Dermot Davitt tours the new-look commercial programme at New York JFK Airport Terminal 8 with retail developer ASUR Airports, and discovers a diverse and dynamic set of concepts across retail and food.
USA. The US$125 million commercial redevelopment programme at New York JFK Airport Terminal 8 stands out for its reimagined use of existing and expanded space, bright, welcoming store environments and above all how it brings New York City and Queens brands thrillingly to life across food and retail.
The redeveloped American Airlines terminal, now close to completion, is part one of the US$19 billion Port Authority of New York and New Jersey JFK transformation initiative, with the T8 commercial programme steered by ASUR Airports (formerly URW Airports) introducing more than 60 new concessions.
The result of the investment to date – with completion due around year end – is a fresh, vital look and feel across dining, duty free and speciality retail, digital and entertainment.
The Moodie Davitt Report toured the space in late February with ASUR Airports Vice President JFK Ian Carter. The tour offered a sneak peek of the terminal which is scheduled to have its grand opening on 21 April.
The project builds on a US$400 million terminal expansion and modernisation completed in 2022, which saw oneworld alliance partners British Airways, China Southern and Iberia join the strong airline network led by anchor partner American. The terminal broadly serves a 50:50 domestic to international traffic split today, compared to 60:40 previously. This was driven in part by the introduction of key carriers Alaska and Hawaiian Airlines to the terminal, each serving a far-flung domestic audience.
That 2022 project in turn encouraged a greater focus on duty free, while also demanding that the domestic-international split was commercially catered for in appropriate ways across the various concourses.
Upon entering the airside arena you immediately see how dramatically the duty-free environment has changed, with double-height luxury stores installed as the first spaces you encounter post-security. Breitling’s watches fascia sits impressively out front in the multi-brand environment, with other dedicated micro-boutique spaces for BOSS, Lacoste, Longchamp, Marc Jacobs, Montblanc and TAG Heuer.
Ian Carter says, “Because we were the incumbents on this project with a rich history – ASUR Airports/URW Airports has been a T8 partner for over 20 years – we knew every square inch of this building that we wanted to maximise, and this post-security area is probably one of the most dramatic instances.
“We have taken under-utilised space and used it as an opportunity to drive more productivity. It adds to the passenger experience and really makes a statement.”
The ramp that led to gates essentially by-passed the commercial space; now travellers are guided through the retail to their left instead, encountering luxury followed by liquor including the US duty-free sector’s first Speakeasy bar tucked into this offer, and beauty across the hall in separate stores.
Across the duty-free stores, including luxury, local flourishes are also present, with for example New York design or logos built into fashion items or writing instruments.
Carter says: “It was paramount to bring local into the overall programme in new ways. Under our contracts we have a 5% local SKU requirement for both duty free and travel essentials. It might sound low but imagine the amount of total SKUs going through these programmes and the reach is pretty impressive.”
Crucially, terminal wide, the participation of New York City-based operators and brands is over 50%, with 15 of these brands new to airports. Some are participants in the terminal’s Retail Accelerator programme, while two concessions are licensed or managed under JV by graduates of the Port Authority’s Institute of Concessions, launched in 2023 to help small, local business owners learn the skills necessary to compete for opportunities at JFK.
With the terminal layout, radical changes to space were not easy and introducing for example a walk-through store for duty free not practical. But what ASUR Airports has done well is maximise sightlines, flow and positioning of stores to create a far more coherent and user-friendly experience compared to what went before.
A new dining universe at T8
Among the biggest transformations was the development of The Boroughs Food Hall, operated by a joint venture of MERA (a first US presence for the private multinational F&B concessionaire that originated in Mexico) and small businesses – New York City-based Tsion Enterprises, Texas-based Food Cycle and Massachusetts-based South River Partners.
Together they have delivered a bright, appealing and varied chef-led food hall offering spanning local specialities, street food, upscale dining, health-conscious options and comfort food under one roof.
The food hall line-up features:
- Cobblestones, a well-known local, Queens bar that serves craft beers and a full mix of speciality cocktails.
- Black Star Bakery & Cafe, with five locations across NYC, including Long Island City and Queens.
- Mito, with six locations in New York City, including Forest Hills and Queens, offers modern Japanese dishes, including grab-and-go, sushi and more.
- Naya, a vibrant Middle Eastern concept taking off in New York City, features its ‘create your own bowl’ concept.
- Flavortown Kitchen, a showcase for celebrity Chef Guy Fieri.
- BKLYN Blend, a juice bar and health food restaurant in Brooklyn and a Port Authority Institute of Concessions graduate.
- Bagel Boss with its authentic New York-style bagels made on-site at JFK.
