2017 CONCESSIONS RFP

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1 2017 CONCESSIONS RFP Minneapolis-St. Paul International Airport Metropolitan Airports Commission 1

2 INTRODUCTIONS The MAC Concessions Team Eric Johnson, Director, Commercial Management & Airline Affairs Liz Grzechowiak, Assistant Director, Concessions & Business Development Matt Grimm, Manager, Concessions & Business Development Kate Webb, Manager, Contracts & Proposals Isabella Rhawie, Manager, Concession & Business Development 2

3 WELCOME TO MSP! MSP is one of the nation s busiest airports with over 35 million passengers per year. MSP is an international airport, a hub for Delta Air Lines and a gateway to Minnesota and the Upper Midwest region. Additional information about MSP is available at MSP is owned and operated by the Metropolitan Airports Commission (MAC). 3

4 WHAT IS THE MAC? WHAT IS THE MAC? MAC is governed by a board of 15 Commissioners Eight metro Commissioners appointed by the Governor One appointed by St. Paul Mayor One appointed by Minneapolis Mayor Four Governor appointed Commissioners from Greater Minnesota One Governor appointed Commission Chairperson. MAC owns and operates seven airports in the metropolitan area Minneapolis-St. Paul International Airport (MSP) Six reliever airports: St. Paul Downtown, Flying Cloud, Crystal, Anoka County-Blaine, Lake Elmo and Airlake 4

5 TERMINAL 1-LINDBERGH MAP 5

6 TERMINAL 2-HUMPHREY MAP 6

7 AIRLINES REPRESENTED Airlines at AT MSP MSP 7

8 Nonstop Service to 142 Destinations: NONSTOP SERVICE TO 132 DESTINATIONS Rank Name Population (millions) Nonstop Markets 1 New York Chicago Atlanta Dallas - Ft. Worth Houston Miami - Fort Lauderdale Denver Washington D.C - Baltimore Los Angeles Charlotte Minneapolis St. Paul Philadelphia Detroit San Francisco - Oakland Orlando Boston Seattle Las Vegas Phoenix Salt Lake City Tampa-St. Petersburg St. Louis Portland San Diego Kansas City

9 PASSENGERS DEPARTING BY TIME OF DAY 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1, Sunday Monday Tuesday Wednesday Thursday Friday Saturday 9

10 Airline Rankings at MSP AIRLINE RANKINGS Rank Airline 2015 Passengers 2015 % Market Share 1 Delta 25,844, American/US Airways 2,244, Sun Country 2,051, Southwest 1,884, United 1,567, Spirit 1,029, Frontier 453, Alaska 193, Air Canada 82, Air France 60, Icelandair 56, Condor 10, Great Lakes 8,

11 ENPLANEMENTS Annual Enplanements MSP Enplaned Passengers Thousands 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2, Terminal 1 14,982,312 15,021,860 14,890,223 14,904,774 15,206,924 16,193,854 Terminal 2 1,285,327 1,519,421 1,679,606 2,030,179 2,325,882 2,079,595 Total Enplanements MSP 16,267,639 16,541,281 16,569,829 16,934,953 17,532,806 18,273,449 11

12 Millions $250 MSP TOTAL CONCESSION SALES $200 $182 $187 $150 $141 $145 $151 $157 $168 $100 $50 $

13 CONCESSION SALES BY TYPE Millions$200 $180 $160 $140 $120 $100 $80 $60 $40 $20 $ Retail $29,286,342 $30,104,828 $30,341,114 $32,884,736 $34,482,333 $35,199,920 $35,147,207 News $19,337,704 $19,351,813 $19,295,351 $17,717,068 $18,043,027 $18,188,316 $18,569,898 F&B $92,602,701 $95,322,397 $101,428,255 $106,591,221 $115,884,898 $129,032,670 $133,663,138 13

14 SALES PER ENPLANEMENT $12 $10 $8.77 $8.90 $9.13 $9.49 $9.94 $10.40 $10.25 $8 $6 $4 $2 $

15 PASSENGER DEMOGRAPHICS MSP Passenger Gender Female 51% Male 49% 15

16 PASSENGER DEMOGRAPHICS MSP Passenger Age 4% 2% 7% 28% 15% 11% 10% Age Age Age Age Age Age Age Age % 16

17 MSP PROGRAM RECOGNITION 2016 ARN Nominations! Airport with the Best Overall Concessions Program Airport with the Best Customer Service Airport with the Best Program Design Airport with the Best Concessions Management Team June 2014, Surdyk s Flights Best Airport Wine Bar FAB Awards March 2014, Uptown Minnesota, operated by St. Croix Promotions & Retail, Inc., won Best New Specialty Retail 2014 Best Overall Concessions Program ARN 2013 Best Concession Program Design ARN 2013 Best Food and Beverage Program in North America ACI 17

18 MSP TOTAL CONCESSION AREA 18

19 CURRENT CONCESSIONS IN PHASES I & II 19

20 CONCESSIONS OPPORTUNITIES PHASE I 20

21 CONCESSIONS OPPORTUNITIES PHASE 2 21

22 RENT TERMS Rent Structure: MAC staff assign Minimum Annual Guarantee (MAG) for each leased batch Bidders propose percentage of gross revenues Percent Rent may vary by location within a leased batch Increase over time Increase at gross revenue break points Rent obligation greater of percent rent or MAG Other Charges: Maintenance, Cleaning and Distribution fee Utility fee 22

23 EVALUATION CRITERIA PHASE 1 EXAMPLE Merchandising, Concept, & Design Plan 400 Points Financial Plan 300 Points DBE Plan 100 Points Management & Operations Plan 400 Points Total Possible 1,200 Points Interviews may be requested for some or all proposals Review team members may finalize their scoring based on presentations / interviews 23

24 RFP TIMELINE Q1 2017: Request authorization to issue RFP and issue RFP Q1-Q2 2017: Issue RFP Q2 2017: Mandatory Pre Proposal Conference Q2 2017: Deadline for Submission Q3 2017: Recommendation of finalists Q4 2017: Finalize agreements Q Q4 2019: Build out 24

25 LET S DO THIS! Operators who share our passion and commitment to customer service. Operators who go beyond expectations to serve our customers with excellence, diversity and quality. Contribute to a well balanced program complimenting the recent development. Thoughtful balance of recognized national brand names along with local favorites to satisfy the needs and likes of various customers. Operators with the ambition and motivation to keep MSP a trailblazer in the retail and food concessions industry. 25

26 CONTACT INFORMATION AND RESOURCES CONTACT INFORMATION AND RESOURCES Information about MSP is available at Business opportunities at MSP can be found at: Information on the retail cart program at MSP can be found at: Opportunities/Retail-Cart-Program.aspx Assistant Director of Concessions and Business Development Liz Grzechowiak or

27 QUESTIONS? 27

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