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SSP America President & CEO Les Cappetta |
USA. Leading travel food & beverage specialist SSP America has revitalised the food & beverage offer at New York JFK International Airport Terminal 4 with a range of new restaurants. The Foodie Report went on location for the unveiling of the new Phase 1 concepts last Friday 24 May. SSP America President & CEO Les Cappetta discussed the grand new offer over a Shake Shack burger.
“The response has been nothing short of phenomenal. With the arrival of the new Delta flights combined with the quality of the new offerings, sales have nearly doubled in Terminal B. Travellers, airport and airline employees, JFKIAT [airport operator JFK International Air Terminal -Ed], Delta and SSP management are delighted. Brand partners Marcus Samuelsson and Danny Meyer are very pleased – the food is delicious, the design and construction are unrivalled in the industry, the service is sensational – and all will get better over time.”
The food & beverage programme is part of a US$28 million terminal development project and all new restaurants are scheduled to be completed by Autumn this year. SSP is the sole food & beverage operator at the terminal and operations are expected to generate over US$1 billion in sales over the course of the contract, which will run to 2026.
The Phase 1 openings coincided with the opening of Delta Air Lines’ US$1.4 billion Concourse B extension (reported in detail here), which is set to take passenger numbers from 11 million currently to 15 million by 2014. The 346,000sq ft extension takes the total terminal floor space to 2 million sq ft.
The passenger mix has changed significantly with the arrival of Delta, boosting numbers of US travellers significantly. To cater for the surge in US passengers and to create a Sense of Place for international customers, the offer combines a diverse mix of distinctive New York chefs and restaurants, national and international brands, and powerful local concepts, says Cappetta.
It includes many “˜firsts’ to the airport market, including the first ever airport Shake Shack and Marcus Samuelsson restaurant in a North American airport.
Phase 1 concepts started operations on Friday 22 May. Joining the line-up is New York inspired Uptown Brasserie by Top Chef Masters’ champion and James Beard Foundation award-winning chef, Marcus Samuelsson.
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A taste of New York: Uptown Brasserie by Marcus Samuelsson |
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Restaurateur Danny Meyer and Union Square Hospitality Group teamed up to bring popular downtown “˜roadside’ burger stand Shake Shack serving all-natural burgers, flat-top dogs, frozen custard and shakes. A second location is opening at the terminal soon.
Inspired by Danny Meyer’s flagship barbecue restaurant in Manhattan, Blue Smoke On The Road offers ribs, seasonal sides, and speciality cocktails.
La Brea Bakery was created by Pastry Chef Nancy Silverton, offering a variety of sandwiches, salads, fresh artisan breads and pastries.
Bakery concept Cake Tin serves cupcakes and sweets with Lavazza’s extensive line of coffees. Popular national steakhouse The Palm Bar & Grille is being expanded along with Buffalo Wild Wings, which offers a variety of menu options including wings with 20 signature sauces and seasonings.
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Danny Meyer’s Shake Shack was an instant success upon opening on Friday 24 May |
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“Engaging local chefs and iconic restaurant names is not new to the airport concessions community,” says Cappetta. “What is new and unique is how SSP works very closely with local artisans to ensure the restaurant is successful from opening day throughout the lease duration.”
Often one or two members of the brand’s management team will join the staff at the airport, which helps to ensure adherence to brand standards, and the brand owners will be involved in innovation of new products or service styles, explains Cappetta. In return, SSP can help them to increase sales and expose them to new market opportunities, while preserving their brand equity. “It’s not just a franchise or license relationship but a true restaurant partnership.”
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Cake Tin serves freshly baked and iced cupcakes with Lavazza’s line of coffees |
Forthcoming concepts include healthy concept Camden Food Co, globally inspired cuisine at Street Food by Marcus Samuelsson, SSP’s French-themed brasserie Le Grand Comptoir, 1930s inspired New York restaurant Central Diner, and Asobu, a modern, pan-Asian sushi bar set to appear in two locations.
Existing food & beverage concepts in the terminal include Panda Express, Zpizza, Upper Crust, Peet’s Coffee, Dunkin’ Donuts, and an expanded McDonald’s.
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Blue Smoke On The Road is adapted from the popular Manhattan barbecue restaurant |
In addition to the expansion which opened on 24 May, Delta earlier this year announced phase two of the Terminal 4 redevelopment plan that will include an additional 11 gates on Terminal 4’s Concourse B.
Construction on phase two will commence immediately. Upon completion in summer 2015, Terminal 4 Concourse B will house a total of 27 Delta gates and replace Delta’s current Terminal 2 regional jet facility. Delta has ceased operations at Terminal 3. The site will be redeveloped for operational use.
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SSP’s bespoke 1920s inspired Central Diner will open landside this year |
A brief history of SSP’s Terminal 4 operations
SSP’s history at JFK Terminal 4 tells a story of loyalty, partnership and success. The concessionaire secured a 16-year contract for exclusive T4 F&B operations in 2000 and built out the concepts just prior to 9/11. It was one of the airport’s last major pieces of development before the change in airport security, when there was limited F&B and retail available post security. To fill this airside gap, SSP invested US$15 million in the building of the Palm Bar & Grille, Buffalo Wild Wings, Tigin Irish Pub, Panda Express and Peet’s Coffee & Tea.
“Construction of these new restaurants was just commencing when the recession hit in 2008,” recalls Cappetta. “The recession drove many Terminal 4 carriers to eliminate routes, reduce frequencies and, in some cases, cease operations. Despite the rest of the industry freezing capital investment to weather the recession, SSP never stopped investing in its future at JFK.” This commitment would soon pay off.
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Due to its popularity with Terminal 4 passengers, Buffalo Wild Wings will be expanded |
In 2011, Delta’s US$1.4 billion investment in T4 and the expansion opened up more concession opportunities. “SSP competitors attempted to gain a foothold in T4 despite SSP having an exclusive on all food & beverage through contract-end,” recalls Cappetta. “The JFKIAT President told its parent company (Schiphol): “˜We asked SSP to invest millions in JFK 4 and they did so despite the recession. They run a very good shop and are our provider of choice; we don’t feel the need to bid these B improvements.'”
Despite the endorsement from JFK, Schiphol wanted to ensure they were getting the best deal possible and requested to put the contract out to tender, says Cappetta.
“Out of the deepest respect to our JFKIAT client, and never being fearful of a good rumble, we agreed to allow competitive submissions on our real estate. Competitors made offers but could not rival our proposal. Thus, the extension agreement was finalised with SSP and we invested US$7 million in these new stores, with much more to come.
“JFK 4 is quickly becoming one of SSP’s North American showcase locations in addition to Toronto, Houston, Phoenix and San Diego. Meanwhile, the pipeline of future opportunities is very strong and we intend to battle hard for more than our fair share of these upcoming opportunities.”
*NOTE: The Moodie Report and The Foodie Report’s third annual Airport Food & Beverage (FAB) Conference and Awards will be hosted this year by Dubai Airports at Atlantis, The Palm. Click here for more details or email Joanna.Puckett@TheMoodieReport.com
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Atlantis, The Palm will host the highly anticipated FAB 2013 Conference and Awards | |
