RV 2014: Riders, Revenue and Rubbish- Managing Concessions and Making Money

VENDINGFOOD & BEVERAGE

and SPECIALTY RETAIL

Presented by Denise D. Whitfield - Retail Development & Concessions PlanningMetropolitan Atlanta Rapid Transit Authority (MARTA)dwhitfield@ itsmarta.com (404)848.5326

1

MARTA RETAIL CONCESSIONS

http://www.atlantaintownpaper.com/wp-content/uploads/2013/09/MARTA-logo.jpg

MARTA – A FEW FACTS

Ninth largest transit system in the country that provides bus, rail and paratransit services

Approximately 500,000 passenger boardings each weekday

Operates in 38 stations covering 48 miles of rail

Funded by a one cent sales tax collected in the City of Atlanta, Fulton and Dekalb counties

Receives no financial assistance from the State of Georgia

2

Five Points Station


3

Retail Concessions Program Objectives

• Generate new non-fare box revenue• Minimize financial risk• Implement retail program in phases (I and II)• Ensure long-term growth (10-20 years)• Provide amenities for our customers• Partner with local, regional and national brands• Retain experienced partners


Business / Revenue Model Considerations

• Contributions to infrastructure

improvements

• Understanding potential

vendors’ barriers to entry

• Contract Term – How long

• Implementation - When

• Operations and Management

• Desired long term results

4

5


• Phase I - Challenges We Faced – No sales history, no guarantees, no proven concepts– Lack of retail concessions experience– Stations designed for their purpose (but not for

retail)–Manage unrealistic expectations

• Phase I - Outcomes We Experienced–Guaranteed revenues of $1.3MM– Customers support retail concessions– Expanded opportunities for small and local vendors– Retained experienced partners


Best Selling Snacks

6

Phase I

Dasani Coke Sprite Pepsi Mountain Dew

Average price $2.00 Average size 20 ounces Sales YTD - $1.8MM

Best Selling Beverages

Crunchies

Pastry

Chips

Candy

Breakfast Treat

Average price $1.50 28% of beverage sales Sales YTD - $500K

Phase I

http://www.google.com/url?url=http://adacocacola.com/soft-drinks/&rct=j&frm=1&q=&esrc=s&sa=U&ei=SkwbVKOtA4qrggSAzoC4Dw&ved=0CDgQ9QEwEQ&sig2=NbG3m8xUdcd5JnhlvMHWzg&usg=AFQjCNHNRi2km8MPqyhHJttxEV6KWSWVRg

http://www.google.com/url?url=http://en.wikipedia.org/wiki/Dasani&rct=j&frm=1&q=&esrc=s&sa=U&ei=mEwbVILuFcPoggTi_YC4AQ&ved=0CCgQ9QEwCTgU&sig2=zG9g-FrPlMXXvK1GS9w1TQ&usg=AFQjCNFZUfekcqnJVVf7m7Eptm2R9vugBA

http://www.google.com/url?url=http://www.couponingtodisney.com/hot-11-mountain-dew-20-oz-coupon/&rct=j&frm=1&q=&esrc=s&sa=U&ei=ykwbVIChC5CmggSPkoHwAQ&ved=0CCgQ9QEwCQ&sig2=kRZUppawCZEVUj-MYtMR2g&usg=AFQjCNGoAWWorFzUabg6dfTCBGMWSY_Taw

http://www.google.com/url?url=http://www.avacoffeelv.com/shop/product_info.php?products_id=293&rct=j&frm=1&q=&esrc=s&sa=U&ei=NU4bVKLUIYvBggTx44GoDg&ved=0CBYQ9QEwAA&sig2=OTw8KEz_1Tjrjz_Pv3QrSA&usg=AFQjCNEjUtMzuEAQqiqcaZVDCgZtSaTCeg

https://www.google.com/url?url=https://www.happyspeedy.com/content/sprite-20oz&rct=j&frm=1&q=&esrc=s&sa=U&ei=YlgbVP-DL425ggS0hIGICQ&ved=0CBoQ9QEwAQ&sig2=mXmz8j9bYLYoBk8EV12DgA&usg=AFQjCNEzq0h9xasoQ1qk-JxPUIUjLNp9UA

RETAIL CONCESSIONS – PHASE II

Potential Retail Concepts

• Beverages and Snacks• Grab N Go Salads • Fresh Fruit and Vegetables• Coffee, Cupcakes, Donuts• Frozen Desserts• Sandwiches, Popcorn, Pizza• MARTA Store• Automated Teller Machines• Lottery Ticket Sales

7

A Recap of Our Journey - Where We Started

• 2009 - GA state law changed• 2010 – Phase I – Vending implemented• 2011 – Psychographic study conducted• 2012 – Industry Day held to engage the

public• 2013 – Initiated Phase II solicitation process


8


9

Where We Are Today

• 2014 – Retained Greystone Management Solutions as our partners

• 2014 – Station Traffic Review to ensure appropriate retail site locations

• 2014 – Concessionaires’ Input• 2014 – Issue solicitation/Identify operators• 2015 – Implement Phase II

$ 2,300,000 in Sales

$1,000,000 Revenue

The Best is Yet to Come


10