Project Description

COMPANY BACKGROUND

Unlike other airport-related associations, the Airport Restaurant & Retail Association (ARRA) is an association dedicated solely to the interests of U.S. airport restaurateurs and retailers. We seek to work in partnership with airports and other aviation industry stakeholders to evolve a sustainable, flexible, and equitable business framework for concessionaires so that they can continue to do what they do best: providing outstanding food, beverages, merchandise, and services – along with great customer service – to the traveling public.

Since our formation in early 2020, ARRA has accomplished much on behalf of our members and the concessions industry. We have advanced the dialogue to evolve the airport-concessionaire business relationship and, in collaboration with other associations, realized $1 billion of federal rent relief earmarked for concessionaires. Please visit our website http://www.arra-airports.com/ to learn more about ARRA.

PROJECT BACKGROUND

Over the past 30 years, forms of street pricing became the norm at U.S. airports. Airports adopted these policies to supposedly assure passengers of “fair prices” at the airport – that the price at the airport is like off-airport prices. Whether the policies work for this purpose is research for another day. Rather, this project examines an underlying premise of street pricing – that the businesses of airport concessionaires are comparable to their street-side counterparts.

ARRA believes the premise is not true. Many aspects of an airport business are not like a similar street-side business: hours of operation, security, degree of unionization, logistics, and, of course, capital costs, to name just a few. Data to support this premise are lacking. For this project, we seek analysis of street-side versus on-airport restaurant and retail costs and operations. The ultimate objective is to advance the evolution of a sustainable, resilient, and fair business framework for airport concessions that reflects the economic and operational realities of their businesses.

METHODOLOGIES

• Synthesis of public research from agencies, associations, and consultancies and financial institutions (e.g., federal Department of Labor, Federal Reserve Banks, National Restaurant Association, investment bank research reports)
• Synthesis of media reports
• of Review public (and, possibly, private) restaurant and retail financial statements
• Confidential surveys and/or interviews with concessionaires (ARRA members)