SAUDI ARABIA. A star-studded line-up of the world’s most powerful travel foodservice providers will be on show in future at King Khalid International Airport (KKIA) after Riyadh Airports Company (RAC) awarded 25 locations across its international terminals 1, 2 and the T1-T2 Link (currently under construction) after a hotly contested open tender.
As reported, RAC issued a series of tenders packages earlier this year offering a variety of sites, ranging from 35sq m to 667sq m in prime spots within T1 and T2 as well as T1-T2 Link.
In a global exclusive, The Moodie Davitt Report can reveal that five concessions have been awarded, embracing a comprehensive coffee offer (premium, speciality and Arabic), fine dining, premium and fast food, and grab and go. T1 and T1-2 Link is expected to open around year-end; T2 will be under development for 12 months after T1 opens.
The food & beverage awards – all for five-year terms – will be followed soon by a wide range of specialist retail, luxury, lounge and foreign exchange contracts across the three spaces. The commercial awards are part of a comprehensive makeover of the Riyadh gateway.
Three sector powerhouses – Avolta, Lagardère Travel Retail and SSP – have been awarded contracts covering multiple locations while powerful Riyadh-based business Olayan Food Division Company has won a concession in the Mezzanine T1 Link.
The various offers include a host of internationally renowned brands, several making their debut in the Saudi airport sector. Collectively, they represent a profound transformation of the Riyadh gateway’s food & beverage proposition with an offer that straddles multiple sub-sectors and price points.
The intense interest in the tender from the industry’s biggest players also underlines the huge potential they see in one of the world’s fastest-growing tourism sectors – and certainly its most ambitious.
All this is being driven by Vision 2030, the government’s transformative economic and social reform blueprint that is opening Saudi Arabia up to the world and within which tourism – sustainable and regenerative – plays a pivotal role.
Riyadh Airports Company Chief Commercial Officer Abdulaziz Al-Asaker commented: “This is a transformational moment for King Khalid International Airport. We are absolutely delighted with the response to our carefully crafted mix of tender packages. We want to give our passengers the true guest experience they deserve and as a result we asked bidders to bring their A games to the Kingdom.
“I am proud they have delivered exactly that and excited we attracted the commitment of the sector’s biggest and best players. But we don’t stop there – the development of King Khalid International Airport continues apace and we look forward to revealing further exciting commercial partnerships in the weeks ahead as we continue to seek the optimum expression of Saudi hospitality for all who fly into and out of the gateway to Riyadh.”
As reported, Abdulaziz Al-Asaker will be talking about the Riyadh and Saudi opportunity at The Trinity Forum on November 5-6 in Ho Chi Minh City. The event is owned by The Moodie Davitt Report and co-organised with Airports Council International (ACI) World and ACI Asia-Pacific & Middle East.
Here is a full run-down of the awards:
Package 1
Olayan Food Division Company will open Burger King, the world’s second-largest fast food hamburger chain, serving more than 11 million guests each year. The Olayan group has been involved in food services in Saudi Arabia and the Arab Middle East since the early 1990s, when the company acquired the Burger King franchise for Saudi Arabia and became the master franchisee for the wider region.
Package 2
This contract has been awarded to Lagardère Travel Retail, which will open a FIX outlet in the T1-T2 link.
FIX – notable for the reverse F in its logo – is a highly successful brand at Dubai International Airport (DXB) developed by HWH, which was acquired by Lagardère Travel Retail in early 2022.
It serves speciality coffee, fresh juices and seasonal dishes made daily from local ingredients. As in DXB, its contemporary design is likely to prove a hit on Instagram.
Packages 3 and 5
Avolta, the travel retail super force created through the combination of Dufry and Autogrill (parent of HMSHost) in 2023, has triumphed in Packages 3 and 5.
In Package 3 it will offer KKIA travellers an alluring mix of concepts. They include Wolfgang Puck Kitchen + Bar – a first for a Saudi airport – and a localised concept called Dallahs Coffee in the T1-T2 Link, offering an authentic taste of Saudi food culture, with Arabic coffee, dates and sweets.
In the Mezzanine area of the T1-T2 link Avolta will open Giraffe, a family casual restaurant concept that has proved hugely successful in many airports. These include Heathrow, Birmingham and Manchester in the UK; Barcelona, Bengaluru, Doha, Dubai (2) and Malaga (2).
Avolta will also operate a food court called Al Sufra Food Collective as part of Package 3. This will feature a diverse culinary mix including Karama, an Arabic offering; Taste of India; Slim Chickens; and a Mexican outlet called O’Tacos.
In Package 5, Avolta brings another cluster of top names to the KKIA F&B proposition. In T1 it will introduce Jones Express, Costa and Hudson Café; while in the T1-T2 Link it will feature Jones the Grocer. The offer is rounded off in T2 with another Costa and premium dining offer L’Eto (also a first for the Kingdom’s aviation sector), a renowned international restaurant chain famed for nutritious healthy food and exclusive desserts.
Package 4
SSP has won Package 4, pledging to deliver a mix of six well-known concepts and brands across T1, T2 and the T1-T2 link.
The company will introduce two Pret outlets (T1 and T1-T2 Link); Caffe Nero (T1); Pizza Express (T1-T2 Link); Italian coffee concept illy (T2) and French bakery Maison Kayser – all proven names internationally that will considerably enhance consumer options at KKIA.
Retail contracts to follow
Following the award of the food & beverage contracts, attention moves to the T1, T2 and T1-2 Link retail concessions. KKIA will soon be awarding contracts covering 12 spaces including lounges, pharmacy, travel essentials and luxury.
The Moodie Davitt Report is providing exclusive comprehensive coverage of the redevelopment of King Khalid International Airport, culminating in a major year-end on location report. ✈
TENDER ALERTThe Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport or other travel-related infrastructure revenues, simply email Martin Moodie at Martin@MoodieDavittReport.com. We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately. The Moodie Davitt Report is the only international business media to cover all airport or other travel-related consumer services, revenue-generating and otherwise. Our reporting includes duty free and other retail, food & beverage, property, passenger lounges, art and culture, hotels, car parking, medical facilities, the internet, advertising and related revenue streams. Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage. |