- Le Petit Gourmet, of Garden City, offers a selection of high-quality foods in its grab & go culinary experience.
MERA and partners also far exceeded the 25% local brand requirement, with the New York flavours and brands the signature elements of this space.
What stands out compared to a traditional food court is the open and inviting layouts, the attractive aromas of fresh food in preparation, plus the distinct seating areas for each concept along with more secluded space for quiet moments around the edges of the hall.
Maximising space
The food hall also overlooks and connects with new entertainment and activation area developed by ASUR Airports known as ‘The Show’. This is used to promote the commercial programme and offers the chance to activate the space by showing sports on a large screen or hosting live music sets.
Carter says: “This space can promote and drive sales, which obviously increases the overall revenue that tenants can deliver. This creates a central hub of activity in the airport that we didn’t have before.”
Either side of The Show are two powerhouse national brands in Shake Shack and Starbucks, occupying space that was essentially fallow before this programme took shape.
Carter says: “Two years ago we had one sunglasses store across 675sq ft on one side of the concourse but the rest of the space was under-used. We increased the square footage by +541% through this run, which is now at that core of our commercial programme, anchored by these two great brands, and gone from something that was relatively small to creating volume potential that is much larger.”
Walking along the concourse, the detail of the transformation and rethinking of how space is maximised becomes clear.
Store fronts are presented in a more consistent way, for example through the wood framing that surrounds the frontages, within which brands can express themselves individually.
The removal of automated walkways – a big investment within the overall project – has freed up seating space adjacent to retail, with integrated spaces for working and more comfort for travellers.
ASUR has also cleverly taken advantage of building concessions out towards where natural light floods in, notably in sit-down F&B locations, allowing people an environment in which to relax.
Perhaps most strikingly, the concourses feature a blend of permanent or temporary spaces for local brands from mindful and wellness concepts to hip, up-and-coming New York niche fashion brands. Many of these operate on one-year terms, with a sales target rather than a minimum guarantee part of the agreement.
At its core, this programme is intended to change brands and offer regularly, creating a pipeline of opportunity to local and small businesses.
Carter says: “Encouraging these brands was about offering multiple entry points to the airport. We invested US$1 million into this acceleration programme to build the infrastructure. The idea was to create essentially a shell that would allow operators to come in, pop their product on the shelf, turn the lights on and go, without all of that added complexity and high build-out costs you see at airports.
“We have seen some excellent results from these small businesses and are moving into a second phase where we will introduce even more.”
As well as providing capital, the ASUR team is constantly supporting these small players on marketing and operations, while coaching and mentoring the businesses. This represents is a big commitment in time and energy but it also falls under the ASUR commitment to supporting the Queens community.
These local offers complement the many strong retail and dining offers dotted along the way, including a New York City-themed Hudson, plus the first directly operated stores at US airports from Pret A Manger and I Love NY Gifts, a popular destination brand from the city.
Carter says: “We are very excited about the direct operations we have added here. Pret has a great footprint with an eye-catching design out front and is a brand that resonates with our UK travellers.
“I Love New York Gifts is another example. They are huge throughout New York City, but this is their first in-terminal stand-alone store, and they are about +40% above where they had expected to be to date.”
There is a tremendous mix of F&B dotted through the space, from Brooklyn-born concepts managed by local players to Latin flavours from Zaros and Dos Toros to a soon-to-arrive airport opening for historic Queens landmark bar Neir’s Tavern.
Other additions will include celebrated New York City ‘meat-centric’ steakhouse Bowery Meat Company, the popular Black Tap burger and beer concept, Italian neighbourhood wine bar Nolità, and a big highlight in David Chang’s innovative Asian-American fusion restaurant Momofuku.
With some hoarding still to come down on several locations – which also include Duty Free Americas-operated Lego and M&M’s stores – the commercial spaces should be completed airside by year-end.
With some spaces still to open, it is not easy to compare pre- and post-transformation results until all concepts have had the chance to trade over a period.
But Carter says that T8 is “outperforming our pre-development sales results”, adding that the early indicators for new concepts are “very positive”.
Projected estimates are for a healthy US$36+ in sales per enplanement in 2026, from around 6 million departing passengers.
That forecast boost to spend levels is closely entwined with a much-enhanced terminal experience for guests, one that features a smoother flow and easier sightlines, dramatic new architectural elements and a series of well-balanced ‘districts’ across retail and food, where local heroes take their place alongside national and global brand favourites.
Those combined elements should ensure the new T8 plays its part in lifting the reputation of New York JFK to fresh heights following this period of transformation. ✈
*The full version of this article (including more on the Avolta-led duty-free offer and the acclaimed Eataly dining concept) appears in The Moodie Davitt Magazine for March-April; click here for access.
