NORTH AMERICA. HMSHost will strike new coffee brand partnerships at airports in the US after it ended its exclusive agreement with Starbucks, which has run since 1991.
HMSHost said in a statement: “On Monday, HMSHost informed Starbucks of the plan to move away from exclusivity in an effort to broaden our portfolio of coffee brands based on what consumers and airport partners are demanding. HMSHost will continue to be a Starbucks partner and look forward to our new relationship as we serve our travellers.” The company has non-exclusive partnerships with Starbucks in other markets worldwide.
HMSHost confirmed plans to “evolve its brand portfolio” and strike new agreements, saying it was underpinned “by increased consumer interest in local, sustainable and customised options in the popular coffee category”.
HMSHost President & CEO Steve Johnson said: “It’s an exciting time for HMSHost, and we have the opportunity to continue our expansion of local food flavours. We have had great success in bringing regional chefs and popular city dining favourites to airports and we’re ready to do the same with the coffee category. While we have, and will continue, a long partnership with Starbucks, we’re continuing to innovate in this space and focus on serving consumer and airport partner needs.”
The travel food specialist highlighted the strong growth of coffee as one of the fastest growing beverage categories. “After years of exceptional growth in local and regional brands across all other restaurant categories, including casual dining and quick-service restaurants, HMSHost recognised the need to expand this approach in its coffee brands to unleash the growth potential in the category.”
Steve Johnson told The Moodie Davitt Report: “HMSHost is currently evaluating its overall approach to coffee and is excited to expand our brand offerings in the future. Many emerging coffee brands are gaining traction and HMSHost wants to be able to be part of their growth and success stories.”
Asked if he had any concerns about moving away from exclusivity with such a recognised brand as Starbucks, he said: “Travellers are consumers and we know they expect a diverse portfolio of restaurants and brands in the airport just like they experience in their local cities. More and more airports are looking to showcase their communities’ most successful local favourites.
“Nearly all RFPs issued by airports are now carving out spaces for local coffee concepts, or asking for a variety of coffee brands. By moving away from our exclusivity with Starbucks, HMSHost will be positioned to pursue more RFP opportunities. We see a great future ahead of us and are looking forward to the new opportunities to innovate with this change in strategy.”
He said that HMSHost will now focus on working with emerging coffee brands to improve variety and add new, creative store formats to airports. “Imagine coffee shops during the day that are designed to transition to lively bars in the evening with great music entertainment; concepts that blend seamlessly with retail and newsstand experiences for the utmost in traveller convenience; innovative mobile carts that move from gate-to-gate; and coffee shops built for speed through highly efficient designs that eliminate lines, streamline menus and use the latest technologies to facilitate fast ordering and production.”
Among the latest HMSHost dining agreements is a ten-year contract at Jacksonville International Airport. This will include a partnership in Concourse A with Florida-based chef-driven coffee house Southern Grounds.
