialtycocktails, a delicious menu of healthy and original Caribbean dishes, and a lively ambience onlyLatina celebrity chef Lorena Garcia could inspire.Known to Miamians for her popular TV cooking show and high voltage personality, Chef Lorenaexplains the secret to her culinary fame. “The kitchen is all about love, and so are the recipes I create.The kitchen is where friends and family gather. That’s where the flavors and the aromas and the funall begin. It’s the warmest, happiest part of any house.”Bacardi Mojito Bar will feature a menu that is as diverse as it is delicious. “Our recipes come from myCaribbean travels in combination with my Latino heritage. Many of the menu items will be made toChef Lorena Garcia believes people can eatorder. We’ll use whole wheat instead of white flour, with low sugar and low fat, prepared withhealthy and hearty at the same time. Bacardiwholesome, natural ingredients from South Florida’s local markets. Miami is my own backyard!”Mojito Bar introduces Miami International Menu highlights include seasonal tapas, a Caribbean Jerk Chicken Sandwich, Shrimp Ceviche, andAirport travelers to her unique recipes in a Lorena Garcia Cocina Salad — served at tables or at the bar. A special to-go area will feature astriking, high design setting.variety of salads, sandwiches, and fresh juices for travelers who won’t compromise on their foodjust because they’re in a hurry.“This is the first time I’ve been involved with an airport location. Where else could we meet so many new customers every day? HMSHostunderstands our concept and has supported me 100 percent. They’re as excited as I am about Bacardi Mojito Bar.” HConversationsWith Tim Slaney, HMSHost General Manager atHartsfield-Jackson Atlanta International Airport (ATL)How long have you been GM for HMSHost’s food and beverage operations at the world’s busiest airport?TS: I’ve been with HMSHost since 1999, and here in Atlanta since 2002.What are your biggest challenges running concessions at an airport with so much activity?TS: Logistics keeps us on our toes. Our stores and restaurants only take deliveries between 10PM and 5AM, to keep the tarmac clear forflights. And with so many people in every concourse, we can do very little maintenance during the day. If we need to change a light bulbor use a ladder, it happens at night. That’s why 100 of our 880 employees only work the night shift.Also, due to our growth here in Atlanta, storage space is very limited. Our restaurants need to manage their inventories on a daily basis.There's never a dull moment here at the world's busiest airport. Fortunately, everyone at ATL knows their job, and the whole facility isremarkably well run.What’s your favorite part of the job?TS: Call me old school, but I love to walk the concourses and talk directly with customers, to make sure things are running smoothly. I usedto wear a pedometer, and figured I sometimes averaged almost six miles per day.Has new technology affected the way you work?TS: Absolutely. Since I have my email and phone number on every receipt, I get several messages every day from customers.Once, I heard from a customer who was lamenting spilled coffee on his shirt. I hustled over to his gate and actually met him withinminutes of his email — and arranged to take care of his cleaning bill. He was amazed.Another change — our new digital menu boards, now in almost half our restaurants. Customers can see pictures of menu items, orderelectronically, and pick up their meals at check-out. Since our boards ask for upgrades automatically, we’ve seen a five per cent jump inaverage order spending. The vast majority of travelers like to order this way.Besides technology, what other changes have you seen?TS: Customers seem more appreciative of great personal service. Traveling today can be stressful, and I get so many emails from passengerswho love it when one of our employees does something special for them.As you’d expect, as travelers spend more time in airports, we find ourselves working longer days. Our people stay until the last plane takesoff, which might be 1 a.m. or later. When that happens, we guarantee them a free taxi home. HHOST Hot TopicsHMSHost teams with American Red Cross to raisemore than $165,000 for Haiti relief˛Within a week after the Haiti earthquake, HMSHost's retail divison created a special code for use at checkout so customers using a credit cardcould easily donate $1 or more at the point of purchase. Many of HMSHost's food and beverage locations used canisters for collection pointsas well. All of the airport efforts were directed to the American Red Cross Haiti Relief fund.HMSHost also procured a copy of the Ad Council's PSA for Haiti, featuring First Lady Michelle Obama, and aired it on the TravelersInformation Network — the HMSHost channel featured on TV screens in the company’s retail newsstands and bookstores. The campaign andcommunications ran through March 31. H