Presented by: Randy Goodman General Manager Concessions -Houston Airports

December 3, 2012

Meeting Host and Presenting Sponsor

Houston is One of the Fastest Growing Regions in the United States

Meeting Host and Presenting Sponsor

Greater Houston Growth Trends

Population2005 2010 2015 2020 2025 2030 2035

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Houston Forecasted Growth in Population - 78.4 % by 2035Houston Forecasted Growth in Employment - 60.5% by 2035

Houston's Population Growth Rate of 2.46% is HigherThan The National Average of 0.97%

Houston AirportsWe exist to connect people, business, cultures and economies of

the world to Houston.

• George Bush Intercontinental Airport 40 million passengers annually

• William P. Hobby Airport 10 million passengers annually

Current Concessions Program• IAH Food & Beverage - 50 locations; annual sales over $72M • IAH Retail – 35 locations; annual sales over $25M• IAH News – 15 locations; annual sales over $18M• IAH Duty Free – 5 locations; annual sales over $9M• IAH Services – annual sales over $4M

• HOU Food & Beverage – 11 locations; annual sales over $28M• HOU Retail – 2 locations; annual sales over $1M• HOU News – 5 locations; annual sales over $10M• IAH Services – annual sales over $800,000

*FY 12 Sales - IAH does not include Terminal E

Best New Food & Beverage Concept (The Real Food Company) – ARN

Best New Food & Beverage Concept (Urban Crave) – ACI

Among the ten best airport bars in the world (Le Grand Comptoir) – AOL Travel

Best Food-Led Café Bar/Restaurant (Le Grand Comptoir) – FAB

Requirements for Future ConcessionsConcessions Master Plan (in process):• Existing concession program analysis (sales, revenue, and

space data performance standards)• Determine the Customer Base/Demographics/Wants • National and Local Market Analysis• Airport Industry Trend Review• Consumer Flow and Passenger Projections• Demand Analysis• Concession Plan and Strategy for the Future • Concession Business Terms• Phasing and Integration Plan

Concession Selection ProcessNew concessions are awarded through a competitive process (RFP). Key criteria that are considered in the selection process include:• Experience & Qualifications• Financial Capability• ACDBE Participation• Concept & Theme• Design & Quality of Improvements• Management, Operations & Marketing Plans• Fees to City: Review from a concessionaire’s perspective to ensure that the

program is feasible and that the business terms present a “win-win” scenario for both the City and the concessionaire

• Customer Service Program

Quality Concessions Monitoring Program• Mystery Shopper Program

Third party unbiased traveler’s view of interaction with the concession’s associates and the front of the house experience

Each customer connect point is shopped every month Shopper’s report is a recap of the traveler’s experience

• Concessions Quality Assurance & Observation Program In-house program for a deeper operational and compliance viewpoint

with focus the on Total Operation; Quality Assurance and Physical Plant Safety

An observation report is completed once a quarter on every location Observation reports facilitate improving the traveler’s experience

Challenges/Requirements/Opportunities Local management: Need local managers with a desire and

compassion for the food/beverage or retail business – Not the head cashier or bartender with the most seniority

Design & Permitting delaysWhat’s Behind Door Number 1? Physical Infrastructure Employee Parking ($60 - $70 average monthly rate)Badging Process ($50 new; $35 renew; 2-4 week process)Hours of Operations (standard)Market Basket/Street Pricing New Flight Schedules & Changing Passenger Flow

Thank You