AGS Airports launches ambitious F&B tender at Southampton Airport

UK. AGS Airports-operated Southampton Airport has launched a request for proposals (RFP) for a new food & beverage programme involving three units across 1,000sq m.

Under a contract which will run for a minimum of five years and a maximum of seven, the outlets will occupy two prominent airside spaces with runway views and a landside bar.

In addition, a duo of café spaces will become available in a tender in about 18 months from now.

The airport is looking for a single operator to take on management of the three initial spaces tendered. AGS Airports Group Retail Director Tom Hack told The Moodie Davitt Report: “We need a model that delivers a good balance between customer experience and returns for both the partner and the airport. Given the size of Southampton, this will mean keeping the number of different operators to a minimum.

AGS Airports Group Retail Director Tom Hack told The Moodie Davitt Report that traffic at Southampton Airport is expected to more than double over the next four years

“It’s therefore imperative that we can find the right partner who will focus on the product development and delivering the best facilities for our evolving passenger and airline mix.”

Asked about the style of F&B spaces Southampton Airport is seeking, Hack said that based on passenger surveys customers would like to see “short duration, quality dining experiences”.

The three main F&B spaces at Southampton Airport are currently operated by ESS (Compass Group). Food from the ESS Olive Tree concession at the airport is pictured.

He added: “The short-haul nature of the flight schedule doesn’t yet demand a long, full-service restaurant experience. However as we rapidly increase our passenger volumes, we will need a dynamic operator, able to identify and react to the changing needs of our customers with longer dwell and flight durations.

“Presently, the airport profile means we need to partner with an operator who can provide an enticing and quality pub with good quality, locally sourced pub meals, a café and a grab and go coffee offer.”

On the qualities he is looking for in the new F&B operator, Hack outlined: “We need an experienced airport operator prepared to invest the time and have the dynamism to work in partnership with the local airport management teams to ensure there is constant evolution of the offer.

Southampton Airport is located next to both the M27 and M3 motorways, providing road access for travellers from across the Central South region. Additionally, Southampton Parkway Railway station is less than 100 steps from the terminal building, allowing passengers to reach London Waterloo station in just 77 minutes by train.

“We want to work in partnership with an exceptionally driven local manager to review flight times, airline mix and passenger volumes on an hour-by-hour basis to ensure the right units are open at the right times so we can optimise the returns.

“They need to take an active lead in assessing trends and behaviours and respond accordingly. To optimise a rapidly evolving airport such as Southampton, we cannot afford to appoint a partner and then stand back. The airport needs to be heavily invested in the relationship.”

The plan is for the new facilities be in place and operational by peak summer 2025, with the successful bidder being appointed in Q4 of 2024.

Hack noted that AGS Airports expects annual passenger numbers to double to 1.8 million over the next four years under its growth plan, fuelled by a substantial increase in holiday traffic. The target is to serve over 2 million passengers at Southampton Airport by the end of the decade.

Two major European airlines which regularly fly from Southampton Airport, easyJet and KLM

“This growth trajectory will be primarily fuelled by an increase in leisure flights, introducing a dynamic shift from our pre-COVID Flybe-centric passenger profile which was primarily business travel,” he said. “As we pivot towards this new demographic, it is imperative that our commercial facilities evolve to meet the changing needs of the new SOU traveller.

“We are committed to enhancing the travel experience through significant investments in infrastructure, amenities and services. These improvements will not only accommodate the rising passenger numbers but also ensure a seamless and enjoyable journey through our airport.

“Our vision is to transform Southampton Airport into a leading regional airport for the Central South, offering unparalleled connectivity and convenience. As we embark on this exciting journey of growth and transformation, we invite you to join us in shaping the future of air travel.”

Hack pointed out that the tender winner at Southampton could later access wider opportunities across the AGS network. He told us: “Southampton is part of the AGS group of airports that also includes Aberdeen and Glasgow and will see just under 12 million passengers pass through our doors across the group this year.

“A successful operation at SOU has the potential to unlock further opportunities across the group.”

* Read our recent exclusive interview with Tom Hack, in which he assesses the commercial potential of the three UK international airports in the AGS Airports portfolio here

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TENDER ALERT 

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