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Presented by: Les Cappetta CEO SSP America, Inc. December 2-4, 2012

Meeting Host and Presenting Sponsor. Presented by: Les Cappetta CEO SSP America, Inc. December 2-4, 2012. Preparing the Emerging Business Owner for Participation in the Concessions Space. Meeting Host and Presenting Sponsor. Characteristics of Successful ACDBE Entrepreneurs

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Presented by: Les Cappetta CEO SSP America, Inc. December 2-4, 2012

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  1. Meeting Host andPresenting Sponsor Presented by: Les Cappetta CEO SSP America, Inc. December 2-4, 2012

  2. Preparing the Emerging Business Owner for Participation in the Concessions Space Meeting Host andPresenting Sponsor • Characteristics of Successful ACDBE Entrepreneurs • Criteria for Selecting ACDBE Candidates • Barriers and Challenges to Selection, and Economic Success in Airport Concessions Programs • Unique Attributes of Food and Beverage (F&B) Concessions, Versus Retail/Other Concessions

  3. Characteristics of Successful ACDBE Entrepreneurs • Full understanding of the overarching objectives and mechanics of the program; • Active involvement in the National AMAC Community, the local community and airport matters; • Certified in home state – ready for opportunities as they surface; • Understand the pipeline of upcoming opportunities – focus on specific airport and packages; • Understand the many differences between airport and high street opportunities;

  4. Characteristics of Successful ACDBE Entrepreneurs…Continued • Differentiated – family business style, brand relationships in hand, familiar with decision making process and well known operator in the community; • Well schooled – studied successful ACDBE operators, prime concessionaires and concessions programs; • Align with a strong/growing prime, which has a solid track record and a commitment to the ACDBE program; • Know your company’s strengths and limitations – what do you bring to the table, what are your capital, time and leadership constraints?

  5. Criteria for Selecting ACDBE Candidates • Concessionaires select those partners which yield the highest probability of success (e.g., great operators, commitment to quality, well regarded in community); • Candidates must have the same passion/philosophy for great food and exemplary customer service as their prime partner; • Candidates should have experience in restaurant operations, supply chain, design and construction, goods and services, etc., and display strong business acumen; • Candidates must have financial backing, understand and be prepared to assume the risk of airport concessions operations;

  6. Criteria for Selecting…Continued • Candidates must commit to being active in the business – passive involvement is a thing of the past; • Candidates should be prepared to out hustle the big boys – understand what makes them different; • Candidates who are active in the local community, understand the municipality’s needs and expectations, and the unique attributes of the local market have an advantage; • Candidates who understand the decision making process, the elements of the tender, and are known by the client have an advantage – if all things are equal, folks prefer to do business with acquaintances versus strangers.

  7. Barriers and Challenges to Selection, and Economic Success in Airport Concessions Programs • You are your company’s brand equity and identity – always deliver on your commitments – be fair and reasonable; • The new regulations correlate equity investment and active contribution/participation – risk and reward are balanced; • Chances for success elevate with active involvement; • Financing – loans cannot be leasehold collateralized and pledging personal assets is risky…undercapitalization and the inability to weather a economic storms is dangerous;

  8. Barriers and Challenges…Continued • Spreading scarce leadership talent across too many geographies and too many diverse exposed businesses increases risk; • Entrepreneurs must not only anticipate the evolving needs of travelers, consumers and the local community, but they must also be able to react quickly to changing market conditions (e.g., new competitors, airline movements, rising costs); • Engaging with brands and partners without completing advance background checks is dangerous; • Deal structures may vary (JVs and Subs) and both have benefits and detriments.

  9. Unique Attributes of Food and Beverage (F&B), Versus Retail/Other Concessions • F&B development is capital intensive – initial build out and midterm • F&B is labor intensive and requires associates with multiple diverse skills; • The F&B product landscape evolves at a very rapid pace (organic, natural, gluten free, hyper-local, ethnic, nutrition/health, micro brew, etc.) • Delivery of the F&B product has higher risk than delivery of other products (food borne illness, taste/quality, speed of service, etc.);

  10. Unique Attributes of Food and Beverage…Continued • Food programs have become more local and chef centric – understand this phenomena and link with the best early; • Great food, passionate service, in well marketed/edgy environments will drive food sales quicker than sales in other categories.

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