London Gatwick Airport issues major food & beverage tender

The tender launch comes as Gatwick Airport plots ambitious medium- and long-term expansion {All images: London Gatwick}

UK. London Gatwick Airport this week issued a major food & beverage tender spanning six bars and restaurants in around 3,800sq m of space across its North and South terminals.

The concession opportunities in the South Terminal include restaurants across footprints of 309sq m, 320sq m, 547sq m and 790sq m, alongside a dedicated pub space of 647sq m. In the North Terminal, potential partners are invited to bid for a landmark pub unit spanning 1,203sq m. Combined, these units deliver around £65 million (US$88 million) a year in sales.

Brands operating in these spaces today include Wetherspoons (with bars in both terminals), Pizza Express, Wagamama, Pret A Manger and Itsu.

The airport company (a partnership between VINCI Airports and Global Infrastructure Partners) said its chosen partners will have the chance to be part of the anticipated long-term wave of growth at Gatwick.

This follows recent final approval of Gatwick’s Northern Runway Programme, after the completion of an eight-year legal and planning process. Plans for runway expansion sit alongside Gatwick’s existing £1.9 billion (US$2.6 billion) capital investment programme.

These projects will support a leap in passenger capacity from around 43 million in 2025 to potentially 80 million by the late 2030s, at the UK’s second-biggest airport by passenger numbers.

London Gatwick Head of Retail Stephane Geffroy said: “The second runway is coming down the track and is excellent news. This F&B project would have happened in any case but this is a sizeable opportunity for bidders to be part of our growth story.

“We are part of one of the most exciting aeronautical markets in the world and Gatwick’s ability to grow will deliver many opportunities.”

Bidders are encouraged to show their credentials around menu, technology and sustainability innovation

He added: “We are on a journey to create an even more exciting customer experience. We have already completed multi-million-pound refurbishments in both terminals, focused on opening up sight lines, ensuring easier circulation and giving access to seating, all in all focusing on creating a better experience. Now we are looking for partners that will bring our vision into F&B as part of the end-to-end journey we want to create.”

A key factor in selecting candidates will be their ability to enhance the diversity of the offer to cater for a wide range of traveller demands and aspirations.

“This is a journey that we already started on with our existing partners, and it will be an expectation to move that agenda further forward,” said Geffroy. He cited recent firsts at Gatwick, including UK airport debuts for Gail’s Bakery and chocolate to gelato concept Venchi. Fresh, healthy food brand Tossed is set to make its airport debut in the North Terminal in October, while popular soft drinks brand Fever Tree will begin trading from its own bar space in the South Terminal in coming weeks.

“We have shown how we can bring diversity into the offering,” said Geffroy. “These are all large units so we want operators that can manage various needs in one place.”

With an eye on the future and how travellers will want to engage with F&B, Gatwick Airport management is reimagining some of its restaurant formats.

Geffroy said: “We know that expectations are changing and we are responding. For example we have introduced ‘picnic tables’ with QR codes to allow ordering from various F&B partners in the vicinity. It works very well. It gives us the ability to expand the reach alongside flexible seating capacity. This is the kind of initiative that we expect partners to endorse and support.”

He added: “We also expect there will be technology to help manage flow and seating capacity and optimise the experience of the passenger. It all goes back to the experience of the traveller and that will be one of the judgement calls we make on the bidders. Is the experience going to be at the level we expect?”

Here too, an acceleration of the sustainability agenda is a core focus. The airport company has stated that Gatwick will become a net-zero location by 2030, ten years ahead of its previous commitment.

The airport’s second Decade of Change policy has set out ten sustainability goals to achieve by 2030, each one supported by an ambitious roadmap with specific timelines.

Geffroy said: “The growth plan is there, but to go there we need to be sustainable. And our F&B partners need to be on that path with us.”

Healthy fast-casual brand Tossed will soon open its first airport restaurant at Gatwick’s North Terminal; click here for more

That also includes working with local suppliers. Gatwick has a programme to encourage local producers to become part of its network with around 150 references from the region represented across retail and dining.

“We aim to present these partners with opportunities and invite F&B partners to meet them. It’s not always easy as F&B players have their own supply routes well established but it is something we welcome.”

Fast-casual focus

On the formats and offers that Gatwick is aiming to develop through this process, Geffroy identifies fast casual as key.

“We would like to have a mix of seated space with grab & go options within these so passengers can choose depending on their needs that day. Packaging should be appropriate so you can take it with you to consume on the plane. We would like to see more of this.”

The need for variety of menu choice is clear, with Gatwick home to a strong leisure passenger base but with broad demand across demographics or those travelling alone or in groups.

“Each person in a family or travelling party may want a different dining option but they expect to sit and eat together. We need to be able to respond to the requirements of groups, especially in our larger units,” added Geffroy.

Gatwick passenger traffic could potentially reach 80 million by the late 2030s amid forthcoming phases of expansion

Adding further detail, he noted that the F&B contracts coming to market will typically run for seven years, with the North Terminal bar unit potentially running longer given capex demands due to planned expansion. Gatwick will employ the traditional model of a concession fee with a minimum guarantee linked to traffic (rather than fixed).

Following the tender launch yesterday (15 September), submissions are due by 10 November, with a selection process slated to run into early 2027. The first new contracts will begin trading in 2028.

Summing up the potential, Geffroy said: “London Gatwick is on a journey of growth, so this is the opportunity to work with us and to be part of that story. We are passenger-centric in all that we do, as we have demonstrated with how we have invested in our terminals and our public spaces.

“It is a matter of finding strong alignment and commonality in our thinking that we should serve passengers in the very best way we can. And we want partners that think like we do.”  ‍

TENDER ALERT 

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