Concession Delivery System Washington Dulles International Airport

1. Concession Delivery SystemWashington Dulles International Airport

2. Background • Airports Authority built commissary in 1992 to house centralized delivery system • Prior to Westfield • Host was master operator (operating 50% of units) • Host ran the commissary and delivered to itself and other food and beverage tenants • Westfield awarded food and beverage contract April 2004 • Management contract only • Assumed responsibility for commissary operations

3. Operating Conditions • Multiple Operators • New contract created a number of owners, each with only 2 or 3 locations • Only food tenants used Commissary • Retailers received direct deliveries from FedEx and UPS • Not required to use the commissary system

4. Facility Constraints • Commissary • On airport, landside only • Only location with capacity to accommodate central deliveries • No Loading Docks • No freight elevators in Midfield concourse C/D • Pallet deliveries broken down at Commissary and placed on smaller carts, or • Unpacked on ramp at delivery points

6. Commissary Services • Deliveries at the Commissary • Broken down • Grouped for delivery by concourse • All food vendors required to participate • Only exceptions for highly perishable product, e.g., Dunkin Donuts. • Contractor costs passed directly to tenants • Based on utilization (number of cartons delivered) • No Westfield mark-up • Contract Cost: $700,000 per year, estimated

7. Challenges • Adds an extra layer of occupancy costs to tenants that they cannot directly control • Requires communication and coordination between commissary and tenants to ensure deliveries are promptly accepted and unpacked • Tenants must still bear the cost of having staff in place to accept and unpack the shipment

8. Lessons Learned • Planning concession sales and storage space is key to efficient deliveries and storage • Lack of loading docks or dedicated delivery spots, and lack of freight elevators, makes deliveries and unpacking more time consuming • increases the amount of time that food remains out of temperature controlled environment • Increases potential for ramp traffic conflict

9. Lessons Learned • Storage space needs to be large enough to accommodate and unpack deliveries. • Close coordination required between commissary and tenants to ensure properly acceptance and unpacking of deliveries • Documentation of delivery and acceptance is critical

10. Lessons Learned • Having a central commissary facilitates screening of product where deliveries arrive from street-side. • A commissary large enough to accept all product deliveries before distribution to individual locations will be critical to any implementation of 100% product screening.